Bermuda Press (Holdings) Ltd recorded a loss of $112,000 in the first half of its 2014 fiscal year, as advertising revenue fell.

The company, which owns The Royal Gazette, as well as commercial printing, retail and real estate interests, saw revenue fall to $12.1 million, compared to $12.64 million in the corresponding period a year earlier.

The loss of $112,000 compared to a profit of $675,000 in the prior year period.

In a statement published through the Bermuda Stock Exchange, BPH said: “The first six months of fiscal 2014 continued to be impacted by the slow and mild economic recovery that Bermuda is experiencing. General consumer spend has shown few signs of growth, a result of a shrinking business community and residential population as well as declining gross domestic product.

“The decrease in revenue in 2014 was primarily a result of the slowing down of advertising revenue in The Royal Gazette. Whilst the publication is maintaining healthy levels of readership, its advertisers continue to be cautious with advertising expenditure.

“Over the last few months, internal initiatives have been launched to connect better with our clients and understand their advertising needs. The upcoming launch of The Royal Gazette app designed for tablets running IOS and Android, will enhance content delivery and open up further advertising platforms to reach our audience. We are optimistic that the second half of the fiscal year 2014 will be stronger than the first six months.”

BPH added that its commercial printing division had shown signs of improvement in revenue and profitability.

“The rebranding as Bermuda Press Digital (BPD) and marketing campaigns launch late last year has increased awareness of our digital product offering to local businesses,” BPH stated.

“Your company’s board is continuously monitoring and responding to the changes in local economic conditions. The business plans of the operating companies are under constant review and ensuring the operations are quickly responding to opportunities as they present themselves is a critical success factor.”

BPH’s investment properties remained the most profitable part of the business with an overall occupancy rate of 98 percent (up from 95 percent a year earlier) of which 70 percent is occupied by third party tenants.

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

“The board of directors wishes to acknowledge the efforts of the staff and management during these challenging times,” BPH added.