Singapore Press Holdings (SPH)

[greentea]

http://www.businesstimes.com.sg/companie...stablished

SPH, Schibsted, Telenor, Naspers' online classifieds joint venture established
By Chan Yi Wen yiwenc@sph.com.sg @ChanYiWenBT
9 Jan 9:37 AM
THE online classifieds joint venture is now established between Singapore Press Holdings, Norway's Schibsted Media Group and Telenor Group, and South Africa's Naspers...

[CityFarmer]

The SPH 1Q2015 result was announced. The net profit of 1Q2015 was more than 20% lower, y-o-y. A glance on the presentation, the newspaper/magazine segment is the main culprit. It shouldn't be a surprise to anyone. The segment recorded a drop of ~ -8% in revenue, and ~-14% in profit.

The company seems still struggling to maintain the press business. Higher staff cost has reduced the profit margin. I reckon the down trend of dividend payout might continue to FY2015

Result presentation:
http://infopub.sgx.com/FileOpen/Results%...eID=331261

(not vested)

[Dividend Warrior]

Divested fully this morning.

[Redcape]

Good move. Scattershot approach of investing in v02.com companies is destroying value for shareholders.

[new-comer1]

If SPH shares were cheaper, I will buy them. Hope it drops below $4 again.

[Temperament]

If SPH shares were cheaper, I will buy them. Hope it drops below $4 again.

Ya! Who is supporting this BLUE CHIP?

[Contrarian]

I have a gut feel singapore shareholders are too focussed on dividends.

To me, the business performance is most important. Their cash cow print advertising is definitely deteriorating...

[mkmk]

Financial Results: http://infopub.sgx.com/FileOpen/SGX%20An...eID=343949

Presentation Slides: http://infopub.sgx.com/FileOpen/Results%...eID=343951

Press Release: http://infopub.sgx.com/FileOpen/Press%20...eID=343950

SPH reports Second Quarter Net Profit of $69.6 million

SINGAPORE, 14 April 2015 – Singapore Press Holdings Limited (SPH) today reported its results for the second quarter ended 28 February 2015 (2Q FY15). Net profit attributable to shareholders was $69.6 million, $11.7 million (14.4%) lower compared to 2Q FY14.

Recurring earnings of $68.0 million was $14.5 million (27.1%) higher than last year’s, attributable to a $20.9 million (9.1%) decline in total operating expenditure as last year’s results included an impairment charge ($9.9 million) and special bonus costs ($10.4 million).

Investment income was $19.2 million compared to a loss of $5.5 million in the corresponding quarter last year, and comprised mainly gain from sale of investments.

Last year’s results were lifted by a one-off $52.9 million gain on partial divestment of stake in the regional online classifieds business.

Group operating revenue of $270.3 million declined by $8.5 million (3.0%) against 2Q FY14, as performance of the Media business was weighed down by the muted economic environment and continued softening of the advertising market. Revenue from the Media business fell by $15.5 million (7.1%) year-on-year, with advertisement and circulation revenues down by $12.9 million (8.0%) and $3.5 million (7.7%) respectively.

The decline in the Media business was partially cushioned by stronger performance from the property segment whose revenue jumped $8.9 million (17.2%) to $60.6 million, boosted by the maiden contribution of $8.1 million from The Seletar Mall. In addition, Paragon and The Clementi Mall also recorded higher rental income.

Revenue from the Group’s other businesses dipped $1.9 million (21.7%) to $6.8 million, as revenue for the exhibitions business was affected by timing difference in show dates.

For the half year ended 28 February 2015 (1H FY15), recurring earnings was maintained at last year’s $170.4 million, as the $27.8 million (4.5%) decline in total revenue was matched by the fall in total operating expenditure. Investment income was $20.9 million compared to a net loss of $0.4 million in 1H FY14.

Net profit attributable to shareholders fell $31.1 million (18.3%) to $139.0 million, given the absence of prior year’s $52.9 million gain on partial divestment of an entity.

On the outlook for the year, Mr Alan Chan, Chief Executive Officer of SPH commented: “The global economic outlook has softened recently with uneven recoveries seen across the economies. Significant headwinds continue to persist, as concerns remain unabated over interest rates, a deflationary spiral in Eurozone and the slowdown in the Chinese economy. On this note, the domestic economy is expected to grow modestly amidst a tight labour market.

“The year ahead is fraught with challenges from an uncertain economic environment, continued softening of the advertising market and the structural issues facing the media industry. Amidst the challenging times, the Group will continue to intensify its efforts to sustain and strengthen the media business, by building upon our core competencies in the print and digital space. In addition, we are on a constant lookout for business opportunities that position the Group for growth.”

The Directors have declared an interim dividend of 7 cents per share which will be paid on 22 May 2015.

(Vested)

[Ben]

Divested all my holding recently. I really cannot see any catalyst in SPH. They have made several corporate changes, with senior staff movement but IMO, it is probably time for a CEO change. MediaCorp has also changed its CEO not too long ago. Every result announcement, you can easily guess Alan Chan's comments even before he said it.

[mkmk]

My only (overworrying) concern is that I thought the same for Singpost, and divested before the share price shot up. Of cos, as Ben mentioned, it'll take a change in CEO to bring in new ideas for the company.