Murdoch, the chairman and CEO of News Corp, said: "Our proven ability in taking advantage of new platforms and the momentum we continue to generate at our established businesses gives us great confidence as we head into fiscal 2007."
Newspapers were held back by the loss of revenue from the TSL Education business, which included the Times Educational Supplement, sold in October 2005, redundancy costs in printing and a weak ad market in the UK.
Newspapers' operating income declined from $740m for the 2004/5 financial year to $517m for this financial year ended June 30.
At the filmed entertainment division, housing 20th Century Fox, annual operating income rose 3.2% year on year to $1.09bn, helped by the popularity of 'Ice Age 2' and 'Walk The Line'.
Television operating income rose 8.4% to $1.03bn and cable network programming operating income climbed 23% to $864m.
Direct broadcast satellite television made a turnaround from a $173m operating loss to a $39m operating profit, thanks to the growth of Sky Italia.
Magazines and inserts operating income grew 3% to $307m, while book publishing grew 2% to $167m.
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