On account of the recent phone hacking scandal, New York State's comptroller discarded a $27 million contract involving the New York State Education Department and News Corporation's (NWSA) education arm, Wireless Generation, The Wall Street Journal reported.
News Corporation is going through a rough patch with allegations of hacking and breach of privacy, including illegal access to the bank account details of the former Prime Minister Gordon Brown and pilfering the medical records of his son. Moreover, the reporters of the media house were also accused of bribing royal bodyguards to divulge information.
News Corporation decided not to bid for the remaining 61% stake in BSkyB, following mounting pressure from political gamut on account of the phone hacking scandal that resulted in the closure of the News of the World. The company continues to retain 39% ownership in BSkyB.
However, despite of global economic unrest and losing sheen in the stock market due to the recent phone hacking scandal, News Corporation posted fourth-quarter 2011 financial results that beat the Zacks’ expectations.
Rupert Murdoch controlled News Corporation’s quarterly earnings of 35 cents a share came ahead of the Zacks Consensus Estimate of 29 cents, and rose 6.1% from 33 cents earned in the year-ago quarter.
On a reported basis, including one-time items, News Corporation informed that quarterly earnings came in at 26 cents, down 21.2% from 33 cents delivered in the year-ago quarter due to divestiture of MySpace and higher expenses.
News Corporation, a diversified media conglomerate, stated that total revenue jumped 10.5% year over year to $8,962 million.
News Corporation’s significant international presence has helped to broaden its client base and product portfolio. News Corporation principally operates in the United Kingdom, Continental Europe, Australia, Asia and Latin America apart from the United States.
Currently, we maintain a long-term ‘Neutral’ recommendation on the stock. Moreover, News Corporation, which competes with Time Warner Inc. (TWX), holds a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.
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