Despite the allegations hanging over the head of Australian tycoon Rupert Murdoch, News Corporation closed its last quarter (for the fiscal year June 2010-June 2011) with a net profit of 683 million dollars, 26 cents per share, a decrease up 22% from $875 million (33 cents per share) in the same period in 2010. Revenues increased 11% to $8,9 billion, more than expected for 8,48, XNUMX billion.
The sale of Myspace, a social network sunk by the expansion of Facebook, for 35 million dollars against the 580 paid to buy it in 2005 weighed on the accounts of the media empire: an extraordinary loss of 254 million dollars. Instead, the television networks have benefited. Sky Italia, controlled by News Corp, closed the fourth quarter with an operating profit of 145 million dollars (+33,1% compared to the same period last year) and with an increase in subscribers of 57 thousand units for a total of 4,97 XNUMX million users, a historical record.
Wiretap scandals by British tabloid News of The World have caused News Corp stock to drop 23% since July and forced the company to increase its buyback plan to $5 billion from $1,8 billion previously planned.
Ruperth Murdoch assured, at the presentation of the quarterly accounts, that the company is taking decisive actions to prevent what happened with News of the World from happening again: "We are completely committed to transparency". The Australian tycoon also said the board of directors wants him to remain chairman and chief executive officer of the group. However, he himself has designated Chase Carey to replace him in case of need: a sign that his son James will remain, for now, on the margins of power. His daughter Liz also declared a few days ago that it was not the right time to join the Group's board of directors.
