SINGAPORE aims to be a vibrant media city. And it is this promise that is sustaining and accelerating the growth of many local media companies. One of them is Scorpio East Holdings - a video entertainment programme distributor that became the first company of its kind to be listed on the Singapore Exchange's Sesdaq board in 2006.
"We are moving with the government," says CEO and executive director John Ho. "In 10 to 20 years we expect to see a very big improvement in the entertainment industry. A lot of this has to do with the government tolerating a more liberal approach in creating a much more open society."
Scorpio's expansion over the years has seen it become the exclusive distributor of video entertainment programmes from major suppliers such as TVBI, China Central Television and Celestial Pictures.
Its videos are found at more than 160 retail outlets, including leading retailers like HMV Singapore and Sembawang Music.
The company has also branched out into local film production, participating in projects like Jack Neo's I Not Stupid Too and Royston Tan's 881. It has also recently invested in Singapore's first large-scale animation feature, Sing to the Dawn, due to premiere next year.
But according to Mr Ho, movie production and video distribution are not what Scorpio is all about. "Scorpio East will evolve into a lifestyle company," he says confidently. "We will have a lot more to offer in the future."
In the years ahead, the company aims to diversify into other product segments such as concert staging, artist management, health and wellness services and even private clubs.
"We have already started work on the concerts," says Mr Ho. "We will use mainly Korean, Hong Kong and Taiwan artists for our concerts. With our collaboration with Disney, we will also bring concerts like Disney on Ice and other successful Disney programmes to Singapore." It is also possible that some Western artists, like Celine Dion, may be brought in.
Scorpio's expansion into other product segments comes on the heels of a sustained increase in revenue over the years.
For the financial year ended April 30, 2007, the company's turnover climbed 6.8 per cent year-on-year to $22.1 million. Although net profit eased to $780,000 in FY07, from $2.44 million in 2006, Mr Ho reckons Scorpio is well-placed to ride the wave of positive sentiment throughout the economy. "Some of our investments in Malaysia did not do as well as expected," he says. "We also could not put out within the financial year some of the movies we had already invested in."But problems with Malaysian partners have been sorted out and business across the Causeway is set to grow significantly, he says.
Regional expansion is also on the cards - but not before the business model the company is looking to put in place in Singapore is successful and well-established.
"Expansion has to be a gradual process," says Mr Ho. "China is not yet a developed market as compared to Hong Kong or Taiwan so we still have a chance to enter. We are already in negotiations with a few parties and once these negotiations are successful we will proceed to establish spas, private clubs and restaurants in Shanghai and Beijing by 2009 or 2010."
Scorpio sees Singapore's upcoming integrated resorts and the expanding entertainment industry as a significant catalyst for growth. "Singapore is becoming a more tolerant and refined society," says Mr Ho. "We are even teaching our kids how to appreciate the finer arts. With local artistic standards going up and an increased number of expatriates living in Singapore, shows that were not financially viable in the past have now become highly plausible and even profitable."
To meet the expected big rise in overseas visitors to Singapore in the next few years, Scorpio is also looking at setting up hotels. And not averse to moving with the times, Mr Ho has also increased the company's investment in broadband television, a sector that could make video viewing a thing of the past.
Mr Ho reckons Scorpio East will stay strong despite an expected influx of competitors in the coming years. "Our success will be easier as we have experience and sustained relationships with many of our partners," he says. "Success requires a reciprocal effect from your partners, and I am confident that this will guide us towards greater growth in the future."
