Sunnyvale : Yahoo! Inc. (NASDAQ: YHOO) today reported results for the fourth quarter and full year ended December 31, 2011.

Revenue excluding traffic acquisition costs ("revenue ex-TAC") was $1,169 million for the fourth quarter of 2011, a 3 percent decrease from the fourth quarter of 2010. Income from operations increased 10 percent to $242 million in the fourth quarter of 2011, compared to $220 million in the fourth quarter of 2010.

GAAP revenue was $1,324 million for the fourth quarter of 2011, a 13 percent decrease from the fourth quarter of 2010.

Revenue ex-TAC was $4,381 million for the full year ended December 31, 2011, a 5 percent decrease from the same period of 2010. The year over year decrease was primarily due to the revenue share related to the Search Agreement with Microsoft. Income from operations increased 4 percent to $800 million for the full year ended December 31, 2011, compared to $773 million for the same period of 2010.

GAAP revenue was $4,984 million for the full year ended December 31, 2011, a 21 percent decrease from the same period of 2010, primarily due to the required change in revenue presentation related to the Search Agreement and the associated revenue share with Microsoft.

Net earnings per diluted share was $0.24 in both the fourth quarter of 2011 and the fourth quarter of 2010.

Des Moines : Meredith Corporation  has reported fiscal 2012 second quarter earnings per share of $0.70, compared to $0.88 in the year-ago period.  Revenues were $329 million, compared to $366 million. Meredith recorded $21 million, or $0.28 per share, less of political advertising revenues in the second quarter of fiscal 2012 than in the year-ago period, which is expected in an off-election year.

"Our Local Media Group delivered an industry-leading 9 percent gain in non-political advertising revenues during the second quarter of fiscal 2012," said Meredith Chairman and Chief Executive Officer Stephen M. Lacy.  "While the advertising market remained challenging for our National Media Group, we're seeing an improving trend as we look to early calendar 2012, particularly in the food and home advertising categories."

Lacy noted Meredith's Total Shareholder Return financial strategy, announced on October 25, has been very well received by the investment community.  Key elements include (1) A 50 percent annual dividend increase to $1.53 from $1.02 per share that produced yields of 5 to 6 percent during the quarter; (2) A new $100 million share repurchase authorization; and (3) Ongoing strategic investments to drive incremental revenue and profit growth over time, such as today's announcement that Meredith would acquire Allrecipes.com from The Reader's Digest Association, Inc.

The addition of Allrecipes.com, the world's No. 1 digital food site, doubles the scale of the Meredith Women's Network in terms of both audience reach and revenues.  It also fulfills two of Meredith's previously stated criteria for strategic acquisitions: (1) National media brands that provide access to new audiences and advertising categories; and (2) Digital platforms that significantly increase scale.  With Allrecipes.com, the Meredith Women's Network will be the No. 1 premium owned and operated website in the Women's Lifestyle Category, according to the most recent comScore data. 

"Allrecipes.com significantly enhances our digital platform," Lacy said.  "It increases our relevance with a large and loyal group of consumers, and strengthens our position in the marketplace by connecting advertisers with an audience of 100 million consumers.  It fits perfectly with our Total Shareholder Return Strategy, adding strategic value to Meredith, and is expected to drive incremental growth in revenues, profit and free cash flow over time."

Reston :comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today announced financial results for the third quarter of 2011.

In the third quarter of 2011, comScore achieved record quarterly revenue of $58.8 million, which was an increase of 29% over the third quarter of 2010. GAAP loss before income taxes was ($5.7) million in the third quarter of 2011 and GAAP net loss was ($3.9) million, or ($0.12) per basic and diluted share.

Non-GAAP net income in the third quarter of 2011 was $6.9 million or $0.21 per diluted share. Adjusted EBITDA was $10.7 million in the third quarter of 2011, an increase of 3% from adjusted EBITDA of $10.4 million in the third quarter of 2010, and above the high end of our previously announced guidance for the quarter.

Dr. Magid Abraham, comScore's president and chief executive officer said, “We are pleased to report record revenue in the third quarter and that adjusted EBITDA was above our previously announced guidance range, driven by our focus on execution and prudent cost controls. We saw continued strength from a broad cross section of products and verticals including core products such as Media Metrix 360 and our AdEffx suite. We added 64 net new customers during the quarter, including 11 customers through our AdXpose acquisition. We believe that AdXpose’s contribution to comScore’s product portfolio has been well received in the marketplace. Our international expansion continues its momentum with revenue from outside the United States contributing 27% of revenue in the quarter, resulting in international revenue growth of 77%. Customer satisfaction levels remain high as demonstrated by renewal rates that were above our historical benchmark of 90% or higher on a constant dollar basis, and which reached a record renewal level for the company.”

Dr. Abraham concluded, “We remain very positive about our outlook and anticipate full year revenue performance consistent with prior growth expectations. We have also increased our adjusted EBITDA guidance to reflect the additional positive effects of our third quarter. We believe we will be able to continue our momentum into 2012 resulting in strong top line growth and even stronger profitability improvements.”

comScore reports all financial information required in accordance with generally accepted accounting principles (GAAP). comScore believes, however, that evaluating its ongoing operating results will be enhanced if it also discloses certain non-GAAP information because it is useful to understand comScore's performance, as it excludes non-cash and other charges that many investors believe may obscure comScore's on-going operating results.

acquisitions and restructurings, the non-cash deferred tax provision, litigation costs, and the purchase accounting impact on acquired deferred revenue. Nexius and Nedstat recorded deferred revenue related to past transactions for which revenue would have been recognized in future periods as revenue recognition criteria were satisfied. Purchase accounting for the acquisition requires comScore to record acquired deferred revenue to its current fair value. As a result, in post-acquisition reporting periods, the Company does not recognize the full amount of this revenue that otherwise would have been recognized by Nexius and Nedstat as independent companies. comScore has and will adjust for the effect of the deferred revenue adjustment in non-GAAP revenue and non-GAAP net income to reflect the full amount of this impact and help investors evaluate the intrinsic profitability of the business. comScore also reports non-GAAP EPS (diluted), which uses non-GAAP net income in lieu of GAAP net income in calculating earnings per share.

In addition, comScore believes that adjusted EBITDA is a useful measure for investors to use to evaluate its operating performance. Adjusted EBITDA comprises non-GAAP net income further adjusted to exclude the cash tax provision, depreciation, interest income (expense) net, and costs not associated with ongoing operations, such as acquisition and litigation related costs. A reconciliation of comScore's GAAP results to these non-GAAP measures is included in the financial tables accompanying this release.

The company believes that adjusted EBITDA is an important indicator of the company's operational strength and the performance of its business because it provides a link between profitability and operating cash flow. Adjusted EBITDA is also widely used by investors and analysts as a supplemental measure to evaluate the overall operating performance of companies in comScore's industry.

comScore's management also uses adjusted EBITDA extensively as a measure of operating performance because it does not include the impact of items not directly resulting from its core operations. Moreover, the company's management uses the measure for planning purposes, to allocate resources and to evaluate the effectiveness of the company's business strategies and management's performance.

The company believes that excluding certain costs from non-GAAP net income and EPS and from adjusted EBITDA provides a meaningful indication to investors of the expected on-going operating performance of the company. Specifically as it relates to acquisitions and restructurings, the exclusion of these costs reflects the expected benefits realized or to be realized upon the integration of acquired entities into comScore, and the realized benefits of the restructurings.

comScore's management also uses free cash flow as a non-GAAP measure of the company's operating cash flow less cash expenditures for capital spending and acquisition-related costs as a key indicator of the company's operating cash flow performance net of these expenditures.

Whenever comScore uses such historical non-GAAP financial measures, it provides a reconciliation of historical non-GAAP financial measures to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measure included in the financial tables accompanying this release.

Although the company provides a reconciliation of historical non-GAAP financial measures, due to the high variability and difficulty in predicting certain items that affect net income, such as tax rates and stock price, comScore is unable to provide a complete reconciliation of adjusted EBITDA to net income on a forward-looking basis without unreasonable efforts. However, a reconciliation of forward-looking adjusted EBITDA to GAAP income (loss) before income taxes is set forth in the attachment to this press release.

These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. The use of certain non-GAAP financial measures requires management to make estimates and assumptions regarding amounts of assets and liabilities and the amounts of revenue and expense during the reporting periods.

Significant estimates and assumptions are inherent in the analysis and the measurement of certain elements of non-GAAP financial measures such as the impact of purchase accounting on acquired deferred revenue and the amortization of deferred contract costs associated with acquired deferred revenue. comScore bases its estimates on historical experience and assumptions that it believes are reasonable. Actual results could differ from those estimates.

New York : The New York Times Company (NYSE: NYT) has announced  2011 third-quarter diluted earnings per share from continuing operations of $.10 compared with a diluted loss per share from continuing operations of $.03 in the same period of 2010. Excluding severance and the special items discussed below, diluted earnings per share from continuing operations were $.05 in the third quarter of 2011 compared with $.07 in the third quarter of 2010.

The Company had an operating profit of $33.0 million in the third quarter of 2011 compared with an operating profit of $9.0 million in the same period of 2010. Excluding depreciation, amortization, severance and the special items discussed below, operating profit increased 5.5 percent to $65.5 million from $62.0 million in the third quarter of 2010.

"This quarter we continued to execute on our strategy to transform our business, said Janet L. Robinson, president and chief executive officer, The New York Times Company. "We made significant progress in developing a robust digital subscription revenue stream, reduced our operating costs, meaningfully improved our liquidity through the early repayment of high-interest debt and tripled our initial investment on the sale of a portion of our stake in Fenway Sports Group. And despite a challenging advertising environment, our operating profit grew reflecting our strong cost performance and growth in circulation revenues, which rose 3 percent.

"Our digital subscription initiatives remained our top focus in the third quarter. The New York Times continued to build on its paid offerings and The Boston Globe launched the new subscription site BostonGlobe.com to very favorable acclaim in the marketplace. As of the end of the third quarter, The Times had 324,000 paid digital subscribers and paid and sponsored relationships with over 1.2 million digital users. The Times has also seen positive benefits to home-delivery circulation following the launch of its digital subscription plans, with an increase in new orders and improved retention. These results highlight the strength of The Times brand and its ability to further monetize its world-class news, analysis and commentary.

"Although the News Media Group's digital advertising did not see the same strength as in recent quarters largely due to the uncertain economic climate, the Group's digital advertising revenues rose 6 percent in the quarter. NYTimes.com maintained its strong traffic levels and continued to fulfill its premium advertising commitments. And while the About Group continued to face many of the same challenges it saw in the first half of the year, it is making significant progress in implementing a plan to grow its content and traffic and improve its display advertising business.

"Operating costs declined 4 percent despite continued investment in new products, digital technologies and our high-quality journalism. We also made further progress in strengthening our future cash flows with the prepayment of our $250 million 14.053 percent notes in August, three years ahead of maturity.

"At a time of transition, we continue to evaluate our asset portfolio to maintain its alignment with our core operations and strategic initiatives. We continue to market our remaining interest in Fenway Sports Group and are seeing healthy demand."

Unless otherwise noted all comparisons are for the third quarter of 2011 to the third quarter of 2010. This release includes non-GAAP financial measures, a discussion of management's reasons for the presentation of these non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures.

A $65.3 million ($37.8 million after tax or $.24 per share) gain on the sale of 390 of the Company's units in Fenway Sports Group (FSG).
A $46.4 million ($27.5 million after tax or $.18 per share) charge in connection with the prepayment of the Company's $250 million 14.053 percent notes.

A $16.1 million ($10.2 million after tax or $.07 per share) charge for a write-down of assets at The Boston Globe's printing facility in Billerica, Mass., which was consolidated into the Boston, Mass., printing facility in the second quarter of 2009. A $6.3 million ($3.9 million after tax or $.03 per share) charge for an adjustment to estimated pension withdrawal obligations under several multiemployer pension plans at The Boston Globe.

In addition to these special items, the Company had $3.0 million ($1.7 million after tax or $.01 per share) in severance costs in the third quarter of 2011 compared with $0.5 million ($0.3 million after tax or $.00 per share) in the third quarter of 2010.

Total revenues decreased 3.1 percent to $537.2 million from $554.3 million. Advertising revenues decreased 8.8 percent, circulation revenues increased 3.4 percent and other revenues increased 0.8 percent.

Print advertising revenues decreased 10.4 percent. Digital advertising revenues decreased 4.5 percent as higher revenues at the News Media Group were more than offset by declines at the About Group.

Circulation revenues rose as the introduction of digital subscriptions at The Times offset a decline in print copies sold across the News Media Group. Operating costs decreased 3.6 percent to $504.2 million from $522.9 million. Depreciation and amortization decreased to $29.4 million from $30.1 million.

Excluding depreciation, amortization and severance, operating costs decreased 4.2 percent to $471.8 million from $492.3 million mainly due to lower variable compensation costs and professional fees.

Newsprint expense decreased 3.3 percent, with 6.6 percent from lower consumption offset in part by 3.3 percent from higher pricing.
 

This article titled "Aegis Group posts 20% rise in underlying pre-tax profits" was written by Mark Sweney, for guardian.co.uk on Thursday 25th August 2011 11.19 UTC

Aegis Group has reported a 20% rise in underlying pre-tax profits to £58.9m in the first half of 2011, as the media buying group prepares to free up more than £400m for acquisitions after offloading research division Synovate. 

The company, which owns media buying agencies Carat and Vizeum and digital network Isobar, reported a 7.3% year-on-year increase in organic revenue growth to £756.8m in the first six months. 

Aegis Media, the media buying rump of the company that will continue to operate after Synovate's sale to French firm Ipsos is completed at the end of next month, reported organic revenue growth of 7.8%. Aegis is in the final stages of selling Synovate to Ipsos for £525m. 

The media buying business expects the third quarter to grow at about the same rate and the full-year figure to be "at least" in line with the 5.8% year-on-year revenue growth the company reported in 2010. 

Aegis is expected to earn £505m from the Synovate deal. It intends to give £200m back to shareholders – about £53m will go to the largest shareholder, Vincent Bolloré, who holds a 26.5% stake – leaving proceeds of about £300m. Analysts at UBS estimate that as much as £280m of that will be used for acquisitions. 

It is understood that because of Aegis's low net debt to earnings ratio – which governs the financial flexibility it has to raise debt within its banking convenants – the group considers it has a warchest of available funds of well over £400m. 

"Our investors have approved the sale of Synovate, our market research business, representing the largest structural change in the history of Aegis Group," said Jerry Buhlmann, chief executive of the group. "Once the sale is completed, Aegis will become a more focused group, with the opportunity to accelerate further the delivery of sustainable, profitable growth, and increased financial flexibility to make targeted acquisitions." 

The company said that it has made 11 acquisitions so far this year spending a total of £65m. Net debt was £393m at the end of June. 

Sir Martin Sorrell's WPP said on Wednesday that it is doubling its acquisition budget to £400m this year. 

The Aegis Media division grew revenues by 7.6% year on year in the first half of 2011 to £487m, driven by strength in its North American business and fast-growing markets, in particular China, Brazil and Russia. Digital revenue accounted for 34% of total revenues at Aegis Media. 

Aegis Media's operations in Europe, the Middle East and Africa grew revenue by 3.7% year on year to £290.7m. The Americas grew by 11.3% to £97.7m and Asia Pacific by 113% to £98.7m. 

The Asia Pacific figures were dramatically increased due to the acquisition of Australia's largest marketing company, Mitchell Communication Group, in an A$363m (£208m) deal last July. 

When the impact of the Mitchell business is stripped out, to give a true year-on-year comparison, the Asia Pacific division still reported strong revenue growth of 17% year on year in the first half. 

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This article titled "Johnston Press's pre-tax profits plunge by nearly 50%" was written by Mark Sweney, for guardian.co.uk on Thursday 25th August 2011 08.31 UTC

Regional newspaper publisher Johnston Press's pre-tax profits plunged in the first half to £13.8m, with the publisher cutting almost 180 staff as ad revenue dropped by 10%. 

Johnston Press, owner of titles including the Scotsman and Yorkshire Post, reported pre-tax profits down 47.5% year on year to £13.8m in the 26 weeks to 2 July. 

The company said that it cut staff numbers by 179 in the first half to 5,049, as total revenues fell 7.5% to £191.8m. 

Johnston Press's results paint a mixed picture for the company, which said that in July and early August its advertising declined by a slightly improved 8.1%. 

While total ad revenues fell by 10% in the first half – mainly due to a continuing decline in employment advertising – national display ad revenues grew by 2.8% year on year. 

Digital revenues, which fell by 5% overall in the first half, returned to growth in May and have continued to improve. The first quarter saw digital revenues fall by 9.7%, in the second quarter the drop was just 1.5% and there was a rise of 6.8% in July and early August. 

The company said that newspaper sales revenues remained "resilient"; they were down just 1% in the first half to £48m despite circulation of daily titles falling 7.8% and weeklies 6.8%. 

Total costs were cut by £8.3m year on year, despite newsprint prices rising £4.2m, which helped the publisher to report an operating profit of £32.6m despite the tough market conditions. This represents a 25% year-on-year fall. 

Johnston Press reduced net debt by £16m to £370m. 

"We remain cautious about the advertising outlook for the second half of the year," said Johnston Press's outgoing chief executive, John Fry. "The board has confidence that, in the absence of a further significant deterioration in the UK economy, the outcome for the group in 2011 will be broadly in line with current expectations." 

The company also announced deals with web property company Zoopla and technology company Nimble Commerce to launch an online voucher business in the autumn. 

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The Board of WPP announces its unaudited interim results for the six months ended 30 June 2011. Despite recent uncertainties, these results continue the post-Lehman bounce-back seen in 2010 and the Group has now achieved levels of pro-forma revenues and profitability beyond 2008.

Reportable revenue was up 6.1% at £4.713 billion. Revenue on a constant currency basis was up 8.1% compared with last year, chiefly reflecting the comparative strength of the pound sterling against the US dollar. As a number of our competitors report in US dollars and the euro and inter-currency comparisons are difficult, Appendices 2 and 3 show WPP’s interim results in reportable US dollars and euros respectively. This shows that US dollar reportable revenues were up 12.8% to $7.622 billion, which compares with the $6.639 billion of our closest worldwide competitor and that euro reportable revenues were up 6.0% at €5.424 billion, which compares to €2.699 billion of our nearest European-based competitor. Headline earnings before interest, taxation, depreciation and amortisation (“Headline EBITDA”) were $1.005 billion compared to $944 million for our nearest competitor, with our profitability being more skewed to the second half.

On a like-for-like basis, which excludes the impact of acquisitions and currency, revenues were up 6.1% in the first half, with gross margin up 6.8%. In the second quarter, like-for-like revenues were up 5.6%, less than the first quarter 6.7%, with gross margin up 6.4%, following 7.3% growth in the first quarter. This reflects increased client advertising and promotional (“A” & “P”) spending (“A” probably increasing more than "P"), across most of the Group’s major geographic markets and functional sectors despite tougher comparatives, although clients understandably continue to demand increased effectiveness and efficiency.

Headline EBITDA was up 10.5% to £619.5 million and up 12.7% in constant currencies. Headline operating profit was up 13.7% to £517.9 million from £455.3 million and up 15.9% in constant currencies, over half a billion pounds sterling for the first time in the first half.

Headline operating margins were up 0.7 margin points to 11.0% compared to 10.3% in the first half of last year. On a like-for-like basis operating margins were up 0.6 margin points. Headline gross margin margins were up 0.7 margin points to 11.9%. Given the significance of consumer insight revenues to the Group, gross margin is probably a more meaningful measure of comparative, competitive revenue growth and margin performance. These are "clean" margin increases without the benefit of one-off provisions to cover expenses, as seen elsewhere in the industry.

On a reported basis, operating margins, before short and long-term incentives and the cost of share-based incentives, were 13.9%, up 0.8 margin points, compared with 13.1% last year. The Group’s staff cost to revenue ratio, including incentives, increased by 0.3 margin points to 60.7% compared with 60.4% in the first half of 2010, as the Group increased its investment in talent as like-for-like revenues and gross margin increased significantly. On the same basis, the Group’s staff cost to revenue ratio, excluding incentives, increased by 0.1 margin points to 57.7% from 57.6%. Short and long-term incentives and the cost of share-based incentives amounted to £139.3 million or 22.0% (around maximum performance), of operating profits before bonus and taxes, compared to £127.4 million last year, or 22.8%, up £11.9 million or 9.3%.

On a like-for-like basis, the average number of people in the Group, excluding associates, was 107,239 in the first half of the year, compared to 102,651 in 2010, an increase of 4.5%. On the same basis, the total number of people in the Group, excluding associates, at 30 June 2011 was 110,357 compared to 105,371 at 30 June 2010, an increase of 4,986 or 4.7%. On the same basis revenues increased 6.1% and gross margin 6.8%. As at 30 June 2011, the number of people in the Group increased by 2,634 or 2.4% compared to the pro-forma figure at 31 December 2010, reflecting net hiring, particularly in the United Kingdom and the faster growing markets of Asia Pacific and Latin America, which accounted for almost 85% of the new hires and where like-for-like revenue and gross margin growth is particularly strong.

Net finance costs (excluding the revaluation of financial instruments) were up slightly at £100.9 million, compared with £99.1 million in 2010, an increase of £1.8 million, reflecting higher funding costs mainly offset by lower levels of average net debt.

Headline profit before tax was up 17.1% to £417.0 million from £356.2 million, or up 19.6% in constant currencies.

Reported profit before tax rose by 37.1% to £334.3 million from £243.9 million. In constant currencies, reported profit before tax rose by 41.7%.

The tax rate on headline profit before tax was 22.0%, down 1.9 percentage points on the first half rate in 2010 of 23.9% and in line with the 2010 full year tax rate of 22.0%.

Profits attributable to share owners rose by 53.0% to £230.7 million from £150.8 million.

Diluted headline earnings per share rose by 19.4% to 22.8p from 19.1p. In constant currencies, earnings per share on the same basis rose by 22.8%. Diluted reported earnings per share were up 50.8% to 18.1p and up 58.4% in constant currencies.

In line with the statement made in the Group’s 2010 Preliminary Results Announcement, concerning increasing the dividend payout ratio, the Board declares an increase of 25% in the first interim ordinary dividend to 7.46p per share. The record date for this first interim dividend is 14 October 2011, payable on 14 November 2011.

As shown above, on a constant currency basis, the Group’s revenues grew at 8.1%, with like-for-like revenues up 6.1%. Gross margin, probably a better indicator of top-line growth, was up 8.8% on a constant currency basis and up 6.8% like-for-like. Geographically, as in the first four months, the United States has continued to show remarkably strong growth, with constant currency revenues up 7.6% in the first half. The United Kingdom, also continued to show strong growth, with constant currency revenues up over 7% in the first half and gross margin up over 10%. Western Continental Europe, although relatively more difficult, showed considerable improvement in the second quarter, with constant currency revenues up almost 6% compared with just over 2% in the first quarter.

 Austria, Denmark, Finland, Germany, Ireland, the Netherlands and Turkey, all showed double digit growth in the second quarter, but France, Greece, Portugal and Spain remain tougher. In Asia Pacific, Latin America, Africa and the Middle East and Central and Eastern Europe revenues were up over 11% in the second quarter following over 12% growth in the first three months, driven by continued strong growth in Latin America, Australia, South East Asia and Africa, with revenues in each of these areas showing double digit growth. Latin America showed the strongest growth of all our regions in the second quarter, with revenues up over 12%. In Central and Eastern Europe, revenues were up almost 9%, with the second quarter similar to the first quarter, with strong growth in Russia, Poland and the Ukraine, but Hungary and Czech Republic were more challenging. Growth in the BRICs was up almost 16%, on a like-for-like basis, in the first six months, with Next 11 and CIVETS up almost 14% and well over 13% respectively on the same basis.

In the first half of 2011, over 28% of the Group’s revenues came from Asia Pacific, Latin America, Africa and the Middle East and Central and Eastern Europe, an increase of 1.0 percentage point compared with the first half of last year and against the Group’s strategic objective of 35-40% in the next three to four years.

Estimated net new business billings of £1.201 billion ($1.922 billion) were won in the first half of the year. The Group continues to benefit from consolidation trends in the industry, winning assignments from existing and new clients, wins that continued into the second half of the year with several very large industry-leading advertising, digital and media assignments, which will have a significant positive impact on Group revenues late this year and in 2012. On a more negative note, there is some recent evidence of heavy competitive fee discounting or dumping and "nicking" of people, which may have resulted in the operating margin erosion seen in the recent results of two of our competitors.

Revenue by Communications Services Sector and Brand

By communications services sector, each sector continued to show very similar constant currency growth, as they did in the first three or four months, but there has been a slight up-tick in growth in branding and identity, healthcare and specialist communications (including direct, digital and interactive), with like-for-like growth of almost 8% in the second quarter compared to almost 7% in the first quarter. In the first six months, on a constant currency basis, advertising and media investment management continued to be the strongest sector, with constant currency growth of 12.1%, followed by branding and identity, healthcare and specialist communications (including direct, digital and interactive), up 8.5% and public relations and public affairs up 5.8%. Consumer insight revenues were up 2.6%, with gross margin up 3.0%, a reduction from the first quarter as indicated in the AGM statement, with slower growth in the United States, the United Kingdom and Japan in April and May, with a partial recovery in June. Consumer insight revenues in Latin America showed particularly strong growth in the second quarter, followed by Asia Pacific and Africa.

In the first half, direct and digitally-related activities accounted for 28.1%, or $2.101 billion (an annual run rate of $4.4 billion) of the Group’s total revenues, which are running at the rate of almost $16 billion per annum. This is against last year’s proportion of 27.6% and a Group target of 35-40% in three to four years. To give an indication of the Group’s industry leading direct, digital and interactive position, a leading independent research firm recently rated three of the Group’s interactive agencies (OgilvyInteractive, VML and Wunderman) amongst seven ”digital leaders”. No other competitor has more than one. The Group’s global digital agencies, Wunderman and OgilvyOne, rank as the two largest digital and interactive agencies in the world, with annual revenues of over $950 million and almost $900 million respectively.

In the first half of 2011, over 59% of the Group’s revenues came from outside advertising and media investment management, a similar percentage to last year against the Group’s strategic objective of two-thirds, again within three to four years.

Quantitative disciplines (digital and consumer insight), now account for 47% of Group revenues, compared with the Group’s strategic objective of over one-half.

Advertising and Media Investment Management

On a constant currency basis, advertising and media investment management revenues grew by 12.1%, with like-for-like revenues up 8.1%. Reported operating margins increased by 0.5 margin points to 12.3%, as revenue and cost growth were again well managed.

These businesses generated estimated net new business billings of £874 million ($1.398 billion).

Consumer Insight

On a constant currency basis, consumer insight revenues grew by 2.6%, with like-for-like revenues up 2.3%. Constant currency gross margin was up 3.0% and like-for-like up 3.2%. Reported operating margins improved by 0.3 margin points to 7.5% and gross margin margins improved 0.5 margin points to 10.3%, as the benefits of the continued integration of TNS custom research and Research International and the other operations of both TNS and Kantar, in media, healthcare, retail and their related panel activities were realised.

Public Relations and Public Affairs

In constant currencies, the Group’s public relations and public affairs revenues grew by 5.8%, with like-for-like revenues up 5.0%. Reported operating margins improved 0.7 margin points to 15.5%.
Branding and Identity, Healthcare and Specialist Communications

The Group’s branding and identity, healthcare and specialist communications (including direct, digital and interactive) constant currency revenues grew by 8.5%, with like-for-like revenues up 7.3%. This service sector showed a strong recovery in reported operating margins, across all businesses, up 1.3 margin points to 10.7%.

Cash Flow and Balance Sheet

A summary of the Group’s unaudited cash flow statement and balance sheet and notes as at 30 June 2011 are provided in Appendix 1.

In the first half of 2011, operating profit was £431 million, depreciation, amortisation and impairment £185 million, non-cash share-based incentive charges £38 million, net interest paid £107 million, tax paid £126 million, capital expenditure £107 million and other net cash inflows £3 million. Free cash flow available for working capital requirements, debt repayment, acquisitions, share re-purchases and dividends was, therefore, £317 million. This free cash flow was absorbed by £229 million in net cash acquisition payments and investments (of which £54 million was for earnout payments and loan note redemptions with the balance of £175 million for investments and new acquisition payments net of disposal proceeds) and £98 million in share repurchases, a total outflow of £327 million. This resulted in a net cash outflow of £10 million, before any changes in working capital.

Average net debt in the first six months of 2011 fell by £513 million to £2.558 billion, compared to £3.071 billion in 2010, at 2011 exchange rates. On 30 June 2011 net debt was £2.879 billion, against £3.029 billion on 30 June 2010, a decrease of £150 million. Your Board continues to examine ways of deploying its EBITDA, (of £1.5 billion or over $2.4 billion for the preceding twelve months) and substantial free cash flow (of over £900 million or approximately $1.4 billion per annum, also for the previous twelve months), to enhance share owner value. The Group’s current market value implies an EBITDA multiple of 5 times, on the basis of the trailing 12 months EBITDA to 30 June 2011.

As mentioned in the Group’s 2010 Preliminary Results Announcement, the average net debt to headline EBITDA ratio at 31 December 2010 had improved to 2.1 times, a year ahead of the schedule outlined at the time of the TNS acquisition in October 2008. Based on the 12 months to 30 June 2011, the average net debt to headline EBITDA fell further to 1.8 times. At the time of the TNS transaction, it was announced that, for the following two years, acquisitions would be limited to £100 million per annum, the Group's share buy-back programme would be targeted at up to 1% per annum and dividend growth at up to 15% per annum, using surplus cash generated to reduce average net debt to around 2 times headline EBITDA.

There is a very significant pipeline of reasonably priced small and medium sized potential acquisitions. As a result, deals done continue to be of small and medium sized companies, focused on new markets, new media and consumer insight, and will not now be limited to £100 million per annum, but will more likely total around £400 million this year. We will continue to seize opportunities in line with our strategy. In the first half of 2011, the Group continued to make acquisitions or investments in high growth geographical or functional areas. In the first six months of this year, acquisitions and increased equity stakes have been focused on advertising and media investment management in the United States, France, Germany, the Netherlands, Bahrain, South Africa, Brazil, China and Korea; in consumer insight in the United States, Ireland, Germany, Russia, Lithuania and Kenya; in public relations in the United Kingdom; in direct, digital and interactive in the United States, Austria, Brazil, China and Singapore and in specialist communications in the United States.

Following the strong first-half results your Board raised the dividend by 25%, around 5 percentage points faster than the growth in diluted headline earnings per share, a payout ratio in the first half of 33%. As indicated in the AGM statement in June 2011, the dividend payout ratio will be increased over time to approximately 40% from the 2010 rate of 31%.

Share buy-backs will continue to be targeted to absorb any share dilution from issues of options or restricted stock, although the Company does also have considerable free cash flow to take advantage of any anomalies in market values, which we believe we have seen particularly in the last few weeks. During the first six months of 2011, 12.5 million shares, or 1.0% of the issued share capital, were purchased at a cost of £98.5 million and an average price of £7.88 per share.

Client Developments in the First Half of 2011

Including associates, the Group currently employs over 153,000 full-time people in over 2,400 offices in 107 countries. It services over 300 of the Fortune Global 500 companies, 29 of the Dow Jones 30, 60 of the NASDAQ 100, 32 of the Fortune e-50 and 640 national or multi-national clients in three or more disciplines. 409 clients are served in four disciplines and these clients account for over 56% of Group revenues. This reflects the increasing opportunities for co-ordination between activities both nationally and internationally. The Group also works with 326 clients in 6 or more countries. The Group estimates that more than 35% of new assignments in the first half of the year were generated through the joint development of opportunities by two or more Group companies.

Current Progress and Future Prospects

The second quarter of 2011 continued the improvement in like-for-like revenue growth seen in the first three months, despite tougher comparatives, with year-to-date like-for-like revenue up over 6% and gross margin up almost 7%. July revenues were up 4.3% and gross margin up 5.2%, against even tougher comparatives. Cumulative like-for-like revenue growth for the first seven months of 2011 is now 5.9% and gross margin 6.6%. The Group's quarter two revised forecast, having been reviewed at the parent company level in the first half of August, indicates very similar levels of like-for-like revenue growth and gross margin growth for the year.

Our budgets for 2011 indicated like-for-like revenue growth of 5.0%, gross margin growth of 5.3% and operating margin improvement of 0.5 of a margin point. The quarter one revised forecast raised the revenue and gross margin forecasts to over 6% respectively and the operating margin forecast improved too, as indicated by the actual improvement in operating margin of 0.7 of a margin point in the first half. As mentioned above, the quarter two revised forecast for the full year, indicates very similar levels of like-for-like revenue and gross margin growth to the first seven months and, in addition, indicated further possible operating margin improvement beyond that reported in the first half.

Any slowdown in the growth rate in the United States is forecast to be balanced geographically, by faster growth in the United Kingdom, Western Continental Europe, from admittedly low levels, and faster growth in Asia Pacific, Latin America, Africa and the Middle East and Central and Eastern Europe. Functionally, any slowdown in traditional media spending, is similarly forecast to be covered by increasing digital spending and, in our case, by continued growth in media investment management.

Whilst it is too early to predict the impact of the recent vicious correction in the world's equity markets on consumer and corporate behaviour (there have been no resultant cuts to date), these forecasts and significant recent very successful new business activity are encouraging signs, despite stock market pessimism – pessimism which is much greater in our sector in Western Europe than in the United States, reflecting the better performance of American-based media owners, particularly American-based television media owners, to date. There does seem to be a dissonance or disconnect between the macro picture as defined by the stock markets and the micro picture as defined by individual company results, which have continued to be generally better than expectations into the second quarter. It is true, however, that markets look to the future, often a year or so in advance, and are rarely wrong.

2009 was, as you know, a brutal year, when following that fateful Lehman weekend in September 2008, many clients thought the financial world might come to an end and focussed relentlessly and, even ruthlessly, on cutting costs and on liquidity.

The mini-quadrennial year of 2010 saw a very significant recovery, particularly in the United States and in traditional media, as clients realised that the world had not actually come to an end. The United States and traditional media bit back. Categories that had cut spending severely, like autos, financial services and retail, amongst others, returned to spending. Excess traditional media inventory resulted in lowered prices and made traditional media more attractive absolutely to advertisers and relatively to new media. The Winter Olympics in Vancouver, the World Cup in South Africa, the Shanghai World Expo and the United States Congressional mid-term elections, all stimulated the level of spending and reinforced any element of dead-cat bounce generated by the massive fiscal and monetary stimulus post-Lehman. Finally, and probably most significantly, boardroom fear may have encouraged chairmen, CEOs and non-executive directors to rein in fixed capital spending and focus more on brand spending to maintain or increase market share. Why increase fixed costs in uncertain times, when you can increase or maintain sales by increasing variable marketing expenditures – even if we think marketing spending should be a more fixed investment, not a variable cost? Currently, as a result of this conservatism, Western-based companies may have as much as $2 trillion sitting on relatively unleveraged balance sheets and we have had a relatively jobless recovery.

2011 has, so far, exhibited a similar pattern to 2010, except, as predicted in our budgets and in our reporting to share owners, the rate of growth in the United States has slowed. However, this has been compensated (last year's like-for-like revenue growth was 5.3%), by good growth, again somewhat surprisingly, in the United Kingdom and some growth, admittedly from very low comparative levels, in Western Continental Europe and by a "last-in, last-out" recessionary recovery in Asia-Pacific, Latin America, Africa and the Middle-East and Central and Eastern Europe. Functionally, direct, digital and interactive have resumed their relatively stronger growth rate, when compared to traditional media. Newspapers and magazines, in particular, remain challenged, although the apparent success of charging for content, that consumers value, has helped somewhat. In essence, China and the internet have bitten back in 2011 and regained their strategic importance and inexorable growth, at least for the moment.

Despite these encouraging signs there remain significant challenges, even before the recent stock-market melt down. First, there have always been fears of Euro contagion, which have oscillated quite violently and are now firmly focussed beyond Ireland, Portugal, Spain and Greece, on Italy and even to France. Second, there have always been concerns about the failure of the US Government to address the growing Federal deficit. It seemed that the rubber might not hit the road until after the US Presidential election, but the recent Presidential and Congressional indecision and the Standard and Poor’s downgrade, seem to have brought concern about the potential crisis forward, although the relatively mild actions agreed, will probably postpone the really evil day again beyond the Presidential election in November 2012. Third, there was and still is concern about the increase in commodity input prices and its potential impact on profit margins, particularly if pricing power continues to be limited, although recent inflation seems to have helped, particularly in the FMCG sector. Fourth, political events in the Middle-East, apart from slowing the rate of growth of the region have increased levels of uncertainty. Fifth, the tragic events in Japan slowed growth even further in the world’s third largest economy, despite its 20 year stagnation, although the rebound seems faster than at first thought, due to the positive effects of heavy renewal investment. Finally, and what probably triggered the stock market fears, was the need to initiate the inevitable withdrawal of the massive fiscal stimulus, which was needed to stabilise the world economy post-Lehman and which may have amounted in total to about $12 trillion or 20% of worldwide GNP. Going cold turkey and weaning the economy off the stimulus drug is clearly painful and will take some time. The nearest historical parallel to the latest recession, which started with the sub-prime and insurance monoline crisis in August 2008 seems to be the Great Crash of 1929, which took at least ten years to recover from – a long hard slog.

So in summary, so far so good in 2011, with forecasts in reasonable heart, but there are storm clouds and we still have to see how the latest stock market crisis affects consumer and client thinking and actions. Although there could be changes in the pattern of behaviour after the Western summer holidays in August and after Labour Day in the United States, given the fact that most client budgets and plans are calendar year, any impact may not be felt until 2012. And in 2012 we will have the maxi-quadrennial positive impact of the London Olympics and Paralympics, the Eastern European-based UEFA European Football Championships and, most importantly, the United States Presidential elections (where political spending alone may reach $4 billion), all of which usually add at least 1-2% to worldwide demand for advertising and marketing services. The “LUV” or "LuVVy" shaped recovery remains battered but intact, particularly with the world moving at different speeds both geographically and functionally, but there is need to exercise significant caution.

For the remainder of 2011, the focus will continue to be on ensuring that our operating companies balance revenue, gross margin and headcount growth, while at the same time capitalising on the various client and market opportunities that continue to arise and investing in both existing and new talent, where necessary. Given recent events our operating companies will be even more cautious about hiring additional staff in the balance of this year.

Plans, budgets for 2012 and forecasts will, therefore, be made on a conservative basis and considerable attention is still being focused on achieving margin and staff cost to revenue or gross margin targets. Margins have recovered in almost all important parts of the business and overall are approaching pre-Lehman pro-forma levels of 14.3%, the attainment of which would be a considerable achievement. In addition to influencing absolute levels of cost, the initiatives taken by the parent company in the areas of human resources, property, procurement, information technology and practice development continue to improve the flexibility of the Group’s cost base. Flexible staff costs (incentives, freelancers and consultants) have returned to historical highs of around 7% of revenues and continue to position the Group well, if current concerns result in client budget cuts.

The Group continues to improve co-operation and co-ordination between companies in order to add value to our clients’ businesses and our people’s careers, an objective which has been specifically built into short-term incentive plans. Particular emphasis and success has been achieved in the areas of media investment management, healthcare, corporate social responsibility, government, new technologies, new markets, retailing, internal communications, financial services and media and entertainment. The Group continues to lead the industry, in co-ordinating investment geographically and functionally through parent company initiatives and winning Group pitches. Increasing co-operation, although more difficult to achieve in a multi-branded company, which has grown by acquisition, than in an organically grown uni-branded one, remains a priority.

As economic progress, particularly in the West continues to be, and is likely to remain a "slog", the Group continues to concentrate on its long-term targets and strategic objectives of improving operating profits by 10-15%; improving operating margins by half to one margin point per annum or more depending on revenue growth; improving staff cost to revenue or gross margin ratios by 0.3-0.6 margin points per annum or more depending on revenue growth; converting 25-33% of incremental revenue to profit; growing revenue faster than industry averages and encouraging co-operation among Group companies.

As clients face an increasingly undifferentiated market place, particularly in mature markets, the Group is competitively well positioned to offer them the creativity they desire, along with the ability to deliver the most effective co-ordinated communications in the most efficient manner. The Group’s performance this year at the Cannes Advertising Festival, the industry’s most prestigious event, was particularly pleasing – winning the Lion for the leading group in the world with the most creative awards.

Even as economic stress levels increase and intensify, the Group’s strategic focus on new markets, new media and consumer insight, along with the application of technology and data analytics will become even more important. Clients will be increasingly looking for growth, advice and resources in the BRICS, CIVETS and Next 11, in digital communications and in understanding consumer motivations and changing media consumption habits. Your Group is ideally placed to deliver.

This article titled “Chime Communications profits up 23%” was written by Mark Sweney, for guardian.co.uk on Tuesday 23rd August 2011 11.56 UTC

Lord Bell’s Chime Communications reported a 23% surge in pre-tax profits to £12.7m in the first half of 2011, despite turmoil in the Middle East impacting the financial performance of the group’s PR division.

Chime’s PR operation, which includes Bell Pottinger, Harvard and Good Relations, reported a 5% fall in net revenue to £32.6m and flat operating profits of £7.8m.

The company said that the PR operation, the largest of Chime’s divisions accounting for 48% of total revenues, had faced “short term challenges” from the uprisings across the Middle East.

“The global market and global economy are becoming increasingly volatile and we are not immune to this continuing lack of political, social and economic stability, particularly in our public relations business,” said Bell, best known as Margaret Thatcher’s favourite PR man in the 80s.

The company’s separate advertising and marketing services division – which includes VCCP, the ad agency behind Comparethemarket.com’s TV ads featuring meerkat Aleksandr Orlov – was Chime’s star performer.

The dvision reported operating profits up 33% to £2.4m and net revenues up 22% to £22.7m.

Chime said that this division, which accounts for 29% of total revenues, had a strong first half thanks to a number of new business wins such as easyJet, Carling and Dairy Crest.

The fast-growing sports marketing division – Chime recently acquired a controlling stake in the Brazilian firm Golden Goal (in preparation for the 2014 World Cup and 2016 Rio Olympics) and the experiential agency Icon – reported a 2% increase in operating profit to £4.3m and a 7% increase in net revenues to £19.2m.

The division, which accounts for 24% of total revenues, won business including Oscar Pistorius, the South African sprinter known as “Blade Runner”, Sunderland FC and the Barclays Scottish Open golf tournament.

“Our advertising business is gaining market share and our sports marketing business is well placed to become the global leader at a time when sports revenues are increasing,” said Bell. “These are impressive results achieved in an uncertain global economic and political environment which impacted some parts of our group.”

Chime’s research operation reported a 6% fall in net revenues to £3.9m and flat operating profits of £400,000.

Net cash at 30 June stood at £6.9m.

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This article titled "Trinity Mirror profits fall 65%" was written by Mark Sweney, for guardian.co.uk on Friday 12th August 2011 07.02 UTC

Trinity Mirror has reported a 65% plunge in pre-tax profits to £28.9m in the first half of the year, as the sales boost from the closure of the News of the World helped stem the revenue decline in July.

Trinity Mirror, owner of the Daily Mirror and Sunday Mirror and more than 100 regional titles, said that total underlying group revenue fell by 6.9% to £339m for the 26 weeks to 3 July.

The company said that subsequently, the decline in group revenues has fallen to just 3% for July, thanks to a major boost after the closure of the News of the World on 10 July.

"We have seen an improvement in the circulation volumes and revenue performance for our Sunday titles following the closure of the News of the World across both the nationals and regionals," the company said.

"The benefits are evident in the improved group circulation revenues in July, which are up 2% year on year with our nationals up 4%, a significant improvement from the 5.4% decline in group circulation revenues in the first half [as a whole]."

The company forecast that its official circulation figures – which are published by the Audit Bureau of Circulations at 12pm on Friday – will show that the Sunday Mirror has increased sales by about 55% year-on-year for July, to 1.78m copies.

Stablemate the People is expected to be up about 50% to 807,000 copies.

However, Sly Bailey, the chief executive of Trinity Mirror, pointed out that the July figures will include a week when the News of the World was still being published.

She said that a "clean" four-week period without NoW in the market showed that sales of the Sunday Mirror are up 71% to 1.98m, with the People up 66% to 900,000.

She said the official sales figures for August are expected to end out ahead of July.

Bailey added that the riots across England had fuelled an uplift in sales and a very large increase in traffic to its websites.

However, the company admitted that overall the trading environment in the first half of the year has proved to be "much weaker than anticipated" with total advertising revenues falling by 11% in the first half of the year.

Trinity Mirror reported that total advertising revenues fell 11% for the 26-week period to 3 July, with circulation revenues falling 5.4%.

Advertising revenue at the national newspaper division fell 12.2% with circulation revenues down 5.5% for the period. In July, national newspaper advertising fell 15%, worse than analysts' expectations.

Advertising revenue at the regional division fell by 10.4% with circulation revenue down 5% for the period. In July, regional advertising fell 9%.

In a bid to limit the fall in operating profits – which plunged by 23.7% to £47.1m on an adjusted basis – Trinity Mirror announced it would be increasing its savings target for the second time this year, up another £10m to £25m.

The decline in operating profits is, in fact, worse than 23.7% as the results for the same period in 2010 only included 14 weeks of contribution from GMG Regional Media, which owns titles including the Manchester Evening News.

Trinity Mirror acquired the stable of regional titles from Guardian Media Group, owner of the Guardian and MediaGuardian.co.uk, in March last year.

"While the economic environment remains difficult we have undertaken a series of actions to limit the impact on operating profit," said Bailey. "The roll out of our technology-led operating model continues to deliver efficiencies and today we have announced an increase in our 2011 cost savings target."

The company said its attempts to diversify its revenue streams are gathering pace with a 3.7% increase in "other" revenues to £45.3m, driven by growth in contract printing and contract publishing for football clubs.

In addition digital revenues grew by 4.4% with average monthly unique users across Trinity Mirror's website portfolio for the period up by 28% year on year.

The company said that "tight cost management" saw underlying costs fall by £10m with savings of £12m in the first half. Newsprint costs rose £9m for the period.

Trinity Mirror said that net debt fell by £3.7m to £262m. The company made pension deficit funding payments of £33m, with the pension deficit standing at £73.9m.

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This article titled "News Corp income rises by 12% to $5bn as Murdoch defends empire" was written by Dominic Rushe, New York, for guardian.co.uk on Thursday 11th August 2011 06.56 UTC

Rupert Murdoch pledged to do "whatever is necessary" to prevent a repeat of the phone-hacking scandal that led to the closure of his News of the World newspaper, thrown his succession plans into chaos and left his company facing decades of legal woes.

"There can be no doubt about our commitment to ethics and integrity," said the chairman of News Corp.

"I have run this company for more than 50 years," Murdoch added as he announced strong results for his media empire. "The kind of behaviour that occurred in that newsroom has no place at News Corporation. It does not reflect the actions and beliefs of our more than 50,000 professional employees. I am personally determined to put things right when it comes to News of the World."

Murdoch's comments came as News Corp announced a full-year operating income of $4.98bn (£3.08bn), compared with $4.46bn reported a year ago – a 12% increase driven in large part by the success of his television and cable network programming.

The company reported a 22% drop in fourth-quarter earnings because of losses from the sale of its struggling social network Myspace. It made a $254m after-tax loss from the sale of Myspace. But strong results from its television assets, including the Fox TV network, beat analysts' estimates. Its net income fell to $683m, or 26 cents a share, down from $875m, or 33 cents a share, a year ago.

Revenue rose 11% to $8.96 bn, helped by advertising sales and fees at Fox TV and its cable networks. Operating income at its cable network unit rose 12%, helped by a 23% rise in advertising revenue at its domestic channels and a 30% rise in affiliate fees at its international cable channels. Advertising at its Fox broadcast business also rose by 7%.

Film profits rose 53% thanks to animation hit Rio, and home entertainment sales of Black Swan and The Chronicles of Narnia.

This was the first results presentation that Murdoch has hosted for nearly a year and the first since his appearance before the parliamentary committee investigating the hacking scandal. He said the company did not yet have any idea what the financial bill to News Corp could be from potential legal action and fines. He said the company needed to "get to the bottom" of what happened: "Were there a dozen guilty people or two dozen?"

Murdoch said: "While it has been a good quarter from a financial point of view, our company has faced challenges in recent weeks relating to our London tabloid, News of the World. We are acting decisively in the matter and will do whatever is necessary to prevent something like this from ever occurring again."

News Corp closed the News of the World last month as the revelations that its journalists had hacked into people's phones, including the murdered teenager Milly Dowler, led to public outrage, a parliamentary inquiry at Westminster triggered a US investigation of possible abuses under US law.

"It is important to note that there has been no material impact on our other operations," he said. "Our broad, diverse group of businesses across the globe is extremely strong today. The drivers of our businesses are intact, our position is strong and our future is promising.

"Our fundamental goals at News Corp are to produce sustained, meaningful value for shareholders, provide outstanding content and services to customers and consumers – and do it with integrity. These goals are interrelated and all three are critically important. And we will deliver."

Murdoch said he and Chase Carey, News Corp's chief operating officer, had "full confidence" in James Murdoch, long seen as Murdoch's heir apparent. James Murdoch is facing allegations that he mislead the parliamentary select committee.

Murdoch also dismissed allegations that his independent board of directors was not independent. "That's not true," he said. Murdoch said the company had retained outside advice and evaluated its corporate governance practices and found no flaws.

The News Corp boss, and largest shareholder, said he was disappointed that he had had to scrap plans for a full-takeover of satellite broadcaster BSkyB.

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