Hacking scandal cost News Corp $15m in last three months - nearly four years on from News of the World closure

The continuing fallout from the hacking scandal cost News Corp $42m in the nine months to March, down from $56m in the same period a year ago.

These included $15m of fees and costs in the last three months,down $5m year on year.

The costs are “net of indemnification” and relate to “claims and investigations arising out of certain conduct at the News of the World”.

News Corp has run up hundreds of millions of dollars of legal fees and other costs since closing the News of the World in the wake of the hacking scandal in July 2011.

News and Information Services generated $1.35bn of revenue in the last quarter (down 9 per cent) and profit (EBITDA*) of $113m (down 23 per cent).

News Corp’s news division includes the Sun, Times and Sunday Times titles in the UK and the Wall Street Journal and New York Daily Post in the US. The fall in profit was said to be caused by lower ad revenues, currency fluctuations and $8m in legal expenses at News America Marketing.

Overall, News Corp reported turnover for the last three months down 1 per cent to $2.062bn and profit (EBITDA) down 7 per cent year on year to $163m.

News Corp chief executive Robert Thomson said: “The new News Corp continues to build a firm foundation for digital growth…

"While the quarter faced some revenue challenges, particularly at News and Information Services, including currency headwinds, our adjusted EBITDA was relatively stable, underscoring the strength of our assets and the diversification of our revenue base.

"We believe the company is firmly on track and the signs are positive for year-over-year EBITDA growth in the fourth quarter.”

*Earnings Before Interest,Tax, Deductables and Amortisation – a measure of operating profit

Comments
No comments to display

Leave a Reply

Your email address will not be published. Required fields are marked *

eighteen − 14 =

CLOSE
CLOSE