SPH net profit for FY2019 crashes 25% to $150.2m

Media ad revenue slipped 12% YoY to $88.8m for 4Q.

Singapore Press Holdings’ (SPH) net profit for fiscal year 2019 crashed 25% YoY to $150.2m.

Core net profit for 4Q 2019 crashed by 45% YoY to $13.5m. Media ad revenue also took a hit and declined by 12% YoY to $88.8m in the same quarter.

Downswing from display ads rose to 19% YoY and classifieds revenue ebbed 20% YoY. There was a steady growth in digital ads revenue by 4% YoY but analysts believed it represents a small base at about 15% of ad revenue.

“This rate in decline mirrors the industry’s rate of decline in the advertising space,” wrote analysts Lucas Teng and John Cheong.

Circulation revenue also fell 3.2% YoY for 4Q, although SPH’s Zaobao news tablet gained 10,000 new subscriptions within six months with 75% comprised of new subscribers.

Property segment continued to burgeon as the purpose-built student accommodation (PBSA) portfolio contributed $15m in recurring income for 2019. For SPH REIT, Paragon gained 9.7% positive rental reversion for FY2019 while Clementi Mall gained 5%. However, Woodleigh Residences only sold 22% of its units as of September 19, from 17% in June 19.