SPH’s its net profit for the 1st quarter ended in November 2016 had plunging by 43.8% to $45.7m.
This was a combination of several factors, including a 13.5% decline in advertising revenue and $7.5m in restructuring costs. The group had recognised a $2.6m impairment charge from optimising its printing capacity and another $4.8 million on an associate.
Separately, a CIMB report said that while SPH invested in several new media start-ups, most of them “continue to be loss making”.
Last year, the media giant had announced that it would be cutting about 10% of its workforce. As a result, there was $7.2m booked in as retrenchment and outplacement expenses. As at November, they had 4107 staff members which marks a 4% drop from a year ago.
The Group said that they expect business conditions for its media business to remain challenging over the next year. Earnings per share slipped to 3 cents for the quarter, down from 5 cents a year earlier.