This is How Singapore Press Holdings Limited’s Media Business Has Suffered In Its Last Five Fiscal Years

Singapore Press Holdings Limited (SGX: T39) reported its fiscal second quarter earnings in April. During the reporting quarter, SPH saw yet another round of declines in its Media business.

For context, SPH has three business segments: Media, Property, and Others. The Media segment is far and away the largest contributor to revenue.

Looking back

The slide below shows SPH’s revenue sources for its financial year ended 31 August 2012 (FY2012), namely, advertisements, circulation, rental and services, and others. It is clear that advertising makes up the bulk of SPH’s revenue.

Source: SPH’s earnings presentation

In FY2012, advertising revenue was $769.4 million. This number can be further broken into another three pieces (chart on the right in the slide above): display, classifieds, and magazines and others. From there, we can see that the key piece of the advertising business is display, which generated $465.5 million in revenue for SPH. Classifieds put up $218.5 million while magazines and others had $85.4 million.

Let’s look at how this has changed in FY2016.

Source: SPH’s earnings presentation

For FY2016, media advertising revenue was $606.5 million. Again, this number can be further broken into another three pieces (chart on the right): display, classifieds, and magazines and others.

Display generated $332.9 million, which is down 28.5% from FY2012. Meanwhile, Classifieds’ revenue has fallen by 28% over the same period. Finally, magazines and others had $116.4 million in sales, which is up 36.4% from FY2012.

In all, display revenue and classifieds revenue have suffered in SPH’s last five fiscal years, leading to lower overall advertising revenue for the company. At the moment, there is no respite for the media firm as its advertising revenue continued to shrink in the first half of FY2017 with a 15% fall.

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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.