Profits for The Sun and News of The World slip 10%

LONDON - News International's News Group Newspapers, publisher of The Sun and The News of the World, has posted a 10% drop in pre-tax profit to £40.3m for the 52 weeks ended 28 June 2009.

The Sun: profts slip
The Sun: profts slip

Figures filed at Companies House today highlight group turnover fell during the period, from £626.3m to £617.9m.

A spokesman said falls in advertising revenue at the tabloids were partially offset by circulation gains following the News of the World raising its cover price by 5p to £1 during the period, and "increased revenue from digital activities" across the group.

News International's tabloid division also managed to reduce its operating loss for the year by 16% to £15.5m.

A company statement said: "Advertising revenues are below levels in the previous year, but are strong given the current economic conditions, particularly as a result of the Company's investment in colour printing capacity."

The spokesman said both The Sun and News of The World benefited from a series of print ad campaigns from the biggest national supermarkets and DIY promotions.

The NGN report stated: "In the modern media market, The Sun and the News of the World continue to be one of the few mechanisms for delivering a mass audience to UK advertisers - as the market continues to fragment, advertisers will continue to seek the audiences that the publications deliver."

The earlier than planned delivery of the new full colour press for parent Newscorp Investments resulted in increased costs against the old presses and higher admin expenses.

However, the completion of the press programme also allowed the early publication of both The Sun and News of the World with full colour capacity, with additional ad spend from colour advertising.

Following a review of the business (exceptional reorganisation costs of £13.6m being charged to the company in the year), advertising sales and marketing activity was reported to be "more integrated" across The Sun and the News of the World.

News Group Newspapers continues to make significant investments in marketing, with costs rising £6.5m to £51.1m during the 52 weeks.

Investment in editorial spend was also maintained, compared to cost-cutting by rivals.

The results were published on the same day that News International's Times Newspapers, publisher of The Times and The Sunday Times, .

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