SPH provides operational updates amid Covid-19 pandemic

Singapore

FOLLOWING the Singapore Exchange Regulation column which urged listed firms to provide regular business updates during the Covid-19 situation, Singapore Press Holdings (SPH), which publishes The Business Times, has released such an update and intends to keep doing so.

"SPH is providing operational updates to its shareholders amidst the fluid Covid-19 situation," said SPH chief executive Ng Yat Chung.

On Thursday night, SPH published corporate updates across key business segments "to improve investors' understanding", said Mr Ng.

"These include details on its digital subscription growth within the media business, purpose-built student accommodation, retail and financing activities," he added. "Where appropriate, we will release updates from time to time and hope that shareholders find them useful."

In its update, SPH noted that digital subscriptions rose 4 per cent in March from the month before, boosted by news tablet subscriptions.

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While newspaper distribution has been affected by labour availability, the company is using alternative means to supplement its distribution workforce, and promoting digital subscriptions.

As announced earlier, the company's purpose-built student-accommodation business in the UK has remained resilient in the face of Covid-19. Construction is progressing with minimal disruptions and bookings are still coming in.

The £4.5 million (S$5.14 million) reduction in revenue from rental refunds was at the lower end of SPH's expectations of £4 million to £8 million. Bookings were 60 per cent as of April 20, higher than a year ago; 65 per cent of the target revenue for the current financial year has been achieved.

As a retail landlord, SPH has granted rental rebates of about S$4.6 million in total to affected tenants in February and March.

It is considering an extension of support to tenants, in view of the recent extension of circuit breaker measures to June 1.

On the financial front, SPH is refinancing an outstanding loan due in July, with no further loans due till June 2021.

With an additional drawdown of S$325 million credit in April, the firm has cash balances of over S$800 million. It is also receiving S$46 million of government support, mostly from wage subsidies under the Jobs Support Scheme.

SPH shares closed up S$0.04 or 2.84 per cent at S$1.45 on Friday.