SPH Reports Third Quarter Net
Profit Of $174.6 million
Singapore, 11 July 2006 - Mainboard-listed Singapore Press
Holdings Limited (SPH) today reported results for its third quarter
ended 31 May 2006. Net profit improved 80.7% to $174.6 million from
$96.7 million a year ago, as a result of exceptional gain of $69.1
million compared to previous year’s exceptional loss of $11.6
million.
The Group’s operating revenue registered an increase of 2.2%
over the same quarter last year. Revenue for the Newspaper and Magazine
operations increased 0.6% to $237.2 million, and Property segment
rose 8.3% to $24.3 million. Despite higher operating revenue, profit
before investment income of $94.5 million was 8.8% lower than last
year due to higher newsprint and other operating costs this year.
Total operating expenses at $173.5 million was 9.6% higher. Newsprint
cost rose 12.2% as a result of higher consumption and price increase.
Staff cost was marginally down 0.2% due to timing difference in
provision for staff variable bonus partially offset by increase
due to annual salary increment and higher headcount. Total headcount
as at end May 2006 was 3,583, compared to 3,448 a year ago mainly
due to the launch of new editorial products and ventures into outdoor
and other media businesses. Similarly, other expenses were higher
as a result of costs associated with activities in outdoor and other
media businesses. In addition, there was no write-back of allowance
for doubtful debts as in the previous year.
Group investment income for the quarter was $31.5 million, down
from $38.0 million last year. The decreases in contribution from
externally-managed investments and profit on sale of internally-managed
investments due to poorer market conditions and lower trading volume
this year were partially offset by increase in dividend income received.
The fair value of The Paragon, determined based on a recent independent
professional valuation, is $1.52 billion. This valuation, which
is done on an annual basis, is required under the terms of the bank
loan for The Paragon.
The exceptional gain of $69.1 million this year was mainly in relation
to the write-back of impairment losses of $70.5 million for The
Paragon in view of its strong sustained valuation. The gain was
offset by impairment provision of $1.4 million arising from the
acquisition of SPHMBO. The exceptional loss last year pertained
to charges associated with the media merger.
Mr Alan Chan, Chief Executive Officer of SPH said: “The valuation
of The Paragon is expected to stay healthy on the back of a sustained
recovery in the property market. Together with on-going efforts
to enhance rental yields, the fundamentals of The Paragon remain
strong. In view of this, the Directors are committed to holding
on to The Paragon for the foreseeable future.”
For the nine months ended 31 May 2006, the Group registered a net
profit of $357.6 million against previous year’s $413.3 million.
This year included $70.5 million of write-back of impairment losses
for The Paragon while previous year included $128.5 million gain
on sale of a substantial portion of the Group’s stake in Starhub
Ltd.
Commenting on the outlook for the rest of the financial year, Mr
Alan Chan said: “Barring unforeseen circumstances, Singapore’s
economic outlook for 2006 remains healthy. Nonetheless, business
and consumer sentiments remain shaped by concerns over the geopolitical
and global economic environment in areas such as pressure on oil
prices, rising interest rates, threats of terrorism and an avian
flu pandemic. Overall, the Directors expect the recurring earnings
for the current financial year to be satisfactory.”
Issued by Singapore Press Holdings Limited
Co. Regn. No: 198402868E
For more information, please contact:
Mr Arnold Gay
Head
Corporate Relations
Singapore Press Holdings
Tel: (65) 6319 1216
Fax: (65) 6319 8150
E-mail: arnold@sph.com.sg
About Singapore Press Holdings Limited
Main board listed Singapore Press Holdings Limited is the leading
media company in Singapore, in the print, Internet and broadcasting
platforms. It publishes 14 newspapers in the four official languages,
including Singapore's first free Chinese newspaper, My Paper, and
over 80 magazine titles. Everyday, 2.8 million individuals, or 88
per cent of the people above 15 years old, read one of the SPH publications.
Its Internet Business Unit manages the online editions of SPH's
major newspapers, which enjoy over 100 million pageviews from 6
million unique visitors every month. More recent online additions
are the classified website, ST701, and STOMP (Straits Times Online
Mobile Print), a portal that connects, engages and interacts with
readers on the Internet and via mobile messaging.
SPH also owns a 20% stake in MediaCorp TV Holdings Pte Ltd, which
operates free-to-air channels 5, 8, U and TV Mobile, and a 40% stake
in MediaCorp Press Pte Ltd, which publishes free sheet Today. SPH
has a 70% stake in UnionWorks, which operates two entertainment
radio channels, UFM 100.3 FM in Chinese and WKRZ 91.3 FM in English.
In addition, SPH holds an 80% stake in SPH MediaBoxOffice Pte Ltd,
Singapore’s largest LED network media company, and a 35% stake
in TOM Outdoor Media Group, a leading outdoor advertising company
in China.
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