News Limited Results

News Corp has released its sad results. You can listen to What Rupert Said here.

And for the first time we have a bit of an idea as to what the Australian group is planning. In answer to an analyst’s question, Rupert says that he is in Australia at the moment, and “the local management is in the process of combining all their back offices between the states, which will take out costs.”

So what does that mean? What is back office, and what is front line operations?

Less independence, i would suggest, for the state-based metro tabloids. Perhaps less independence for the Australian, which still runs a Canberra press gallery presence separate from the News Limited “pool”.:

Rupert puts a brave face on it, but surely the local lieutenants will stop pretending that there are no cut backs in the wind? Easy to understand why they don’t want to make a song and dance of it, but it’s beginning to look a bit silly.

Here is what the News Corp. profit statement said about Australia:

The Australian newspaper group reported 18% lower second quarter operating income in local currency terms versus the second quarter of fiscal 2008 primarily due to lower classified advertising revenues resulting from declines in the employment and auto sectors and higher costs associated with pension expenses and headcount reductions. Overall advertising revenues were down 4% as compared to a year ago. Circulation revenues were in line with the second quarter of the prior year.

Headcount reductions?It has, of course, already been happening.