SPH salvages media business by going non-profit

Singapore Press Holdings' media business bled red in the last financial year.

Singapore Press Holdings Limited (SPH) announced that it will transfer its media business to a not-for-profit entity.

In a bourse disclosure, the company announced that its relevant subsidiaries, employees, News Centre, Print Centre, their respective leaseholders, and all
related intellectual property and information technology assets would be incorporated to SPH Media Holdings Pte Ltd (SPH Media), a wholly-owned subsidiary.

SPH Media, which SPH will provide with $80m in cash funds and $30m worth of SPH shares and SPH REIT units, will then be transferred to a not-for-profit entity.

The move is due to SPH's media business falling into the red in the past five years, due to a decline in print advertising and print subscription revenue.

It was hit hardest in the last financial year ending in August 2020, recording a first-ever loss of $11.4m. SPH added that if it wasn't for the government's Job Support Scheme, it would have fallen further to $39.5m.

Despite digital circulation surpassing print circulation, revenue from digital subscription and advertising have not been able to offset the losses from print advertising and circulation.

SPH has already approached the Ministry of Communications on their restructuring proposal to put the media business on a long-term sustainable financial footing.

"With the resources that SPH is providing upfront and the prospects for public-private partnership funding going forward, we anticipate that SPH Media will have a more sustainable financial future. It will have the resources to focus on transformation efforts and quality journalism, as well as to invest in talent and new technology to strengthen its digital capabilities," said SPH Chairman Lee Boon Yang.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Analysts said there are three factors that drove the price growth.
Prices of private residential properties rose by 1.1% in Q3, marking the sixth consecutive quarter of growth.
72% of Singaporeans were aware of the term 'ESG.'
This strong performance was due to the recent acquisitions by the company.
They want a comfortable retirement, improved health, and a maintained lifestyle.
Meanwhile, 45% of respondents said they can effectively respond to cyber-attacks.
The previous projection was at S$1.3600/US$.
HongkongLand showed the most growth.
People are looking for a change of environment after 20 months, Lina Ang says.
They aim to supplement Singapore’s 2040 vision for cleaner energy for vehicles. 
This is expected to raise MLT's e-commerce revenue exposure in S. Korea to 31%.
The bank said the merger is crucial in the REIT sector.