Hold the presses: SPH rental income steadies media ship

The bad news is newspaper and magazine revenue declined.

OCBC Investment Research noted SPH was held steady by rental income and reported 1QFY12 PATMI of S$97.5m or 6 S-cents per share, down 4.7% YoY.

"This was mainly due to a poorer performance from the Newspaper and Magazine segment, offset by added contributions from Clementi Mall. 1Q12 PATMI forms 26.3% of our FY12 forecast and is broadly in line with expectations. The topline came in at S$332.4m which is 4.3% higher YoY due to Clementi Mall (rental income of S$9m) and new shows in the Exhibitions business, partially offset by Newspaper and Magazine revenues falling 1.2% YoY. Newsprint costs increased 4.2% (S$1.1m), cushioned in part by favorable exchange rates," the brokerage said in a note.