SPH Media to investigate circulation issue more fully

SPH Media Trust (SMT) will reassess its methodology for reporting of circulation data after an internal review found that circulation data had been overstated, the company said in a statement on Friday (Jan 20).

Before 2019, the company said that circulation data in previous Singapore Press Holdings Ltd (SPHL) annual reports followed rules set by the Audit Bureau of Media Consumption Singapore (ABC).

“But as digital media and advertising grew, quantifying print circulation became less relevant,” the company said, adding that ABC ceased operations in Singapore in 2019.

SPHL then began obtaining data on reach and readership by commissioning surveys conducted by independent third-party research agencies such as GfK.

“In light of the changing media environment, SMT is reassessing the methodology for the reporting of circulation data to establish a new framework and baseline to measure its performance. Publishers elsewhere have done the same as circumstances changed,” the company said.

On Jan 9, SMT said in response to media queries that it had found inconsistencies in its circulation data after an internal review was initiated in March 2022. An independent “Big 4” advisory firm was commissioned to assist in the review.

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Between September 2020 and March 2022, a daily average of 49,000 copies of news titles, equivalent to 5 per cent of daily circulation then, were recorded as circulation numbers but not distributed. A majority of these were digital copies, the company said.

In addition, 17,000 copies on average per day were recorded as a result of a discrepancy between reported circulation figures and actual usage tracked by an internal system. A further daily average of 5,000 copies were recorded after contracts had lapsed.

A possible discrepancy of 19,000 copies on average per day was also found. This included a barter arrangement with another publisher.

SMT said the audit and risk committee of SPH Media Holdings’ board would investigate the discrepancy in the company’s circulation data more fully and consider its next steps.

The Ministry of Communications and Information (MCI) on Friday said it has requested SPH Media Holdings’ board to share the findings of the investigation, and expects full co-operation.

The ministry is conducting its own review of whether the inconsistencies would have affected the decision to fund SMT, and the amount committed by the government. “We have not disbursed any of these funds to SMT to date. We will share our findings in due course,” said an MCI spokesperson.

Several questions have surfaced in the days after the issue with circulation data came to light, including the impact on SMT’s funding and whether more details of the investigation and follow-up actions could be shared.

Asked about the issue during an interview with The Straits Times in Davos, Switzerland, Minister for Communications and Information Josephine Teo said questions will be addressed in Parliament.

“We are taking the matter seriously,” said Teo. “The appropriate place to answer these questions is Parliament, so that will come up at the next sitting.”

SMT said the audit and risk committee will focus its investigations on the preliminary findings, commission legal advisers to assist in the investigation and report its findings directly to the board.

The committee is chaired by former managing partner of EY Asean and Singapore Max Loh, and comprises Allen & Gledhill co-head of corporate mergers and acquisitions Lim Mei, as well as HSBC Singapore vice-chairman of global banking for South-east Asia Philip Lee.

The company also said that in end-December 2022, four staff members involved in the overstatement left the company, while three others were served warning letters. It added that it has taken steps to ensure data accuracy and accountability. These include the strengthening of the separation of duties among staff, with enhanced checks and balances. For instance, staff reporting circulation numbers will not be able to create or change entries in the customer database.

More frequent internal audit reviews will also be conducted based on established methodology. The accuracy of customer details will be improved to enhance data quality through measures such as data cleansing and independent validation.

SPH Media is the publisher of The Straits Times, The Business Times, Berita Harian, Tamil Murasu, Lianhe Zaobao and Shin Min Daily News. The company was spun out of Singapore Press Holdings, a formerly listed company on the Singapore Exchange, in December 2021. On Jan 10, the bourse operator said that it was reviewing the circulation information, including its materiality and when it happened.