SPH released their 3Q results on Tuesday showing year on year (yoy) fall of 12% in profit. While the Newspaper and Magazine business did not do as well, online classified, radio business and their property segment improved. In addition to preserve margins, the company has also contained operating costs. Excluding the impairment charge relating to an overseas subsidiary last year, total operating expenditure fell 3.4% yoy, mainly due to reduced production and business promotion costs.
 
Chief Executive Officer commented that because of changes in the media industry as well as structural shifts in consumer behaviour, the Group has “embarked on a journey of restructuring and transformation. To date, the Group has made progress and will continue to intensify its efforts to address the evolving media landscape whilst pursuing growth opportunities”.

Looking closely at the different business segments:
Newspaper, Magazines and Book Publishing – SPH has 19 titles licensed, out of which nine are daily newspapers across four languages. On average, 76% of the people above 15 years old read one of SPH’s news publications.
 
Internet and Mobile – SPH’s suite of digital products like online editions of newspapers and magazines as well as mobile applications draw 360 mil page views with 23 mil unique browsers every month.
 
Broadcasting – Under its radio business, SPH radio operates entertainment stations UFM 100.3, Kiss 92 and HOT FM91.3.In addition, SPH has a 20% stake in MediaCorp TV Holdings and a 40% stake in MediaCorp Press Limited, which publishes the free newspaper, Today.
 
Properties – SPH REIT invests in a portfolio of real estate which is used primarily for retail purposes in Asia-Pacific. Currently, they own two commercial properties in Singapore, namely Paragon and The Clementi Mall. Also, The Seletar Mall is SPH’s latest retail development and is expected to open at the end of this year.

Source: Macquarie Research - 18 Jul 2014