Sin Chew 3Q net profit down 33%
Sin Chew Media Corp Bhd’s net profit for the third quarter ended Dec 31, 2005 fell 33.39% to RM12.04 million from RM18.07 million a year earlier despite a 5.57% increase in revenue to RM116.47 million.
For the nine months period, its net profit declined 12.17% to RM42.12 million from RM47.95 million a year earlier while revenue rose 19.01% to RM357.13 million from RM300.08 million.
It said the lower profits was due to higher depreciation charges, increased staff costs from new collective agreement and salary adjustments, higher newsprint prices and reduced available reinvestment tax allowances.
“Growth in advertisement expenditures or adex, which is directly dependent on the health of the economy, is expected to be slower compared to the corresponding period last year.
“Should this trend continue, it would impact on the performance of the group’s results for the current financial year,” Sin Chew said in a statement on Feb 16.
In a separate statement, it announced the resignation of Gan Chin Kew @ Gan Chin Hor as executive director. Gan, aged 58, also announced his retirement from his management duties in Sin Chew.