SPH Sees $83.7 Million Loss For 1st Time In 2020, Due To Covid-19 & Fall In Advertising

[kobayashiGT]

SPH Sees $83.7 Million Loss For 1st Time In 2020, Due To Covid-19 & Fall In Advertising

source: https://mustsharenews.com/sph-loss-2020/

 

SPH Loses $83.7 Million In 2020 As Covid-19 & Advertising Impact Heavily

Covid-19 has impacted on most industries, media being no exception. Singapore Press Holdings (SPH) is no exception, as they saw a net loss for the first time in their history in 2020, at $83.7 million.

Just a year ago, they had a net profit of $213.2 million.

They released their full-year financial report for 2020 today (13 Oct), which show losses in property valuation, advertising, and more.

However, some properties also saw profits, while they remained profitable operationally.

Read on to find out about the dollars and cents of SPH in 2020.

Losses in investment values, advertising

SPH’s various property investments saw losses during the Covid-19 pandemic, as many of them dealt with retail as well as student accommodation.

This includes $196.5 million loss in value for its retail malls, and $31.9 million drop for student accommodation properties in the United Kingdom and Germany.

Media also saw losses of $11.4 million before taxes. However, overall revenue saw a loss of 22.8% or $131.7 million.

Newspaper advertising revenue continues to fall, this time by $99.1 million or 32.9% from 2019.

Also, daily average newspaper digital sales are rising at 52.5%.

Among the losses were retrenchment costs of $16.6 million, when 140 employees were let go in Aug.

There was also a $122.5 million loss in advertising revenue.

Operations see profit despite losses elsewhere

Despite the losses elsewhere, operations saw a profit of $110.2 million.

This is still a loss in profits from last year though.

Also, overall property valuations may have gone down, but they still earned some profits.

Profits rose to $327.2 million from acquiring Student Castle student accommodation in the United Kingdom, and Westfield Marion Shopping Centre in Australia.

CEO cites advertising, Covid-19 losses

SPH CEO Ng Yat Chung pointed to Covid-19 and the “collapse in advertising” as major reasons for the losses.

He noted that SPH will keep taking a “prudent and disciplined approach” to liquidity and capital management, so as to survive the Covid-19 storm.

That said, there was growth in circulation of 9.4% thanks to their News Tablet digital product, he said.

Just 3,808 staff remain as of 31 Aug, compared to 4,085 in 2019.

However, there was a mere 1.5% reduction in staff costs.

Not an easy time for companies

As companies continue to feel the effects of Covid-19, it may well be the time to adapt and find new ways to thrive.

SPH has tried this with property, but it suffered heavy losses due to the climate.

Media, which is also its primary arm, also had heavy losses, although readership is increasingly digitally. However, its legacy newspaper business will continue to see losses.

Hopefully SPH weathers the storm and finds a way to make their losses back.

 

[Chongster]

"Just 3,808 staff remain as of 31 Aug, compared to 4,085 in 2019.

However, there was a mere 1.5% reduction in staff costs."

 

usual story of workers getting retrenched but management continue to keep their jobs?

[Watwheels]

LoL...what did sph management do to deserve the hating?

It's not like their former employees they had let go were left w/o proper compensation.

Quote

Among the losses were retrenchment costs of $16.6 million, when 140 employees were let go in Aug.

If other company I wouldnt be so sure. IMO it's easier for the management if they were asked to go cos no more worries. They dont have to stay back to manage the huge loss, to come up with solutions to keep the company afloat. 

So why the hate? Because they earn more than you? LoL...

Come on. 

Edited October 14, 2020 by Watwheels

[Sdf4786k]

With Spotify n on line advertisements, it’s just a matter of sooner than later that the revenue from advertisements would plunge. Just that covid19 was the tipping point 

[Sdf4786k]

1 hour ago, Chongster said:

"Just 3,808 staff remain as of 31 Aug, compared to 4,085 in 2019.

However, there was a mere 1.5% reduction in staff costs."

 

usual story of workers getting retrenched but management continue to keep their jobs?

True story.. a large mnc with presence in healthcare and other industries had to retrenched to improve profit.

in that exercise a old Tea lady / pantry’s auntie was made redundant.

obviously when the top exec is retrenched, the associated services rendered to morning breakfast meeting would also go. I wonder if that was what it meant when the constant emphasis of FT help add jobs for locals .., 😂 

it’s either that , or the tea lady was on expat packaged 

Edited October 14, 2020 by Sdf4786k

[Watwheels]

I wonder who they sent to do this....

Quote

SPH has tried this with property, but it suffered heavy losses due to the climate.

 

 

Is there a need to worry with all those shareholders who are major banks backing sph? I wonder...

Edited October 14, 2020 by Watwheels

[Atrecord]

1 hour ago, Chongster said:

"Just 3,808 staff remain as of 31 Aug, compared to 4,085 in 2019.

However, there was a mere 1.5% reduction in staff costs."

 

usual story of workers getting retrenched but management continue to keep their jobs?

confirmed. And they will hire more senior people while getting rid of let's say a few despatch riders...

Oh, the top person sounds familiar. Isn't it the same person who made NOL lost lots of money, then had to be sold off - and it subsequently immediately got back into the black? Speaks volume of how capable the person is...

[mersaylee]

Number cruncher pls enlighten moi

In total, do I see more losses from property than advert losses...? 

[Jamesc]

Lucky they have MCF and MCF is doing so well.

So many people come here and post.

Not for me to teach people how to sell news but must be interesting, entertaining, educational

and credible just like MCF.

How to get more eye balls?

Just ask my fren Aida

A - awareness - everyone knows MCF

I - interest - always got interest posts

D - Desire - people like to come MCF and post

A - Action - people everyday come MCF and post and post

If they want to hire a marketing genius they should go to

Jamesc CONsultancy MANagement Company aka Jamesc CONMAN company.

[Ysc3]

1 minute ago, Jamesc said:

Lucky they have MCF and MCF is doing so well.

So many people come here and post.

Not for me to teach people how to sell news but must be interesting, entertaining, educational

and credible just like MCF.

How to get more eye balls?

Just ask my fren Aida

A - awareness - everyone knows MCF

I - interest - always got interest posts

D - Desire - people like to come MCF and post

A - Action - people everyday come MCF and post and post

If they want to hire a marketing genius they should go to

Jamesc CONsultancy MANagement Company aka Jamesc CONMAN company.

I think this year, you and the Japanese guy will be getting a big fat bonus from MCF right ?

[Civic101]

23 minutes ago, Atrecord said:

confirmed. And they will hire more senior people while getting rid of let's say a few despatch riders...

Oh, the top person sounds familiar. Isn't it the same person who made NOL lost lots of money, then had to be sold off - and it subsequently immediately got back into the black? Speaks volume of how capable the person is...

President scholar lei - golden rice bowl till retirement!

[Volvobrick]

Sph share price 1.00 now.... Should go below today. History made! 

[inlinesix]

SPH operating profit drops from 187m to 110m.

The drop is from drop in revenue (23m) and increase in expenses (54m).

Revenue

The drop is mainly contributed by drop in media ad sales offset by rental income from newly acquired property, JSS & COVID Related Grant.

Expenses

The increase from COVID related expenses and allowances for trade debtors.

[inlinesix]

So where is the loss arised?
FV of investment property 232m.

Breakdown as follows

[Weez911]

Wa fatty kim has completed his work at SPH. It is finally red partly thanks to Covid. GXGX. Great guy good son of Singapore.

[inlinesix]

4 minutes ago, Weez911 said:

Wa fatty kim has completed his work at SPH. It is finally red partly thanks to Covid. GXGX. Great guy good son of Singapore.

Since you are biz man, how to make Paragon NOT lost 114m in fair value?

[Rickster]

1 hour ago, Sdf4786k said:

True story.. a large mnc with presence in healthcare and other industries had to retrenched to improve profit.

in that exercise a old Tea lady / pantry’s auntie was made redundant.

obviously when the top exec is retrenched, the associated services rendered to morning breakfast meeting would also go. I wonder if that was what it meant when the constant emphasis of FT help add jobs for locals .., 😂 

it’s either that , or the tea lady was on expat packaged 

Or because the tea lady is viewed as a benefit or welfare to the employees. So in hard times, benefits and welfare is the first to be cut.

[ToyotaShuttle]

37 minutes ago, inlinesix said:

So where is the loss arised?
FV of investment property 232m.

Breakdown as follows

Are other property companies seeing similar numbers for re-valuation? Perhaps they are taking advantage of the environment to lower the book value so can declare massive profits (and bonus) in the future when book value can be increased again.