News Corporation reports large losses

Phone-hacking scandal reported to be responible for the losses in News Corp quarterly results.

Rupert Murdoch claims to be unfazed by the losses
Rupert Murdoch claims to be unfazed by the losses (Image: Getty)

News Corporation has reported large losses in its quarterly results. In the three months to the end of June 2011 the company had a net income of £436.2 million, but for the same quarter this year it reported a £1 billion loss in comparison. The majority of the losses came from the publishing arm of the business, whose profits were almost half of last year's - falling from £172 million to £88.8 million.

Rupert Murdoch was determined to appear unfazed by the results, stating that "we are proud of the full year financial growth achieved over the last 12 months”. He argues that the company is in a "strong" position, which will be strengthened further by New Corp’s plans to split its entertainment and publishing businesses, a move which will isolate the group's large stake in BSkyB from News International, whose name has been blackened by the phone-hacking scandal.

Legal charges and other expenses associated with the scandal are largely responsible for the £143 million loss apparent in New Corporation's full year results, most of which has been spent on "the costs of the ongoing investigations initiated upon the closure of the News of the World".