SPH reports first quarter net profit of $91 million

SPH reports first quarter net profit of $91 million

SINGAPORE - Singapore Press Holdings Limited (SPH) today reported its results for the first quarter ended 30 November 2012 (1Q 2013). Group recurring earnings for 1Q 2013 fell by $11.9 million (9.8%) to $109.4 million compared to the corresponding quarter last year (1Q 2012). This arose mainly from lower operating revenue of $10.3 million (3.1%) against the comparative period, with reduced contribution from the Newspaper and Magazine and the exhibitions businesses. Net profit attributable to shareholders of $91.1 million was $6.4 million (6.6%) lower compared to 1Q 2012.

Revenue for the Group's Newspaper and Magazine business of $263.5 million decreased by $6.2 million (2.3%) compared to 1Q 2012. Advertisement revenue was $204.8 million, down by $4.1 million (2.0%) compared to the same quarter last year. Circulation revenue declined by $1.3 million (2.6%) to $49.0 million.

Rental income for the Group increased by $1.3 million (2.9%) to $48.2 million on the back of higher rental rates achieved by Paragon, while income from The Clementi Mall remained stable.

Operating revenue from the Group's other businesses fell by $5.4 million (34.3%) to $10.4 million. The decrease came mainly from the exhibitions business due to certain shows being held on different dates in the comparative period.

Materials, production and distribution costs saw a reduction of $2.3 million (4.1%), with newsprint costs being lower by $2.0 million (7.6%).

Staff costs increased marginally by $0.7 million (0.8%) due to salary increments partially offset by a reduced variable bonus provision.

Other operating expenses rose by $4.4 million (15.4%) due to step-up in promotional and other business activities for the online businesses.

Investment income at $3.1 million was $2.5 million (420.3%) higher than the corresponding quarter last year.

On the outlook for FY2013, Mr Alan Chan, Chief Executive Officer of SPH, commented: "The year ahead will be challenging. Given the uncertain economic times and the changing media consumption trends, we will monitor our cost structure carefully as we strive for a sustained performance in our core newspaper business."

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