[QODLink]
Europe
News Corporation posts significant profits
Despite damages caused by public scandal, Rupert Murdoch's media giant seems to be in good financial health.
Last Modified: 11 Aug 2011 00:16
News Corporation's phone-hacking scandal has mushroomed into a public-relations nightmare [GALLO/GETTY]

Media giant News Corporation has posted strong profits, reassuring investors that damages caused by the corporation's highly-publicised phone-hacking scandal may be short lived.

While net income fell 22 per cent to $683m for the fourth quarter, News Corporation finished the year with profits of $2.74bn, a rise of 7.9 per cent compared to 2010.

News Corporation, which owns the Fox TV network and The Wall Street Journal, as well as a range of other newspaper, Internet, broadcast and cable television holdings, is grappling with the biggest crisis in its history.

A phone-hacking scandal in Britain has turned into a full-blown public relations fiasco for 80-year-old chief executive Rupert Murdoch.

"While it has been a good quarter from a financial point of view, our company has faced challenges in recent weeks relating to our London tabloid, News of the World," Murdoch said in a press release on Wednesday.

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

Last month Murdoch was grilled by a British parliamentary committee about the scandal. He told the committee that he would not step down as the company's head.

News Corporation stock rose slightly to $13.80 per share following Wednesday's announcement.

Source:
Agencies
Topics in this article
People
Country
City
Featured on Al Jazeera
The author argues that in the new economy, it's people, not skills or majors, that have lost value.
Colleagues of detained Al Jazeera journalists press demands for their release, 100 days after their arrest in Egypt.
Mehdi Hasan discusses online freedoms and the potential of the web with Wikipedia founder Jimmy Wales.
A tight race seems likely as 814 million voters elect leaders in world's largest democracy next week.
Featured
A vocal minority in Ukraine's east wants to join Russia, and Kiev has so far been unable to put down the separatists.
Iran's government has shifted its take on 'brain drain' but is the change enough to reverse the flow?
Deadly attacks on anti-mining activists in the Philippines part of a global trend, according to new report.
Activists say 'Honor Diaries' documentary exploits gender-based violence to further an anti-Islamic agenda.
As Syria's civil war escalates along the Turkish border, many in Turkey are questioning the country's involvement.
join our mailing list