Bermuda Press (Holdings) Ltd., the parent company of The Royal Gazette, yesterday reported net income for 2002 of $1.885 million, down 13.8 percent from $2.186 million on 2001.

The company, which also owns the Bermuda Press Ltd., the Royal Gazette Stationery Store, Office Solutions and property, had revenues of $28.93 million for the year, up 2.7 percent from $28.16 million.

Expenses for the year were $26.98 million, up $420,000 or 1.96 percent from $26.46 million in 2001.

Company president Roger Davidson said net operating income for the year increased by $245,000 to $1.95 million.

The difference between net income and operating income came as a result of a loss of $11,922 on the disposal of capital assets and a $56,047 loss in a minority interest in a subsidiary. In 2001, the company gained $110,347 on the disposal of capital assets and suffered a loss of $22,893 on its loss in a minority interest.

Mr. Davidson said the Bermuda economy continued to be affected by weakness in the US economy, adding that although losses in the tourism sector had been offset by gains in international business, "the formula for a successful Bermuda economy has become further imbalanced as a result".

"The construction, real estate and international business elements of the Bermuda economy continue to thrive, as the hospitality sector and and the retail trade adjust to an economy whose buying power is affected by the imbalance," he said.

Mr. Davidson said the company supported reductions in import duties for the printing and publishing industries and called on Government to focus on the needs of local business in the next year.

He again criticised Government policies that allow printed materials to be imported into Bermuda duty free.

"For many years we have been trying to convince Government that it is wholly unfair to expect a Bermudian printing company to compete on an uneven playing field with printers from as far afield as China, with its entirely different low cost and tax structures,"' he said.

"We pay duty on plant and equipment, we pay our Bermuda staff competitive wages and we pay taxes, all of which support our local economy. Yet we are still expected to compete against duty free products from all over the world.

He reported that The Royal Gazette and Mid-Ocean News had installed new computer systems for their editorial and advertising departments during the year but economic uncertainty the September 11 attacks meant that rate increases for advertising were deferred "which meant that for a period, the increased costs of modernisation were accompanied by a lack of additional revenue" until late in the year.

The company said that revenue for publishing fell from $14.72 million in 2001 to $14.53 million this year, while retail revenue jumped from $6.2 million to $8 million. Commercial printing revenues fell from $5.1 million to $4.2 million for the year.