News Corp hacking scandal costs total $7m for last three months of 2015, up 40 per cent on previous quarter

News Corporation's stated costs associated with the phone-hacking scandal rose 40 per cent quarter-on-quarter in the last three months of 2015.

The company's second quarter results showed this figure was $7m (£4.8m) for its second quarter, up from $5m in the first, to September 2015.

However, the cost figure nearly halved year on year, down from $13m in the last three months of 2014.

The stated cost to News Corp of dealing with the hacking scandal has now risen to $532m (£366m). The total figure was $512m as of 31 March 2015, and the three quarters since then have seen $8m (in the three months to last June), $5m and $7m added to the total bill.

Costs associated with the hacking scandal are referred to in News Corp reports as "UK Newspaper Matters".

The latest quarterly cost was revealed by News Corp – which owns Sun, Times and Sunday Times publisher News UK – in a results report released yesterday.

The total figure – $532m – does not include hacking-related costs paid by sister company Twenty First Century Fox since January 2013 as part of an agreement which was made when News Corp split its news and entertainment divisions into News Corp and Twenty First Century Fox.

According to News Corp, the figure includes $39m paid to claimants for civil settlements.

The document also revealed plans to "streamline" UK operations. News Corp chief executive Robert Thomson is quoted saying: "In our News and Information Services segment, print advertising remained challenged, but we are seeing growth in digital advertising and circulation revenues.

"We are particularly focused on cost reductions and sharing services around News Corp to streamline operations at the newspapers in Australia and the U.K."

Overall, News Corp reported revenues of $2.16bn, down from $2.26bn in the same period in 2014.

Last month, News UK faced claims that The Sun, as well as the News of the World, was guilty of phone-hacking. The company said the claims, made in the High Court, are "unsubstantiated" and that if they proceed it will "defend them vigorously".



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