Murdoch may sell out of British newspapers: News Corp earnings fall
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Your support makes all the difference.RUPERT MURDOCH looks increasingly likely to dispose of his British newspaper interests as poor earnings at titles such as the Sun and the Times damage otherwise booming profits at News Corporation, his Australian holding company.
News Corporation's nine-month operating income fell to Adollars 1.13bn ( pounds 540m) from Adollars 1.16bn, largely thanks to shrinking earnings at its UK publishing division, although a weak performance by its free-standing inserts and book publishing arms was also a contributing factor.
Price-cutting at the Sun and the Times was principally to blame for a 35 per cent drop in the operating profits of British newspapers, which pushed UK operating income down to Adollars 218.4m (Adollars 313m).
Operating profits in the newspaper division as a whole fell from Adollars 517m to Adollars 358m.
Analysts said the results were fuel for speculation that Mr Murdoch was planning to shed his UK newspaper interests.
'It looks as if his motivation in cutting the price was to boost circulation so he could gain market share and get a higher price for them on a sale - which he probably would now,' one said.
The performance of the newspaper division was in marked contrast to that of satellite television - News owns 50 per cent of BSkyB, which is now earning more than pounds 3.5m a week - films and the listings magazine TV Guide.
Including a share of profits at BSkyB and the rejuvenated Ansett Transport Industries, accounted for as associated companies, total operating profits were up 28 per cent after tax to Adollars 853m.
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