SPH bounces back with 69.8% increase in operating profit
This follows after SPH restructured its media business.
Singapore Press Holdings Limited (SPH) revealed an operating profit of 69.8% to $206.7m for the financial year 2021.
The group strategically restructured its media business, thus incurring a $38.7m operating loss. This is less when compared to the $40.1m loss in the financial year 2020. The overall loss, however, is expected to widen further.
Factoring in the Job Support Scheme funding, the media’s operating loss stands at $13m. Together with $115.3m of media restructuring costs, a media loss of $128.3m was recorded in the 2021 financial year.
According to SPH CEO Ng Yat Chung, the restructuring enabled SPH to avoid losses. "We will focus on expanding the portfolio of the non-media business. The next step is for shareholders to consider the privatisation offer from Keppel.”
SPH's total revenue grew by 2.4% to reach $475.1m, following the higher rental income from retail and commercial and purpose-built student accommodation (PBSA) driven by the expanded portfolios and lower tenant rental relief for retail tenants.
The increase was partially offset by the absence of revenue from the supply of masks by Aged Care. Total costs fell 21.6% mainly due to lower costs of Aged Care in line with lower revenue as well as the absence of impairment of intangible assets of S$17.5m from Orange Valley and PBSA in FY2020.