 SPH
forms joint ventures with Norwegian media group, Schibsted to capture
growing online business
Singapore, 13 September 2006 - Leading media groups Singapore
Press Holdings Limited (“SPH”) and Schibsted ASA (“Schibsted”)
have today jointly announced a strategic partnership for the online
business.
SPH and Schibsted entered into two joint venture agreements today
to set up a regional joint venture company and a Singapore joint
venture company to develop the online business including online
classifieds, search and directories and other internet opportunities.
The two joint venture companies will benefit from Schibsted’s
unique technologies and capabilities in the online business as well
as SPH’s expertise as a leading content provider and its understanding
of and network in the Asian markets. Both companies will make an
initial investment of over S$2 million each to set up the two joint
ventures.
The regional joint venture company, named 701Search Pte Ltd (“701Search”),
will identify potential investments in online classifieds, search
and directories across Southeast Asia and Greater China. 701Search
will be held 50-50 by SPH Interactive International Pte Ltd (a wholly-owned
subsidiary of SPH incorporated in Singapore) and Schibsted International
Classifieds & Search AS (a wholly-owned subsidiary of Schibsted
incorporated in Norway).
The Singapore joint venture company, named SPH Search Pte Ltd (“SPH
Search”), will focus on areas such as online search and directories
in Singapore. SPH Search will be held 75-25 by SPH Interactive Pte
Ltd (a wholly-owned subsidiary of SPH incorporated in Singapore)
and Schibsted International Classifieds & Search AS (a wholly-owned
subsidiary of Schibsted incorporated in Norway).
Mr Alan Chan, CEO of SPH, said: “We are very excited about
the partnership as it marks a major milestone in SPH’s quest
to grow beyond print and beyond Singapore. Schibsted has a strong
online position and wealth of experience in developing online concepts
in Europe while SPH can complement Schibsted’s strengths, with
our in-depth knowledge of the local market and well-established
network gained through our existing investments in the regional
markets. Together, our combined expertise and capabilities will
allow us to provide a complete suite of online business offerings
to prospective customers and partners.”
“We envisage that with growing Internet penetration, we will
be able to secure opportunities to increase online advertising revenue.
The timing could not be better for both parties to reap the benefits
when the market takes off. We are confident that this partnership
will strengthen both of our media portfolios and fit into our strategic
plans in the long run,” Mr Chan added.
Mr Kjell Aamot, CEO of Schibsted, said : “Our joint venture
agreements with SPH represent Schibsted’s first move into Asia.
This is a significant move for Schibsted as our experience to-date
has been limited to Europe. Schibsted has good experience in working
with local partners when entering into new markets and we are very
satisfied with having reached these agreements with SPH. We could
not have found a better partner. Combining SPH’s local market
knowledge and market positions with our demonstrated experience
within the online classifieds, search and directories businesses
will give the joint ventures the best preconditions for successful
growth.”
Schibsted, listed on the Oslo Stock Exchange, is one of the most
prominent media groups in Scandinavia. Besides key operations in
Norway and Sweden, Schibsted has an extensive European footprint
with presence in Denmark, Finland, France, Spain, Estonia, Latvia,
Lithuania, Austria, Italy, Switzerland, Russia, Slovenia and Latin
America. The group combines experience of traditional media with
extensive knowledge about new media. Over the years, Schibsted has
successfully penetrated the nascent online classified market in
Norway, Sweden and subsequently in other parts of Europe. Schibsted’s
recent acquisition of Trader Classified Media’s Western Europe
business has further cemented its position as Europe’s leading
online classified player.
SPH is a leading media company in Singapore with established platforms
in publishing, Internet and broadcasting. With overseas ventures
in magazines and outdoor advertising, SPH’s operations span
Asia in countries such as Malaysia, Thailand, Indonesia, Hong Kong
and China. In recent months, SPH has been aggressively pursuing
new media initiatives by expanding into online recruitment advertising
with ST701 and STOMP (Straits Times Online Mobile Print), a website
aimed at encouraging interactivity with readers through mobile devices
and the Internet. SPH news content is also available through mobile
phone-based Internet service.
The transaction is not expected to have any material impact on
the net tangible assets or earnings per share of SPH for the financial
year ending 31 August 2007. Mr Willie Cheng Jue Hiang, a Director
of SPH, will also be a Director of the two joint venture companies.
None of the other Directors of SPH has any interest in the transaction.
Issued Jointly by Singapore Press Holdings Limited and Schibsted
Group
(SPH Co. Regn. No: 198402868E)
For more information, please contact:
Singapore Press Holdings Limited
Ms Carole Chow
Assistant Manager
Corporate Communications
DID: (65) 6319 1586
Fax: (65) 6319 8150
Email: cchow@sph.com.sg
Schibsted ASA
Mr Sverre Munck
Executive Vice President
Schibsted International
Tel: (47) 2310 6699
Fax: (47) 2310 6601
Mobile: (47) 9168 6699
Email: sverre.munck@schibsted.no
About Singapore Press Holdings Limited
Main board listed Singapore Press Holdings Limited is the leading
media company in Singapore, in the print, Internet and broadcasting
platforms. It publishes 14 newspapers in the four official languages,
including Singapore's first free Chinese newspaper, My Paper, and
over 80 magazine titles. Everyday, 2.7 million individuals, or 83
per cent of the people above 15 years old, read one of the SPH publications.
Its Internet Business Unit manages the online editions of SPH's
major newspapers, which enjoy over 100 million pageviews from 6
million unique visitors every month. More recent online additions
are the classified website, ST701, and STOMP (Straits Times Online
Mobile Print), a portal that connects, engages and interacts with
readers on the Internet and via mobile messaging.
SPH owns and operates Paragon, the prime shopping and office building
in the heart of Orchard Road. Paragon features international brands
and luxury goods, restaurants serving wide-ranging cuisines and
lifestyle facilities such as spas and a fitness club.
SPH also owns a 20% stake in MediaCorp TV Holdings Pte Ltd, which
operates free-to-air channels 5, 8, U and TV Mobile, and a 40% stake
in MediaCorp Press Pte Ltd, which publishes free sheet Today. SPH
has a 70% stake in UnionWorks, which operates two entertainment
radio channels, Radio 100.3 in Chinese and Radio 91.3 in English.
In addition, SPH holds an 80% stake in SPH MediaBoxOffice Pte Ltd,
Singapore’s largest LED network media company, and a 35% stake
in TOM Outdoor Media Group, a leading outdoor advertising company
in China.
About Schibsted ASA
Schibsted is a Scandinavian media group that aims to become the
most attractive media company in Europe. It has around 7,500 employees
and operations in 19 countries. Its domestic markets are Norway
and Sweden but the Group also has companies in Denmark, Finland,
France, Spain, Estonia, Latvia, Lithuania, Austria, Italy, Switzerland,
Russia, Slovenia and Latin America. Schibsted currently has a presence
in the newspaper, TV, film, online, mobile-phone, book and magazine
media. Its turnover in 2005 was NOK 9.8 billion.
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