An Internet Life

News Corp. just turned in an ugly earnings report, with $6.4 billion in Q2 losses due to an $8.4 billion writedown.

Uglier than that loss: Rupert Murdoch’s forecast for 2009. In the release he says, “the downturn is more severe and likely longer lasting than previously thought.” and “We are implementing rigorous cost-cutting across all operations and reducing head count where appropriate.”

Translation: Expect layoffs and soon. (Media Medio reports that the WSJ cut 14 staffers today.)

Adjusting for the writedown, the company reported $818 million in operating income. Earnings per share was $.12 on $7.9 billion revenues missing analysts’ Q2 expectations of $.20 EPS on revenues of $8.45 billion. Cable operations performed reasonably. Operating income grew to $428 million up from $337 million during the same period in 2007. Magazines and inserts saw a bump too, from $85 million to $86 million.

Every other segment of the business saw declining operating income. Filmed entertainment operating income plummeted y/y, from $403 million to just $112 million.

News Corp doesn’t break out MySpace operating income, grouping Fox Interactive into its “Other” category. That group lost $38 million, but the company blamed the loss on “increased costs associated with the growth in unique users, international expansion, the launch of MySpace music and new features, as well as lower subscription revenue at IGN.”