Singapore Press Holdings reported a 43.8 per cent drop in net profit in its fiscal first quarter due mainly to restructuring costs and a slowdown in its media business.

Singapore Press Holdings Friday (13 January) reported a 43.8 per cent drop in net profit to $45.7 million in its fiscal first quarter due mainly to charges arising from a restructuring of its core media business and a decline in the segment.

In October last year, SPH announced that it planned to cut its staff by up to 10 per cent by 2018 and merge tabloids The New Paper (TNP) and My Paper. The revamped TNP was launched on 1 December last year.

The restructuring-related charges incurred in the quarter ended 30 November 2016 included $7.2 million of retrenchment and outplacement benefits as part of its staff reduction exercise.

Headcount at SPH fell to 4,107 in the first quarter from 4,273 a year earlier.

“The slowing economy and ongoing disruption of the media industry continued to weigh on the media business,” SPH said in a press release.

Group revenue fell 6 per cent to $278.3 million, dragged down by a 9.5 per cent drop in revenue in the media business.

Revenue from the property segment grew 1.3 per cent to $60.5 million while revenue from the other businesses rose 17.9 per cent to $15.9 million.

On the business outlook, Alan Chan, CEO of SPH, said the group will focus on innovation and investment in the media business, improving cost efficiency and diversifying its revenue streams.