SINGAPORE: Singapore Press Holdings Pte Ltd (SPH) reported a net profit of S$28.9 million for its third quarter that ended on May 31, seeing a decline of 45.2 per cent from a year ago, it said on Friday (Jul 14).
The loss was attributed primarily to impairment charges of $37.8 million from its magazine business, whose performance continued to deteriorate further amid unfavourable market conditions, SPH said in a media release.
At the operating level, SPH also reported that group recurring earnings fell 43.6 per cent year-on-year to S$34.3 million. Excluding the impairment charges, group recurring earnings would have fallen by S$17.1 million or 19.2 per cent due to a decline in media revenue, it said.
Group operating revenue also slid by S$31.6 million largely due to a weaker media business.
The report noted "challenging headwinds" for the media business, which saw a 15.7 per cent dip in operating revenue, with advertising revenue falling S$29.2 million and circulation revenue down S$4.8 million.
SPH's property segment, however, logged a 2 per cent year-on-year revenue growth, driven by higher rental income from its retail assets.
The group's other businesses saw an 8.2 per cent increase in revenue as compared to last year, with gains from its newly acquired healthcare business partially offset by lower returns from its exhibitions arm.
On the group's business outlook, Mr Alan Teo, CEO of SPH said: "The group will forge ahead with its drive to transform the core media business." He noted that the group has pursued other growth opportunities to diversify revenue streams, citing its recent acquisition of Orange Valley Healthcare and joint venture to develop a mixed-use site at the new Bidadari estate.