The publisher of the Telegraph and Sunday Telegraph has reported a 50% fall in annual profits.

Pre-tax profits for Telegraph Media Group fell from £27.1m in 2016 to £13.7m last year, with a drop in circulation and advertising revenue, and an investment programme taking its toll on the publisher’s bottom line.

Total revenues fell from £303m to £285.7m as print and circulation revenue fell by 9% year on year. The company also pointed to a £10m investment programme instituted by the new chief executive, Nick Hugh, as the Telegraph looks to “re-emphasise” quality journalism.

The company said that this year it has created 39 new journalist roles and 100 across the wider business. The investment plan focuses on journalism, data and technology, with goals including attracting 10 million registered readers.

The publisher said it has reached 2.5 million registered customers since launching a new strategy last September and will beat its target of reaching 3 million by the end of this year.

The company said digital subscription revenue rose 30% year on year in 2017, while travel commerce revenue rose 59%.

“We anticipate revenue to stabilise in 2018-19 with profit to follow,” the company said. “We will continue towards our goal of 10 million registered customers and sustainable growth.”

Last year there was a significant change at the Telegraph as the long-serving chief executive Murdoch MacLennan stepped down last June after 13 years running the papers. He was replaced by Hugh, who had joined from Yahoo as chief operating officer only six months before.