Net profits for South China Morning Post (Holdings) fell 48.8 per cent in the year to June 30, hit by a $256 million provision for the decline in the value of its share portfolio.
The company made net profits of $412.1 million, compared with $805.3 million in the previous financial year.
The consensus forecast, according to September's edition of The Estimate Directory, was for net profits of $699.8 million.
Operating profit - the bulk of which comes from publication of the South China Morning Post - was resilient, falling a more modest 15.5 per cent to $800.4 million from $947.8 million last year.
Chief executive Owen Jonathan called it a 'creditable' performance given the economic situation in Hong Kong.
The newspaper's circulation remained 'solid', he said.
Group turnover was down 4.9 per cent at $2.23 billion, from $2.35 billion in 1997.
