Rupert Murdoch's news and publishing company News Corp has unveiled weaker-than-expected earnings, with a sharp decline in newspaper revenues partially offset by solid growth in its digital real estate and book publishing businesses.

Fourth-quarter net profit reached $US12 million, hampered by a 4 per cent decline in total revenue to $US8.57 billion.

Adjusted earnings per share dropped to $US0.46 from $US0.62 in the prior year.

Chief executive Robert Thomson told investors "significant progress" had been made in the first full year since the company was formed from the split of the original News Corp into separate publishing and entertainment arms.

The company blames the majority of the revenue decline on "lower advertising revenues at the News and Information Services segment, foreign currency fluctuations and the sale of the Dow

Jones Local Media Group".

Revenue at Australian newspapers declined 18 per cent, of which more than half Mr Thompson attributed to currency fluctuations.

The results were also hit by a drop in advertising dollars and subscriptions across the news and information business, which includes UK papers.

But Mr Thomson shrugged off the Australian division's performance on a conference call with investors.

"In Australia we are pleased to show very strong digital growth for our paid digital subscriber base over the past year now exceeding 200,000 ... today The Australian has more paying customers than at any time in its history and a larger audience than ever," he said.

But weakness in the publishing business has been partially offset by the outperformance of others.

Its majority-owned digital real estate business REA continues to thrive. Revenue jumped 24 per cent while pre-tax earnings rose 35 per cent over the quarter as it captured a greater slice of the Australian market and expanded into China.

Book publishing saw revenues jump as well, with a strong pick-up in e-book revenue.