News Corp reveals costs of hacking fallout | FT Alphaville

News Corp reveals costs of hacking fallout

News Corp has begun to spell out the financial cost of the News of the World phone hacking scandal, saying that a $91m restructuring charge and a $68m hit to its publishing profits in its latest quarter stemmed primarily from its closure this July of the tarnished Sunday tabloid. Rupert Murdoch, chairman and chief executive, missed a conference call to discuss fiscal first-quarter results in which one-off charges knocked net income by 3 per cent to $738m even as strength in cable networks and Fox broadcast television lifted operating income by 21 per cent to $1.39bn. A week before James Murdoch is due to return to a House of Commons select committee to discuss what he knew about what a senior barrister told the company in 2008 was “a culture of illegal information access” at the UK tabloid, he received fresh backing from Chase Carey, chief operating officer. The Telegraph reports Mr Carey said the votes against Murdoch members of the board and other members at last month’s AGM would be taken seriously, and “we continue to evolve the board on an ongoing basis”.