Revenues at News International’s UK titles have plunged 50% in the last three months as a result of the high profile tabloid tussle with Trinity Mirror.
Figures out today show that
The Sun lost more than £20 million in revenues after cutting its cost nationwide in a bid to compete with the
Daily Mirror.
“Slightly higher advertising revenue, particularly at The Sun was more than offset by circulation declines due to cover price reductions at The Sun,” said News Corporation in its first quarter results statement. The price war also impacted on the entire press division with operating income at News International falling 23% to £36.5 million.
The overall picture was more rosy with News Corp able to announce a 51% increase in operating income to $548 million. Rupert Murdoch, the chairman and CEO, said that the results “resoundingly” confirmed the strength of the organisation. Previous losses were attributed to the company’s heavy investment in the struggling Gemstar division (see Write-Downs Hammer News Corp Figures).
In the three months to the end of September, News Corp revenues increased 12% to $3.8 billion and net profits almost doubled to $162 million. Operating profit at the television businesses rose by $136 million to $188 million although analysts have taken into account the fallout from September 11 last year.
