Bermuda Press reports $793,000 loss in 2012 (update)

The Bermuda Press reported a net loss of $793,000 in 2012 compared with a net loss of $613,000 in 2011.

The Bermuda Press owns the The Royal Gazette, EMoo, Stationery Store, Engravers, Pronto Print and APS among other companies. 

In the company’s annual report, which was filed on the Bermuda Stock Exchange yesterday, reported revenue had declined to $25,670,000 from $27,438,000. It marked the fourth straight year since 2008 of declining operating revenue. 

The loss from operations was $325,000 compared to a profit from operations of $154,000 in 2011. 

The last time the publishing and retail division and printing division showed a profit from operations was 2007 and 2008 respectively. 

Contraction

The company said: “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 Bermuda Press reported a reduction of operating costs of $1,289,000. 

In the Annual Report it said: We continue to evaluate and refine the strategic plans of our operations. The board and management are working more closely than ever to implement change.

“The pace of product development in the digital world and the introduction of online tools to enable consumers access to information, ability to purchase products and to share opinions and content means we must reduce the barriers to implement change quickly. 

iPad app

“The notion of seamless fulfillment has become more relevant to the customer experience and it will be through rapid iteration on product that your company achieves this.”

The report said The Royal Gazette will release an iPad application in 2013 to help deliver content to its readers and offer new advertising opportunities to its clients.

The report stated: "The company has 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 net profit for the six months ended 31st March 2013 was $844,000 compared with a loss of $13,000 for the same period in the previous year. 

"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, managements focus has been on restructuring operations and reducing operating costs to offset the decline in revenue. While management continues to seek operating efficiencies, their core focus has shifted to rebuilding the traditional revenue streams and growing new sources of revenue. The business plans of the operating companies are under constant review and ensuring the operations are quick to respond to opportunities as they present themselves is a critical success factor."