S'pore press giant to expand to multimedia, property sectors<\/p>\n
SINGAPORE (AFP): Singapore Press Holdings Ltd. (SPH) announced
\nslightly lower profits in the year to August and said it would
\nstep up investments in multimedia fields and property, including
\na possible bid with partners for a basic telecommunication
\nlicense by 2000.<\/p>\n
Net profit for the Southeast Asian media giant was down 1.1
\npercent to S$307.63 million (US$219.73 million) on a 6.9 percent
\nincrease in turnover to S$891.04 million.<\/p>\n
Advertising revenue increased by 6.9 percent while group
\ntrading profit was virtually unchanged at S$377.58 million which
\nofficials attributed to a 50.7 percent increase in newsprint
\nprices.<\/p>\n
SPH Group Chairman Lim Kim San told a news conference that
\nwith newsprint prices now stabilizing, future profits would
\ndepend upon the performance of the Singapore economy, currently
\nundergoing a slowdown due to the poor showing of the critical
\nelectronics sector.<\/p>\n
Lim described the results as \"satisfactory\" considering the
\nhike in newsprint prices last year, adding that prices had now
\nstabilized around US$650 a ton.<\/p>\n
He said investment would be stepped in the multimedia sector.<\/p>\n
\"It is unavoidable. Either we go in or we die,\" he said,
\ndescribing the traditional print business as \"close to saturation
\npoint.\"<\/p>\n
Lim said \"there was a lot of synergy between the newspapers
\nand multi-media\" but added that he did not expect \"substantial
\nrevenue\" to pour in from multimedia investments until 2000.<\/p>\n
\"It is unlikely that we will have any substantial revenue
\nuntil the year 2000 (from multi-media investments), he said.<\/p>\n
The multimedia investments include an Internet page for SPH
\npublications and a CD-ROM magazine.<\/p>\n
Lim said revenue should come in from the Internet once a \"safe
\nway\" of collecting charges for access was developed by the
\nindustry. \"I think it should come within three years.\"<\/p>\n
Asked if SPH would join a bidding for up to two new basic
\ntelecommunication licenses to be granted by the government, he
\nreplied: \"Well, if we get the right partners.\"<\/p>\n
He said it would cost up to S$1 billion to build a rival
\ntelecommunication network to Singapore Telecommunication Ltd.<\/p>\n
The government is expected to award up to two new full
\ntelecommunication licenses by mid-1998 in preparation for the
\nmarket's opening by 2000.<\/p>\n
SPH already has a 35 percent stake in MobileOne (Asia) Pte.
\nLtd., which is investing S$400 million in a cellular telephone
\nnetwork to begin operations in April, marking the initial
\nliberalization of the telecommunication market.<\/p>\n
Lim said the SPH editorial center near downtown Singapore,
\ncalled Times House, could be redeveloped commercially within
\nthree to four years after current operations there are moved to a
\nseparate complex outside the city center.<\/p>\n
He said newspapers in the SPH stable, including English,
\nChinese, Malay and Tamil publications, posted a 1.7 percent
\nincrease in combined circulation, with the flagship daily Straits
\nTimes accounting for 1 percent.<\/p>",
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