|Hong Kong, August 26, 2010 – The South China Morning Post Group Limited today announced the audited interim results for the six months ended June 30, 2010.
The operating results improved significantly as a result of careful cost management and a more positive economy. Total revenue rose 22%, or HK$75.2m to HK$411.7m compared with HK$336.5m in 1H, 2009. Operating profit totaled HK$69.6m for 1H 2010 after staff costs, production materials, rental and utilities, depreciation, amortization and marketing costs, up from a loss of HK$8.5m in the same period in 2009, and net profit attributable to shareholders for the period was $52.3m, compared with a $14.9m loss during 1H in 2009.
Basic earnings per share from continuing operations came to HK$0.034 per share, compared to a loss of HK$0.01 per share in 1H, 2009. Interim dividend per share was HK$0.02.
The newspaper publishing division, which generated 83% of the revenue and 70% of the operating profit, reported an increase of 32% from advertising and marketing services, driven by a higher volume of display advertising. Unaudited first half circulation of South China Morning Post and Sunday Morning Post remained stable at 101,800 and 77,400, an increase of 1% and 2% respectively compared to the same period last year.
"Our continued vigilance with cost management, maintaining a quality product and creating innovative advertising solutions, has enabled us to recover from the turbulent economy of 2009" said Ms Kuok Hui Kwong, Managing Director and CEO of SCMP Group Ltd. "We are confident that with the continued stabilization of the economy, our business will also see further growth. However, we are cautious and will continue to remain cost conscious and efficiency driven as we approach the second half of the year."
The Group is aggressively developing new revenue sources from consumer products. The iPad edition of the South China Morning Post enjoyed a successful launch in July.
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