The owner of the Telegraph newspaper has posted falling profits and blamed 'structural challenges' for the slide.

Pre-tax profits at the Telegraph Media Group fell by 94 per cent to £900,000 in 2018. Revenues fell by 2.7 per cent to £278.1million as print advertising revenues continue to decline and staff costs rise.

The media group, which has a paywall, saw a rise in online subscriptions but this failed to offset the decline in the print side of the business.

The Telegraph had 400,000 print and online subscribers as of October

The company had 400,000 paying print and online subscribers as of October, and five million free registrations.

Chief executive Nick Hugh said the company had to 'completely transform an ad-funded business to a subscription business', but added that the figures gave him 'optimism' the plan is working.

The newspaper, which is owned by the Barclays brothers, is aiming to grow the proportion of its sales that comes directly from subscribers in a bid to stabilise the decline in advertising revenues.

Hugh is aiming to reach one million paying subscribers and 10million people registered for free by 2023.

'Despite the ongoing structural challenges in the industry, we will continue our investments in journalism and subscriptions, whilst improving our overall profit margins to continue our path towards a sustainable model, centred around our world-class centre-right journalism,' Hugh said.

Last year, reader revenue grew 2 per cent and 54 per cent of revenues now come from readers themselves. Subscription revenue rose 10 per cent, driven by a 27 per cent rise in digital subscriptions.

The company hired 39 journalists more than it removed in 2018, and is on 37 net new positions so far this year, it said.