News Corp wrote off $1.9bn over the value of Gemstar, the electronic programme guide business, as revenues increased 10% to $15.2bn.
Net profit for the year fell by 8% to $636m, compared with $691m last year. Operating income for the last quarter was up by 25% to $452m on the back of a rebounding US advertising market, the company said.
The price-cutting war between The Sun and the Daily Mirror, owned by rival group Trinity Mirror, was responsible for a 5% decline in revenues at the UK newspaper group for the fourth quarter of the year. For the full year, advertising revenue was down by 12%.
Filmed Entertainment, which includes 20th Century Fox, reported record operating profit of $473m -- up from $208m last year. This was boosted by the ongoing popularity of well-established television series such as 'Buffy the Vampire Slayer' and 'King of the Hill'. Movie profits were boosted by 'Ice Age' and 'Star Wars Episode II: Attack of the Clones'.
News Corp said that the TV station group benefited from Fox's broadcast of Super Bowl XXXVI and strong ratings from Major League Baseball. It added that the soft advertising market, prevelant for much of the year and exacerbated by the September 11 attacks, was partially offset by market share gains.
Chairman and chief executive Murdoch said: "The past year has been a time of extremely difficult operating conditions in markets and economies around the world -- which makes the growth we have achieved all the more significant.
"Obviously, we were disappointed by the write-downs of our investment in Gemstar, which we took during the year due to that company's declining share price."
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