Singapore Press Holdings profit down 29.3% in 1Q 2011

Singapore Press Holdings profit went down to $102.3 million in 1Q 2011.

According to Singapore Press Holdings, profit from the Newspaper and Magazine segment improved by 10.0%, driven by the increase in print advertisement revenue. Group recurring earnings of $116.3 million fell by $43.0 million (27.0%) compared to the corresponding quarter last year which included $50.3 million profit from the Group’s completed property development project, Sky@eleven. Consequently, net profit attributable to shareholders at $102.3 million, was $42.4 million (29.3%) lower compared to the same period last year.

Group operating revenue at $318.7 million was $34.9 million (12.3%) higher than that of 1Q 2010, excluding Sky@eleven revenue of $70.1 million in the comparative period last year.

The Newspaper and Magazine segment turned in a creditable performance with revenue for 1Q 2011 at $265.5 million, an increase of $22.3 million (9.2%) against 1Q 2010. Print advertisement revenue grew by $23.9 million (13.1%) to $206.3 million driven by Display and Recruitment advertisements. Circulation revenue decreased by $1.1 million (2.1%) due to lower copies sold.

Rental income from Paragon increased by $7.5 million (26.1%) partly from rental revisions and increased floor area as a result of the façade enhancement.

Materials, consumables and broadcasting costs increased by $5.4 million (15.1%), as a result of higher newsprint and other production costs. Staff costs increased by $11.7 million (15.6%) largely attributable to higher variable bonus provision and partial wage restorations.

Investment income of $6.1 million for 1Q 2011 comprised dividend and interest income and profit on sale of investments. The decrease of $4.1 million as compared to 1Q 2010 was mainly due to lower fair value gains.

On the outlook for FY 2011, Mr Alan Chan, Chief Executive Officer of SPH commented: “The Singapore economy is expected to grow at a modest pace supported by sturdy regional demand and domestic activities. The Group’s advertisement revenue will continue to track the Singapore domestic economy. The opening of Clementi Mall marks a new milestone for the Group. Stores in the lower levels have commenced trading and full tenancy commitment is expected when the mall officially opens in April 2011.”

Barring unforeseen circumstances, the Directors expect the recurring earnings of the media and property businesses for the current financial year to be satisfactory.