View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

Full-colour printing dents Murdoch print profits

By Paul McNally

Rupert Murdoch’s newspaper operations have suffered a 25 per cent profit slump due to News International’s investment in full-colour printing.

Announcing its first quarter results this morning – covering the three months from July to the end of September – News Corporation said its UK newspaper division, publisher of the Sun, Times, Sunday Times and News of the World, had seen a slight rise in circulation revenues offset by a small decline in advertising income compared with the same period last year.

News International’s £650m move to full-colour printing would be completed “sooner than anticipated”, it said. Profits this quarter had been dented because the depreciation of the old printing presses had to be taken into account.

Overall, News Corp’s global newspaper operations saw profits fall this quarter to $93m from $124m last year. Magazine publishing profits were stable.

Work on a new multi-million pound colour printing plant in north London is almost complete, with the first papers expected to be produced there early next year and a full switchover from Wapping expected next summer.

Last month, Rupert Murdoch opened News International’s new colour printing plant in Glasgow – which the company claims houses the largest and fastest press in the world, producing 86,000 copies an hour. Another site, in Knowsley, near Liverpool, is also in the pipeline.

Murdoch’s Australian newspaper division saw profits grow this quarter due to strong display and classified advertising revenues – especially in retail and job ads. Circulation revenues in Australia had also increased slightly, mainly from higher cover prices at the major weekend papers.

Content from our partners
MHP Group's 30 To Watch awards for young journalists open for entries
How PA Media is helping newspapers make the digital transition
Publishing on the open web is broken, how generative AI could help fix it

News Corporation this morning posted first quarter revenues of $7.1bn for the three months from July to the end of September. This is up 19 per cent on the same period last year.

Operating profits at the group in this three-month period stood at $1.05bn – a year-on-year rise of 23 per cent.

One of the biggest growth areas was US cable TV network, Fox News, which more than doubled its operating profit compared with the first quarter of last year, thanks mainly to an increase in advertising rates.

Cable profits between July and September were up from $249m last year to $289m. Satellite TV posted a $48m profit compared with a $13m loss in the same period last year.

Murdoch said his company had experienced “a great start” to the new financial year.

“We expect the development of [cable television] assets to drive future growth, much as our investments in the Fox News Channel have translated into strong profit growth today,” he said.

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly does of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network