The company expects fourth-quarter operating costs to be flat, even with higher newsprint prices this year.

The company also warned that it will face higher newsprint prices later in the year compared with 2007.

The stalling, inflationary British economy of the mid-70s had brought lower advertising revenues, higher newsprint costs, and higher wage demands.

The Times said that first-quarter operating expenses would rise 1 to 2 percent, mainly because of higher newsprint prices, pension expenses and promotion costs.