First quarter financial results released by News Corp yesterday show a weakening performance at News International (NI), the company’s UK newspaper publishing division.
Operating profits at NI fell by 24% year on year for the quarter and whilst circulation increases post-11 September will boost revenues temporarily, this effect is likely to drop off over the coming months. Furthermore any gains in boosted sales are more than offset by a 13% fall in advertising revenues, according to ABN Amro.
Recruitment classifieds revenue has been particularly weak, affecting the Times and Sunday Times. The Sun and News Of The World tabloids, on the other hand, have been less affected by the downturn and are seeing ad levels above those of last year.
ABN’s analysts say that the UK broadsheet and mid-market papers remain more exposed to the current recruitment, financial and travel advertising downturn than the tabloids.
