SCMP Group, the publisher of the South China Morning Post, yesterday said it expected a significant drop in display advertising revenue from the luxury brands and banking and investment sectors this year because of the poor global economic outlook.
The forecast came as the company announced net profit last year dropped HK$375.32 million or 68.48 per cent to HK$172.77 million, with revenue from continuing operations down 16 per cent at HK$1.038 billion.
Earnings per share fell 68.47 per cent to 11.07 HK cents from 35.11 HK cents a year earlier. The company declared a final dividend of 2 HK cents per share, down from 10 HK cents a year earlier.
The total dividend payout last year was 8 HK cents per share.
Net profit for the second half was 61 per cent lower than the previous six months at HK$48.23 million, compared with HK$124.54 million for the six months to June last year. Revenue fell 9.49 per cent in the half to HK$493.05 million, from HK$544.72 million in the first half.
'There will be tough challenges ahead of us this year due to the poor global economic outlook,' the company said.
'Compared with the previous year, the recruitment advertising market has already shrunk by more than 60 per cent in the first two months of 2009. In display advertising, we foresee a more significant drop [about 30 per cent] among sectors like luxury brands, banking and investment, and hospitality.'
