News Corp reports 12% income rise to $5 billion

News Corporation has reported full-year operating income of $4.98 billion (£3.08 billion) – up 12% on last year – driven by the success of television and cable network programming.

However, the company reported a 22% drop in Q4 earnings due to Myspace losses (it made a $254 million after-tax loss from the sale of the ailing social network).

The Rupert Murdoch-owned group saw net income fall to $683 million (26 cents a share) down from $875 million a year ago.

Revenue rose 11% to $8.96 billion, while operating income at its cable network unit increased 12% – helped by a 23% rise in advertising revenue at its domestic channels and a 30% rise in affiliate fees at its international cable channels. Advertising at its Fox broadcast business was also up by 7%.

Film profits were up 53% due to the success of Rio, Black Swan and The Chronicles of Narnia.

Murdoch used the results presentation to talk about the recent phone-hacking scandal, saying he’ll do “whatever is necessary” to get to the bottom of what happened.

“There can be no doubt about our commitment to ethics and integrity,” he said. “I have run this company for more than 50 years… the kind of behaviour that occurred in that newsroom has no place at News Corporation. It does not reflect the actions and beliefs of our more than 50,000 professional employees. I am personally determined to put things right when it comes to News of the World.

“While it has been a good quarter from a financial point of view, our company has faced challenges in recent weeks relating to our London tabloid, News of the World. We are acting decisively in the matter and will do whatever is necessary to prevent something like this from ever occurring again.

“It is important to note that there has been no material impact on our other operations. Our broad, diverse group of businesses across the globe is extremely strong today. The drivers of our businesses are intact, our position is strong and our future is promising.

“Our fundamental goals at News Corp are to produce sustained, meaningful value for shareholders, provide outstanding content and services to customers and consumers – and do it with integrity. These goals are interrelated and all three are critically important. And we will deliver.”