In mid-November this year, Singapore Press Holdings Limited (SGX: T39) released its annual report for its financial year ended 31 August 2016 (FY2016).
The annual report offered deeper insight on the many facets of SPH’s business. It also covered management’s thoughts on SPH’s performance as well as the company’s future opportunities and challenges.
With these in mind, here’re ten quotes investors might not want to miss. For the first five quotes, go here.
The big digital shift
Alan Chan, SPH’s chief executive, wrote this in his annual overview:
“The media industry has faced considerable challenges in recent years. More readers are consuming content digitally. Consumer sentiment is down, reducing advertising revenues with it. Media companies, including SPH, will continue to innovate and reinvent itself to remain relevant in this challenging environment.”
The shift in consumer behaviour has left SPH with lower advertising revenues. Innovation is needed for the company to remain relevant in the future.
The property prop up
Lest we forget, SPH’s businesses includes a property segment as well. The property segment made up 22% of SPH’s operating revenue in FY2016, up from the 19% recorded in the last fiscal year. Chan noted:
“The decline in the Media business was cushioned by contribution from the Property segment, which reported resilient performance despite a sluggish retail environment.”
Meanwhile, SPH had increased its cover print price in 1 March 2016. Circulation declined following the increase, but Chan believes that SPH has benefited overall from the increase. He said:
“Following the cover price increase in March 2016, the daily average for print circulation fell five per cent. Some publications remained resilient despite the increase in cover prices, and we benefited overall from incremental revenues.”
Trying new things
SPH is also trying to engage consumer using new media formats such as social media. InvestingNote is one of its efforts. Lee Boon Yang, SPH’s chairman said:
“To build a stronger investor community, ShareInvestor invested in a social media platform, InvestingNote, to reinforce its effort to reach out to a younger investing community.”
10 Years of INVEST Fair
SPH also has financial data provider, Shareinvestor (SI), under its vast umbrella. SI organised its 10th annual INVEST Fair event that was attended by thousands:
“ShareInvestor (SI) organised the 10th edition of its annual flagship event INVEST Fair, which reached out to more than 11,000 investors and included new highlights such as Investing For Women and Overseas Property Pavilion. It also welcomed over 22 REITs and 3,000 investors to its second edition of the REITs Symposium.”
Looking through SPH’s annual report gives investors a deeper insight on the management team’s thoughts. With that, investors may have a better understanding on the inner workings of the media giant.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.