SPH to widen digital focus as Q1 profit falls 22%

SINGAPORE — Publishing group Singapore Press Holdings (SPH) is expanding its footprint in the digital sphere amid a rapidly evolving media landscape, after its core newspaper and magazine business was once again dragged down by declining advertising and circulation revenue.

Net profit for the first quarter ended November fell 21.9 per cent on-year to S$69.4 million, as group operating revenue slipped 6.5 per cent to S$307.1 million, it said after markets closed.

The turnover for its newspaper and magazine business fell 7.9 per cent to S$235.6 million, as advertising and circulation revenue declined 8 per cent and 6.8 per cent, respectively. Revenue from the group’s other businesses also fell, by 8.4 per cent to S$20 million.

One bright light came from the property segment, where revenue edged up 1.2 per cent to S$51.4 million on higher rental income from The Paragon and The Clementi Mall.

Total operating expenditure also dipped 3.2 per cent to S$208.2 million on savings from newsprint, utilities and production costs.

SPH chief executive officer Alan Chan said: “We marked the beginning of FY2015 with new initiatives in the digital sphere … Amid a rapidly evolving media landscape, we will continue to evaluate and pursue new opportunities that position the group for sustainable growth, whilst intensifying our efforts to reinvigorate the core media business.”