Rupert Murdoch has warned of less robust growth for News Corp this year, after the media giant delivered a 57 per cent jump in annual profit on the back of strong performances from its film and cable businesses.
The New York-based firm said its print operations had performed well because of the inclusion of the Dow Jones & Co media business and its Australian newspaper business benefiting from advertising growth.
News Corp posted a rise in net income, or profit, of 57.2 per cent to $US5.387 billion ($A5.8 billion) in the financial year ended June 30.
But the chairman and chief executive said News Corp expected tougher economic conditions in 2008-09.
Mr Murdoch said, ''Although we clearly face more challenging macro-economic conditions in fiscal 2009, we're well-positioned to deliver continued, if somewhat less robust growth.'' News Corp expects continuing operating, or underlying, income, to grow by between 4 and 6 per cent in fiscal 2009, and revenue to grow in the mid to low single digits.
In 2007-08 operating income rose by 21 per cent to $A5.79 billion.
News Corp president and chief operating officer Peter Chernin said the economic environment would become increasingly difficult, particularly for advertising.
''We expect to be operating in a much more difficult economic environment than we did this past year and a significantly more challenging local ad environment for both broadcast television and newspapers,'' he said.
Investors applauded News Corp's better-than-expected result, sending its shares up A63c or 3.9 per cent to $A16.73 on the Australian stock exchange. Its non-voting scrip added A69c to $A16.28.
Mr Murdoch said the company was ''extremely pleased'' with the continued growth it achieved during fiscal 2008.
''All of our business segments generated year over year gains, with record profits reported at our satellite broadcasting, cable programming, film and television businesses,'' he said.
News Corp's annual revenue rose by 15.1 per cent to $A36.07 billion.
Earnings per share grew by 68 per cent to $A1.97.
The results were boosted by a $A1.83 billion tax-free gain on the asset and stock exchange with Liberty Media Corporation, as well as gains from the sales of its interests in Fox Sports Bay Area and Gemstar-TV Guide International.
Film operating income for the year lifted 1.7 per cent to $A1.34 billion, after the box office success of films such as The Simpsons Movie, Juno and Fantastic Four: Rise of the Silver Surfer.
Television operating income rose by 17 per cent to $A1.227 billion, driven by a record annual results for Fox Broadcasting Co, as programming costs fell because of the writers' strike in the United States.
Its newspapers and information services generated full-year operating income of $A825.89, also up by 17 per cent.
The Australian newspaper group posted strong advertising growth, primarily driven by the strength of retail and real estate advertising, Mr Murdoch said.
''Our Australian titles are in extremely good shape and operating in an economic environment that seems to be very different to that in the US,'' he said.
Cable networks reported operating profit rose by 15.4 per cent to $A1.39illion after improved contributions from Fox News Channel and Regional Sports Networks.
Magazines and inserts segment operating profit was $A379.02million, up by 5 per cent.
Over the fourth quarter of the year, group net profit rose by 26.9 per cent to $A1.24 billion, from the same quarter in 2006-07.
Mr Murdoch said he was no longer negotiating with Yahoo Inc, Microsoft Corp and Time Warner Inc about potential partnerships or acquisitions.
''We've really moved on from those conversations,'' he said.
As a reaction to the slowdown in the US, Mr Murdoch said he was seeking further investments in Asia, Eastern Europe and Germany.
Earlier this week, he said he planned to invest $A109.3 million in six new television channels in India.
News Corp was reorganised in 2004 and redomiciled in the US.
The company's securities ceased trading under the Australian Stock Exchange codes. It began trading the next day as a United States company under the new name News Corporation, Inc. AAP