SPH net profit down 20.4% on one-off items

SPH's full-year net profit fell 20.4 per cent to S$321.7 million, mainly due to a lower fair value gain on investment properties and the one-off gain in the previous year from a partial divestment.
SPH's full-year net profit fell 20.4 per cent to S$321.7 million, mainly due to a lower fair value gain on investment properties and the one-off gain in the previous year from a partial divestment. PHOTO: ST FILE

SINGAPORE - Media and property firm Singapore Press Holdings reported on Tuesday that full-year net profit fell 20.4 per cent to S$321.7 million, mainly due to a lower fair value gain on investment properties and the one-off gain in the previous year from a partial divestment.

Excluding the one-off items, operating profit, which represents the company's recurring earnings, rose 1.3 per cent to S$353.5 million. Total revenue slipped 2.1 per cent to S$1.2 billion. This was mainly due to weakness in the media business, which saw revenue slide 6.3 per cent amid a sluggish advertising market.

This was mitigated by a 12.6 per cent surge in property revenue, which was boosted by contribution from The Seletar Mall, which began operations during the year, and higher rental income from Paragon and The Clementi Mall.

SPH chief executive Alan Chan noted that despite the tough market conditions, the firm has delivered a creditable performance with recurring earnings maintained year-on-year.

"That said, the operating environment will likely remain challenging for the year ahead. Amid the difficult times, the group is seeing growth in its digital media revenues and will continue to evaluate and pursue growth opportunities," he said.

The directors of SPH have proposed a final dividend of 13 cents a share, comprising a normal dividend of eight cents a share and a special dividend of five cents a share.

These dividends will be paid on Dec 23.

Together with the interim dividend of seven cents announced earlier in the year, the total dividend payout for the 2015 financial year will be 20 cents.

yasminey@sph.com.sg