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SINGAPORE Press Holdings Limited (SPH) reported positive results for the first quarter ending Nov 30, 2007 on Monday.
Profit before investment income surged 19.8 per cent to $126.5 million from $105.6 million a year ago with a strong showing from the newspaper and magazine business and profit contribution from Sky@eleven.
Investment income declined 66.9 per cent to $9.8 million with a more muted performance compared to the previous year.
Net profit was consequently up 1.3 per cent to $111.9 million from $110.5 million in the corresponding quarter last year.
Group operating revenue grew by 14.7 per cent to $312.1 million.
Newspaper and Magazine operations improved by 8.2 per cent to $261.3 million underpinned by strong print advertisement revenue growth of 10.5 per cent to $202.9 million.
Group investment income of $9.8 million was 66.9 per cent lower than last year partly due to the fair valuation of investments being affected by recent volatility in financial markets.
In addition, the previous year's investment income was boosted by higher dividend income from MobileOne Limited and profit from a capital reduction exercise by Starhub Limited.
Revenue from Property operations rose 69.9 per cent to $43.5 million with a contribution of $16.1 million from Sky@eleven.
Property development costs of Sky@eleven accounted for $4.6 million while staff costs were higher by 14.7 per cent or $10.1 million due to higher variable bonus provision in line with continued improved profitability of the newspaper business, increased headcount and annual salary increment.
Chief Executive Officer of SPH, Mr Alan Chan said: 'Profits from Sky@eleven will provide an added boost to the Group's earnings.'
Total headcount in November 2007 was 3,771 compared to 3,562 a year ago mainly due to the inclusion of new subsidiaries and staffing for new media businesses.
Operating costs
Other operating expenses of $41.3 million were up 12.8 per cent or $4.7 million with increased business activity and inclusion of costs for new subsidiaries.
Total operating costs increased by $19.9 million or 11.8 per cent to $188.5 million.
Mr Alan Chan commented that 'advertisement revenue will continue to be driven by the Singapore economy which is expected to grow at a more moderate pace in 2008.'
'The Group will continue to focus on sustaining its operating profit margin amid rising business costs.'
'Barring unforeseen circumstances, the Directors expect the recurring earnings for the current financial year to be satisfactory.'
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