News Corp record £5bn in red

HUGE write-downs on its Gemstar TV Guide business in the US has sent News Corp plunging to a full year loss of A$15.24 billion (£5.33bn) - the largest-ever loss by an Australian-listed company.

News Corp today announced A$13.2bn of write-downs, primarily for Gemstar but also for its troubled investments in Germany's Kirch Media. Accounting readjustments for losses from companies controlled by News Corp totalled A$3.3bn and overshadowed a profit of A$1.21bn before exceptionals against A$1.28bn last year.

News Corp chairman and chief executive Rupert Murdoch described the 2001-02 financial year as a time of extremely difficult operating conditions in markets and economies around the world. However, he praised the company's operational performance in the last six months of the year, saying it had seen improvement in both the American and international advertising market.

Revenue was A$29bn, up 13% on the previous year, and operating income was 15% higher at A$3.5bn. On Gemstar, which News originally valued at US$14.71 a share but which had fallen to US$5.05 a share at the end of the reporting period, Murdoch said he was 'obviously disappointed' by the write-down.

'We are working closely with Gemstar's management to take the necessary steps to restore the value of that important asset,' he said.