SCMP Group Limited reports strong Interim results

Highlights

  • Turnover: HK$632.9 million
  • Operating profit: HK$217.9 million
  • Profit attributable to shareholders: HK$175.0 million
  • Earnings per share (HK cents): 11.2
  • Dividend (HK cents): 8.0

Hong Kong, 13, September 2007 — SCMP Group Limited (SEHK: 583) ("the Group") reported a 19% growth in profit attributable to shareholders to HK$175.0 million for the first six months ended June 30, 2007. Turnover rose 9% to HK$632.9 million.

The Board of Directors declared an interim dividend of 8 HK cents per share.

Operating costs before depreciation and amortisation increased 4% or HK$16.7 million. The average cost of newsprint rose 5% from US$604 to US$635 per metric ton. Staff costs increased 6% while rental and utilities expenses rose 27% largely due to higher rental of office premises.

Business Performance

The Group’s interim results were boosted by a 31% growth in notices advertising and a 7% growth in display advertising sales. Recruitment advertising revenue increased by 4.5%. The unaudited circulation of South China Morning Post and Sunday Morning Post rose to 105,000 and 80,600, respectively.

Classifiedpost.com underwent a complete revamp to provide a more user-friendly interface and more advanced functionalities to job seekers and advertisers. With the launch of the new site in April 2007, page views rose 10% year-on-year.

Scmp.com was also revamped, enabling greater integration between the paper and the website and boosting its content with more multimedia, personalisation, mobile WAP access and interactive functions. The website was re-launched in May and had approximately 18,300 subscribers as of end-June.

The Magazine Division reported a 68% increase in net profit mainly from the strong performance of Cosmopolitan and Harper’s Bazaar. Reflecting the strong momentum of consumer spending, the Hearst’s titles showed impressive growth in advertising revenue. Nevertheless, competition is keen and the higher cost of maintaining circulation and slower growth rate in advertising revenue will create pressure on profitability.

Outlook

First half results have been encouraging, given the strong economy and active investment market. Unemployment rate in the second quarter of 2007 was at its lowest level in the past nine years. Management is positive that these favorable economic conditions will continue in the second half of the year.

Print’s recruitment revenue is expected to be maintained, despite the shifting trend towards online recruitment, however, notices revenue will be affected by the change in Hong Kong listing rules in the second half year.

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About SCMP Group Limited

SCMP Group Limited (SEHK: 583) is a leading newspaper and magazine publishers in Asia. Its flagship publication, South China Morning Post, is the leading English language newspaper in Hong Kong and has the city’s most affluent and influential readership. Other publication titles of the Group include the Sunday Morning Post, the Chinese editions of Cosmopolitan, Harper’s Bazaar, CosmoGirl! and Automobile magazines.

For media enquiries, please contact:

Irene Ho
Marketing and Communications
Tel: (852) 2250 3116
Fax: (852) 2565 2429
Email: communications@scmp.com
     
For Investor enquiry, please contact:

Perry Wu
Investor Relations
Tel: (852) 2565 2380
Fax: (852) 2838 7525
Email: investor.relations@scmp.com

The newly revamped scmp.com is named Best Media Site in Asia Interactive Awards

Hong Kong, 20, July 2007 — The recently re-launched scmp.com won the Best Media Site Award in the Asia Interactive Awards 2007.

The winning scmp.com offers richer content in the form of multimedia, personalisation, mobile WAP access, and interactive functions, among its new features. The enhanced functionality of the site gives China watchers around the world better access to the latest information and analysis on China.

Being the first and only media site to receive top recognition in the Asia Interactive Awards, scmp.com publisher Chris Axberg said, "Our team have invested a great deal of time and effort in revamping our site to provide our readers with a more interactive and user-friendly online platform, and more integration between South China Morning Post and scmp.com. We are very encouraged to receive this great endorsement for the exceptional work of our colleagues."

Judged by a panel comprising of distinguished professionals from the region, the Asia Interactive Awards is organised by AdAsia Magazine, the region’s leading advertising and marketing industry publication. Started since 2006, the Asia Interactive Awards plays a major role in promoting the use of new technology in advertising, promotion, brand building and consumer relationships.

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About South China Morning Post

The South China Morning Post is Hong Kong’s premier 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. Its online platform, scmp.com, reaches a global audience of China watchers with daily breaking news, multimedia articles and interactive forums. Striving to maintain the highest standards among the world’s quality newspapers, the South China Morning Post receives constant international recognition. It received 39 awards in 2006 for excellence in editorial, marketing and technical capability.

For media enquiries, please contact:

Irene Ho
Marketing & Communications
Tel: (852) 2250 3116
Fax: (852) 2565 2429
Email: communications@scmp.com

South China Morning Post revamps scmp.com with richer content, interactive and multimedia features

Hong Kong, 30, May 2007 — SCMP announced today the re-launch of scmp.com.

The new scmp.com offers richer content in the form of multimedia, personalisation, mobile WAP access, and interactive functions, among its new features. More importantly, the revamp enables greater integration between South China Morning Post and scmp.com.

Spurred by the success of SCMP Today, a daily podcast of the day’s top story, scmp.com will offer more podcasts and vidcasts. Personalisation through "myscmp" will allow users to choose content most relevant to them and receive timely updates through RSS service. The mobile WAP service allows subscribers to stay connected anytime, anywhere through their mobile phones.

Another key feature is the SCMPIR, an investor relations platform which will host company profiles, trading information, announcements, press releases and event calendars of companies listed on the Hong Kong and Shanghai Stock Exchange. Access to this section is free through www.SCMPIR.com or the Business section of the site.

"Nowadays communication and transparency are key to establishing a solid reputation in the capital markets with global standards of corporate governance," said Grace Fung, Director of Classified Advertising. "Investors at home and abroad require more information than ever before to make investment decisions. Through SCMPIR, listed companies can enhance their investor relations programs. Besides company profile, stock trading information, results and other announcements, SCMPIR offers listed companies and investors something no other IR site does – related news and analysis written by SCMP’s award-winning business writers from SCMP’s archives."

Commenting on the benefits of the new site, scmp.com publisher Chris Axberg said, "With the revamp of scmp.com, local readers will be able to access our news through multiple digital platforms, as well as experience multimedia content that complements the content in our newspaper. The enhanced functionality of the site will also give China watchers around the world better access to the latest information and analysis on China.

As part of the launch, scmp.com will offer a 7-day free trial, including access to archived articles. An annual subscription costs HK$399 and offers subscribers unlimited access to SCMP’s archived articles.

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About South China Morning Post

The South China Morning Post is Hong Kong’s premier 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. Its online platform, scmp.com, reaches a global audience of China watchers with daily breaking news, multimedia articles and interactive forums. Striving to maintain the highest standards among the world’s quality newspapers, the South China Morning Post receives constant international recognition. It received 39 awards in 2006 for excellence in editorial, marketing and technical capability.

For media enquiries, please contact:

Irene Ho
Marketing & Communications
Tel: (852) 2250 3116
Fax: (852) 2565 2429
Email: communications@scmp.com

Classifiedpost.com unveils its new look

Hong Kong, 12 April 2007 — Classifiedpost.com, one of Hong Kong’s most popular and effective recruitment websites, unveiled its new face today. Beyond its more user-friendly interface, the new classifiedpost.com offers many advanced recruitment functionalities.

A key feature of the upgrade is the Applicant Management System (AMS), a comprehensive e-hiring solution that enables companies to personalise the various hiring functions to meet their needs. With the new system, users can pre-define the candidate selection criteria when posting their jobs real-time, keep track of the hiring stages for each candidate and set up email templates to speed up the recruitment process. The enhanced platform also gives companies the flexibility of registering multiple-users.

"Our aim is to provide a more interactive recruitment platform to the market," said Grace Fung, Director of Classified Advertising. "Companies can now manage their e-hiring process from job posting to job offer and gain a full picture of the responsiveness to their recruitment effort. In short, it means more effective recruitment and better return on investment."

The new classifiedpost.com also promises better user experience for job seekers with improved navigation, enhanced privacy protection and timely updates of the latest job openings through RSS (Real Simple Syndication) service. But Fung stressed that the site offers more value than digital advancement, "The uniqueness of classifiedpost.com remains its strong editorial content. We will keep leveraging the core strength of our print product to provide relevant information to job seekers, who can now browse related industry news during their job search, and continue to enjoy free access to many useful job-seeking tips and career advice provided by industry experts and career consultants."

As one of the city’s most popular recruitment websites, classifiedpost.com has over 270,000 members and more than 10 million page views per month. Fung is confident that the revamp will help to boost traffic and registration, attract more quality candidates, and further strengthen classifiedpost.com’s position as the definitive e-recruitment platform in the market.

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For more information, please go to http://www.classifiedpost.com

About SCMP Group Limited

SCMP Group Limited (SEHK: 583) is a leading newspaper and magazine publisher in Asia. Its flagship publication, South China Morning Post, is the leading English language newspaper in Hong Kong and has the city’s most affluent and influential readership. Other publication titles of the group include the Sunday Morning Post, the Chinese editions of Cosmopolitan, Harper’s Bazaar, CosmoGirl! Maxim and Automobile magazines.

For media enquiries, please contact:

Irene Ho
Marketing & Communications
Tel: (852) 2250 3116
Fax: (852) 2565 2429
Email: communications@scmp.com

South China Morning Post scoops three prizes in the 6th Asia Media Awards

Hong Kong, March 29, 2007 — The South China Morning Post received three prizes yesterday at the 6th Asia Media Awards ceremony held in Manila. The highly-prestigious competition was organized by IFRA Asia to promote the highest standards of publishing and creativity in the industry. SCMP was honoured with the Bronze Award in the Best in Newspaper Design category (circulation over 100,000 copies), and two prizes in the Best in Photojournalism category, including the Silver Award in Feature Photography and the Bronze Award in News Photography.

Amanda Turnbull, Marketing Director of SCMP, was delighted about these new additions to the string of 15 industry accolades that the paper has received since the beginning of the month.

"From reporting and photography to design and advertising, we are proud to rank among the world’s best-known quality newspapers. This time, we are particularly encouraged that the judges selected the design of South China Morning Post and Sunday Morning Post against some stiff competition. This is definitely a great endorsement for the exceptional work of our production teams who continuously seek ways to provide our readers with a more visual and user-friendly platform," said Turnbull

The other industry accolades that SCMP received in March 2007 include seven prizes at the Hong Kong Press Photographers Association Awards, seven prizes at the 11th Annual Human Rights Press Awards, and a first prize at the PANPA Newspaper Advertising Awards, recognizing the effective use of colour of the ‘Boost Your Career’ campaign in Classified Post.

While celebrating these remarkable results, Turnbull stressed that the teams in SCMP would not be complacent, "The paper will keep evolving with the focus to produce the best possible reading experience; these awards simply reinforce our ongoing commitment to deliver high-quality content."

Please go to http://www.scmpgroup.com/about/awards.html for more details about the awards

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About SCMP Group Limited

SCMP Group Limited (SEHK: 583) is a leading newspaper and magazine publisher in Asia. Its flagship publication, South China Morning Post, is the leading English language newspaper in Hong Kong and has the city’s most affluent and influential readership. Other publication titles of the group include the Sunday Morning Post, the Chinese editions of Cosmopolitan, Harper’s Bazaar, CosmoGirl! Maxim and Automobile magazines.

For more information contact Amanda Turnbull, Director, Marketing and Communication on 2250-3130 or email amanda.turnbull@scmp.com

For media enquiries, please contact:

Irene Ho
Marketing & Communications
Tel: (852) 2250 3116
Fax: (852) 2565 2429
Email: communications@scmp.com

South China Morning Post reaches out with new look for the paper

Hong Kong, March 26, 2007 — South China Morning Post today unveiled a new look with the aim of making the newspaper more engaging and enjoyable for readers with a cleaner and clearer approach. The revamp covered everything from typeface and layout to graphics and photography to ensure that readers can get the information they want more quickly and easily.

Commenting on these developments, Amanda Turnbull, SCMP’s Director of Marketing and Communications said, "We have tried to create a paper that reflects our readers’ changing lifestyle: less time to devote to reading, more need for easy processing of information and a growing desire for interactive and engaging presentation." The paper attempted to address these needs by creating more explicit headlines and picture captions, enhancing the infographics to better show facts and figures within a story and adopting a new set of colour tones to give each section of the paper a distinct personality.

The redesign is part of SCMP’s continuous effort to give readers more choices in acquiring information from the company’s news platforms. "Whether it’s through our newspaper, our website, scmp.com or our other digital offerings – podcasts, vidcasts, RSS or simply SMS headlines to mobile phones – we’re committed to reaching out to readers with more access points to our content and many more ways for them to get involved," said Turnbull.

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About South China Morning Post Publishers Limited

The company publishes the South China Morning Post and the Sunday Morning Post, Asia’s premier English language daily and Sunday newspaper with the highest circulation of any English language newspapers in Hong Kong. South China Morning Post Publishers Limited is a wholly-owned subsidiary of SCMP Group Limited, which is listed on The Stock Exchange of Hong Kong Limited.


For more information contact Amanda Turnbull, Director, Marketing and Communication on 2250-3130 or email amanda.turnbull@scmp.com

SCMP Group Reports Highest Profit Level in Six Years on Back of Strong Advertising Revenue

HONG KONG, March 26, 2007 – SCMP Group Limited (SCMP) announced a 37% rise in profit attributable to shareholders for the financial year ended 31 December 2006, the highest level in six years. This financial result reflects a solid performance from the core publishing business and strong advertising revenues.

"The economic environment in 2006 was very good for the publishing business," says Nancy Valiente, Managing Director of South China Morning Post Publishers Limited. "Economic growth, a record year for Mainland listings and rising ad spend were all contributors. The best news is we performed well in a year filled with challenges for the Hong Kong media industry."

Revenue rose 8% to $1.2 billion, compared to $1.1 billion in 2005. Net profit attributable to shareholders reached $338.6 million, compared with $246.4 million in 2005. Operating costs and expenses before depreciation and amortization were up 2% compared to the previous year with increases in staff, production, and rental and utilities costs offset by savings in other operating expenses. The Group declared a final dividend of HK13 cents per share for a full year dividend of HK19 cents per share.

Publishing Business Results

The SCMP continued to focus on its core publishing business in 2006. "Our results, the best in six years, were due mainly to two factors – a significant growth in notices advertising from IPOs and results announcements, and solid growth in display advertising which outperformed the market," notes Valiente. "The foundation of this business remains an affluent and influential readership that supports the SCMP."

Publishing revenues grew 9% and accounted for 97% of revenue. Newspaper display advertising rose 10%. Classified revenue expanded 13%, as notices rose 42%. Recruitment revenue increased 1% despite a much larger drop in positions advertised in all recruitment publications. Circulation was stable in the first half and dropped 2% in the second half owing to an industry-wide decline in newsstand sales.

Production costs rose 5% due to higher newsprint cost which averaged US$613 per ton, up 9% from US$563 per ton in 2005. Newsprint consumption dropped 2%, attributable to new printing presses and tight ad ratio monitoring.

The Magazine Division posted an 83% net profit rise due to strong performance at Cosmopolitan and Harper’s Bazaar and cost cutting measures at other titles.

Outlook

In 2007, SCMP expects the Hong Kong economy to grow, but at a more moderate pace than last year. The government forecasts GDP growth at 4.5% to 5%. This favorable economic environment should benefit the publishing business which derives revenues primarily from advertising.

Circulation is expected to be stable, although it is declining for the industry as a whole. Display advertising should outperform the market due to the attractiveness of the readership profile of SCMP’s titles. Editorial coverage will be strengthened with a focus on China and business coverage. The launch of websites and new digital products will enhance revenue.

"There are significant risks to ongoing business growth," points out Valiente. "When the exchange eliminates the requirement for listed companies to publish announcements in newspapers in 2007, we expect a loss of notices revenue. The volatile nature of revenue from IPOs is outside the control of management. The online trend in recruitment advertising will continue to have an effect on print recruitment advertising."

Valiente states that the SCMP focus in 2007 and beyond is to continue to strengthen the core publishing business to generate reliable profits and cash flow. The development of new multimedia products and business models are future growth drivers for the Group.

"This year will see many improvements," concludes Valiente. "Expanded China coverage will be the focus of the editorial team, classifiedpost.com will be revamped with user-friendly features and the recently unveiled new look of the paper are all steps we are taking to make sure SCMP stays relevant and appealing to our readers."

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About SCMP Group Limited

SCMP Group Limited (SEHK: 583) is a leading newspaper and magazine publisher in Asia. Its flagship publication, South China Morning Post, is the leading English language newspaper in Hong Kong and has the city’s most affluent and influential readership. Other publication titles of the group include the Sunday Morning Post, the Chinese editions of Cosmopolitan, Harper’s Bazaar, CosmoGirl! Maxim and Automobile magazines.

To learn more about the SCMP Group, go to scmpgroup.com.

For media enquiries, please contact:

Irene Ho
Marketing & Communications
Tel: (852) 2250 3116
Fax: (852) 2565 2429
Email: communications@scmp.com

For investor inquiries, please contact:

Perry Wu
Investor Relations
Tel: (852) 2565 2380
Fax: (852) 2838 7525
Email: investor.relations@scmp.com

South China Morning Post Announces Senior Management Change

Hong Kong, March 19, 2007 — South China Morning Post today announced that Mark Clifford will step down as Editor-in-Chief of the paper on 1 April 2007 in order to pursue another opportunity. During his one-year tenure with the paper, Clifford played a key role in changes that have both strengthened and improved editorial operations. He has also been the driving force behind the SCMP’s forthcoming re-design, has contributed to the convergence of print and digital efforts at the SCMP, and overhauled the paper’s training program for journalists.

Editor C.K. Lau, a veteran SCMP journalist, will assume responsibility for editorial operations after Clifford leaves.

The Board of Directors and management of SCMP Group expressed their deep appreciation of Clifford’s efforts and contributions in the past year.

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About South China Morning Post Publishers Limited

The company publishes the South China Morning Post and the Sunday Morning Post, Asia’s premier English language daily and Sunday newspaper with the highest circulation of any English language newspapers in Hong Kong. South China Morning Post Publishers Limited is a wholly-owned subsidiary of SCMP Group Limited, which is listed on The Stock Exchange of Hong Kong Limited.


For more information contact Amanda Turnbull, Director, Marketing and Communication on 2250-3130 or email amanda.turnbull@scmp.com

South China Morning Post Honoured with 14 Prizes in Hong Kong Journalism Awards

Hong Kong, March 1, 2007 — The South China Morning Post scooped 14 awards in the Hong Kong Newspaper Society News Awards 2006, with a clean sweep in the business news writing categories.

The awards, announced on February 28 2007, saw the SCMP take the top prize in four of the fourteen categories, including "Best Science News Reporting" for a series on British physicist Stephen Hawking. In the English section, the SCMP won "Best News Writing" for a piece on the spread of Aids as a result of blood sales in rural China and "Best Business News Writing" for a feature on small stockbrokers struggling against fierce competition, titled "Banks elbow brokers out of business". Robin Kwong was awarded "Best Young Reporter". Ten Runners Up and Merits completed the haul for articles covering subjects ranging from reporting on the Reit and the ‘Advantage Hong Kong’ series to social issues such as the worsening pollution and the culture of giving in the Chinese business community.

Editor C. K. Lau commented, "We are delighted to receive these awards which are a tribute to the hard work and dedication of our staff, and we are particularly pleased with a win and second runner up spot in the "Best Young Reporter" category which shows that our training and talent development programmes are paying off." And he continued, "We constantly strive to produce the highest quality for our readers on a daily basis – a fact reflected in our circulation numbers – but external recognition like this is always a bonus."

The Hong Kong Newspaper Society, founded in 1954 has been running awards for decades. Judged by a panel comprising dozens of local and regional experts, academics and practicing journalists, the period from 2000 to 2006 has seen the South China Morning Post consistently outperform its peers with 79 awards in six years.

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About South China Morning Post Publishers Limited

The company publishes the South China Morning Post and the Sunday Morning Post, Asia’s premier English language daily and Sunday newspaper with the highest circulation of any English language newspapers in Hong Kong. South China Morning Post Publishers Limited is a wholly-owned subsidiary of SCMP Group Limited, which is listed on The Stock Exchange of Hong Kong Limited.


For more information contact Amanda Turnbull, Director, Marketing and Communication on 2250-3130 or email amanda.turnbull@scmp.com

South China Morning Post Awarded ‘Caring Company’ Status

Hong Kong , February 8, 2007 – The South China Morning Post today announced that it has been awarded Caring Company status by the Hong Kong Council of Social Services for its Operation Santa Claus (OSC) project.

Co-organized for the last 19 years by SCMP and RTHK Radio 3, Operation Santa Claus raised a record total of over HK$16 million in 2006 for 27 beneficiaries in five main areas of need: mental and physical disabilities; children and youth; the elderly; AIDS/HIV, and medical issues. From modest beginnings in 1988, the project has now collected more than $104 million in cash, goods and services, including $9 million for the tsunami victims in 2004.

Commenting on this award, Nancy Valiente, Managing Director said, "I’m pleased that Operation Santa Claus has been recognized through this award as it is an important part of our corporate social responsibility programme. One of the advantages of being a media company is our ability to raise awareness of worthy causes and generate community support for them. Year after year we are overwhelmed by the generosity of our readers, not only in support of Operation Santa Claus, but also of the other stories we run throughout the year that touch them."

This year 1,176 companies have been awarded the Caring Company Logo having fulfilled at least two of the six criteria – Volunteering, Family Friendly, Employing the Vulnerable, Partnering, Mentoring and Giving. The SCMP was recognized for Partnering and Giving, and was nominated by one of OSC’s beneficiaries, the Arts with the Disabled Association.

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About South China Morning Post Publishers Limited

The company publishes the South China Morning Post and the Sunday Morning Post, Asia’s premier English language daily and Sunday newspaper with the highest circulation of any English language newspapers in Hong Kong. South China Morning Post Publishers Limited is a wholly-owned subsidiary of SCMP Group Limited. which is listed on The Stock Exchange of Hong Kong Limited.


For more information contact Amanda Turnbull, Director, Marketing and Communication on 2250-3130 or email amanda.turnbull@scmp.com