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MEDIA group Singapore Press Holdings on Friday reported a net profit of $133.4 million for the third quarter ended May 31.
This is a drop of 15.6 per cent from the $158 million from a year ago.
Profit before investment income was up 26.2 per cent to $135.1 million against $107.1 million last year, on the back of higher revenue contribution from the group's newspaper and magazine segment as well as its Sky@eleven condominium development.
Amid much turbulence in the global financial markets, the group also saw a fall in its investment income - from last year's $75.3 million to $25.7 million for the third quarter.
Net profit declined 15.6 per cent to $133.4 million from $158 million in the corresponding quarter last year.
Group operating revenue rose 19.5 per cent to $344.4 million against the corresponding quarter last year.
'Despite an increasingly uncertain global economic outlook weighed by lingering concerns over the US economy and high oil prices, the Group continued to gain traction in the traditional print media, with the Newspaper and Magazine segment registering revenue growth of above 5 per cent,' said SPH in a statement.
Print advertisement revenue remained the growth driver with an increase of 6.3 per cent to $207.9 million.
Revenue from Sky@eleven of $38.1 million contributed substantially to the improved performance in Property segment, while Paragon posted an increase of $3.1 million in income from rental and related services.
Commenting on the outlook for the next 12 months, Mr Alan Chan, Chief Executive Officer of SPH said: 'The Singapore economy is forecasted to grow at a more moderate pace in 2008. Advertising revenue, which has registered commendable growth and remained resilient so far, is expected to perform in tandem with the economy.
'Newsprint prices, which have seen sharp increases, are poised to rise further due to escalating production costs as well as supply and demand imbalances.'
Mr Chan added that performance of the property segment continues to be underpinned by profit contribution from Sky@eleven and strong rental income growth from Paragon.
'Barring unforeseen circumstances, the directors expect the recurring earnings for the current financial year to be better than the previous financial year,' he said.
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