News Corp.’s Net Income Falls 20%

News Corp., the media company controlled by Rupert Murdoch, said its fiscal fourth-quarter profit fell 20% on costs associated with the start-up of its Fox news channel and lower revenue at the Sun newspaper in Britain.

Profit from operations at the world’s fifth-largest media company fell to $214 million, or 21 cents per American depositary receipt, from $266 million, or 27 cents, in the year-ago quarter. The earnings were below Wall Street’s expectations of 24 cents per share.

Revenue was little changed, rising to $3.27 billion, from $3.24 billion.

News Corp. continues to post losses at the Fox News cable network and its Star TV satellite operation. It also sold less advertising than expected at its Fox network, contributing to a 5% decline in operating income in the TV division, to $186 million. News Corp. also posted lower profit at its newspaper and book publishing units. Film results improved, as the success of “Star Wars: Episode I The Phantom Menace” helped lead to a higher operating profit.

Separately, Fox Entertainment Group Inc. said it earned $35 million, or 5 cents a share, in the fiscal fourth quarter, compared with $3 million, or 1 cent, a year earlier. News Corp. sold part of Fox to the public in November. The unit holds News Corp.’s U.S. film, television and sports assets.

Fox’s revenue rose 11% to $2 billion, from $1.8 billion.

Fox was expected to earn 6 cents a share, according to First Call Corp.

After extraordinary items are included, News Corp. had a fourth-quarter loss of $10 million, or 2 cents, contrasted with profit of $233 million, or 23 cents, in the year-ago period.

Sydney-based News Corp.’s ADRs fell 50 cents to close at $31.62 a share and Fox’s shares fell 56 cents to close at $22.69, both on the New York Stock Exchange.