News Corp warns of fall in earnings

NEWS Corporation's quarterly profits beat expectations thanks to the 3-D blockbuster Avatar and a strong performance from its cable television networks.

However, the Rupert Murdoch-controlled company said its operating income would dip in the three months to June as it will release fewer films compared with the same quarter last year . It also expects higher programming costs and lower network revenue at Fox Broadcasting.

News Corp is home to the Twentieth Century Fox movie studios and newspapers, including the Sun.