How SPH could gain from slower take-up rate at new property launches

Developers to buy more ad space.

According to Maybank Kim Eng, although SPH's ad revenue has been declining yoy for three consecutive quarters, the rate of decline appeared to have moderated in the latest quarter. Responding to concerns about a slowdown in property segment, CEO Alan Chan explained that the slower take-up at new property launches would bode well for
SPH as developers would then be more aggressive in advertising, thus lifting the demand for display ads. But in our view, Classified ad revenue may shrink due to government cooling measures on property and auto sector.
 

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