SPH posts Q2 net profit of $40.19m; exploring growth in aged care and other property asset management sectors

Singapore Press Holdings' year-on-year net profit fell nearly 25 per cent for the second quarter ended Feb 28.
Singapore Press Holdings' year-on-year net profit fell nearly 25 per cent for the second quarter ended Feb 28.PHOTO: ST FILE

SINGAPORE - MEDIA and property group Singapore Press Holdings (SPH) on Tuesday (April 10) reported a near 25 per cent year-on-year fall in net profit to $40.19 million for the second quarter ended Feb 28 partly due to lower investment income.

For the quarter under review, investment income declined 44.5 per cent to $9.28 million due to lower gains on disposal of investments.

Operating revenue dipped 1.8 per cent to $233.7 million as revenue from the media business declined 7.4 per cent to $155.6 million, on the back of lower advertisement and circulation revenue. However, revenue from the group's other businesses rose $9.6 million to $17.63 million, led by contributions from the aged care business.

Meanwhile, operating profit decreased 6.9 per cent to $49.36 million, while earnings per share was two cents per share, down from three cents per share for the second quarter last year.

The board declared an interim dividend of six cents per share, unchanged from the corresponding period last year. This will be paid on May 24.

For the first half ended Feb 28, net profit edged up 1.4 per cent year on year to $100.62 million, despite a 4.6 per cent decline in operating revenue to $492.46 million.

Operating revenue in the first half was weighed down by a 10.9 per cent fall in revenue to $329.53 million from its media business, although the decline in print ad revenue is seen as tapering.

SPH's chief executive officer Ng Yat Chung said: "We are focusing on our digital blueprint for the future, which includes our new all-digital subscription plans, and our strengthened integrated multi-platform marketing. Our upcoming joint venture project The Woodleigh Residences and The Woodleigh Mall will contribute to our growth in the next few years."

He added: "We are also exploring further growth in aged care and other property asset management sectors for the longer term."

Shares in SPH were one cent lower at $2.49 on Tuesday, before the results were released.