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News Corp profit drops 22 per cent on Myspace sale
Aug 10, 2011, 23:28 GMT
New York - News Corp shrugged off the repercussions of its phone-hacking scandal with an 11-per-cent increase in quarterly revenues, the media conglomerate announced Wednesday.
But fourth quarter profits dropped 22 per cent to 683 million dollars from 875 million dollars a year ago, due to losses incurred on the sale of failed social networking site Myspace, which the company bought for 580 million dollars in 2005 and sold in June for 35 million dollars.
Revenue rose to 8.96 billion dollars from 8.11 billion dollars, helped by continued growth at the company's cable TV networks.
The positive financials came despite the unprecedented decision to shut down The News of the World, one of the company's top tabloids in Britain, following the phone-hacking scandal.
'We are acting decisively in the matter and will do whatever is necessary to prevent something like this from ever occurring again,' News Corp chief Ruppert Murdoch said.
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