Asiaone 1-42

BUSINESS
We recognise annual subscription fees over the period of subscription and usage-based
fee upon completion of usage.
(b) Archive Database
We generate revenue by providing electronic access to the text archives of SPH newspapers
to the business market through co-sellers such Lexis/Nexis, Reuters, Dow Jones Information
Services, Bloomberg and Bridge. We have a sharing formula for revenue derived from this
service.
We recognise revenue from archive database monthly based on the usage for the relevant
month.
(c) E-Commerce/Auction
We generate revenue from our e-commerce and auction platforms as follows:-
(aa) insofar as e-commerce is concerned, we charge merchants who set up stores at our
online mall a set up fee and thereafter a monthly fee for “renting” our space. Upon
the successful completion of each transaction done through our online mall, we earn
a transaction fee based on a percentage of the transaction value. We also provide
value added services, such as web advertising and direct mailing service, to our
online merchants at a fee; and
(bb) at our auction site, we currently do not charge the sellers any fee for listing their
items at our site, but instead we plan to charge the sellers a transaction fee upon
the successful completion of an auction based on a percentage of the final auction
value.
We recognise set up fee upon the completion of the setting up of stores at our online mall,
rental fee on a monthly basis and transaction fee upon the completion of the relevant
transaction.
(ii) Advertising Services and Classifieds
(a) Advertising Services
This is a significant part of our total revenue. We generate this revenue by selling
advertisements to other businesses that wish to advertise on our websites. The aggregation
of quality and rich content and the provision of advanced, personalised and more interactive
features and services within the portal enhance receptions and increase pageviews.
We currently derive advertising revenue through the following means:-
(aa) traditional advertising banners whereby advertisers are charged either a flat fee for
an advertisement placement over a prescribed period of time or a fee based on the
number of pageviews or impressions that the websites receive;
(bb) referrals where advertisers are charged a fee only upon the successful completion
of a sale based on a percentage of the transaction value; and
(cc) sponsorships arising principally from contracts in which we commit to provide sponsors
enhanced promotional opportunities beyond traditional banner advertising. The pricing
of sponsorship revenue is based on the placement on a particular prominent location
of a website for a specified contract period.
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