LOS ANGELES —
Fallout from the British phone-hacking scandal continues to rattle News Corp., even as strong performances from the media giant’s cable television and film groups helped it post a 47 percent jump in net income in its third quarter.
News Corp. on Wednesday reported net income of $937 million for the quarter ended March 31, compared with $639 million a year earlier. Revenue rose to $8.4 billion, up 2 percent from last year.
Before discussing the New York company’s financial results with Wall Street investors, Chief Operating Officer Chase Carey offered a spirited defense of his boss, Rupert Murdoch. Carey said he rejected the conclusions of a British parliamentary committee investigating the illegal conduct, which last week concluded that Murdoch, chairman and chief executive of News Corp., was “not a fit person” to run a giant media company.
“It’s unjustified and, in many people’s opinion, including my own, purely partisan,” Carey said, adding, “He’s one of the smartest, most forward-thinking executives of our time.”
The company’s cable networks reported operating income of $846 million, a 15 percent gain over the previous year, thanks to double-digit growth at Regional Sports Networks, FX Network and Fox News.
The film studio posted operating income of $272 million, an improvement of nearly 10 percent from a year earlier. Movie results reflected the strong box-office and home-entertainment performances of “Alvin and the Chipmunks: Chipwrecked” and “The Descendants.”
Chief Financial Officer David F. DeVoe said News Corp.’s board had authorized an additional $5 billion to be allocated to the existing stock-buyback program — news that sent the company’s shares, which closed up 5 cents at $19.38, up an additional 48 cents in after-hours trading to $19.86.
However, the British phone-hacking scandal continues to drag on the company’s earnings. News Corp. took a charge of $63 million in costs related to the ongoing investigation of conduct at the now-closed News of the World tabloid.
News Corp. has been buffeted by the continuing fallout from the British phone-hacking scandal, which erupted last summer when it was revealed that a detective working for one of News Corp.’s tabloids had hacked into voice-mail messages left for a missing schoolgirl who was later found dead.
A committee of British lawmakers issued a blistering report last week finding that Murdoch had “exhibited willful blindness” toward the illegal phone hacking at News of the World and is “not a fit person” to lead a major international company such as News Corp.
News Corp.’s board subsequently issued a unanimous statement affirming the directors’ confidence in Murdoch and his ability to run the company he built from a single newspaper in Adelaide, Australia.
Saudi Prince Alwaleed Bin Talal Bin Abdulaziz, News Corp.’s second-largest shareholder, also voiced his continued backing of Murdoch in an interview with the Guardian, but expressed concern that the situation is damaging the reputation of the company beyond its British newspapers.
“I really hope that this is behind us, because really it is not helping the name of the company,” he told the Guardian. “We hope that this page is folded and put behind us because really it is not something to be proud of.”
Murdoch’s youngest son, James, in April resigned as chairman of satellite broadcaster British Sky Broadcasting, in which News Corp. holds a large stake, ahead of what was expected to be a critical report from the parliamentary committee on his handling of the ethics scandal.
Media regulators in Britain are evaluating whether BSkyB is a “fit and proper” holder of a broadcast license because of News Corp.’s nearly 40 percent ownership position. Some politicians have used Parliament’s Culture, Media and Sport Committee’s critical report to call for swift action, a call the regulators have resisted.
Business
News Corp. profit soars 47 percent
- Business
-
-
Stocks head lower, market on track for weekly loss
The stock market headed slightly lower Friday, keeping on track for its first weekly loss in a month.
-
Summer travel forecast: Better, but no blowout
This summer, high rollers are flying to lavish hot spots for their vacations. The rest of us are driving to less luxurious places like nearby campgrounds.
-
Schumer urges look at security in Sprint deal
Sen. Charles Schumer urged regulators to “use extreme caution” when reviewing the proposed acquisition of No. 3 cell carrier Sprint Nextel by Japan’s Softbank, saying the Japanese company’s use of Chinese networking equipment could open up U.S. networks to snooping and hacking.
-
Kid Rock, Rolling Stones on scalping, summer tours
Kid Rock is a scalper. The 42-year-old Grammy winner, who is launching a summer tour where most tickets are priced at $20, said he’s holding about 1,000 tickets from each show and reselling them on ticketsnow.com — owned by Ticketmaster — to make up for the cheaper regular price he’s offering.
-
US rig count down 7 to 1,762
Oilfield services company Baker Hughes Inc. says the number of rigs actively exploring for oil and natural gas in the U.S. dropped by seven this week to 1,762.
-
West Virginia joins fight to EPA greenhouse gas rules
West Virginia’s governor and attorney general are joining two other states that are seeking to challenge federal environmental rules on greenhouse gas emissions.
-
Why worry? Less aid by Fed would point to recovery
Investors have grown nervous that the Federal Reserve will scale back its efforts to boost the U.S. economy sooner than many expected.
-
Sears reports bigger-than-expected 1Q loss
Sears Holdings Corp. reported a steeper-than-expected loss for its first quarter with the beleaguered retailer blaming a cooler spring for falling sales.
-
Procter & Gamble brings back A.G. Lafley as CEO
Procter & Gamble Co. is bringing back its former CEO, as the world’s largest consumer-products maker tries to spur global growth.
-
Asia stocks extend losses after big sell-off
Asian stocks continued to retreat Friday after being routed the day before by unexpectedly weak Chinese manufacturing and fears the Federal Reserve will start withdrawing its monetary stimulus.
- More Business Headlines
-
Raw: Trucker Bumps I-5 Bridge Before Collapse
Raw: Texas Deputy Shot by Colo. Suspect Honored
Major Detours Following Wash. Bridge Collapse
American Held in Grisly Czech Murders
Raw: Jersey Shore Reopens for Summer
UK-bound Pakistan Plane Diverted, 2 Men Arrested
Officials: Tsarnaev Friend Linked to Slaying
Obama:Sexual Assault Threatens Trust in Military
Bridge Collapse Survivor: 'Rough Day'
Jersey Shore Open for Business
Raw: Memorial Day Flags Placed at Arlington
New Wheelchair Lift Promises More Access
First Person: Mom Discusses Famous Tornado Photo
Raw Video: Washington State Bridge Collapse
Boy Scouts Approve Plan to Accept Gay Boys
