Media company using aged care to prop up its balance sheet
SINGAPORE: Traditional media companies are increasingly looking at aged care as a growth sector to offset waning revenues and profits.
Singapore Press Holdings (SPH) saw its profits go down by $69m or 19.7% YoY to $281m in FY 2018 partly over the absence of the one-off gain on divestment of a joint venture which was witnessed in FY2017, an announcement revealed.
Operating revenue for its media fell 9.6% YoY from $725.4m to $655.8m whilst revenues from its property segment also dipped 0.7% to $242m amidst a challenging retail environment, the firm said.
“Print continues to experience headwinds, but we are seeing encouraging results from our efforts to digitise the core media business,” SPH CEO Ng Yat Chung said.
The firm also noted that the property segment remains the largest contributor to group profit, providing a steady income stream for SPH.
Meanwhile, revenue from other businesses (online classifieds, events and exhibitions, aged care, education and the new media fund) soared 34% YoY to $84.36m, led by the first full-year contribution from their aged care business whilst the firm’s digital portfolio reaped gains from various divestments.
SPH ventured into deals by September, including buying a $321m portfolio of purpose-built student accommodation (PBSA) in the UK. It also joined Keppel in its buyout offer for M1.
