RTRS - FOCUS-News forecasts alien-led profit boost .  Bernard Hickey  SYDNEY 1996-08-22  Media baron Rupert Murdoch 's News Corp Ltd reported lower than expected 1995/96 profits on Thursday , but forecast that the hit film " Independence Day " would help increase profits by at least 20 percent in 1996/97 .  " From an earnings perspective , the current fiscal year has begun with great promise due to the hit motion picture ' Independence Day , ' " News Corp said in a statement announcing its results for the year to June 30 , 1996 .  It said moderating paper prices and solid orders for advertising at its Fox Broadcasting television network in the United States would also help boost profits in the 1996/97 year . "  A budgeted profit increase of at least 20 percent for the full year currently appears very attainable , " News Corp said .  The bullish comments for the coming year soothed analysts and most shareholders , who were disappointed by the lower than expected profit for 1995/96 .  News announced pre-abnormals net profit for the year fell six percent to A$ 1.26 billion ( US$ 995 million ) and earnings per share dropped to 40 cents from 46 cents .  Analysts had on average expected a pre-abnormals profit of A$ 1.343 billion .  " The year just gone was disappointing , but the outlook for the current year looks good , " First Pacific media analyst Lachlan Drummond said .  News Corp said strong performances in U.S. television and British newspapers were offset by lower profits from [START_ENT] News Corp [END_ENT] 's magazine and publishing divisions and further hefty losses from its Asian Star TV operations .  Higher newsprint prices hit profits hard . "  Throughout the group , higher paper prices increased costs by over US$ 300 million , " it said .  News Corp said British newspaper operating profits rose 10 percent for the year , as higher cover prices at The Sun and The Times and higher advertising volumes offset increased newsprint costs .  Advertising revenues at The Times grew 20 percent .  Analysts said sharply lower earnings from News Corp 's book publishing division and its U.S. magazines had been the major surprises in the results for 1995/96 .  News Corp said revenue gains at its magazines and inserts division were offset by higher paper prices and lower sales at the U.S. TV Guide .  News said dramatically lower earnings from the British arm of its Harper-Collins publishing division more than offset healthy results from its U.S. operation .  It said the demise of the Net Book Agreement had hurt the British operations , and weak performances from the San Francisco unit of Harper-Collins had not helped .  The minimum price setting expired last September when three publishers pulled out .  But it was the bullish profit forecast for 1996/97 that took the spotlight in the market , with some analysts saying 20 percent may even be an understatement .  " If they 're saying at least 20 percent , then their internal forecasts are probably saying 25 or 30 percent , " said one Sydney media analyst who declined to be named .  News Corp 's shares were down eight cents at A$ 6.39 at 2.00 p.m. ( 0400 GMT ) in a soft market .  ( A$ 1 = US$ 0.79 )  -- Sydney Newsroom 61-2 373-1800
News Corporation