Copyright: digitaleyesphotography / 123RF Stock Photo
The sky may soon fall for Singapore Press Holdings’ (SPH) media business. The owner of Singapore’s most widely circulated newspaper The Straits Times saw its annual media revenue decline four years in a row, according to the latest financial results. Meanwhile, net profit after tax fell 17 percent year-on-year, and profitability for its media business dropped by a staggering 27 percent.
SPH’s media revenue fell despite its print and online circulation holding steady, which is a sign that its online media revenue hasn’t made up for losses in newspaper advertising. This is a trend many newspaper companies are experiencing. It has claimed a 50 percent rise in digital revenues between FY 2013 and FY 2016. It’ll need a lot more of that to see growth again.
Its performance on the stock market has been weak. It’s now trading at S$3.71 per share, after a high of S$4.60 in April 2013.
SPH is already making moves to stem losses. It’s reportedly laying off between five to 10 percent of its workforce and merging two of its tabloids in The New Paper and MyPaper. Times are expected to continue being tough for SPH, with Singapore’s economic outlook weakening by the quarter.
Its investment strategy in technology is up in the air. It’s reviewing SPH Plug & Play, a startup accelerator that invests in media-related technology companies.
It has a sizable US$865 million investment pool, but it’s characterized as low-risk and conservative. But given how its core business has continued to slide, perhaps that’s not a stance it should maintain.
Converted from US dollars. US$1 = S$1.38.
Editing by Malavika Velayanikal
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
