Skip to main content

Advertisement

Advertisement

SPH annual profit plunges 20.4% to S$321.7 million

SINGAPORE — Media and real estate company Singapore Press Holdings (SPH) today (Oct 13) reported a 20.4 per cent slump in annual net profit, due largely to a sharp drop in fair-value gains on its investment properties as well as the absence of exceptional gains previously enjoyed, while its core publishing operations continued to weaken.

SINGAPORE — Media and real estate company Singapore Press Holdings (SPH) today (Oct 13) reported a 20.4 per cent slump in annual net profit, due largely to a sharp drop in fair-value gains on its investment properties as well as the absence of exceptional gains previously enjoyed, while its core publishing operations continued to weaken.

For the year ended August 31, net profit fell to S$321.7 million from S$404.3 million in the year earlier, as operating revenue slid 3.1 per cent to S$1.18 billion, SPH said. Fair value gains on investment properties slumped 66.8 per cent to S$36.3 million, largely due to the valuation of retail malls held in SPH REIT, its listed real estate investment trust. SPH had also booked a S$52.9 million one-time gain in the previous year from the partial divestment of online classifieds business 701Search.

SPH declared a total dividend of 20 cents per share for the year, comprising a 7 cents interim dividend and 13 cents final dividend. This is slightly below the 21 cents per share in the year earlier.

SPH’s core media business suffered a S$60.9 million drop, or 6.3 per cent, in operating revenue to S$902.5 million as advertisement and circulation takings fell 7.4 per cent and 5.4, per cent, respectively.

Revenue for the property segment grew by S$25.8 million, or 12.6 per cent, to S$230.8 million, boosted by the contribution from Seletar Mall which commenced business last November. Revenue from SPH’s other businesses dipped by 6.4 per cent to S$43.8 million, mainly due to the exhibitions business.

SPH warned of grey clouds ahead.

“The near-term economic outlook is expected to remain fraught with challenges. While a gradual pick-up in growth is seen for advanced economies, there are lingering concerns over an economic hard landing in China and softening growth in the regional economies. The 2015 growth forecast for Singapore has been revised (downwards) to between 2 and 2.5 per cent,” it said.

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.