Despite the scale of the loss, the biggest in Australian corporate history, News Corp still managed to beat Wall Street expectations with third-quarter pre-tax profits, before expenses and abnormal items, of $236m, up from $127m a year ago.
Rupert Murdoch, chairman and CEO, said: "The substantial non-cash write-down of our Gemstar investment does nothing to alter our firm belief in the strategic value of this powerful asset. Moreover, our balance sheet is stronger than ever, providing us with greater financial flexibility during an uncertain time."
Revenues at the group rose to $3.85bn, up from $3.27bn last time, boosted by a strong performance from its filmed-entertainment unit Twentieth Century Fox, which reported revenues of $1.06bn against $877m last time.
The company said the film unit was boosted by the release of animated smash 'Ice Age', which has brought in $300m at the box office since it was released in March.
Operating income rose to $549m, up from $356m a year ago, helped by a strong performance by Twentieth Century Fox Television, home to US programmes such as 'Buffy the Vampire Slayer'.
The TV unit posted operating income of $114m, up from $99m, helped by the success of syndicated TV shows such as 'Seinfeld' and 'King of the Hill', as well as the integration of the Chris-Craft stations, the acquisition of which was completed in July.
The newspaper division, which owns News International, publisher of the News of the World, The Sun, The Times and The Sunday Times, said operating income fell 6% to $126m as a result of the advertising downturn.
"We are extremely pleased with the robust growth achieved this quarter across all our operating segments in the US, as well as our continued strength internationally," Murdoch said. "Our film sector nearly quadrupled the prior year's operating income, building on its positive momentum with exceptional DVD and video sales, as well as the record-breaking release of 'Ice Age'."
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