News Corp income up 12% as hacking has 'no impact' elsewhere

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News Corporation has announced full-year operating income increase of 12 per cent, despite ongoing legal woes stemming from the phone-hacking scandal.

The US-based company, which owns News of the World publisher News International , announced an income of $4.98bn (£3.08bn) for the period 30 June 2010-30 June 2011, up from $4.46bn the previous year.

In the final quarter of the year, income rose 45 per cent to $1.35bn.

Chairman Rupert Murdoch said it had been "a good quarter from a financial point of view", but acknowledged the company had "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."

The income hike was driven largely by successes in Murdoch's television and cable network businesses. Cable brought in $2.76 billion over the year, 55 per cent of the company's total income.

Operating income at

News Corp

's global publishing arm, which owns News International – publisher of the Times, the Sunday Times, the Sun and previously the News of the World, increased $74 million to $270 million. Full year operating income was $864 million, up 54 per cent from the $467 million reported the previous year.

News Corp also owns News Limited, which publishes a number of newspapers in Australia including the Australian, and US titles including the Wall Street Journal and the New York Post.

An increase in publishing income was credited by News Corp to strong circulation and advertising performance at the Wall Street Journal and a strengthening of the Australian dollar and British pound.

News Corp closed the News of the World last month in an attempt to stem the fallout from the phone-hacking scandal.

Announcing the company's strong financial performance, Murdoch said that the scandal had resulted in "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 on them."

The scandal did force News Corp to abandon plans to take full control of broadcaster BSkyB however, following an escalation in the allegations of criminality that begun with the revelation that News of the World journalists had hacked the phone of murdered teenager Milly Dowler .