Rupert Murdoch's new News Corporation has achieved a $US506 million ($A542.60 million) full year profit despite the poor performance of its ailing newspapers.
The newly split publishing company's first financial result was marred by $US1.4 billion in writedowns, mostly on the value of its Australian newspapers.
The profit compared to a net loss of $2.1 billion in fiscal 2012, which was marked by $US2.8 billion in writedowns.
The latest result was not boosted by any uplifting in earnings, but rather inflated by a $US1.3 billion gain on its acquisition of Consolidated Media, owners of Fox Sports Australia.
Newspaper ad revenue plummeted 10 per cent to $US3.9 billion, including a 15 per cent fall in Australian newspaper revenue.
News Corp split in two earlier this year, with the publishing arm - which also includes Australian pay TV assets - separated from the more profitable 21st Century Fox TV and movie operations.
The writedowns and comments by the company do not augur well for the future of its Australian, UK and US newspapers, which are struggling as circulation dries up and online companies take advertising share.
Restructuring of its Australian newspapers such as The Australian and Herald-Sun, including redundancies, incurred a large share of $US293 million in costs.
"These adjustments reflect adverse trends affecting the company's news and information services segment, including declines in advertising revenue and continued declines in the economic environment in Australia," the company said in a statement.
"(That) resulted in a reduction in expected future cash flows."
It also incurred legal costs related to the UK phone hacking scandal of $US183 million during the year and estimated it would be liable for another $US66 million this year.
21st Century Fox's recent inaugural full year net profit was $US6.8 billion.
Its share price has also raced ahead of its poorer listed brother, climbing 47 per cent since the separate listing in June, compared to only about 21 per cent for News Corp.
News shares had fallen 44 cents, or 2.4 per cent, to $17.60 on Monday.
Revenue at News Corp's Fox Sports and Foxtel cable TV networks improved but the newspapers represented a dominant 76 per cent of revenue.
A remuneration report revealed that News Corp chief executive Robert Thomson was paid $US2.66 million for the year.
That will increase this year with him only starting in the role on January 1 last fiscal year.