Yr End Results 31-8-95 - Final - Singapore Press Holdings

8. A review of the performance of the group, to the extent necessary for a
reasonable understanding of the group’s business. It must include a
discussion of any significant factors that affected the turnover, costs, and
earnings of the group for the current financial period reported on, including
(where applicable) seasonal or cyclical factors; and any material factors that
affected the cash flow, working capital, assets or liabilities of the group during
the current financial period reported on
Business Segments/ Review of Results
Business Segments
The Group is organised into three major operating segments, namely Newspaper
and Magazine, Treasury and Investment and Property. The Newspaper and
Magazine segment is involved in the publishing, printing and distributing of
newspapers and magazines. The Treasury and Investment segment manages the
investment activities of the Group. The Property segment holds and manages
properties owned by the Group. Other operations under the Group, which are
currently not significant to be reported separately, are included under “Others”.
These comprise our businesses and investments in Internet, outdoor advertising,
radio broadcasting and TV broadcasting.
Review of Results
8.1 Group operating revenue grew 1.4% against last year to S$1,021.4 million.
Excluding the revenue generated by SPH MediaWorks and Streats prior to their
cessation on January 1, 2005, Group operating revenue would have increased by
S$40.1 million or 4.1% year-on-year.
Revenue for the Newspaper and Magazine segment rose by 1.7%, mainly driven by
the 1.8% increase in print advertisement revenue to S$676.3 million and 2.0%
growth in circulation revenue (after absorption of S$10.1 million in GST) to S$208.9
million. Property segment posted 10.4% increase in revenue over last year to
S$98.7 million amidst improving sentiments in the property market. The Group’s
operating revenue from other segments registered a 40.4% decline, due to the loss
of revenue contribution from the defunct TV broadcasting arm cushioned by higher
Internet revenue and contribution from the outdoor advertising arm.
higher consumption
8.2 Materials, consumables and broadcasting costs were lower by S$12.9 million
(7.1%). The decrease is mainly attributable to cost savings from the cessation of TV
broadcasting operations last year, partially offset by 9.2% increase in newsprint
costs arising from higher newsprint prices and consumption.
Staff costs were down by S$0.2 million to S$268.0 million mainly due to savings
arising from the cessation of TV broadcasting operations offset by annual salary
increment and increase in headcount to support the launch of new editorial products
and ventures into outdoor advertising and other media businesses.
Other operating expenses were up S$22.1 million comprising mainly higher
operating costs associated with the ventures into outdoor advertising and other
media businesses, higher premises cost incurred by The Paragon in line with
increased level of activities, and staff outplacement benefits paid. Last year also
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