Bermuda Press (Holdings) Ltd made a $905,000 profit in its last fiscal year — slightly down from $922,000 in the previous year — as revenues edged higher for the first time since 2008.

In its annual report for the year ended September 30, 2014, BPH, which owns The Royal Gazette, as well as commercial printing, retail and real estate interests, outlined plans for the launch of a tablet app for the daily newspaper this year and a new online classified advertising platform.

The report also revealed that the deal to acquire Island Press Ltd and Bermuda.com Ltd from MediaHouse last year was worth $2.39 million, funded mainly by new debt in the form of a $1.85 million loan from Butterfield Bank.

Operating revenue was $25.3 million, up from $25.15 million in 2013. The report attributed the revenue growth to the amalgamation of Island Press and Bermuda.com late in the fiscal year, but added that print growth was offset by a decline in publishing and retail revenue.

The last time BPH revenue grew was seven years ago, when it peaked at $36.53 million. Since then the company’s revenue has slumped by more than 30 per cent, as the printing and publishing businesses have been significantly hit by the Island’s economic slump and disrupted by new technology.

Since 2008, the company has also slashed expenses by $10.5 million — or more than 30 per cent — nearly enough to keep pace with the falling revenue. Operating expenses were $24.3 million in 2014, slightly up from $24.14 million in 2013.

The publishing and retail division posted a loss of $457,000, while the printing division lost $1.38 million. However, rental income from BPH’s real estate holdings, which include the Crown House office building on Par-la-Ville Road, more than offset these losses, as the “rental and other” segment generated net income of $2.75 million.

Deputy chairman Stephen Thomson spelled out in the report the reasons why the Island Press/ Bermuda.com deal made sense for BPH.

“Island Press Ltd and Bermuda Press Ltd operated as competitors in a contracting print industry for many years,” Mr Thompson wrote. “The amalgamation of these companies will lead to reduced overheads and will introduce economies of scale for these operations that are labour and capital intensive.

“The consolidation of the manufacturing operations into a single location is under way and will be completed during 2015.”

The addition of Bermuda.com to the BPH stable has led to the merging of the Bermuda.com Guide and This Week in Bermuda into a single publication called Bermuda, targeted solely at the tourism audience.

Mr Thomson noted that BPH now owned the Island’s only surviving newspaper and its largest commercial printer after a decade of contraction for the printing and publishing industries.

“Your company has weathered the storm,” he told shareholders. “However, the future will continue to present challenges and we plan to face them head on, with innovation, consolidation and creative forward thinking.”

The Royal Gazette tablet apps will work with Apple, Android and Kindle operating systems and are due to launch later this year.

Mr Thompson said the key strategies driving BPH’s publishing division were the delivery of content to targeted audiences, as well as the expansion and enhancement of content delivery media.

“To successfully complete these strategic goals, we will be required to expand our content delivery into radio and television, as well as enhancing our print and digital products,” Mr Thomson added.

The report also noted the death of BPH chairman Michael King last month. Mr Thomson said Mr King had “worked tirelessly to serve your company and guide it through some challenging years” and added that his contributions would be missed.

BPH suspended its dividend last September and has been using the cash for restructuring costs related to the mergers. “The board continues to review the ability of the company to pay dividends and anticipates reinstating the dividend in the future,” Mr Thomson stated.