CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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 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.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

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.