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Bermuda Press posts $844,000 first-half profit

Bermuda Press (Holdings) Limited, the parent company of

The Royal Gazette, has released its unaudited interim financial results.

The report, filed with the Bermuda Stock Exchange on Friday, said the company made a profit in the six months ended March 31, 2013 of $844,000 compared to a loss of $13,000 in the same period the year prior.

It compares with a net loss of $793,000 for the 2012 fiscal year compared to a net loss of $613,000 in 2011.

Bermuda Press (Holdings) Limited owns this newspaper, eMoo, the Stationery Store, Engravers, Pronto Printing and APS, among other companies.

The company's annual report also reported revenue had declined in 2012 to $25,670,000 from $27,438,000 in 2011.

It marked the fourth straight year since 2008 of declining operating revenue for the company.

“The decline in revenue and the loss from operations are a direct result of the contraction from the local economy. Corporate downsizing in Bermuda has initiated reduced spending on advertising and printed materials in the retail, telecommunications and financial industries, and has also forced a reduction in the workforce,” the company said in its annual report.

The company also reported an operating loss of $325,000 for 2012 compared to a profit from operations of $154,000 in 2011.

The company's 2013 interim report also revealed that while profit was up for the first six months of fiscal 2013, revenue was down.

The company reported revenue of $12,638,000 — down from $13,028,000 in the same period a year ago.

“The company made considerable changes to its cost base and despite a decline in revenue during the first six months of the 2013 fiscal year, we yielded a positive result for the shareholders,” the company said in its report.

“It was anticipated that the group may experience a decline in revenue during 2013 due to the substantial challenges presented by the Bermudian economy.

“As previously reported, management's focus has been on restructuring operations and reducing operating costs to offset the decline in revenue.

“While management continues to seek streams and growing new sources of revenue,” the company said in the report.

The Royal Gazette division underwent substantial work to improve its cost base and rejuvenate products to meet audience and advertiser preferences.

“The most significant new product introduced by

The Royal Gazette this year was the 'Kiosk', the platform of the new-look 'e-edition', an exact replica of

The Royal Gazette.

“This new digital platform offers several new areas for revenue growth,” the report continued.

The report stated that the company's printing division continues to compete in an industry “significantly influenced by a decline in demand and price competition from local printers”.

The group's investment properties, however, remain the most profitable with an overall occupancy rate of 95 percent of which 66 percent is occupied by third party tenants.

Bermuda Press Holdings reported earnings per share of 61 cents, compared with a loss of 10 cents per share a year ago.

The dividend is currently being paid quarterly at a rate of 10 cents per share and the company's board expects this rate to be maintained through the end of the fiscal year.

Both the interim and annual reports can be accessed at www.bsx.com.

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Published June 03, 2013 at 9:00 am (Updated June 02, 2013 at 4:29 pm)

Bermuda Press posts $844,000 first-half profit

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