Bermuda Press Holdings posts $611,000 loss
Bermuda Press (Holdings) Ltd (BPH) made a net loss of $611,000 in its last fiscal year, the company revealed today.
The company, which owns
The Royal Gazette, printing company Bermuda Press, as well as retail and real estate interests, saw revenue fall more than ten percent in the year to September 30, 2011.
According to its annual report, BPH managed to slash its operating expenses by almost $2 million, through increases in staff productivity, operating efficiencies, and changing product offerings.
But that did not keep pace with the year-over-year revenue decline of $3.23 million, as customer spending on advertising and printing fell.
The loss compares to net income of $316,000 for the previous year. The loss from operations was $165,000 compared to income from operations of $1.08 million last year. Included in the operating loss were $878,000 in one-time restructuring costs.
Also impacting the results was a $134,000 write-down in the carrying value of affiliate E-Moo Ltd.
The company said it expected to see cost savings in 2012 due to the standardisation of business and production processes, and a decrease in material waste throughout the production cycle.
BPH president Chris Whittle and vice-president Michael King said in their statement in the annual report: “In 2011 Bermuda was challenged by volatility and uncertainty in the global economic climate and it is fair to say that Bermuda continues to struggle through its deepest economic downturn.”
The added that the “company’s position as Bermuda’s leader in media, printing, office supplies and office equipment is based upon our ability to innovate traditional business models”.
To this end, BPH had reduced in the size of the lithographic business operations and had sold off redundant assets, and also took delivery of a state-of-the-art digital printing press.
Eight additional press units and the installation of a camera-based automated registration system will help to cut wastage in the production of the newspaper, the report added.
An overhaul of
The Royal Gazette website has helped the newspaper’s online portal become the most visited website in Bermuda, BPH said, citing www.alexa.com.
“Over the past year,
The Royal Gazette Online website served 39,570,470 pages of content; averaged 25,000 online visitors per day and was viewed by readers in 219 countries,” Mr Whittle and Mr King said.
Total revenue was $27.44 million, while expenses were $27.61 million.
Publishing and retail revenues fell to $20.1 million in 2011 from $22.76 million in the previous year. while commercial printing revenue declined to $4.53 million from $5.53 million. Rental revenue rose to $2.55 million compared to $2.07 million.
Payroll and employee benefits fell to $14.97 million from $15.69 million, while general and administrative costs were cut to $4.59 million compared to $5.66 million in the previous year.
The dividend paid out to shareholders was 40 cents during fiscal 2011, representing a yield of four percent on yesterday’s closing share price of $10.
See the full report through the Bermuda Stock Exchange website at http://www.bsx.com/CompanyDisplay.asp?CompanyID=127
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