Bermuda Press Holdings Ltd. reported a 17-percent rise in full-year profits in 2007, on the back of a $1.6 million rise in revenue.

The parent company of The Royal Gazette announced on Friday that net income totalled $2.7 million in the 12 months ended September 30 last year, compared to $2.3 million in the same period in 2006, an improvement attributed chiefly to higher rental income from the Crown House and Colombia House office buildings in Hamilton.

Bermuda Press Holdings' (BPH) annual report also reveals that an estimated $750,000 of taxpayers' and the company's money was spent on the legal battle between the Government and The Royal Gazette over the publication of excerpts from files relating to a Police investigation into the Bermuda Housing Corporation financial scandal.

The BPH group of companies includes the Bermuda Press, Pronto Print, Chameleon Print Express, Office Solutions, the Stationery Store, Crown House Properties Ltd., Artcetera and Engravers Ltd. It employs around 200 full-time and 80 part-time staff.

BPH's total revenue for the year was $35.7 million, compared to $34.1 million in 2006. Publishing and retail operations produced the lion's share, $25.8 million, up $1.6 million on 2006.

Commercial printing reaped just over $7 million of revenue, down $300,000 from 2006, while rental revenue shot up to $2.4 million, compared to just over $2 million the previous year.

Company president Roger Davidson said the performance of the commercial printing sector showed that "the death of print has been declared, prematurely". He added: "Despite over-capacity in the local market, demand for our range of services remains high. From company annual reports, to advertising flyers designed by our customers on their desktop computers, print remains one of the premium means of expression in Bermuda."

BPH's net income amounted to $1.96 per share, compared to $1.67 per share in 2006, and dividends paid were 76 cents per share, the same as in 2006. The BPH share price on the Bermuda Stock Exchange closed on Friday at $14, considerably below its book value at September 30, 2007, which was $21.94 per share.

Expenditure grew by four percent to $32.78 million, compared to $31.52 million in 2006, with an $840,000 increase in wages and employee benefits accounting for the bulk of the increase.

Mr. Davidson said The Royal Gazette and sister paper the Mid-Ocean News had published more pages than in 2006, with more of them in colour. But he added that "publishing today is a multi-media business" and lively internet versions of the print publications were important.

The Gazette, through its website www.theroyalgazette.com, had become the only news organisation on the Island to offer online news video reports and an electronic version of the entire newspaper was also available on subscription.

Mr. Davidson noted that the newspapers had "defended an unprecedented number of legal cases stemming from Government-related organisations and individuals" during the past three years.

"The Privy Council recently ruled in our favour on the right to publish extracts from the Police files on public figures' actions as they relate to the Bermuda Housing Corporation," Mr. Davidson stated. "The Mid-Ocean News first printed the extracts, which resulted in legal action in Supreme Court, Court of Appeals and Privy Council.

"This particular battle over the newspapers' right to let the public know about the actions of its public officials is over, but we expect more to come. We estimate that $750,000 in taxpayers' and the company's funds were spent. A small portion of our costs can be recovered."

Commenting more generally on the local economy, Mr. Davidson said the US may be entering a recession and that Bermuda would feel some effects. "With the Bermuda economy firing on all cylinders, and inflation running ahead of the rate being experienced in our major trading partners, in part because of the soaring price of oil, indications are that the Bermuda economy may cool somewhat in the next few years," Mr. Davidson said.

"This may mean Bermuda may have to adjust, individually and collectively, to less growth."

Mr. Davidson announced that he will retire as president and as a director of BPH at the company's annual general meeting. He was appointed to the board in 1965 at the age of 28.