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SPH 2nd quarter profit falls 22 per cent

SINGAPORE – Media group Singapore Press Holdings (SPH) Tuesday (12 April) reported a 22.3 per cent on-year fall in second quarter net profit due to lower investment income and advertising and circulation revenue, and expects conditions to remain challenging.

Singapore Press Holdings. Photo: Singapore Press Holdings/Facebook

Singapore Press Holdings. Photo: Singapore Press Holdings/Facebook

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SINGAPORE – Media group Singapore Press Holdings (SPH) Tuesday (12 April) reported a 22.3 per cent on-year fall in second quarter net profit due to lower investment income and advertising and circulation revenue, and expects conditions to remain challenging.

Profit attributable to shareholders for the quarter ending February 29 amounted to S$54.1 million, down from S$69.6 million in the same quarter a year earlier while group operating revenue declined 4.1 per cent to S$259.3 million from S$270.3 million.

Revenue for its media business fell 6 per cent to S$190.7 million as advertisement sales declined 6.5 per cent and circulation revenue was down 4.9 per cent. Investment income for the quarter fell 62.4 per cent to S$7.22 million as the previous period was boosted by gains from sale of investments. Revenue from the property segment inched up 0.9 per cent to S$61.1 million on higher rentals and services income.

The lower revenue from the core business was partly mitigated by a fall in production, distribution and staff costs. Materials, production and distribution costs fell 5.6 per cent in line with lower revenue while staff costs decreased 3 per cent due to a lower bonus provision.

Looking ahead, SPH chief executive Alan Chan said the road ahead is expected to remain challenging due to the uncertain economic outlook and fast evolving media landscape. “Amid the challenging times, the Group will continue its efforts to transform the Media business and pursue growth opportunities,” he added. The group declared an interim dividend of 7 cents per share payable on 24 May 2016.

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