MediaHouse Ltd. saw its profits drop by almost $600,000 during the past year as businesses tightened up their expenditure on media.

The owner of the Bermuda Sun recorded net profit of $2.1 million or $4.35 per share for 2009 compared to $2.7 million the previous year.

However Global Directories Ltd., the company's Caribbean directory division, continued to maintain its pre-downturn sales while increasing profitability

In his presidents' report, Randolph French, chairman and CEO of MediaHouse, said the results were positive considering the tough economic conditions currently facing Bermuda and other countries.

Mr. French said the company's Bermuda market has been hardest hit by the economic downturn, with its subsidiaries such as Island Press, Bermuda.com, and Bermuda.com the Guide (formerly Preview of Bermuda) suffering the knock-on effect as companies reined in their media expenditure.

He said the Bermuda Sun held its own in the year under review.

"As noted in the March 31, 2009 director's report, the timing of revenue recognition results in proportionally more directory revenue being recognized in the opening six months of the current fiscal year versus the closing six months of the current fiscal year," he wrote. "This is consistent with the cyclical nature of the company's directory operations."

During the year the board of directors declared a dividend of 50 cents per share to shareholders of record at the close of business on April 14, 2009.