News Corp profits fall on sale of MySpace website

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Rupert Murdoch said the financial performance was a good one

Media giant News Corporation has seen its quarterly profits fall 22% on the back of losses caused by the sale of the MySpace website.

The company, whose UK newspaper business News International has been marred by a phone-hacking scandal, made a net profit of $683m (423m) in the three months to 30 June.

A year ago it made a profit of $875m. Its revenues rose 11% to $9bn.

Chairman Rupert Murdoch said he had the backing of his board.

"The board and I believe I should continue in my current role as chairman and CEO," he said.

"But make no mistake, [chief operating officer] Chase Carey and I run this company as a team, and the strength of that partnership is reflected in our improved results."

Mr Murdoch admitted the hacking scandal that resulted in the company closing its News of the World newspaper had caused News Corporation difficulty.

"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," he said.

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

News Corp agreed to sell social networking website MySpace on 29 June for $35m, just a fraction of the $580m it paid for the website in 2005.

Dropped bid

Investors will have to wait until News Corporation's next quarterly results for more information on how the closure of News of the World has affected its profits, as the title's final edition was on 10 July, 10 days after the three months covered in the company's latest financial results.

However, News International only provides a very small proportion of News Corporation's revenues and profits.

News Corporation's 39% share of UK-based satellite broadcaster BSkyB is far more lucrative.

Last month it abandoned its bid to buy the remainder of BSkyB following the hacking scandal.

News Corporation's other main businesses include Hollywood film studio 20th Century Fox, US television network Fox Broadcasting and publisher Harper Collins.

It also owns the Wall Street Journal.

source: bbcuk

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+ Arsip Berita Indonesia - News Corp profits fall on sale of MySpace website.

bbc.news 11 Aug, 2011

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Source: http://arsipberita.com/show/news-corp-profits-fall-on-sale-of-myspace-website-288139.html
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