What Singapore Press Holdings Limited Investors Should Know: Changes To Its Advertising Revenue

Lately, I have noticed some strong attention being paid to Singapore Press Holdings Limited (SGX: T39) in the investing blogs and forums that I visit from time to time. As such, I figured that the company is likely to be one that many investors are watching.

There are other reasons why I think so. Singapore Press Holdings is a company that touches the lives of many Singaporeans on a daily basis. It publishes most of Singapore’s major newspapers, including The Straits Times and The Business Times. It also has interests in three popular local shopping malls, Paragon, The Clementi Mall, and The Seletar Mall.

Beyond the nature of Singapore Press Holdings’ business, the fierce decline in its business performance in recent years may also have captured the investing community’s attention. Over the last 12 months, the company had brought in S$229.7 million in profit, which is 40% lower than the S$383.8 million seen in its fiscal year ended 31 August 2011 (FY2011).

My colleague Stanley Lim thinks there are better days ahead for Singapore Press Holdings as he sees great value in the company’s role as a producer of news content. I’m less sanguine about the company though – I don’t see any signs yet that Singapore Press Holdings is able to transition its mainstay print media business into one that fits into the digital world of today.

(The freedom and space to disagree is why the company I’m working for, The Motley Fool, has the word “Motley” in its name.)

But, I’m not here to debate Stanley or attempt to throw even more weight around my statement. I don’t own shares in Singapore Press Holdings so I have nothing to gain regardless of whether the company’s business does well or poorly. What I want to do here is to showcase pure and unvarnished data that I think is crucial for investors who do have a stake in Singapore Press Holding to know.

The data I’m referring to are the year-on-year changes in Singapore Press Holdings’ newspaper advertising revenue in each quarter stretching from the company’s FY2008 to FY2016. The bulk of Singapore Press Holdings’ revenue currently comes from advertising activity.

Here’re the data in the form of a chart:

Singapore Press Holdings' newspaper total ad revenue year-on-year changes
Source: Singapore Press Holdings’ earnings presentations

As you can see, FY2012 marked the start of an ongoing multi-year trend of the company suffering year-on-year newspaper ad revenue declines. Make of it what you will.

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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 writer Chong Ser Jing doesn't own shares in any companies mentioned.