News Corp raises investor concern

SYDNEY: Investors hope Rupert Murdoch will ease concerns about the future of News Corp when the powerful global media group delivers a US$2.12 billion ($3 billion) annual profit next week.

Chief executive Murdoch has failed to resolve the threat of US media tycoon John Malone's Liberty Media on News Corp's share register and succession concerns have arisen since the shock resignation of his son, Lachlan Murdoch.

Of the two issues, succession is the least of investors' worries.

Chief operating officer Peter Chernin has the market's confidence and Murdoch, 74, shows no signs of slowing, resuming this week the mantle of publisher of the New York Post, which was relinquished by Lachlan.

Murdoch pledged his support to the "first-class competitive team at the newspaper", the tabloid reported.

However, analysts hope that when Murdoch reports News Corp's results next Thursday, he addresses speculation that his second son, BSkyB chief executive James Murdoch, is now the heir apparent.

James Murdoch said he wanted to stay at the helm of the UK pay TV firm this week when announcing its 74 per cent increase in annual net profit to 143 million ($373.55 million).

"My hope and my intention is that as long as the board is satisfied with the work that I'm doing that I will be able to stick with it for the long term," he said in London.

The company's share price has been subdued all year by investor concerns about Liberty Media's threatening 18 per cent presence on News Corp's share register.

In May, Murdoch said he expected to announce a deal with Malone's cable group within three months - but this has yet to occur.

However, Citigroup said a US$3 billion ($4.39 billion) share buyback, announced in June, gave investors confidence that Liberty was not pushing News Corp around. "We were encouraged by News Corp's buyback."

Meanwhile, Merrill Lynch expects few surprises with News Corp's results, saying a big turnaround at Sky Italia would be a key driver of earnings per share of 64USc, against 55USc in 2003/04.

Citigroup said strong improvements in newspapers and continued solid film and cable numbers would help News Corp post a full-year net profit of US$2.12 billion against US$1.66 billion previously.

- AAP