News Corporation posts a billion dollar quarterly profit but phone hacking charges hit bottom line

News Corporation has this morning posted a quarterly profit of just over a billion US dollars.

The 65 percent profit increase has been fed by growth in cable television and film production from Hollywood.

Here's my analysis of the results broadcast in this morning's edition of AM.

But News Corporation's bottom line has been hurt by surging costs from the contining phone hacking scandal that resulted in the closure of The News of the World.

News says the profit was hit by a US$87 million charge for costs relating to the scandal.

The company has also confirmed that its profit guidance has been swept up in the pipelne of costs relating to phone hacking investigations.