(June 27): The broad market apathy towards shares in Singapore Press Holdings belies the confidence with which the company is pursuing its next major property development project, and its solid track record in creating value in the real estate sector. The problem is that its core business remains newspaper publishing, which does not appeal to investors in the public market. The time may have come for a restructuring exercise that separates nonmedia assets from the group and sets its media division in a bold new direction as a privately held entity.

SPH’s media business once generated reliable cash flows that it invested in other ventures, especially property development. But the dynamics of the media and property businesses have changed dramatically in the last 15 years. The internet is disrupting the traditional newspaper business, while major property developers have formed property securitisation platforms to support their growth. Having a property business and a media business in the same public-listed company no longer makes as much sense.

SPH’s property business has already overtaken its media business as the group’s main source of earnings. For 1HFY2017 (ended February), SPH reported $81.75 million in pretax profit from its property division, and only $50.61 million from its media business. During the period, pre-tax profit from its media business dropped by half, while pre-tax profit from its property business climbed 11%.

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