The Telegraph
Credit: Lewis Whyld/PA
Telegraph Media Group has reported a 7.3 per cent decline in operating profit in 2011 - with a "significant increase in newsprint costs" cancelling out an increase in revenue.

Newly filed accounts at Companies House reveal the Telegraph publisher made a £55.7 million operating profit last year, down from £60.1 million in 2010. Revenue in the same period rose by 2.2 per cent to £331 million. 

The company said its operating profit performance in 2011 was "acceptable" and added: "The improved revenue was impacted by a significant increase in newsprint costs."

The publisher's profit margin fell from 18.6 per cent in 2010 to 16.8 per cent last year. Average staff headcount rose from 1,004 to 1,055 and the total wage bill grew from £75.4 million to £77.8 million.

The group said in its accounts that it expected "a difficult underlying trading environment in 2012", with weak demand for advertising despite an expected boost from the Diamond Jubilee and the Olympics.

Telegraph Media Group added: "In a challenging market, the focus remained on maximising revenues and digital innovation.

"The directors remain cautious about the economic outlook, thus anticipate a satisfactory performance in 2012."

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