Chairman and chief executive Rupert Murdoch said News Corp had a strong balance sheet and was prepared to meet any economic challenges ahead.

"Although we clearly face more challenging macro-economic conditions in fiscal 2009, we're well positioned to deliver continued, if somewhat less robust growth," he said.

"Our balance sheet is strong, we have solid operating momentum in many of our key businesses, and most importantly, our assets are diversified, both geographically and along business lines, enabling us to better respond to the economic challenges we may face this year."

Group net income, or profit, rose 57.2 per cent to US$5.387 billion in the year ended June 30, from US$3.426 billion.

Operating, or underlying, income was US$5.381 billion, up 21 per cent.

Revenue was US$33 billion, up from US$28.66 billion.

"We are extremely pleased with the continued growth we achieved during fiscal 2008," Mr Murdoch said.

"All of our business segments generated year over year gains, with record profits reported at our satellite broadcasting, cable programming, film and television businesses."

The full year results were boosted by a US$1.7 billion tax-free gain on the asset and stock exchange with Liberty Media Corporation, as well as gains from the sales of Fox Sports Bay Area and Gemstar-TV Guide International.

Film operating income for the year lifted to US$1.246 billion, from US$1.225 billion, supported by the box office success of films such as The Simpsons Movie, Fantastic Four: Rise of the Silver Surfer and the critically acclaimed Juno.

Television operating income totalled US$1.126 billion and up 17 per cent, driven by a record annual results for Fox Broadcasting Co, as programming costs fell due the writers' strike in the US.

The newspapers and information services division generated full year operating income of US$767 million, also up 17 per cent.

News Corp said the growth reflected the strength of the Australian newspaper business and the inclusion of the results of Dow Jones & Company, which it acquired in December 2007.

"The Australian newspaper group reported fourth quarter and full year operating income growth in local currency terms as advertising and circulation revenue growth was partially offset by increased production costs," News Corp said.

Advertising revenue gains were primarily driven by the strength of retail and real estate advertising, News Corp said.

Cable network programming operating profit rose to US$1.27 billion in the year, from US$1.09 billion, after improved contributions from Fox News Channel and Regional Sports Networks.

The magazines and inserts segment full year operating income was US$352 million, up five.

In the fourth quarter, group net profit rose to US$1.13 billion, from US$890 billion in the same quarter in fiscal 207.

News Corp's earnings per share for 2007/08 was US$1.81, up 68 per cent.

(AAP)

NEWS CORPORATION - ASX NWS
SEVEN NETWORK LIMITED - ASX SEV
WEST AUSTRALIAN NEWSPAPERS HOLDINGS LIMITED - ASX WAN
DOW JONES AND COMPANY
PREMIERE FERNSEHEN GMBH & CO KG
SHAW STOCKBROKING LIMITED

Under the proposed deal, holders of NDS' Series A ordinary shares, including those represented by American Depositary shares traded on Nasdaq, would be paid $60 a share in cash. In addition, 68% of the Series B ordinary shares held by News Corp. would be cancelled in exchange for $60 a share in a mix of $1.5 billion cash and a $200 million vendor note.

News Corp. would retain ownership of the remaining 32% of the Series B shares, resulting in it owning 49% of NDS. Under the deal, NDS would issue new Series B ordinary shares to Permira representing 51% of its equity.

The offering price of $60 a share represents a premium of 20.7% over the the company's ADS closing price of $49.70 on Friday.

News Corp and Permira have submitted the offer to an independent committee of the NDS board. The committee will issue a recommendation on the offer. Gabriel Madway gm

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About NDS

NDS Group plc (Nasdaq: NNDS), a majority owned subsidiary of News Corporation, supplies open end-to-end digital technology and services to digital pay-television platform operators and content providers. See www.nds.com for more information about NDS.

Cautionary Statement Concerning Forward-looking Statements This document may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from these expectations due to changes in global economic, business, competitive market, regulatory and other factors. More detailed information about these and other factors that could affect future results is contained in our filings with the US Securities and Exchange Commission. Any "forward-looking statements" included in this document are made only as of the date of this document and we do not have any obligation, nor do we undertake, to publicly update any "forward-looking statements" to reflect subsequent events or circumstances, except as required by law.

SOURCE NDS Group plc

http://www.nds.com