Murdoch negative about ad budgets


Rupert Murdoch said last week that “stress in the US economy’ is squeezing advertising budgets, adding that News Corp’s Fox Interactive Media would miss an ambitious $1 billion annual revenue goal by 10 per cent.

But FIM, which oversees the MySpace online social network, is a “very healthy” business and expects “well over” $1 billion in revenue in fiscal 2009, Murdoch said on News Corp’s fiscal third-quarter earnings conference call.

“There’s no doubt the consumer economy is stressed. You’re seeing it affected in advertising, more short-term planning and booking,” said the News Corp chairman and chief executive.

The media conglomerate said fiscal third-quarter profit tripled on higher advertising sales at the Fox TV network and Fox News Channel, as well as a $1.7 billion one-time gain from its stock swap with Liberty Media .

News Corp, which also owns the 20th Century Fox film studio, said its net profit rose to $2.7 billion, or 91 cents per share, in the quarter ended March 31, from $871 million, or 27 cents per share, in the year-ago period.

Source: News Corp.


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