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SPH’s Q3 profit jumps 9.6%, boosted by property business

SINGAPORE — Singapore Press Holdings (SPH) yesterday reported a 9.6 per cent jump in its third-quarter net profit, boosted by the stellar performance in its property business, while its core publishing operations continued to suffer from sluggish advertising.

SINGAPORE — Singapore Press Holdings (SPH) yesterday reported a 9.6 per cent jump in its third-quarter net profit, boosted by the stellar performance in its property business, while its core publishing operations continued to suffer from sluggish advertising.

Net profit for the three months ended May 31 rose to S$98.2 million from S$89.6 million in the corresponding period a year earlier, while operating revenue fell 0.9 per cent to S$306.8 million, SPH said.

Its media business remained weak, with revenue falling 5.6 per cent to S$233.1 million in the quarter, primarily because of a 7.7 per slump in advertising takings.

The property segment delivered another strong quarter, as revenue surged 16.5 per cent to S$59.4 million as a result of contributions from The Seletar Mall, which started business last November as well as higher rental income from Paragon and The Clementi Mall. Revenue from SPH’s other businesses rose 21.6 per cent to S$14.3 million.

SPH chief executive Alan Chan said: “The global economic outlook is expected to improve marginally in 2015, with growth likely to remain tepid and fraught with uncertainties. The downside risks include a hard landing in China, fears over Grexit and a deflationary spiral in the eurozone, and lingering uncertainties over interest rates.

“In Singapore, the tight labour market continues to weigh on the domestic economy … While the group has achieved improved performance for the quarter, the road ahead remains challenging given the muted economic outlook, a sluggish advertising market and a media industry confronted with structural challenges.”

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