SPH profits dropped 23.4% to $213.21m in FY2019

This was due to falling print advertisement and circulation revenue.

Singapore Press Holdings (SPH) profits shrunk to $213.21m for the full-year ending 31 August, 23.4% YoY or $65.2m lower than the $278.38m recorded in 2018, an announcement revealed. Operating revenue also dipped 2.4% YoY to $925.3m in 2019 from $982.56m the previous year.

Also read: Singapore Press Holdings profits dropped 44.1% to $26.2m in Q3

The company continues to be impacted by declining revenue from print advertisements and circulation numbers, which was only marginally offset by their still-growing digital segment.

"The media business continues to be challenged with the decline in print advertisement and circulation revenue. But we are seeing progress in our digital transformation strategy in terms of improved digital [advertising and circulation growth,” said Ng Yat Chung, SPH CEO.

Overall, print advertisement revenue decreased by $57m (14.9% YoY) with newspaper declining by $48.7m (13.9% YoY). In contrast, newspaper digital advertisement revenue grew by $1.5m (6% YoY).

Circulation revenue also fell $11m (7.3% YoY) as daily average newspaper print sales shrunk by 68,855 copies (12.2% YoY), whilst daily average newspaper digital sales rose by 40,351 copies (19.3% YoY) excluding copies relating to a barter agreement which has ended. Revenue contribution from Shareinvestor.com holdings crashed 86.3% or $8m (86.3%) with the divestment in November 2018.

Overseas asset acquisitions drove the property segment’s revenue growth by 22.3% or $54.1m to $296.5m in FY2019, from only $242.4m the previous year. The segment reportedly enjoyed its best performance since 2012, with pre-tax profits increasing by $73.8m (39% YoY) to $264m with a boost from revaluation gains.

The increase comprised mainly revenue contribution of $36.4m from the UK PBSA portfolio, $11.4m from Figtree in Australia and $4.9m from The Rail Mall.

SPH has announced a final dividend of $0.65 per share, comprised of $0.55 normal dividend and a $0.1 special dividend per share, to be paid on 20 December.