SINGAPORE - Singapore Press Holdings Limited (SPH) today reported a net profit of $84.1 million for the second quarter ended Feb 29.

This is $8.7 million or 11.6 per cent higher compared to the same second quarter in 2011.

Group recurring earnings of $90.1 million surpassed the performance of the corresponding quarter last year by $11.2 million.

The Group saw a higher operating revenue of $10.6 million to $298.5 million with improvements across all business segments.

Operating revenue for the newspaper and magazine segment saw relatively flat growth of $0.3 million to $234.5 million compared to the corresponding quarter in 2011.

Operating revenue from the Group's other businesses increased by $1.8 million to $15.9 million attributed mainly to the internet business.

Print advertisement revenue increased by $1.3 million to $177.6 million while circulation revenue dipped $0.5 million to $49.7 million.

RENTAL INCOME

Rental income for the Group grew by $8.5 million to $48.0 million as Clementi Mall recorded a rental income of $9.2 million, $7.8 million higher compared to 2011's Q2, during which the mall was not fully operational.

The Group's Paragon property also recorded higher revenue. It increased by $0.7 million on the back of higher rental rates.

Newsprint costs increased by $0.9 million (3.5%) driven by higher newsprint prices but cushioned by a favourable exchange rate. Staff costs decreased by $0.3 million (0.3%) due to lower variable bonus provision partially offset by salary increments.

Other operating expenses rose by $3.4 million due to costs arising from newspaper subscription drives and Clementi Mall operations.

For the half year ended Feb 29, the Group's recurring earnings at $211.3 million outshone the results of the same period last year by $16.1 million.

Group operating revenue was up by $24.3 million whilst total operating costs increased by $9.3 million. Investment income fell by $11.3 million.

Net profit attributable to shareholders was $181.6 million, $3.9 million higher compared to the corresponding half year.

On the outlook for FY 2012, Mr Alan Chan, Chief Executive Officer of SPH commented: "The Group's print advertisement revenue will continue to move in tandem with the performance of the Singapore domestic economy. Amidst the uncertain economic outlook, the Group will continue to seek business opportunities for future growth while striving to sustain its core newspaper business."

Barring unforeseen circumstances, the directors expect overall performance of the Group for FY 2012 to be satisfactory.

The directors have declared an interim dividend of seven cents per share which will be paid on May 23, 2012.

tonyng@sph.com.sg