News Corp. Buoyed by Strong Profits After Scandal 10 August 2011

News Corp. buoyed by strong profits after scandal 10 August 2011

"We are acting decisively in the matter and will do whatever is necessary to prevent something like this from ever occurring again."

The media titan made it clear during his grilling by a British parliamentary committee last month that he had no plans to step aside.

During the tumultuous quarter, News Corp. closed Scandal-battered media behemoth News Corp. on the 168-year-old News of the World and Wednesday reported a bumper end to the fiscal year abandoned its bid for full control of British pay with profits and revenue buoyed by its cable television television giant BSkyB. business. The quarter also saw the resignations of trusted Murdoch aides Rebekah Brooks, a former News of the World editor, and Les Hinton, chief executive of Media behemoth News Corp. posted strong profits News Corp.'s Dow Jones unit, which publishes The Wednesday, boosting owner Rupert Murdoch's Wall Street Journal. attempts to reassure investors after a damaging phone-hacking scandal in Britain. Brooks was editor of the News of the World from 2000-2003, when reporters at the newspaper Although net income for the fourth fiscal quarter fell allegedly hacked the phone of murdered teenager 22% to $683 million for the fourth quarter, News Milly Dowler -- the claim that sparked the crisis and Corp. finished the year with profits amounting to led to the closure of the tabloid. $2.74 billion, a rise of 7.9% compared to 2010. Hinton, who served as chairman of News News Corp, which owns the Fox TV network and International, the News of the World parent, from The Wall Street Journal in addition to a host of 1995 to 2007, worked alongside Rupert Murdoch worldwide newspaper, Internet, broadcast and for more than five decades dating back to his start cable television interests, is grappling with the in the newspaper business in Australia. biggest crisis in its history. News Corp. also sold Myspace, the social network A phone-hacking scandal in Britain has which it bought in 2005 for $580 million, during the mushroomed into a full-blown public relations quarter for a paltry $35 million, bringing the curtain nightmare for the media and entertainment down on Murdoch's tie-up with the one-time social colossus headed by 80-year-old chief executive networking star. Murdoch. News Corp. shares have lost more than 20 percent "While it has been a good quarter from a financial of their value since the first reports in early July that point of view, our company has faced challenges in phone-hacking victims in Britain included the slain recent weeks relating to our London tabloid, News teenager Milly Dowler. of the World," Murdoch said in a press release accompanying Wednesday's results. News Corp. stock inched up slightly to $13.80 per share in trading that followed release of the

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earnings results.

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