Still profitable, but Economist warns of challenging year ahead

The Economist Group, publisher of the Economist, has posted pre-tax profits of £56m, after benefiting from a cost-cutting programme. However, according to a report in MediaWeek UK, the group warned of a challenging year ahead, with lower advertising and sponsorship.

Pre-tax profits were up year on year from £47m to £56m, while revenue rose from £266m to £313m, in the year ending March 31, 2009. Turnover across the group's largest market, North America, jumped from £112.5m to £140.1m over the period. Print advertising in the UK fell 3% year on year, while advertising revenue at Economist.com grew by 22%.

Chris Stibbs, finance director of The Economist Group, said: "We're pleased to report another strong performance that demonstrates the quality and relevance of our brands all around the world."

During the year, the company reduced staff by 11.5% or about 130 people, leaving it with just over 1,000 employees.