SPH's profit dropped 9.3% to $77.64m in H1

Revenue from its media business slipped 14.3% due to smaller media ad sales.

Singapore Press Holdings' (SPH) net profit attributable to shareholders dipped 9.3% YoY to $77.64m in H1 2019, from $85.61m in H1 2018 the company announced. Total revenue dipped 1.3% to $480.29m over the same period.

This was blamed on the initial impact of the COVID-19 outbreak on the group’s business segments. In the media segment, advertising was affected across most sectors with the exception of government spending.

Further, tenants in the retail malls in Singapore and Australia have recorded lower footfall due to strict social distancing measures. The purpose-built student accommodation (PBSA) business has also been hit by UK university closures and students returning home.

In view of these uncertainties, the group’s directors have reduced the amount of the
interim dividend to $0.015 per share, from $0.055 per share in the preceding financial year.

In Q2, net profit climbed 5.5% YoY to $31.31m, whilst revenue inched up 1.5% to $231.27m. The group’s operating revenue grew 1.8% to $227.5m due to a 33% rise in revenue from its property segment, although offset by a fall in ad and circulation revenue.

Revenue for its media business slipped 14.3% to $253.9m in H1, as media ad revenue fell 18.5%. Newspaper print advertisement revenue dropping 20.4%, whilst newspaper digital ad revenue climbed 3.7% YoY.

Meanwhile, revenue for the property segment jumped 26.2% to $177.1m over the same period. Revenue from PBSA surged 127.3%, attributed to recently acquired assets. There was also a bigger revenue of $5m from Figtree Grove Shopping Centre.

In the others segment, revenue edged down1.6% to $40.5m.