Another excellent year of strong growth at The Economist Group

Record operating profit driven by increasing revenue and improved operating margins

• Operating profit up 23% to £44.3m
• Revenue up 8% to £266.4m
• Operating margin increases from 15% to 17%
• Proposed final dividend of 65.2p per share, an increase of 20%

Strong growth trends across the business

• Another record year of circulation growth at The Economist, with circulation up 9% year on year to 1,306,939 (Jul-Dec 2007 ABC)
• The Economist print advertising revenues in core American market up 16%
• Proportion of revenues from electronic sources is 17%
• Economist Intelligence Unit revenues up 16% at constant currency; partly from growth in the number of government roundtables. The EIU held 34 roundtables with governments
• Strong performance from Economist.com, with unique users up 39% year-on-year, to 3m
• Continued expansion of the Group's presence in India, with local offices established and local managers appointed at The Economist and Economist Intelligence Unit

Well-positioned for future growth despite an uncertain economic environment

• The Economist Group is well-positioned to outperform the market despite the weak dollar, advertising shift to online and the uncertain economic outlook
• Diversity of portfolio ensures a balanced Group with increasing exposure to emerging markets
• Focus on attracting and retaining the best people - new chief executive promoted from within

Helen Alexander, chief executive of The Economist Group, said:

"I am extremely proud to report another record-breaking year for The Economist Group, which highlights how our strategy of developing intelligent media brands across the world for the high-end audience continues to deliver excellent results.

We have beaten the ambitious targets set at the beginning of the year with a 23% increase in operating profit, largely built on taking share in our core markets.  We want to get bigger in Asia and have established a presence in India.  We have continued to build a strong platform for our internet businesses. In particular our figures for The Economist, with advertising revenues and circulation growing strongly, are bucking the wider trend.

Our global reach, diverse revenue streams and focus on hiring and keeping the best people mean that we are well placed to continue to thrive, even in difficult markets. It has been a huge privilege to lead The Economist Group for the last eleven years and I leave knowing that our new chief executive Andrew Rashbass will drive the business forward.

(June 19th 2008)