The group's total operating profit fell from £2.6 million in 2006 to £1.4million last year as a result of significant investment in multimedia output, said the report.
In particular the Press Association's (PA) move into video production required a substantial investment 'inevitably' reflected in the downturn in operating profits, Paul Potts, group chief executive, said.
"As I warned last year, adapting to the rapidly changing multimedia landscape would prove to be one of the most challenging periods in the company's long history. It would require considerable ongoing investment as well as belief and that has proved the case," said Potts in the report.
A greater focus on multimedia, however, led to an increase in digital revenues of 25 per cent from 2006, Potts added.
To build on this digital growth the group will look to expand PA's offering online and develop its video content to forge new partnerships with broadcasters and other media groups.
In January PA signed a deal with newspaper group Newsquest to provide multimedia content across its websites.
"With the focus for growth now on digital markets, the task will be to develop these new revenues at a rate which makes up for the loss of print revenues," said Potts.
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