The Singapore Press Holdings (SPH) has released their annual report for the financial year (FY) ending August 31, 2018, which highlighted the group's sliding revenue for their print media business.
Steadily declining revenue from core print media
Here are their recorded revenues from SPH's media business from the last six years, with both advertising and circulation revenue in decline.
2018: S$655.8 million
2017: S$725.4 million
2016: S$834.2 million
2015: S$902.5 million
2014: S$931.7 million
2013: S$991.2 million
2012: S$1,031.2 million
For SPH's advertising revenue, it fell from S$769.4 million in FY2012 to S$445.4 million in FY2018.
Slashed operating costs by cutting headcount
Despite the steady drop in revenue from their print Media business, SPH still managed to report an operating profit through lower newsprint costs, depreciating costs, and by cutting headcount.
As of end August 2018, SPH's reported headcount is 4,137.
Profits come from other investments
Ultimately, one of the ways SPH manages to bring in profits for its shareholders by diversifying into other areas, one of their most profitable investments come from the property sector.
SPH (through SPH REIT) owns, or has a stake in a number of shopping malls, such as Paragon, Clementi Mall, and most recently, Chinatown Point, and The Rail Mall.
Separately, SPH also owns Orange Valley, Singapore's largest private nursing home operator. It has also recently acquired portfolio of Purpose-Built Student Accommodation (PBSA) in the United Kingdom, hoping that the acquisition will turn in much needed profits.
Earlier in September, SPH teamed up with Keppel to buy over the rest of the M1 shares. According to SPH CEO Ng Yat Chung, SPH intends to "leverage M1's mobile platform to offer on demand and ready digital content".
For access to all of SPH's financial reports, you can refer here. For free news without paywalls, you can read Mothership here.
Top image by Joshua Lee.
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