SPH share price sink 4.02% after it posted a 44% decline in Q3 net profit

A challenging environment for SPH's media business led to falling print advertisement and lower circulation revenue.

Shares of media company Singapore Press Holdings’ (SPH) slumped 4.02% on Monday after the media giant posted a 44% fall in net profit for the third quarter, amid a challenging environment for its media business which led to falling print advertisement and lower circulation revenue.

SPH’s net profit had plummeted from S$46.9 million a year ago to S$26.2 million for the third quarter.

The share price reaction to the weak profit performance on Monday was because the firm had announced its results after market hours on Friday.

SPH share price sink 4.02% following the Q3 results release

Shares of SPH plunged 4.02% or S$0.10, to S$2.39, at around 10.20am Singapore time on Monday, the first trading day after it announced its earnings results.

The stock had closed at S$2.49 on Friday, before its third quarter results were released.

Year-to-date, SPH shares have erased most of the gains that it had made at the peak of S$2.55 it made on July 8, 2019, performing at a gain of only 2.58%.

Higher operating expenses crimped earnings, while operating revenue dipped by 1.6%

The group said its lower earnings in the third quarter was partly due to higher operating expenses which increased by 5.5% to S$220 million, attributed to increased operational costs from an enlarged student accommodation portfolio and its real estate investment trust, SPH REIT. Increased financing costs and professional fees also added to the strain.

Operating revenue eased 1.6% to S$246.1 million from S$250.1 million a year earlier, mainly due to lower print advertisement revenue, SPH said. Other contributors to the revenue dip were circulation revenue and the absence of contributions from finance services website Shareinvestor.com holdings following its divestment last November.

Contributors that supported the group’s operating revenue were the rental revenue of S$14.3 million from its purpose-built student accommodation portfolio and S$4.2 million from SPH REIT's retail asset, Figtree Grove shopping centre in Australia.

Investment income fell by 82% to S$4 million as the treasury and investment portfolio was largely divested by the end of the previous financial year.

‘The media business continues to be challenged on various fronts - including the ongoing trade tensions and the slowing of the Singapore economy - but we remain focused on our digital transformation strategy,’ SPH’s chief executive Ng Yat Chung said in the company's results statement.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.