SPH profits up

Singapore - Singapore Press Holdings has recorded a recurring profit of S$501.7 million for the 2007/08 financial year, a 17.5% increase over last year's figures.

SPH held a press conference this afternoon where CEO Alan Chan attributed the hike to better performances from its print media business, as well as a higher contribution from its property investment arms through the sales of Sky@eleven units, which has since sold out.

Group operations revenue rose to 12.1% which amounts to a record high of S$1301.0 million. Despite the economic downturn, the revenues of its newspapers and magazine segments grew by 5.7% to hit S$1014.3 million, underpinned by a 7.6% growth in print advertising revenue to S$780.1 million.

Amidst the deepening financial crisis, investment income for the group fell by 67.3% to hit 47.7 million. However the crisis did help in SPH's bid to acquiring new business as it is comparatively cheaper, like the process of acquiring Shareinvestor.com. This move is a deliberate part of its expansion plans into setting up an online financial information provider.

Chan said despite the global financial turmoil "the fundamental's of SPH's business remain strong". 

The Group took an impairment charge of $26.7 million to write down the carrying amount of its investments in associates, mainly TOM Outdoor Media Group, to its estimated recoverable amount.