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Rupert Murdoch's flagship UK newspapers have been suffering in the credit crunch as profits shrank at The Sun and the News of the World and losses grew at The Times and Sunday Times, newly published annual accounts revealed today.
Times Newspapers, publisher of The Times and Sunday Times, reported that losses jumped 17% from £43.9 million to £51.3 million in the year to 29 June 2008 - before the collapse of Lehman Brothers and recession hit the advertising market.
News Group Newspapers, publisher of The Sun and the News of the World, announced profits fell to £55.1 million for the same period, down from £61.8 million a year earlier.
Accounts for both firms, filed at Companies House, said that the papers were hit by falling advertising revenues, which were partly offset by increasing cover prices.
Turnover at Times Newspapers dropped marginally to £444.8 million from £447.1 million. The accounts blamed rising losses partly on the cost of switching to full-colour printing presses.
Even without exceptional items, operating losses rose to £42.7 million from £34.9 million.
The Times is widely thought to lose money while its Sunday stablemate is believed to be profitable.
The overall loss of £51.3 million was not as bad as two years earlier, when it ended up £81.8 million in the red as the daily paper moved from broadsheet to tabloid format.
News Group turnover rose slightly to £626.3 million from £623.3 million. The Sun and News of the World posted an operating loss of £18.5 million.
A year ago they recorded an operating profit of £10.7 million. The red-top publisher posted a £55.1 million profit because of dividend income from undisclosed "fixed assets".
News Group said turnover was up because it increased the News of the World's cover price.
Advertising revenue fell, with the exception of digital ad sales, and it also blamed "higher technology development costs in relation to digital activities".
The London Paper freesheet, a sister title, has not filed new accounts.
