GMG Regional Media experienced a 26.3 per cent drop in operating profit from £19.4 million in 2006/7 to £14.3 million over the last financial year.
The shift from print to online advertising and a downturn in the classified advertising market are behind the drop in revenue, the group said in its full year results for 2007/8.
“GMG Regional Media continues to be a leader in its markets. While trading conditions have suppressed financial performance, the business has the potential for future growth and remains a strong, profitable asset within the portfolio,” said Carolyn McCall, chief executive of GMG.
The division did see growth online with unique users of regional digital services up 16.9 per cent year-on-year.
A series of websites launched by GMG’s Surrey & Berkshire division have doubled their traffic since launching at the beginning of 2008, the report said.
To build on this digital growth the group announced a series of online launches scheduled for later this year, including a property website and entertainment website from MEN Media.
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