Singapore Press Holdings (SPH)

[Ben]

Does anyone thinks that this Buzz business is a good business to franchise? I mean with less and less people reading newspaper, is it a long term viable business?

[a74henry]

Buzz business sells more than newspaper. It is a franchising concept. The franchisor has little to lose but much to gain. The franchisee takes more risk, however, the franchisor's proven process and economies of scale may minimise the failure risk for new business owners.

[KopiKat]

Does anyone thinks that this Buzz business is a good business to franchise? I mean with less and less people reading newspaper, is it a long term viable business?

The 'Buzz' pods at major bus stops don't look like good biz to franchise. The bigger ones at Bus Interchange / MRT stations look more promising. What excites me are the latest 24 hrs ones...

Despite the more entrenched presence of 7-11, followed by Cheers, I suppose Singapore is still big enough to have one more such competitor. Hey! everything works in 3s here... 3 local banks, 3 local TELCOs,...

A long time ago, when I was wondering what to do with my life, I was exploring the franchise of either 7-11 or Cheers as one of the options. My meeting with the Cheers Franchise Mgr was very memorable as she used a smattering of Hokkien with English in our discussion. She told us very frankly that what sells at such 24 hrs convenience shops are Beers & Cigarettes... Not sure if it's any different now as I see a lot of other product line-ups nowadays. Perhaps having a betting kiosk would be most ideal if you plan to take on such franchise...

Note : There're certain rules on location if you plan to have a betting kiosk ie. not too near kids eg. schools. Also, I'm not aware if Buzz has a betting license (vs 7-11 / Cheers).

[a74henry]

How does one apply for the betting license? What are the requirements?

[CityFarmer]

I just saw something interesting and went to check for more info online...

There's this new 'Buzz' unit operating under a block of HDB flats, very much like our neighbourhood 7-11 stores. AFAIK, 'Buzz' was operated by SPH and I'd previously noticed it at some of the bigger Bus Stops to sell mainly Newspapers & Magazines plus some sweets & tissue packs...

What a surprise for me when I checked 'Buzz' website...

They're not just at Bus Stops, Bus Interchange & MRT/LRT Stations but also Shopping Malls & Others. See the list of their locations. According to AR2012, there're 68 of them! Some of them are likely franchises as I see them advertising on Franchise Opportunities.

So, the next Q I have is where are these reported under their financials? Looks like it's also under the very-crowded 'Others'? Not so clear from AR2012,

The Newspaper and Magazine segment is involved in the publishing, printing and distributing of newspapers and magazines. The Treasury and Investment segment manages the investment activities of the Group while the Property segment holds, manages and develops properties of the Group. Other operations under the Group, which are currently not significant to be reported separately, are included under “Others”. These comprise the Group’s businesses and investments in Internet and related activities, outdoor advertising, radio broadcasting, television broadcasting, organising conventions/conferences/events, book publishing and distribution, online investor relations services, developing applications and operating a financial portal.

More about 'Buzz' from AR2012,

SPH Buzz Pte Ltd, a wholly owned subsidiary of SPH which
operates an extensive retail network of 68 pods at major bus
interchanges, MRT stations and commercial sites, will further
widen its presence in the heartlands, town centres, and central
business districts. It opened its first 24-hour pod along Clementi
Road in March this year.

Perhaps a separate 'Retail' segment in the future....

Well, i miss it, never pay attention to the "buzz". Should do more leg-work on it.

The "buzz" seems under "Event/Outdoor" group in page 11 of AR, so logically it is under MICE sub-segment, or in the "Others" segment.

[Ben]

A long time ago, when I was wondering what to do with my life, I was exploring the franchise of either 7-11 or Cheers as one of the options.

Thanks KopiKat. I am now in the state where you were in a long time ago I am guessing that you didn't go into the franchise business, did you?

[KopiKat]

A long time ago, when I was wondering what to do with my life, I was exploring the franchise of either 7-11 or Cheers as one of the options.

Thanks KopiKat. I am now in the state where you were in a long time ago I am guessing that you didn't go into the franchise business, did you?

Nope...

Back then, I don't have the $500k that was required as Working Capital + CAPEX. They can also help to apply part of it as Bank Loans, but it was still too much for me to committ single-handedly... Bad time to look for partners then as it was the aftermath of 911 which was quickly followed by SARS. At most, potential partners were willing to come up with $5k to $10k.. I guess that was the price of friendship.. hee...

The other problem was looking for active partners willing to do the graveyard shift (in case you are suddenly short handed ie. staff quit).

[CityFarmer]

I managed to find time to review SPH's half year FY2013 report

Summary:
- Newspaper and Magazine segment continue to suffer from the migration, with -4.6% drop in revenue, and -8.1% in PBT. The decline is contributed by advert and circulation revenues. It is not surprising since digital version of newspaper and online advert cost less. The revenue is worse if not reclassification of revenue from "Others" segment of approx S$7 million.
- Property segment is the crown jewel of the company, continue to grow and contribute positively to overall PBT
- Others segment is a drag to overall PBT, and becoming worse, -27% revenue decline and close to 3 times more losses versus last half year.
- Overall revenue decline -4.2%, with overall PBT decline -10.2%

The PBT of the Newpaper and Magazine will continue to decline in FY13, to slightly above $300 mil, versus $335 mil in FY12 IMO

[Dividend Warrior]

SPH REIT and Special Dividends coming!!!

[felixleong]

wahhh SPH reit
sibei hot for sure!!!
$$$$