Plagued by a significant drop-off in winter advertising revenue and diminishing returns, Bermuda Magazine has been forced to rethink its product.

Publisher Bermuda Marketing Ltd., which releases the first 1998 edition this week, is now moving away from the format of producing quarterly issues, after failing to produce the scheduled winter edition.

President Ian Coles said the advertising base includes hotels, restaurants, shops and sightseeing attractions, which have all been hit by the continuing stagnation in the local tourism economy.

He said in a prepared statement: "We are restructuring the publishing schedule and, to a certain extent, the editorial focus, of Bermuda Magazine to take account of the problematic winter period, months during which we have found our advertising revenue has dropped off significantly and it has been a struggle balancing a beautiful, enticing product with diminishing returns.'' Future issues are not necessarily going to be tied to the four seasons. Mr.

Coles said an annual vacation planner issue is due out next month, and another "special issue'' is planned for later in the year.

He stated, "We have had many calls from our 10,000 subscribers who look forward to Bermuda Magazine and who have not received an issue since late last year.

"For any reason whatsoever, we have a full refund policy for subscribers, but almost all of our callers have generously given us a chance to continue to serve them.

"We are very thankful for their support. And in fact, we will be offering an additional bonus issue free when they renew at the end of their current subscription -- making it five issues for the price of four.'' Mr. Coles said the subscriber base spans more than 50 countries, and readers also purchase the magazine at news-stands and in bookstores such as Barnes & Noble and B. Dalton across North America.

Launched in the summer of 1993, Bermuda Magazine has won six international awards.

Bermuda Marketing has this year launched Bermuda Business Visitor aimed at short-stay executive business travellers, and produced The International Business Channel, a video about international business which plays in major resort hotels in Bermuda.

Ian Coles BUSINESS BUC