SINGAPORE, 15 July 2014 – Singapore Press Holdings Limited (SPH) today reported its results for the third quarter ended 31 May 2014 (3Q 2014). Net profit attributable to shareholders of $89.6 million was $97.9 million (52.2%) lower compared to 3Q 2013, as last year’s results were boosted by a one-off fair value gain on investment properties of $111.4 million arising from a change in recognition from cost to fair value basis.
Group operating profit of $98.4 million was $6.9 million or 7.5% higher than the corresponding period. In tandem with the Group’s continued emphasis on cost discipline and efficiency gains, total costs fell by $23.2 million (9.7%) which more than offset the reduction in total revenue of $16.3 million (4.9%).
Investment income surged $21.3 million to $24.5 million, lifted by higher dividend income and lower impairment charges on portfolio investments.
Group operating revenue of $309.7 million was $15.2 million (4.7%) lower compared to 3Q 2013, with reduced contribution from the Newspaper and Magazine business as advertisement and circulation revenue were down by $16.2 million (8.2%) and $2.9 million (5.8%) respectively.
The decline in Newspaper and Magazine business was partially negated by stronger revenue performance from the Group’s other businesses, which registered growth of $3.7 million (23.8%) led by higher contributions from online classified and radio business. The property segment also did better, with revenue inched up $0.8 million (1.6%) on the back of higher rental income and full occupancy rates.
Operating costs in the current quarter remained well contained, as the Group pushed ahead with its cost initiatives to attain higher efficiencies. Excluding the impairment charge of $15.6 million relating to an overseas subsidiary last year, total operating expenditure of $214.5 million was down $7.5 million (3.4%) against the corresponding period last year, mainly due to reduced production and business promotion costs.
For the year-to-date ended 31 May 2014, Group operating revenue was lower by $12.3 million (1.3%) while total costs rose by $7.3 million (1.1%). Net income from investments of $24.1 million was $13.6 million higher than the corresponding period last year. Net profit attributable to shareholders of $259.7 million was $98.5 million (27.5%) lower than last year’s $358.3 million which included one-off fair value gain on investment properties of $111.4 million.
On the outlook for FY2014, Mr Alan Chan, Chief Executive Officer of SPH commented: "In response to the rapid changes in the media industry and structural shifts in consumer behaviour, the Group has embarked on a journey of restructuring and transformation. To-date, we have made progress and the Group will continue to intensify its efforts to address the evolving media landscape whilst pursuing growth opportunities."
Issued by Singapore Press Holdings Ltd
Co. Regn. No. 198402868E
For more information, please contact:
Chin Soo Fang
Corporate Communications & CSR Division
Singapore Press Holdings
Tel: 6319 1216
Fax: 6319 8150
About Singapore Press Holdings Ltd
Incorporated in 1984, main board-listed Singapore Press Holdings Ltd (SPH) is Asia’s leading media organisation, engaging minds and enriching lives across multiple languages and platforms.
Newspapers, Magazines and Book Publishing
SPH has 19 titles licensed under the Newspaper Printing and Presses Act, of which nine are daily newspapers across four languages. On an average day, 3.05 million individuals or 76 per cent of people above 15 years old, read one of SPH's news publications. SPH also publishes and produces more than 100 magazine titles in Singapore and the region, covering a broad range of interests from lifestyle to information technology. SPH's subsidiaries, Straits Times Press and Focus Publishing, produce quality books and periodicals in English and Chinese.
Internet and Mobile
Beyond print, SPH's suite of digital products includes online editions of newspapers and magazines, as well as mobile applications. Our online products enjoy 360 million page views with 23 million unique browsers every month. Apart from AsiaOne, SPH’s online and new media initiatives include ST701, the leading online marketplace for jobs (STJobs), property (STProperty), cars (STCars) and general classifieds (STClassifieds); Stomp, omy.sg and SPH Razor. SPH also launched The Straits Times’ iPad and enhanced iPhone applications, an Android smartphone application and The Business Times’ iPhone application. SPH’s Chinese flagship newspaper Lianhe Zaobao has also launched its digital editions which include a web application, as well as online and PDF versions. The Malay language-daily Berita Harian has apps for both iPhones and Android smartphones and iPads, offering both native and PDF formats, and an online version.
In the radio business, SPH Radio Pte Ltd operates entertainment stations UFM 100.3 in Mandarin, as well as Kiss92 and HOT FM91.3 in English. SPH has a 20 per cent stake in MediaCorp TV Holdings Pte Ltd, which operates free-to-air channels 5, 8 and U, and a 40 per cent stake in MediaCorp Press Limited, which publishes the free newspaper, Today.
Events and Out-of-Home Advertising
SPH’s events arm Sphere Exhibits organises innovative consumer and trade events and exhibitions as well as large scale conferences in Singapore and the region. In addition, SPH has ventured into out-of-home (OOH) advertising through its digital out-of-home platform SPHMBO.
SPH REIT is a Singapore-based REIT established principally to invest, directly or indirectly, in a portfolio of income-producing real estate which is used primarily for retail purposes in Asia-Pacific, as well as real estate-related assets. SPH REIT is managed by SPH REIT Management Pte. Ltd., which is a wholly-owned subsidiary of Singapore Press Holdings Limited.
The initial portfolio of SPH REIT comprises the following two high quality and well located commercial properties in Singapore:
· Paragon, a premier upscale retail mall and medical suite/office property, well known for its upscale mall housing many luxury brands, located in the heart of Orchard Road; and
· The Clementi Mall, a mid-market suburban mall located in the centre of Clementi town, an established residential estate in the west of Singapore.
The Seletar Mall is SPH's latest retail development and is expected to open at the end of 2014. This property is a potential asset to be injected into SPH REIT. SPH’s wholly-owned subsidiary, Times Development Pte Ltd, also developed a 43-storey upmarket residential condominium, Sky@eleven, at Thomson Road.
For more information, please visit www.sph.com.sg.