By Max Clarke
Rupert Murdoch’s News Corp empire (NASDAQ: NWS) has shrugged off the phone hacking scandal to post a 45% growth in income.
The fiasco surrounding News of the World journalists and their phone hacking of celebrities, dead soldiers’ families and even murdered schoolgirl, Milly Dowler that erupted for the second time this summer, that eventually saw the London-based tabloid axed before Rupert and his son, James were hauled before MPs of the culture select committee, has apparently done little to dampen the multi billion dollar media empire.
“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,” admitted Murdoch Senior. “We are acting decisively in the matter and will do whatever is necessary to prevent something like this from ever occurring again.”
Cable network programming in particular drove much of this growth, growing 12% in the second quarter 2011 to $631 million- around half of the group’s entire revenue.
The box-office record, avatar delivered poor performance, depressing returns from News Corp’s filmed entertainment branch and losses increased from the flailing social network, Myspace.
The Murdochs’ countless influential newspapers across the globe performed strongly, with News Corp’s publishing interests delivering $270 million in revenue- up from $196 from the same period last year.
Continued Murdoch: “It is important to note that there has been no material impact on our other operations. Our broad, diverse group of businesses across the globe is extremely strong today. The drivers of our businesses are intact, our position is strong and our future is promising. Our fundamental goals at News Corp are to produce sustained, meaningful value for shareholders, provide outstanding content and services to customers and consumers — and do it with integrity. These goals are interrelated and all three are critically important. And we will deliver on them.”
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