Media and property company Singapore Press Holdings (SPH) reported a net profit of S$97.9mn ($72.7mn) for the first half of the financial year, and announced it will undergo a strategic review. According to its press release, the net profit rose 26.1% and operating profit increased 16.6% to S$119.8mn ($88.9mn) in the first half of the financial year ended February 28, attributed to improvements in its non-media business segments. However, its total revenue fell 4.2% to S$460.3mn ($341.6mn), led by the decline in operating revenue from the media business.
The earnings release was followed by an announcement of a strategic review that is needed “to unlock and maximise long term shareholder value”. While SPH’s media business continues to face a challenging operating environment and outlook, the board of directors believe that the company remains undervalued. Credit Suisse (Singapore) has been appointed as its financial adviser for the review. Mr Ng Yat Chung, chief executive officer of SPH said, “Despite expanding our audience reach, our Media business continues to be affected by the structural decline in advertising and the impact of Covid-19. We will continue our digital transformation strategy and efforts to place Media on a more sustainable footing.”
SPH SGD bonds remain relatively unchanged, with the SPH SGD 4% Perp at 100.85 and SPH REIT SGD 4.1% Perp at 100.69, yielding 3.8% and 3.9% respectively.
To read the press release, click here