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SPH reports Third Quarter Net Profit of $52.7 million

SINGAPORE, 15 July 2016 – Singapore Press Holdings Limited (SPH) today reported its results for the third quarter ended 31 May 2016 (3Q 2016), turning in a net profit attributable to shareholders of $52.7 million. This was $45.6 million or 46.4% lower compared to the same period last year (3Q 2015). 

The results for the current quarter were impacted by impairment charges of $28.4 million, which primarily related to the magazine business whose performance was affected by unfavourable market conditions.

At the operating level, group recurring earnings of $60.8 million was $44.4 million or 42.2% lower year-on-year (“yoy”). Excluding the impairment charges, group recurring earnings would have fallen by $17.1 million or 16.1%.

Group operating revenue slid $15.2 million or 5.0% yoy to $291.6 million, as structural challenges confronting the media industry and the sluggish economic environment continued to weigh on the performance of the group’s core Media business. 

For the quarter, the Media business saw a $15.7 million or 9.2% dip in advertisement revenue. Circulation revenue was maintained yoy, aided by the positive impact of the newspaper cover price increases implemented on 1 March 2016.    

The Property segment turned in a resilient performance despite the subdued retail environment, with revenue up $1.0 million or 1.6% against 3Q 2015. This was on the back of higher rental and services revenue from the Group’s retail assets.   

The Group continued to contain its cost base despite persistent inflationary pressures on business costs. Excluding the impairment charges, operating expenditure was $207.5 million, some $0.7 million or 0.3% lower than the same period last year. 

Investment income of $18.7 million fell $5.3 million or 22.2% against 3Q 2015, attributable to lower dividend income and smaller gains from sale of investments.

On a year-to-date basis, for the three quarters ended 31 May 2016, group recurring earnings of $227.9 million was $47.7 million or 17.3% lower than the corresponding period last year. Net profit attributable to shareholders fell $49.1 million or 20.7% yoy to $188.1 million. The third-quarter impairment charges were a major factor in the weaker year-to-date results.

On the business outlook, Mr Alan Chan, Chief Executive Officer of SPH, said: “Given the challenging market conditions, the Group has embarked on a comprehensive review of our core Media business. The aim is to better address the evolving needs of our advertising customers and deliver effective, integrated solutions across our various media platforms. In addition, we will critically examine our product portfolio and also identify areas where we can further enhance our operational efficiency.” 

Mr Chan added: “We are confident that our continued transformation efforts will position SPH as a forward-looking and efficient organization, one that is ready to meet the changing demands of a new marketplace."

Please see attached SGX announcement and presentation slides.



Issued by Singapore Press Holdings Limited

For more information, please contact:

Chin Soo Fang (Ms)
Head
Corporate Communications & CSR Division
Singapore Press Holdings
Tel: 6319 1216
Fax: 6319 8150
Email: soofang@sph.com.sg



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.


Media 

The English/Malay/Tamil Media group (EMTM) comprises the print and digital operations of The Straits Times, The Business Times, The New Paper, Berita Harian, My Paper (English section) and their respective student publications. It also includes subsidiaries Tamil Murasu Ltd, which publishes Tamil Murasu and tabla!; book publishing arm Straits Times Press; SPH Data Services, which licenses the use of the Straits Times Index in partnership with the Singapore Exchange and FTSE-Russell Ltd; financial data company ShareInvestor; and the two English stations of SPH Radio - Kiss92 and ONE FM 91.3.

The Chinese Media group (CMG) publishes three Chinese newspapers in print and digital format - Lianhe Zaobao, Lianhe Wanbao and Shin Min Daily News; four student weeklies - zbCOMMA, Thumbs Up, Thumbs Up Junior and Thumbs Up Little Junior, ZBBZ Newsgazine and My Paper (Chinese section). It also operates SPH Radio's Chinese radio station, UFM100.3, and Focus Publishing, which produces a range of books and magazines including U-Weekly. 

SPH's other new media initiatives include AsiaOne, Stomp, 
zaobao.sgomy.sg and SPH Razor. 

On an average day, 2.8 million* individuals or 68 per cent of people above 15 years old, read one of SPH's news publications in print copies or one of our digital platforms. (* Nielsen Media Index 2015, Monday-Sunday, read any SPH newspapers in print or digital format)

SPH Magazines, SPH's wholly-owned subsidiary, publishes and produces more than 100 magazine titles and has various online sites, like 
hardwarezone.comherworldplus.com and luxuryinsider.com in Singapore and the region, covering a broad range of interests from lifestyle to information technology. It has also invested in digital newsstand Magzter.

SPH also provides out-of-home (OOH) advertising options where it manages large format screens and static billboards at key locations in the Central Business District, Orchard Road, City Fringe as well as major heartland hubs.

SPH Buzz is a modern retail convenience chain with a network of stores around the island.

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.


Properties

SPH REIT is a Singapore-based REIT established to invest in a portfolio of income-producing real estate primarily for retail purposes. SPH REIT comprises Paragon, a premier upscale retail mall and medical suite/office property in Orchard Road and The Clementi Mall, a mid-market suburban mall in the centre of Clementi town.

The Seletar Mall, located in Sengkang, is SPH's latest retail development. 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.


Other Businesses

Online Classified

SPH’s online classifieds include the leading online marketplace for jobs (STJobs, FastJobs), property (STProperty), cars (STCars) and general classifieds (STClassifieds,Trezo), sgCarMart and StreetSine.
SPH's regional joint venture online classified business has a number of leading online classified sites in the region.

Events and Exhibitions

Sphere Exhibits, Sphere Conferences, Exhibits Inc and Bizlink Exhibition Services organise innovative consumer and trade events and exhibitions as well as large scale conferences in Singapore and the region. 


Education

SPH has a 22 per cent stake in preschool and enrichment provider MindChamps.

For more information, please visit 
www.sph.com.sg.