• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

Singapore Press Holdings to transfer media business to non-profit entity following plummeting advertising revenue

by The Online Citizen
06/05/2021
in Business, Media
Reading Time: 3 mins read
17
Singapore Press Holdings to transfer media business to non-profit entity following plummeting advertising revenue

In the wake of declining revenue from advertising, Singapore Press Holdings Limited (SPH) will be transferring its media business to a non-profit entity.

The company said in a statement on Thursday (6 May) that the decision was made as part of its strategic review, which was announced on 30 Mar.

This restructuring exercise will entail transferring the entire media-related businesses of SPH including relevant subsidiaries, relevant employees, News Centre and Print Centre along with their respective leaseholds, as well as all related intellectual property and information technology assets to a newly incorporated wholly-owned subsidiary, SPH Media Holdings Pte Ltd.

SPH will provide the initial resources and funding by capitalising SPH Media with a cash injection of S$80 million, S$30 million worth of SPH shares and SPH REIT units, as well as SPH’s stakes in four of its digital media investments.

The transfer will take place at a nominal sum. The not-for-profit entity will be a newly formed public company limited by guarantee CLG.

SPH said that it will release more information about the CLG in due course.

Following the transfer, SPH will thus no longer be subject to shareholder and other relevant restrictions under the Newspaper and Printing Presses Act (NPPA).

Operating revenue halved in past five years, primarily due to fall in print advertising and print subscription revenue: SPH

Touching on reasons behind the restructuring exercise, SPH said that its operating revenue has halved in the past five years due largely to a decline in print advertising and print subscription revenue.

For the six months up to 28 Feb 2021, SPH’s media business had incurred a pre-tax loss of S$9.7 million, excluding the grant from the Jobs Support Scheme.

“With the decline in advertising revenue expected to continue at a similar pace to the last five years, the media business will continue to face severe financial challenges,” SPH said.

Thus, further investment will be needed to strengthen the media business’ digital content creation and product development capabilities in a highly competitive media landscape, the company stressed.

SPH said that it has undertaken strict cost management measures in recent years to mitigate the effect of the declining advertising revenue.

However, further cost cuts to reduce losses may impair the media business’ ability to maintain quality journalism.

“A not-for-profit structure will allow the media business to seek funding from a range of public and private sources with a shared interest in supporting quality journalism and credible information,” said SPH.

Under the proposed restructuring, the media business will gain 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, the company said.

“This will ensure that the public will continue to benefit from quality information and credible news from trusted media titles and newsrooms, across different platforms and in vernacular languages,” said SPH.

SPH noted that it has approached the Ministry of Communications and Information (MCI) with a restructuring proposal to put the media business on a long-term sustainable financial footing.

“While such a model may be unfamiliar in Singapore, many news organisations overseas are operating under these funding structures. These include the Guardian in the United Kingdom that has been controlled by the Scott Trust since 1936 and the Tampa Bay Times in the United States that is owned by the non-profit Poynter Institute,” said the company.

SPH chairman, Dr Lee Boon Yang said, “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. This will ensure that the public will continue to benefit from quality information and credible news from trusted media titles and newsrooms, across different platforms and in vernacular languages,” he added.

“The exercise will give SPH greater financial flexibility to tailor its capital and shareholding structure to seize strategic growth opportunities across the other businesses in order to maximise returns for shareholders,” Dr Lee concluded.

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.
Tags: Singapore Press HoldingsSPH

Related Posts

Peoples Voice call for Commission Of Inquiry over allegations discrepancies in circulation for SMT
Media

Peoples Voice call for Commission Of Inquiry over allegations discrepancies in circulation for SMT

09/01/2023
Keppel offers to privatise SPH at S$3.4b valuation, subject to media restructuring plans
Business

Keppel offers to privatise SPH at S$3.4b valuation, subject to media restructuring plans

03/08/2021
From half-baked apology to non-apology to no one asked for apology
Editorial

From half-baked apology to non-apology to no one asked for apology

08/06/2021
Prof Cherian George cites market failure, political control, and poor management that led to SPH restructuring
Commentaries

Prof Cherian George cites market failure, political control, and poor management that led to SPH restructuring

27/05/2021
Former Transport Minister Khaw Boon Wan to become chairman of SPH non-profit media entity
Media

Former Transport Minister Khaw Boon Wan to become chairman of SPH non-profit media entity

10/05/2021
No indication of Govt systems being adversely affected by SolarWinds data breach: Minister S Iswaran
Media

SPH restructuring: Change in media business model not “panacea”, but “essential first step” to challenges faced by S’pore print media landscape, says S Iswaran

10/05/2021
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
17 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Latest posts

Piercings and prayer: Malaysian Hindus celebrate Thaipusam

Piercings and prayer: Malaysian Hindus celebrate Thaipusam

05/02/2023
Grab SG appoints PAP MP Tin Peiling as director of public affairs and policy

Netizens question Tin Pei Ling’s conflict of interest as Grab’s director of Public Affairs and Member of Parliament

05/02/2023
Why is Gautam Adani’s Indian empire in turmoil?

Indian regulator reassures investors after Adani rout

05/02/2023
Cognizant India transfers staff to work in Singapore as recently as this year

Local IT grads can’t find jobs while engineers constantly transferred from India to work in SG under CECA

05/02/2023
Family of student killed in accident involving retired police officer, calls for transparency from Indonesian police

Family of student killed in accident involving retired police officer, calls for transparency from Indonesian police

04/02/2023
【财政预算案2021】2020年预算赤字达649亿元 占国内生产总值13.9%

China’s mega-rich move their wealth, and partying, to Singapore

04/02/2023
2024 Olympic torch relay to start in Marseille

2024 Olympic torch relay to start in Marseille

03/02/2023
India’s Adani shares plunge again after stock sale cancelled

India’s Adani denies rise due to Modi as shares fall again

03/02/2023

Trending posts

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

by Yee Loon
30/01/2023
25

...

They have done a fine job of confusing us about the jobs situation

They have done a fine job of confusing us about the jobs situation

by Augustine Low
01/02/2023
47

...

Adani’s brother runs SG company and registers as director with local ID

Adani’s brother runs SG company and registers as director with local ID

by Correspondent
03/02/2023
25

...

Excessively charging for an essential need, and calling it affordable because people still can pay for it?

by Terry Xu
31/01/2023
40

...

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

by The Online Citizen
02/02/2023
19

...

高庭驳回迪哥达索取警方录供的刑事动议

CEO of D1 Racing sues a woman to claim S$3 million for “emotional trauma” suffered from being friend-zoned

by Yee Loon
01/02/2023
7

...

May 2021
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31  
« Apr   Jun »

The Online Citizen is a regional online publication based in Taiwan and formerly Singapore’s longest-running independent online media platform.

Navigation

  • Editorial
  • Commentaries
  • Opinion
  • Politics
  • Community

Support

  • Contact Us
  • Letter submission
  • Membership subscription

Follow Us

  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Fact Checking Policy
  • Privacy Policy

© 2022 - 2023 The Online Citizen Asia

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2022 - 2023 The Online Citizen Asia

wpDiscuz