SPH net profit slides 6.6% to $88.8m

Although recurring earnings did rise 2.2%.

Singapore Press Holdings Limited (SPH) reported its results for the first quarter ended 30 November 2013 (1Q 2014), with net profit attributable to shareholders coming in at $88.8 million, or $6.3 million (6.6%) lower compared to 1Q 2013. This was net of SPH REIT’s profits attributable to non-controlling interests.

Group recurring earnings for 1Q 2014 rose by $2.5 million (2.2%) to $116.9 million compared to the corresponding quarter last year (1Q 2013). This was attributable to higher contribution from the exhibitions, radio and online classifieds businesses, partially offset by reduced earnings from the Newspaper and Magazine business and increased finance costs arising from additional borrowings undertaken on the establishment of SPH REIT.

Revenue for the Group’s Newspaper and Magazine business of $255.9 million was $7.6 million (2.9%) lower compared to 1Q 2013, as advertisement and circulation revenue declined by $5.8 million (2.8%) and $2.3 million (4.7%) respectively.

Revenue for the Property segment rose by $2.6 million (5.4%) to $50.8 million on the back of higher rental income from Paragon and The Clementi Mall.

Operating revenue from the Group’s other businesses at $21.8 million was $11.4 million higher than 1Q 2013. The increase came mainly from the exhibitions business due to new shows and certain shows being held on different dates in the comparative period. The Group’s radio and online classifieds businesses further contributed to the revenue growth.

Total operating costs rose 1.4% against 1Q 2013 to $215.1 million, mainly attributable to higher staff costs and finance costs which were partially offset by a reduction in materials, production and distribution costs and lower business promotion expenses.

Investment income at $5.1 million was $2.1 million (67.6%) higher than the same period last year.

On the outlook for FY2014, Mr Alan Chan, Chief Executive Officer of SPH commented: "The near-term global and domestic economic outlook remains modest with persisting uncertainties. Against the backdrop of an evolving media landscape and changing consumer behaviour, the Group continues to evaluate and pursue new growth opportunities whilst striving to revitalise its core media business.”