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These 2 Companies Reported Weaker Net Profits Recently

It’s the earnings season again and given that many companies are reporting their results at the same time, I thought it might be useful to summarise the results of some of these companies into three different buckets – positive, not-so-positive, mixed.

This will give our readers a quick overview of the performances of these companies.

With that, we will focus on two of those companies that have delivered weaker profits recently in their quarterly results.

M1 Ltd (SGX: B2F) is the first company that we will look at in this article.

As a quick introduction, M1 Ltd is one of the three telecoms in Singapore, the other being Starhub Ltd (SGX: CC3) and Singapore Telecommunications Limited (SGX: Z74). M1’s business has four segments, namely, mobile services, fixed services, international services, and handset sales.

Quarterly revenue was marginally up by 4.7% year-on-year while service revenue came in almost flat year-on-year. On a slightly positive note, the fixed services continued to see improvement in revenue. Nevertheless, EPS came down by 20.8% as compared to last year. Moreover, the balance sheet deteriorated from a net debt position of S$327 million a year ago to S$421 million this quarter.

The subscriber base improved as compared to a year ago, yet the average revenue per user (ARPU) was down for both post and pre-paid customers.

For more information about the latest result, click here for the article written by my colleague, Chin Hui Leong.

Singapore Press Holdings Limited (SGX: T39) is another company that released its result recently.

Singapore Press Holdings or SPH, in short, is a publisher of newspapers such as The Straits Times, The Business Times, The New Paper, Berita Harian, My Paper, Lianhe Zaobao and others.

Also, it is in the real estate business and other activities such as events management. As part of the firm’s real estate activities, it is the majority owner and manager of SPH REIT (SGX: SK6U), a real estate investment trust which owns retail malls in Singapore.

Financially, revenue tumbled year-on-year by 10.8% while net profit fell by 45.2% year-on-year. Moreover, SPH’s balance sheet had deteriorated. In the latest quarter, it had $233.8 million in cash $1.48 billion in borrowings. A year ago, it had $278.5 million in cash and a debt of $1.30 billion.

As for its future outlook, SPH’s Chief Executive Officer said the following:

“The Group will forge ahead with its drive to transform the core Media business. We have pursued other growth opportunities to diversify revenue streams. To date, we have made steady progress with the recent acquisition of Orange Valley Healthcare and our joint venture winning the tender to develop a mixed commercial and residential site at Bidadari.”

For more detailed information about the company’s latest result, please click here for the article.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.