Sing Tao hit by Standard decline

The drop can be attributed to the company’s ailing English daily The Standard. Due to a combination of the removal of requirements for stock exchange notices to be printed in late 2007, and the decision to make the paper a free publication, The Standard’s revenue fell by $43 million during the period.

“As the notices were a high-margin business, the loss of them has had an effect on profits as well,” said a Sing Tao spokesperson.

While the decision to make The Standard a free paper has had a positive influence on circulation, this has been offset by the increasing costs of print production and staff costs. However, the Sing Tao spokesperson refused to comment on whether these factors would result in staff or salary cuts, saying only that the corporation has a long-term plan for the paper.

Another factor in the profit decrease at the corporation has been the poor performance of its treasury investments. 

Other Sing Tao publications fared better, driving an overall revenue increase of almost 14 per cent. Sing Tao Daily maintained profitability by keeping costs under control and growing advertising, circulation and readership. The group’s magazine business has also been relatively healthy, with East Week demonstrating double-digit revenue growth.