MEDIA group Singapore Press Holdings (SPH) reported that its third quarter net profits dipped 5 per cent to $126.7 million for the three months ended May 31 compared with the same period a year ago.

The decline was due to a fall in recruitment and display ads, a result of the economic downturn.

However, there were also bright spots - a fall in overall operating expenses and a rise in revenue for its property arm.

SPH's operating revenue fell 5 per cent to $327.1 million. Its newspaper and magazine arm recorded a 17.4 per cent retreat in revenue to $222 million, affected by challenging economic conditions.

However, these lower numbers were cushioned by the strong performance of the property segment, which saw revenue surging 40.3 per cent to $94.4 million.

SPH chief executive Alan Chan said on the outlook for financial year 2009: 'Despite early signs that the decline in global demand is levelling out, the timing and extent of the economic recovery remain unclear. The threat of the Influenza A (H1N1) pandemic further clouds visibility on business conditions.

'Our advertising revenue is expected to move in tandem with the performance of the economy.'

Print ad sales slumped 23.3 per cent to $159.5 million, mainly due to the fall in display and recruitment ads. Classified ads plunged 30.1 per cent, while display ads fell a smaller 17.8 per cent.

Although newsprint costs rose by $3.3 million, or 11.3 per cent, this was offset by lower production and other material costs which fell by $2.9 million or 17.8 per cent.

Circulation revenue grew $1.9 million to $55.6 million.

Read the full report in Tuesday's edition of The Straits Times.