Tough operating environment leads to lesser profit for SPH

Singapore Press Holdings (SPH) continues to see dwindling profits second quarter for its media business which ended 29 February 2016 (2Q FY16). Net profit attributable to shareholder of SG$54.1 million was SG$15.5 million, 22.3% lower compared to 2Q 2015.Media business revenue fell $12.2 million or 6.0% yoy, mainly due to a $9.5 million or 6.5% dip in advertisement revenue.At the operating level, group recurring earnings were flat at S$68.1million, with a 4.1% revenue decline that was matched by cost reductions resulting from a continuing emphasis on containing costs. Total operating expenditure was brought down by $11.3 million or 5.4% yoy to $196.1 million.Increases in profit came mainly from The Seletar Mall which opened for business on November 28, 2014. Higher revenue was also generated from exhibitions and online classified business.The results for SPH’s Q1 for 2016 had also seen the group’s media business' contribution to the overall annual net profit drop.On the business outlook, Alan Chan, chief executive officer of SPH said: "The quarter under review was marked by a very difficult operating environment. Despite this, the group continued to turn in a respectable performance. The road ahead is expected to remain challenging, given the uncertain economic outlook and fast evolving media landscape. Amid the challenging times, the Group will continue its efforts to transform the media business and pursue growth opportunities.”The directors have declared an interim dividend of 7 cents per share which will be paid on 24 May 2016.Image source: The Straits Times