SPH Q2 net profit falls 25% amid weaker advertising, circulation revenue

SPH Q2 net profit falls 25% amid weaker advertising, circulation revenue

SINGAPORE: Singapore Press Holdings (SPH) said on Tuesday (Apr 10) that net profit for its fiscal second quarter fell 25 per cent from the previous year, in tandem with a decline in its media and property segments.

Net profit for the three months ended Feb 28 came in at S$40.2 million, compared with S$53.5 million the same period last year, SPH said in a stock exchange filing after market closed.

Group operating revenue slid 1.8 per cent year-on-year to S$233.7 million. The company said revenue for its media segment saw a 7.4 per cent decline to S$155.6 million, as advertisement and circulation income fell 9.3 per cent and 7.5 per cent respectively.

Revenue for the property segment decreased by 2.4 per cent to S$60.5 million due to lower rental income from retail assets.

Singapore’s media industry experienced a challenging year in 2017, with restructuring and retrenchments at several outlets.

In October last year, SPH CEO Ng Yat Chung had said that it would cut about 230 jobs by the end of 2017, completing a 10 per cent staff reduction plan announced the previous year.

In March this year, SPH Magazines, the group’s magazine arm, announced that it would axe 13 employees that month as part of a major restructuring exercise to prepare for a "digitally driven future". 

Going forward, SPH said in its release on Tuesday, the group plans to focus on its digital blueprint for the future, which includes new all-digital subscription plans and strengthened integrated multi-platform marketing.

Mr Ng added in the release: “Our upcoming joint venture project The Woodleigh Residences and The Woodleigh Mall will contribute to our growth in the next few years. We are also exploring further growth in aged care and other property asset management sectors for the longer term.”

Source: CNA/aj