SPH plans to generate $19 million in yearly cost savings

Through workflow changes, reducing newspaper returns.

Painting its outlook after releasing its FY 2013 results, Singapore Press Holdings's CEO Alan Chan revealed that the company is preparing to launch significant cost savings initiatives that could improve the bottom line annually by $19m.

"Amidst a challenging environment of evolving media consumption behaviour, the Group is reviewing new growth opportunities whilst exploring ways to reinvigorate its core media business. In this respect, we have engaged a strategy consultant and work has been ongoing for the last six months with various teams working on several initiatives," said Chan.

“Good progress has been made. We have identified various initiatives which, when implemented, would generate cost savings of about $19 million a year. Two examples of such initiatives relate to reducing newspaper returns and workflow changes to better utilise the printing presses. The project team is also working on a host of other initiatives to further improve revenue and profit," he added.

“To grow our media business, I am pleased to add that we will be establishing a $100 million New Media Fund to invest in media-related businesses. These investments will play a critical role to support our aspiration to be the leading multi-media company in Asia," he said further.