Struggling ad biz hurts News Corp.

November 05, 2008 News Corp. has seen a "marked deterioration" in advertising business momentum and currency trends since August, management said Wednesday afternoon, forcing it to reverse its full fiscal-year operating profit guidance from a small gain to a double-digit decline. The reduction in guidance came after News Corp. reported weaker fiscal first-quarter earnings due to a new investment and some recently sold-off assets. The company in August had predicted a 4% to 6% gain in fiscal year operating profit, but CFO David DeVoe Wednesday changed that projection to a decline in the low to mid teen percentages.

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