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(14-01-2015, 06:29 PM)new-comer1 Wrote: [ -> ]If SPH shares were cheaper, I will buy them. Hope it drops below $4 again.

Quote:

SPH reports Second Quarter Net Profit of $69.6 million

SINGAPORE, 14 April 2015 – Singapore Press Holdings Limited (SPH) today reported its results for the second quarter ended 28 February 2015 (2Q FY15). Net profit attributable to shareholders was $69.6 million, $11.7 million (14.4%) lower compared to 2Q FY14.

Recurring earnings of $68.0 million was $14.5 million (27.1%) higher than last year’s, attributable to a $20.9 million (9.1%) decline in total operating expenditure as last year’s results included an impairment charge ($9.9 million) and special bonus costs ($10.4 million).

Investment income was $19.2 million compared to a loss of $5.5 million in the corresponding quarter last year, and comprised mainly gain from sale of investments.

Last year’s results were lifted by a one-off $52.9 million gain on partial divestment of stake in the regional online classifieds business.

Group operating revenue of $270.3 million declined by $8.5 million (3.0%) against 2Q FY14, as performance of the Media business was weighed down by the muted economic environment and continued softening of the advertising market. Revenue from the Media business fell by $15.5 million (7.1%) year-on-year, with advertisement and circulation revenues down by $12.9 million (8.0%) and $3.5 million (7.7%) respectively.

The decline in the Media business was partially cushioned by stronger performance from the property segment whose revenue jumped $8.9 million (17.2%) to $60.6 million, boosted by the maiden contribution of $8.1 million from The Seletar Mall. In addition, Paragon and The Clementi Mall also recorded higher rental income.

Revenue from the Group’s other businesses dipped $1.9 million (21.7%) to $6.8 million, as revenue for the exhibitions business was affected by timing difference in show dates.

For the half year ended 28 February 2015 (1H FY15), recurring earnings was maintained at last year’s $170.4 million, as the $27.8 million (4.5%) decline in total revenue was matched by the fall in total operating expenditure. Investment income was $20.9 million compared to a net loss of $0.4 million in 1H FY14.

Net profit attributable to shareholders fell $31.1 million (18.3%) to $139.0 million, given the absence of prior year’s $52.9 million gain on partial divestment of an entity.

On the outlook for the year, Mr Alan Chan, Chief Executive Officer of SPH commented: “The global economic outlook has softened recently with uneven recoveries seen across the economies. Significant headwinds continue to persist, as concerns remain unabated over interest rates, a deflationary spiral in Eurozone and the slowdown in the Chinese economy. On this note, the domestic economy is expected to grow modestly amidst a tight labour market.

“The year ahead is fraught with challenges from an uncertain economic environment, continued softening of the advertising market and the structural issues facing the media industry. Amidst the challenging times, the Group will continue to intensify its efforts to sustain and strengthen the media business, by building upon our core competencies in the print and digital space. In addition, we are on a constant lookout for business opportunities that position the Group for growth.”

The Directors have declared an interim dividend of 7 cents per share which will be paid on 22 May 2015.