Los Angeles - Media conglomerate News Corp reported a drop in quarterly net income of 30 per cent, blaming softness in TV advertising and a weak performance by its usually thriving film studio.

The company controlled by magnate Rupert Murdoch said profit slumped to 515 million dollars down from 732 million dollars a year ago. However revenue climbed 6 per cent to 7.5 billion dollars.

The company's cable and satellite TV units performed strongly. But they were hampered by a revenue drop of 31 per cent at its film studio where flops like Meet Dave, Mirrors and Space Chimps failed to match the smash hit success of The Simpsons in the corresponding quarter a year ago.

Ad sales also tumbled at News Corp's Fox TV network as advertisers cut spending and viewers switched to NBC to watch the Olympics. That caused TV profits to plunge 70 per cent to 54 million dollars. However newspaper sales rose 37 per cent to 1.71 billion dollars, buoyed by the acquisition of the Wall Street Journal.

"All media companies are being tested and the year ahead will be difficult," said Murdoch. "I am confident that our long-term strategy of cultivating diversified assets at different stages of development, judicious investment of our capital and a strong balance sheet will guide us through these difficult times."