Looks like News Corp’s forgotten about hacking scandal

The share price for News Corp’s has certainly taken a battering lately, so it’s good to see them making headlines for the right reasons. The group has published their end of year results which show that their annual profits rose to £1.7bn ($2.7bn) in the year ending June 30. This is up by $2.5bn, or 7.9% from the previous year and their revenues have also risen to $33.4bn, an increase of almost 2%.

Although the full impact of the phone hacking scandals won’t be felt until the next quarterly results, and the News of The World ceased trading 10 days after the end of this results period, the chairman and CEO, Rupert Murdoch, said that he was very confident there would be no real material impact.

The television branch of the company also saw strong growth, whilst profits in the film division shot up by a whopping 53%, thanks to the success of such blockbusters as the Chronicles of Narnia and the Black Swan. Even the publishing arm saw its operating income rise from $467m to $864m, due to higher revenues from ads in the Wall Street Journal, favorable currency movements and lower costs.

And although the effects of the phone hacking scandal won’t be felt until its next quarterly results (News of the World’s final issue came 10 days after the end of this results period), Rupert Murdoch, the company’s CEO and chairman, said he was confident it will have ‘no material impact’.

Despite this impressive financial performance from News Corp, the phone hacking scandal is still at the front of many of their investor’s minds, and Murdoch is all too aware of this. It is no coincidence that this is the first results presentation that he has been present at for a very long time.