New | SCMP H1 profits up on exceptional gains, eyes digital strategy to offset downside risks
First-half profits at HK$208.7m on one-off gains as group continues to roll-out initiatives to grow revenues despite lacklustre economy
SCMP Group, publisher of the , reported net profits of HK$208.7 million for the first six months of the year, with valuation gains on investment properties and a partial asset sale boosting earnings from normal operations, the company said in a filing to the Hong Kong stock exchange.
Profits excluding these gains were a more muted HK$28.3 million versus HK$48.2 million in the same period a year ago, as a lacklustre Hong Kong economy weighed down by weak retail spending - particularly in the luxury sector - a narrowed pipeline of new share listings and stock market volatility around the world caused advertisers to pull back spending.
"Entering the second half of 2015, signs of significant recovery have not been apparent. In spite of this, the group's fundamentals are strong, and the company remains on its path to continue fortifying existing revenue drivers, while growing digital-specific revenues, and expanding overseas readership," SCMP Group chief executive Robin Hu said in a statement accompanying the results.
"Of note, the company's diverse product portfolio that includes print, digital, outdoor and events, collectively increases the group's resilience during challenging times," Hu said.
"Efficiency improvement programmes are already in place to strategically reduce operating expenses and optimise our processes to nurture homegrown talent, innovate green-field products, and capture emerging opportunities. By activating these growth strategies, together with prudently managing our strong fundamentals, the group looks forward to building and managing our future growth."
Total revenue for the first half was HK$549.3 million, 8 per cent down on a year ago. Staff costs rose 2 per cent or HK$4.2 million, mainly due to increases in salary that were largely offset by tighter headcount controls. Production costs decreased 14 per cent or HK$15.1 million, due to lower newsprint costs and lower production costs for magazines.
