SPH feels the downturn

Singapore - Singapore Press Holdings (SPH) has reported a drop in net profit of 34.8% to $73 million in the first quarter of the financial year, thanks to the global economic crisis.

Revenue for the newspaper and magazine arm dropped 4.6% or $11.9 million compared to the first quarter of 2008, with print adverting sales decreasing 7.3% to $188.2 million. Group operating revenue for SPH rose 9% or $28.2 million, with revenue from its property arm increasing 86.3% to $81.1 million.

Alan Chan, CEO of SPH, said the global economic downturn "is expected to last for several quarters and this will continue to impact the Group's advertising revenue".

"We have taken measures to enhance revenue and contain costs, and will proactively implement further cost and efficiency initiatives," he said.

SPH's results come a few days after rival group MediaCorp announced a range of cost-cutting measures due to declining ad revenue.