SINGAPORE Press Holdings (SPH) reported on Wednesday a 6.2 per cent drop in net profit for the year ended Aug 31, 2014, as its newspaper and magazine business took a hit from lower advertising and circulation revenue.
Its property business, however, performed well, helping it to stem the slide in earnings.
The media and property group said its net profit attributable to shareholders fell to S$404.3 million for FY2014, from S$431.0 million in FY2013.
Its operating revenue was down 2.0 per cent to S$1.2 billion in FY2014, dragged down mainly by a 6.0 per cent fall in operating revenue for its newspaper and magazine division; its property division reported a 3.5 per cent increase in operating revenue, while its other businesses - including sgCarMart, acquired in April 2013 - recorded a 56.7 per cent jump in operating revenue.
The lower takings translated into a 5.5 per cent drop in SPH's operating profit or recurring earnings for FY2014 to S$349.0 million.
Its profit before taxation was, however, up 8.0 per cent to S$528.4 million, aided by a S$52.9-million gain from the partial divestment of online classified business, 701Search.
The group declared a final dividend of 14 cents per share, comprising a normal dividend of 8 cents and a special dividend of 6 cents per share.
SPH CEO Alan Chan said: "Having completed the organisational review during the year, the group has undertaken a journey of transformation to counteract the challenges presented by a rapidly-evolving media landscape. We have gained traction in our quest and will be intensifying efforts to reinvigorate the core media business. We will also continue to pursue opportunities that position the group for sustainable growth and value creation. On this note, we look forward to the opening of The Seletar Mall by the end of the year."
SPH shares closed Wednesday up 1 cent at S$4.17.