Despite Costly Hacking Scandal, News Corp Profits Soar
Forget about the fact that News Corp may have to pay $200-400 million to settle all of the invasion-of-privacy cases that have been filed against it in the wake of the recent telephone hacking. The company on Wednesday reported second-quarter earnings of $1.06 billion, up 65 percent above last year's $642 million. Revenue rose to $8.98 billion from last year's $8.76 billion. Its 20th Century Fox Studios reported operating income of $393 million, up 108 percent from $189 million a year ago, on revenue of $2.1 billion. The company also credited its cable networks unit, particularly Fox News and FX, which saw revenue grow to $882 million -- up 20 percent from the year-ago figure of $735 million, largely as a result of increased advertising fees.