News Corp hit hard by recession

• News Corp drops its forecast earnings.
• Operating income plummets
• Drop in advertising-driven business

Regional - Rupert Murdoch, the chairman of News Corporation, says the current economic crisis is the worst he's ever witnessed in 50 years as the media behemoth significantly reduced its forecast earnings.

Three months ago, the company had predicted a reduction in annual earnings but further bad news across its advertising arms meant advertising is now forecast to fall 30% from the $US5.13 billion recorded the previous year, back to $US3.59 billion.

"While we anticipated a weakening, the downturn is more severe and likely longer lasting than previously thought," Murdoch said in a statement.

"As a result, we have been taking actions to preserve a solid level of operational profitability and a strong balance sheet without sacrificing future growth."

News Corp's chief operating officer Peter Chernin also stated that all of the group's advertising-driven businesses had dropped dramatically - including newspapers and television.

In the six months leading up to December, the group reported a 28% drop in income to $US1.7 billion, however it plummeted even further in the second quarter to $US818 million. News Corp's titles in Asia include the wide-ranging FOX network, Star TV, the National Geographic Channel, The Wall St Journal Asia and Dow Jones.