SPH banks on cost savings to buck dim advertising earnings

Ad revenue slipped 2% in 4QFY15.

Weak domestic spending and lower tourist arrivals have been plaguing the media organisation's advertising revenue, but it is determined to counter it through shoring up earnings.

"Our monthly page monitor of The Straits Times suggests newspaper advertising revenue (AR) contracted 2% yoy in 4QFY15 (Jun-Aug 15) vs a reported AR contraction of 9% yoy in 3QFY15," a report by UOB Kay Hian said.

"However, actual AR contraction could be larger than the 2% suggested by our page-counts (as was the case for 3QFY15)," UOB Kay Hian added.

"Thus far, SPH has managed to shore up earnings – through cost savings – despite a weak AR. We expect SPH's revenue to be flat and minimally impacted if GDP growth is within 0-3%. AR gets impacted materially when GDP growth accelerates beyond the threshold level of 3%, or decelerates into a recession," the report said.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia