Magazines help boost revenue at SCMP Group past HK$1b

PUBLISHED : Tuesday, 26 March, 2013, 12:00am
UPDATED : Tuesday, 26 March, 2013, 9:01am

SCMP Group's revenue crossed the HK$1 billion mark last year for the first time since 2008, helped by new income sources such as the recently acquired Elle magazine and higher revenue contribution from its magazines business.

While revenue rose 8 per cent to HK$1.02 billion, net profit for 2012 slipped to HK$329.1 million from HK$409.9 million the year before because of continuing investment in the company's digital business and a lower profit margin in contract printing. SCMP Group said investments in new media "will bring in solid profit contribution" in the long term.

"We will continue to look for other acquisition opportunities," it said in a filing with the Hong Kong stock exchange yesterday.

The company, which is entering its 110th year, is sharpening its portfolio in both print and digital products and is seeking better ways to monetise both, it said. It is planning more digital subscription platforms for scheduled to launch in the second half of the year, will be the company's first foray into online Chinese-language news. The publisher said the portal would target China's business elite and would feature "a significant portion of new original Chinese content".

Revenue at the company's newspaper segment, which publishes the South China Morning Post, dropped 1 per cent to HK$773.6 million, while net profit dropped 19 per cent to HK$97.5 million from the previous year.

Revenue fell because of a significant decline in the number of initial public offerings during the year, leading to lower business notice revenue, the company said. The paper's circulation in the second half of 2012 rose 4 per cent year-on-year to 107,426.