HONG KONG, 20th March, 2014 – SCMP Group Ltd. (SEHK: 0583) announced today the financial results for the year ended 31st December 2013.
Group revenues rose by 12% to $1,146.6 million from $1,019.6 million in 2012. This was driven by a combination of new and existing revenue sources, including ELLE and higher revenue from advertising and marketing solutions, the contract printing business, investment properties and the newly acquired HK Magazine business.
Profit attributable to shareholders, however, declined 29% from $316.3 million to $223.7 million, mainly due to the decline in revaluation gain on our portfolio of investment properties, increase in staff expenses to support revenue growth and the further development of growth businesses including HK Magazine and EducationPost.com.
The newspaper publishing division remains a key revenue driver for the Group, with an increase in revenue by 5% to $814.1 million. Advertising and marketing solutions led this growth with new advertising formats, as well as an increase in IPO related media bookings. Circulation-related revenue rose by 6% attributable to an increase in South China Morning Post‘s cover price and higher online subscription figures. The contract printing business also recorded 43% growth in revenue in 2013. Part of this growth, however, was offset by the inactive job recruitment market across all sectors.
Another area of growth within the Group is the magazines publishing division which recorded an increase in revenue of 27% to $278.7 million, and a net profit attributable to shareholders of $48.9 million, both higher than last year, due to notable revenue contribution from ELLE, Harper’s Bazaar, and increased revenue from Cosmopolitan‘s website.
Excluding fair value gains on investment properties of $170.7 million for 2012 and $87.2 million for 2013, net profit from normal operations decreased by 6% from $145.6 million to $136.5 million. This is mainly attributed to proceeds used to fund the development of new green shoot ventures.
Earnings per share for 2013 was 14.3 cents, reflecting a 29% decline from 20.3 cents in 2012. Final dividend payable per share was 4.2 cents.
Dr. David Pang, Chairman of SCMP Group, commented, “as the economy begins to show indications of improvement, we remain cautiously optimistic of the Group’s ability to maintain its growth trajectory. While the media industry at-large has been impacted by new digital media platforms, a slow IPO market, and an inactive job market; we have steadfastly built a portfolio of new revenue drivers including magazine titles such as ELLE, Esquire, HK Magazine, and The Peak, as well as diversifying our business offering to include events and conferences, and more outdoor media advertising inventory. With these strategic building blocks in place, coupled with a strong pipeline of products, services and talent to expand our outreach to a global digital market, we remain positive in our ability to deliver value and performance in line with the Hong Kong economy in the coming year”.
About SCMP Group Ltd
SCMP Group Limited (SEHK: 583) 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™ 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 65 awards in 2013 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, ELLE Men, Esquire and CosmoGirl!, HK Magazine, The List, Where Hong Kong, and Where Chinese玩儿.
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