Rupert Murdoch's publishing and newspaper business News Corp has reported a 4 per cent decline in annual revenue due to weaker advertising revenues at its flagship news and information arm, but has reported continued strength in its real estate classified business and book publishing.

In its first full-year result since Murdoch split News Corp in two, chief executive Robert Thomson said: "While we are operating in a challenging advertising environment, our results highlight the diversification of our portfolio and our cost discipline, leading to improved free cash flow and a firm foundation for sustained growth."

News Corp chief Rupert Murdoch. Credit:AP

News Corp had not provided any guidance, but the 4 per cent decline in total revenues to $US8.57 billion ($9.24 billion) was in line with local analyst expectations, according to Bloomberg. Fourth-quarter revenues declined by 3 per cent to $US2.19 billion, above analyst expectations.

Citi analyst Justin Diddams said the results "highlighted the mixed fortunes for the group" with an underlying revenue decline of 1 per cent year on year in the fourth quarter, excluding foreign exchange and acquisitions, and earnings before interest, taxation, depreciation and amortisation down 7 per cent.