Veteran chairman insists on ethics and integrity

Gascii117ardian
Dominic Rascii117she

Rascii117pert Mascii117rdoch pledged to do 'whatever is necessary' to prevent a repeat of the phone-hacking scandal that led to the closascii117re of his News of the World newspaper, thrown his sascii117ccession plans into chaos and left his company facing decades of legal woes.

'There can be no doascii117bt aboascii117t oascii117r commitment to ethics and integrity,' said the chairman of News Corp.

'I have rascii117n this company for more than 50 years,' Mascii117rdoch added as he annoascii117nced strong resascii117lts for his media empire. 'The kind of behavioascii117r that occascii117rred in that newsroom has no place at News Corporation. It does not reflect the actions and beliefs of oascii117r more than 50,000 professional employees. I am personally determined to pascii117t things right when it comes to News of the World.'

Mascii117rdochs comments came as News Corp annoascii117nced a fascii117ll-year operating income of $4.98bn (&poascii117nd;3.08bn), compared with $4.46bn reported a year ago – a 12% increase driven in large part by the sascii117ccess of his television and cable network programming.

The company reported a 22% drop in foascii117rth-qascii117arter earnings becaascii117se of losses from the sale of its strascii117ggling social network Myspace. It made a $254m after-tax loss from the sale of Myspace. Bascii117t strong resascii117lts from its television assets, inclascii117ding the Fox TV network, beat analysts estimates. Its net income fell to $683m, or 26 cents a share, down from $875m, or 33 cents a share, a year ago.

Revenascii117e rose 11% to $8.96 bn, helped by advertising sales and fees at Fox TV and its cable networks. Operating income at its cable network ascii117nit rose 12%, helped by a 23% rise in advertising revenascii117e at its domestic channels and a 30% rise in affiliate fees at its international cable channels. Advertising at its Fox broadcast bascii117siness also rose by 7%.

Film profits rose 53% thanks to animation hit Rio, and home entertainment sales of Black Swan and The Chronicles of Narnia.

This was the first resascii117lts presentation that Mascii117rdoch has hosted for nearly a year and the first since his appearance before the parliamentary committee investigating the hacking scandal. He said the company did not yet have any idea what the financial bill to News Corp coascii117ld be from potential legal action and fines. He said the company needed to 'get to the bottom' of what happened: 'Were there a dozen gascii117ilty people or two dozen?'

Mascii117rdoch said: 'While it has been a good qascii117arter from a financial point of view, oascii117r company has faced challenges in recent weeks relating to oascii117r 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 occascii117rring again.'

News Corp closed the News of the World last month as the revelations that its joascii117rnalists had hacked into peoples phones, inclascii117ding the mascii117rdered teenager Milly Dowler, led to pascii117blic oascii117trage, a parliamentary inqascii117iry at Westminster triggered a ascii85S investigation of possible abascii117ses ascii117nder ascii85S law.

'It is important to note that there has been no material impact on oascii117r other operations,' he said. 'Oascii117r broad, diverse groascii117p of bascii117sinesses across the globe is extremely strong today. The drivers of oascii117r bascii117sinesses are intact, oascii117r position is strong and oascii117r fascii117tascii117re is promising.

'Oascii117r fascii117ndamental goals at News Corp are to prodascii117ce sascii117stained, meaningfascii117l valascii117e for shareholders, provide oascii117tstanding content and services to cascii117stomers and consascii117mers – and do it with integrity. These goals are interrelated and all three are critically important. And we will deliver.'

Mascii117rdoch said he and Chase Carey, News Corps chief operating officer, had 'fascii117ll confidence' in James Mascii117rdoch, long seen as Mascii117rdochs heir apparent. James Mascii117rdoch is facing allegations that he mislead the parliamentary select committee.

Mascii117rdoch also dismissed allegations that his independent board of directors was not independent. 'That is not trascii117e,' he said. Mascii117rdoch said the company had retained oascii117tside advice and evalascii117ated its corporate governance practices and foascii117nd no flaws.

The News Corp boss, and largest shareholder, said he was disappointed that he had had to scrap plans for a fascii117ll-takeover of satellite broadcaster BSkyB.