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The loss was driven largely by an $8.4bn write-down on the value of its TV and newspaper assets.

Among its UK operations, News International's pre-tax profits, in sterling, were flat year on year in Q4 2008. Ad revenue was down 10% year on year. Circulation revenue increased slightly during the quarter mainly from price increases.

News Corp added that profits were down year on year at Fox Interactive Media (FIM), although did not break out the exact numbers. It said the decline in FIM operating results was driven by increased costs associated with the increase in unique users, international expansion, the launch of MySpace music, as well as lower subscription revenue at gaming portal IGN.

Murdoch said results for the quarter were a reflection of what he termed "the grim economic climate", adding that while News Corp anticipated a weakening, the downturn is "more severe and likely longer lasting than previously thought".

To protect profits, Murdoch said the company is implementing "rigorous cost-cutting across all operations and reducing head count where appropriate".

He did not detail where cutbacks would come from, although it has been reported in recent weeks that redundancies are looming at its UK newspapers.