The impact of Sars contributed to the media group's 62 per cent profit tumble
SCMP Group profits have fallen sharply due to a depressed advertising market resulting from weak economic performance and the impact of Sars during the first half of the year.
The diversified media group - which publishes the South China Morning Post and Sunday Morning Post - recorded a 62 per cent decline in net profit, largely due to a 19 per cent slide in newspaper advertising revenue.
SCMP chairman Kuok Khoon Ean offered a cautious outlook, saying conditions had stabilised with resumption of normal business activity after the Sars crisis.
'While there are signs of recovery from Sars boosted in part by the government economic stimulus package, unemployment continues to rise to record levels and deflationary pressures continue to affect some sectors,' Mr Kuok said.
'Against this backdrop, advertising and circulation sales have improved but the pace and strength of such recovery remain uncertain.'
