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SPH's Q1 profit drops 29%
By Jo-ann Huang | Posted: 14 January 2011 2359 hrs
SINGAPORE : Media company Singapore Press Holdings (SPH) posted a 29 per cent drop in its first quarter net profit because of a sharp fall in operating revenue from its property business.
SPH said it made a net profit of S$102.3 million for the first quarter ended November 30 last year, down from S$144.7 million in the same quarter of the previous financial year.
Operating revenue fell by 10 per cent to S$318.7 million as the revenue from its property business plunged 63 per cent to S$36.8 million.
The company said lower earnings were due to the cessation of profits from Sky @ Eleven, an SPH-owned residential property, which received its temporary occupancy permit in June last year.
As a result, the company's recurring earnings fell 27 per cent to S$116.3 million, a drop of S$43 million from the corresponding quarter.
SPH's newspaper and magazine segments raked in S$265.5 million in revenues, up 9.2 per cent or S$22.3 million on-year.
Print advertisement revenues grew by S$23.9 million or 13.1 per cent on-year to S$206.3 million, driven by display and recruitment advertisements, while circulation revenue fell by S$1.1 million or 2.1 per cent due to fewer copies sold.
Rental income from SPH's other property, Paragon, grew by S$7.5 million or 26.1 per cent, due partly to rental revisions and increased floor area from facade enhancement.
Earnings per share for the quarter fell to 6 cents, from 9 cents in the same period the previous year.
Looking ahead, SPH said the Singapore economy is likely to grow at a modest pace, but will remain vulnerable to downside risks that prevail in several advanced economies.
SPH chief executive officer Alan Chan said advertisement revenue will continue to track the domestic economy.
The group is sanguine on its Paragon shopping mall property. SPH said it will continue to refresh Paragon's retail experience and attract top international brand names. The mall will remain a steady source of income for the group.
Stores in the lower levels of SPH's newest retail property, Clementi Mall, are now open and full tenancy commitment is expected upon its official opening in April this year, the group said.
- CNA/al
By Jo-ann Huang | Posted: 14 January 2011 2359 hrs
SINGAPORE : Media company Singapore Press Holdings (SPH) posted a 29 per cent drop in its first quarter net profit because of a sharp fall in operating revenue from its property business.
SPH said it made a net profit of S$102.3 million for the first quarter ended November 30 last year, down from S$144.7 million in the same quarter of the previous financial year.
Operating revenue fell by 10 per cent to S$318.7 million as the revenue from its property business plunged 63 per cent to S$36.8 million.
The company said lower earnings were due to the cessation of profits from Sky @ Eleven, an SPH-owned residential property, which received its temporary occupancy permit in June last year.
As a result, the company's recurring earnings fell 27 per cent to S$116.3 million, a drop of S$43 million from the corresponding quarter.
SPH's newspaper and magazine segments raked in S$265.5 million in revenues, up 9.2 per cent or S$22.3 million on-year.
Print advertisement revenues grew by S$23.9 million or 13.1 per cent on-year to S$206.3 million, driven by display and recruitment advertisements, while circulation revenue fell by S$1.1 million or 2.1 per cent due to fewer copies sold.
Rental income from SPH's other property, Paragon, grew by S$7.5 million or 26.1 per cent, due partly to rental revisions and increased floor area from facade enhancement.
Earnings per share for the quarter fell to 6 cents, from 9 cents in the same period the previous year.
Looking ahead, SPH said the Singapore economy is likely to grow at a modest pace, but will remain vulnerable to downside risks that prevail in several advanced economies.
SPH chief executive officer Alan Chan said advertisement revenue will continue to track the domestic economy.
The group is sanguine on its Paragon shopping mall property. SPH said it will continue to refresh Paragon's retail experience and attract top international brand names. The mall will remain a steady source of income for the group.
Stores in the lower levels of SPH's newest retail property, Clementi Mall, are now open and full tenancy commitment is expected upon its official opening in April this year, the group said.
- CNA/al
