For Immediate Release
SING TAO NEWS CORPORATION LIMITED REPORTS INTERIM RESULTS 2013
(27th August, 2013, Hong Kong) In its Interim Results announced today for the six months ended 30th June, 2013 (the "Period"), Sing Tao News Corporation Limited (the "Company") reported consolidated revenue of approximately HK$977.8 million, consolidated profit attributable to shareholders of approximately HK$25.0 million and basic earnings per share of HK2.99 cents. The Company continued to maintain a high dividend pay-out ratio and has declared an interim dividend of HK2.0 cents per share for the Period.
The reduction in consolidated profit for the Period was mainly attributable to a one-off gain of approximately HK$23 million from a jointly-controlled entity recorded in 2012 which did not recur in the Period. The Group's core Media operations remained steady, and segment revenue fell by 2.3% due to a slight drop in business volume of the magazine operations and Sing Tao Daily from their relatively high level last year. The Media segment's profit for the Period was approximately HK$45.7 million, as compared with approximately HK$69.8 million in the first half of 2012, reflecting the effect of the one-off gain mentioned above.
Commenting on the Interim Results, the Company's Chairman Mr. Ho Tsu Kwok, Charles said, "The underlying business performance of the core Media operations stayed solid, especially with the continuing strong position of Headline Daily. Competition in the free newspaper market has somewhat moderated and Headline Daily has further increased its edge vis-à-vis its competitors."
Maintaining its number 1 position, Headline Daily continued to be the largest-circulating and most widely-read newspaper in Hong Kong whilst achieving further growth in advertising revenue during the Period, all thanks to the evident strengths in its editorial content and advertising effectiveness. Thus far the competition from other free
newspapers has not posed any negative impact on its business performance. During the Period, Headline Daily also benefited from lower newsprint prices which, coupled with the increase in advertising revenue, allowed it to achieve a satisfactory improvement in profitability that is in line with management's expectation.
Sing Tao Daily was largely unaffected by the competition from free newspapers, and its performance held firm for the most part of the Period, barring a setback in advertising in June due to the impact of the government's cooling measures on property sales and hence property advertisements. Despite this, Sing Tao Daily attained good advancement in other advertising categories such as retail, food and electrical appliances. In April, the cover price of Sing Tao Daily was increased from HK$6 to HK$7 following the move of other paid newspapers, and there has been no consequential adverse effect on circulation volume.
The Standard continued to see progress during the Period, with increases in advertising revenue and reductions in costs of sales contributing to an improvement in bottom line. The overseas operations of Sing Tao Daily on the whole remained stable; while the European operations suffered from difficult business conditions under a recession-struck Eurozone, the US operations benefited from a gradually recovering economy.
The Magazine business was affected by a relatively static advertising market and a general industry downtrend in circulation and readership as a result of competition from free newspapers, the internet and mobile media. In view of the challenge, the unit put in further efforts during the Period to develop its multi-media business, and recorded an almost tripling of its online and mobile revenue, albeit from a modest base.
In terms of outlook, Mr. Ho commented, "Competition among free newspapers has eased and Headline Daily should continue to grow its business and profitability. While the free newspaper market will see ongoing expansion, cut-throat competition is not sustainable and some weaker competitors may be eliminated over time. Management will continue to cultivate the competitive strengths of Headline Daily which will allow it to become the long term winner in the industry."
About Sing Tao News Corporation Limited
Sing Tao News Corporation Limited is a media corporation listed on the main board of Hong Kong Stock Exchange (Stock Code:1105). Its principal activities comprise Media operations including Newspapers, Magazines and other media-related businesses.
Media Enquiry:
Ms. Agnes Lai (Corporate Affairs) Sing Tao News Corporation Limited Tel: 3181 3990
Email: agnes.lai@singtaonewscorp.com
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