Sun Owner Accumulates Losses Exceeding One Billion Pounds Amid Phone Hacking Scandal

The owner of the Sun newspaper, News Group Newspapers (NGN), continues to grapple with the financial fallout from the protracted phone hacking scandal, recording cumulative losses surpassing £1.2 billion since the onset of legal battles nearly fifteen years ago. In its latest financial disclosures, NGN, a subsidiary of Rupert Murdoch’s News UK, reported a pre-tax loss of £18 million for the year ending 30 June 2024, marking the smallest annual loss since 2011.

Accounts filed at Companies House reveal that NGN’s cumulative losses had reached approximately £1.25 billion by June 2024. Notable settlements related to phone hacking claims have contributed to this financial strain, with high-profile figures such as the Duke of Sussex and actor Hugh Grant recently securing undisclosed but substantial payouts. These legal engagements have prompted concerns around the potential costs of litigation for public figures, with many expressing frustration over the financial implications of pursuing claims through the courts.

Legal expenses continue to weigh heavily on the company’s finances, with NGN reporting an additional £14 million in costs tied to the phone hacking scandal last year. This amount stands in stark contrast to previous figures, with legal costs peaking at £128 million in 2022. Efforts to mitigate these expenses appear to be yielding some success, as last year’s costs were the lowest reported since NGN began disclosing figures related to phone hacking.

The broader impacts of these scandals extend beyond the Sun and NGN, as Rupert Murdoch’s media empire faces challenges across various enterprises. TalkTV, another segment of Murdoch’s operations, has incurred losses totalling £145 million since its launch in 2022, and the platform has transitioned to an online-only format following the closure of its television channel.

As legal battles continue to unfold and settlements are reached, the financial landscape for NGN remains precarious. With reputational damage and ongoing costs associated with the scandal, the future of the Sun and its parent company will depend largely on their ability to navigate these challenges effectively.