* Rupert Murdoch’s media group News Corp....
* Rupert Murdoch’s media group News Corp. said Tuesday that its annual profit rose 11% to $988 million, led by record earnings at its U.S. television business and a recovery in its British newspapers.
But analysts said the global media conglomerate’s fourth quarter performance was far weaker than anticipated.
News Corp.’s American Depositary Receipts plunged $1.50 to $22.50 on the New York Stock Exchange, as analysts downgraded their projections for next year’s profit.
“They were at odds with most expectations. A lot of the disappointment came from television in the fourth quarter,” said Lachlan Drummond, analyst at broker CS First Boston.
Analysts said the earnings were $22 million short of market expectations.
Fourth-quarter earnings were up only 5% before interest and tax. Some analysts had expected a rise of as much as 25%.
A strong improvement at Murdoch’s Fox Television in the United States and higher earnings from British newspapers underpinned the year’s record profit, News Corp. said.
Profit for the 12-month period to June 30 was before an abnormal gain of $17 million. Sales rose 5% to $9 billion.
A healthy U.S. television advertisement market and broadcast rights to National Football League games on the Fox network bought in 1993 for $1.58 billion were the chief contributors to a 26% rise in American television earnings, the company said.
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