SPH profit down 6.6% to $91.1m in 1Q13

Newspaper and magazine, exhibition businesses bleeding revenues.

Singapore Press Holdings Limited (SPH) 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.”