News Corp points to Australian newspaper headwinds The challenges facing the newspaper industry were laid bare in News Corp's first results since its separation from 21st Century Fox when Rupert Murdoch's publishing company reported earnings at the bottom end of expectations, hit by lower advertising revenues. News Corp highlighted "weakness" in its Australian newspaper division, which was responsible for most of the revenue decline. There were "moderating declines" in its UK and US newspaper businesses, it said. Robert Thomson, chief executive, pointed to "headwinds in Australia" but said the company was "consistently cost conscious." He also hinted at acquisitions to come. "We are diverse globally and see clear opportunities to expand beyond our existing footprint," he told an investor call. Costs associated with settling lawsuits from the victims of phone hacking - referred to by News Corp as "UK newspaper matters" - continued to be a drag on results. Those costs were $40m in the quarter, compared with $61m in the prior year, bringing the total borne by News Corp and its sister company to more than $420m since the scandal broke. The company's revenues fell from $1.04bn to $958m while net income rose to $27m, compared with a $92m loss in the prior year. Earnings per share were $0.05 compared with a loss per share last time of $0.16. Revenues in the newspaper division, which includes titles ranging from The Sun to the Wall Street Journal, were down 10 per cent compared with the prior year. After negative foreign exchange movements were stripped out, newspaper revenues fell 4 per cent. The company has taken steps to bolster its online advertising efforts and recently launched its own online advertising network to service its newspaper and digital portfolio. Mr Thomson said News Corp was "discontinuing arrangements with third party ad networks." News Corp also recently acquired mobile rights to English Premier League football and has begun bundling clips and other services for its newspaper subscribers. "The purpose behind these subscriptions is to heighten affinity," said Mr Thomson said. Shares slipped 2.4 per cent to $17.42 in after market trading.