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CEO's Overview of Group Operations

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CEO's Overview of Group Operations 38 Singapore Press Holdings Annual Report 2015 CEO’s Overview of Group Operations Chan Heng Loon, Alan Chief Executive Officer Singapore Press Holdings Annual Report 2015 39 At the operating level, group recurring earnings of $353.5 million was $4.5 million or 1.3 per cent better than FY2014. This was a creditable achievement. While total revenue of $1,204.7 million was $26.4 million or 2.1 per cent lower than FY2014, total operating expenditure declined by a larger $30.9 million or 3.5 per cent year-on-year due to effective cost management. 2015 has been a special year for While total revenue of Singapore as we celebrated the $1,204.7 million was $26.4 million Golden Jubilee of the nation’s or 2.1 per cent lower than FY2014, independence. We also mourned total operating expenditure the passing of our founding Prime declined by a larger $30.9 million Minister Lee Kuan Yew on 23 March. or 3.5 per cent year-on-year due to effective cost management. It has also been a year marred by adverse global events - economic Revenue for the core Media business slowdown, political uncertainty, continued to come under pressure. terrorism and military conflicts It was lower by $60.9 million or - all of which contributed to the 6.3 per cent compared to the challenges confronting the previous year, primarily due to a media industry. $53.7 million or 7.4 per cent fall in advertisement revenue. The Group’s net profit attributable to shareholders was $321.7 million, Our diversification into the Property down $82.6 million or 20.4 per cent segment since we bought Paragon compared to FY2014. But this was in 1997 has yielded good results. mainly due to a lower fair value gain Property revenue surged by on investment properties, and the $25.8 million or 12.6 per cent one-off gain in the previous year boosted by a maiden contribution from a partial divestment. from The Seletar Mall and higher rental income from Paragon and At the operating level, group The Clementi Mall. recurring earnings of $353.5 million was $4.5 million or 1.3 per cent Revenue from the Group’s other better than FY2014. This was a businesses fell $3.0 million or creditable achievement. 6.4 per cent against FY2014, as revenue for the exhibitions business was affected by timing differences in show dates. 40 Singapore Press Holdings Annual Report 2015 CEO’s Overview of Group Operations Newspapers of its Facebook, Twitter and Pinterest BT continued to champion business Our two newspaper divisions offerings. More e-books were excellence with its well-established were reorganised and renamed launched for ST readers as part of its awards. BT also co-hosted the from 1 January 2015 to reflect the Star (ST Appreciates Readers) app. 10th ChildAid Concert with ST in transformation of our newsrooms December 2014. It raised a record into integrated (print plus digital) There were also many events to $2.33 million for the BT Budding operations and to promote synergy engage ST’s readers, such as a multi- Artists Fund and ST School Pocket with our media-related subsidiaries. media exhibition at the ArtScience Money Fund. Museum in Marina Bay Sands, The English & Malay Newspapers entitled “Singapore STories: Then, The New Paper (TNP) revamped its Division was renamed English/ Now, Tomorrow” and a concert by Sunday edition in November 2014, Malay/Tamil Media group (EMTMG) the Singapore Symphony Orchestra adding new sections. TNP affirmed while the Chinese Newspapers at the Singapore Botanic Gardens, its position as the number 1 sports Division was renamed the Chinese under the SPH Gift of Music series. newspaper by securing a partnership Media group (CMG). with Sports Singapore to become On 7 August, the Sports Hub the official paper of the SEA Games The Straits Times (ST), SPH’s English- attracted an audience of 42,000 which returned to Singapore in 2015 language flagship daily founded in people for the Sing50 Concert after a 22-year long hiatus. TNP was 1845, celebrated its 170th anniversary. extravaganza – a two-and-a-half distributed at all event venues It remained the best-read publication hour pop concert jointly organised and hotels where athletes and in Singapore with a combined by ST and The Business Times that officials stayed. print and digital readership of brought together home-grown and 1.34 million, based on the Nielsen international stars and featured Berita Harian (BH), the Group’s Media Index Report 2014. songs from different genres and Malay-language newspaper, This translates to a penetration communities. implemented several initiatives of 32.4 per cent of Singapore’s to streamline its operations and multilingual population aged 15 IN, ST’s weekly publication for develop new revenue streams. and older. secondary school students, sold In July 2015, the newspaper launched 1.96 million copies to 70 schools, a new version of its mobile apps and Readership for the paper’s digital compared with 1.90 million copies e-newsletter. The team also reached editions grew by 76 per cent last year, a 3 per cent increase. out to pre-school children through compared to the same period last year. Little Red Dot (LRD), for primary its monthly bilingual magazine This more than offset a 2.7 percentage school pupils, sold 1.49 million called Cilik Cerdik/Smart Kids. point drop in its print readership. copies to 124 schools. In addition, The newspaper successfully there was a special Jubilee edition organised a futsal tournament On 1 July, ST launched a major which netted 199,000 copies for in May 2015 which attracted revamp of its products across all its IN and 100,000 copies for LRD. overwhelming response from platforms, as part of its anniversary participants and sponsors. celebrations. It also moved to a In a year of market volatility, metered paywall, which gives The Business Times (BT) maintained BH honoured excellence in the non-subscribers a limited monthly its total print plus digital circulation community through its Achiever offering of free articles to read in full at 47,700. In October 2014, of the Year award and Inspiring and to share on social media. BT relaunched its print and digital Young Achiever Award. This year, platforms, with a responsive in conjunction with SG50, ST expanded its digital offerings, website, complemented by it presented Pioneer Achiever adding a new evening daily email improved apps. BT now caters to Awards to three pioneer newsletter and expanding the number an increasingly mobile readership generation achievers. of platforms to include Instagram, and has boosted the value of its Whatsapp and the Apple Watch, on top All-in-One subscription bundle. 42 Singapore Press Holdings Annual Report 2015 CEO’s Overview of Group Operations Tamil Murasu (TM) celebrated its November 2014. It is a 3-minute news seven-day state funeral of founding 80th anniversary on 6 July 2015 programme where headline news of Prime Minister Lee Kuan Yew on with record growth in advertising the day is summed up in two to three 1 August 2015. In conjunction revenue and profit. It supported a keywords in Chinese. ZB was also with the exhibition, WB published play called "Murasu", based on the the first Chinese newspaper in Asia to a commemorative booklet, “Those life of its founder G. Sarangapany, create and launch an app for the Apple Seven Days: Lee Kuan Yew and Us”, which was well-received by the Watch. The new app, which debuted in which sold over 120,000 copies. Indian community. TM and tabla!, July 2015, allows Apple Watch users the weekly English-language to access breaking news from ZB. Since the inception of the freesheet for the Indian disapora, “Reading with the Elderly” organised the fourth Singapore CMG and the People’s Association programme a year ago, ZB and WB Indian International Shopping jointly organised the SG50 Sing-Along extended their community outreach Festival at Suntec City in September to commemorate Singapore’s Golden to more locations. At the weekly 2014 which coincided with the tabla! Jubilee, graced by Prime Minister gatherings, journalists or trained Community Champion award. Lee Hsien Loong. It celebrated volunteers, including teachers from the spirit of Singapore through a CHIJ St Nicholas Girls’ School, Our flagship Chinese-language daily collective memory of popular local presented senior citizens with news Lianhe Zaobao (ZB) launched its songs from the 1950s till now. stories from the Chinese newspapers latest new website, "Z-Politics" (早报 while explaining their significance. 政谈), in August 2015 dedicated It also produced an 8-episode to the coverage of local political Chinese talk show programme entitled Complementing its "Refuel Towkay!" news. This followed the launch of its “Ministerial Coffee Talk” that was aired Weekly column on interviews with Property website, "Z-Property" (早房) on SPH media platforms including businessmen from micro, small and which made its debut in May 2015, radio and online as well as on StarHub medium enterprises, WB ran a series and its lifestyle website, "Z-Style", TV in August 2015. The series served of well-attended talks featuring launched in December 2014. as a prelude to the General Elections professionals from different fields who and was well-received. shared their personal experience, The online portal, Zaobao.com, professional insights, market trends celebrated its 20th anniversary ZB’s student papers – zbComma, and knowledge with readers. in 2015. To commemorate the Thumbs Up, Thumbs Up Junior, occasion, it held a series of initiatives Thumbs Up Little Junior – Shin Min Daily News (SM) celebrated to promote engagement with its organised a broad range of activities Singapore’s Golden Jubilee with users on its digital platforms.
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