According to the SCMP’s interim results, revenue from 31 December 2008 to 30 June 2009 totaled $43 million, compared to $71 million in 2008.
The SCMP discontinued its video and film post-production businesses at the end of last year, as well as disposing of its music publishing operations. Together, the functions brought in $4million worth of revenue last year.
The SCMP discontinued its video and film post-production businesses at the end of last year, as well as disposing of its music publishing operations. Together, the functions brought in $4million worth of revenue last year.
“The group’s businesses were seriously affected by the severe impact of the global financial crisis on business operation resulting in a significant drop in the group’s revenues,” stated the report.
A decline in printed news sales (which posted a revenue of $3.4 million in 2009), decline in advertising sales and an increase in printing costs were key aspects cited to have devastated the company. The un-audited circulation figures registered for the South China Morning Post and Sunday Morning Post have decreased by 6.5 per cent.
On a more optimistic note, the SCMP noted that it was seeking revenue elsewhere such as through “tactical campaigns and response-driven advertising”. The group has been actively promoting its newsprint edition this year with an expanded classified section for property development in Hong Kong and a branding campaign for job searches.
Although confidence a second half economic recovery is low, the SCMP is tightening its belt with “efficiency improvement programmes” to save on operational costs and maintain a positive cash flow.
