News Corp. first-quarter profit slides on charges following hacking scandal


AP

LOS ANGELES–News Corp. saw net income for its fiscal first quarter drop 5 percent from a year ago due to the cost of closing a scandal-wracked tabloid and dropping its takeover bid for British Sky Broadcasting.

The media conglomerate, controlled by CEO Rupert Murdoch, is under fire for phone-hacking in Britain.

Net income in the July through September period fell to US$738 million, or US$0.28 per share, from US$775 million, or US$0.30 per share, a year ago.

Absent charges and other special items, adjusted earnings came to US$0.32, beating the US$0.29 expected by analysts polled by FactSet.

Revenue grew 7 percent to US$7.96 billion, helped by higher fees for pay TV channels like Fox News and the successful movie “Rise of the Planet of the Apes.”