SPH posts Q1 profit of S$69.4m

Singapore

MEDIA and property group Singapore Press Holdings (SPH) posted a net profit of S$69.4 million for its fiscal first quarter - a year-on-year drop of 21.9 per cent as operating revenue from its newspaper and magazine segment fell.

In the year-ago fiscal first quarter, net profit attributable to shareholders was S$88.8 million.

Total operating revenue for the three months ended Nov 30, 2014, fell 6.5 per cent to S$307.1 million.

Its newspaper and magazine business saw revenue fall 7.9 per cent to S$235.7 million. Advertisement revenue was down S$16 million (8 per cent) while circulation revenue slipped S$3.2 million (6.8 per cent), no thanks to the uncertain macroeconomic environment and the general softening of the advertising market.

Revenue from its "others" segment - comprising businesses in online classified, events and exhibitions, online investor relations and financial portal services, among others - slumped 8.4 per cent to S$20 million. A shift in show dates for certain shows had affected revenue for the exhibition business, though this was partially offset by the local online and classified and radio business.

But the group's property segment, including retail assets from the SPH Reit - Paragon and The Clementi Mall - maintained a steady performance, with revenue edging up to S$51.4 million, from S$50.8 million a year ago.

The Seletar Mall officially opened in November last year. The retail mall is fully leased and will be contributing to the group's earnings from the fiscal second quarter. The other malls - Paragon and The Clementi Mall - too are fully leased.

The global macroeconomic outlook remains muted, noted SPH CEO Alan Chan, with concerns over various risks such as rising interest rates, deflationary pressures, geopolitical tensions and a global pandemic outbreak. This, coupled with a tight local labour market, means the domestic economy is expected to post a modest growth.

Pointing to new investments that the group has made in the quarter, Mr Chan said: "Amid a rapidly evolving media landscape, we will continue to evaluate and pursue new opportunities that position the group for sustainable growth, whilst intensifying our efforts to reinvigorate the core media business."

SPH will also continue a "conservative stance" with its investment portfolio, focusing on capital preservation, he added.

The group had during the quarter acquired a 60 per cent stake in privately-held real estate analytics firm CoSine Holdings, which Mr Chan said complements the group's digital classified portfolio. Its regional online classified business, 701Search, has also established joint ventures for the development of online classified platforms in the key markets of Indonesia and Thailand.

SPH shares closed trading on Tuesday at S$4.11, down two cents, before the announcement of the results.