SCMP Group Ltd (HKSE: 0583) Announces Interim Net Profits of HK$105 Million and
11% Increase in Revenue
HONG KONG -- (Marketwired) -- 08/20/13 -- SCMP Group Ltd (HKSE:
0583) announced today the interim results for 2013. Net profit for
the first half of the year was $105.2million, compared with
$177.7million for the same period in 2012. Revenue for the first half
was $509.1million, 11% higher than last year's $458.1million.
Earnings per share declined to 6.7cents from 11.4cents for the same
period the year prior. Dividend payable per share will be 2.0cents.
The increase in revenue was mainly driven by higher advertising sales
from its magazine publishing business and higher rental income from
its investment properties, while revenue from its newspaper
publishing business for the six months ended 30 June 2013 was down 1%
from the previous year, at $365.5million. The economic slowdown saw
revenue from Advertising and Marketing Services declining 1% to
$221.8million, with a shortfall in advertising sales mitigated by
special executions, events and new products. Online display
advertising revenue for newspaper division increased 19%.
The results include fair value gains in investment properties of
$59.6million compared with $122.1million in 2012. Carving out these
gains, net profit fell by 18%, largely due to higher staffing costs.
Staff costs rose 26% or $48.4million due to significant investments
in additional business interests, including development and
deployment of smartphone and tablet services and the July 2012
acquisition of the Elle magazine publishing business in Hong Kong.
Costs were also impacted by salary increases, the provision of a
bonus and a change in the accounting treatment of the pension fund
The cover price for the South China Morning Post was increased by $1
to $9 in January, with minimal impact to its circulation. Overall
circulation inclusive of digital subscription remains healthy.
The Magazines division generated $124.7million in revenue and the net
profit attributable to shareholders was $24.3million, both
significantly higher than last year. The growth in revenue and profit
was mainly due to the inclusion of Elle's results. Other women's
titles remain strong. Harper's Bazaar, in particular, reported a 9%
owth in revenue and 8% growth in EBITDA.
Group net cash outflow from investing activities for the period was
$38.6million. Capital expenditure for the period amounted to
$27.7million, including payments made for the purchase of new
printing presses. The Group also made a deposit of $10million for the
acquisition of the Hong Kong businesses of AsiaCity Ltd, publisher of
HK Magazine, which was completed after the end of the reporting
CEO Robin Hu remarked: "Despite weak momentum in the economy and
slowdowns in the advertising sector, our businesses remain stable and
healthy. We are focused on growing organically as well as
diversifying our revenue sources, strengthening our product portfolio
and brands and investing in future growth. We've added new
revenue-generating printing presses, developed a suite of new, brand
enhancing print and digital products and a portfolio of events to
enhance our reach and revenue. Positive momentum within the company
itself is strong and we are well poised to continue upon our growth
About SCMP Group Ltd and South China Morning Post
SCMP Group Limited
(HKSE: 0583) is a leading newspaper and magazine publisher in Asia.
Its flagship publication, South China Morning Post, is Hong Kong's
internationally recognised English language newspaper and has the
city's most affluent and influential readership.
First published in 1903, the newspaper has developed an enviable
reputation for authoritative, influential and independent reporting
on Hong Kong, China and the rest of Asia. Available in print,
iPad(TM) and online through scmp.com and e-reader editions, South
China Morning Post reaches a global audience with daily breaking
news, analysis and opinion, multimedia articles and interactive
forums. The South China Morning Post received 64 awards in 2012 for
excellence in editorial, marketing and technical capability. Other
titles in the Group include the Sunday Morning Post, the Chinese
editions of Cosmopolitan, Harper's Bazaar, ELLE and CosmoGirl!, HK
Magazine, The List, Where Hong Kong, and Where Chinese.
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