News Corp, owner of the Fox TV networks, said it expects full-year earnings to be in the high single digits or the low double-digit figures.
News Corp had been expecting earnings growth to be between 20% and 26%.
Fox Entertainment Group has cut its ebitda growth to the teens. It had been expected to be up between 31% and 37% to between $1.48bn (£1bn) and $1.55bn (£1.06bn).
The figures were announced by News Corp president and COO Peter Chernin. He said, "Almost all of it was advertising related and I expect to see increased cancellations from advertisers in the future."
Referring to the terrorist bombings in New York and Washington DC, he said News Corp had "anticipated some firming up of the ad business in the fourth quarter and the first and second quarters [of 2002], but we just don't see that now".
News Corp follows US rivals Disney, AOL Time Warner and Viacom in warning that the advertising market and the atrocities in the US would hurt full-year earnings.
Rupert Murdoch, News Corp chairman and CEO, said, "The tragic and senseless events of September 11th exacerbated an already weakening advertising environment, not only in the US, but in the UK and Australia as well. Our revised forecast assumes a continuing weak advertising environment for the rest of the calendar year."
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