Singapore Press Holdings (SPH)

[specuvestor]

The current cash flow at SPH group level of 15 cents is sustainable as SPH has also been able to sell off some assets

The question boils down to the sustainability at the REIT level. In the current FY, the value of SPH properties increased due to the lower capitalization rates accorded by its valuers. This is despite a gloom property outlook for retail and rising interest rates. It has enabled SPH REIT to take on more borrowings and yet report a lower gearing level.

As long as a certain national bank (a key lender to SPH reit & SPH) and the valuer (who has a conflict of interest) continue to keep up the charades, SPH at a group level can continue to dish out dividends beyond its recurring payout ratio.

I haven't been following SPH ever since I stopped reading physical newspapers few years back, but how is it considered "sustainable" if it has to sell assets?

As for the financial engineering on the property side, many are doing it... Matter of how naked they are while swimming afloat

SPH pays about $400m in dividend every year. "Soon" will be based on whether their Operating cashflow excluding disposals can fund this.

One important note on OCF account of SPH, it is after debit off the dividend paid.

E.g. in FY2012, OCF is S$71 mil, after deducted dividend paid of S$386 mil, among other normal deduction.

IMO, dividend payout seems a fixed "expense" of SPH...

https://www.valuebuddies.com/thread-117-...l#pid59692

[karlmarx]

According to a source from Singapore Press Holdings, more staff will be informed of their termination as the retrenchment exercise is carried out for the second day on Friday, Oct. 13, 2017.

The Straits Times only reported that 130 staff who will be retrenched, representing 3 percent of manpower at SPH.

No details of retrenchment in each department was given in the report.

But the source from SPH has provided a partial breakdown.

Breakdown of retrenched staff
The most updated figures suggest staff cuts at ST newsroom are the most severe, with up to 40 employees affected — probably because they have the biggest headcount out of all newsrooms.

Here are the latest retrenchment numbers:

• Straits Times: 40
→ includes seven from Life!
→ five sub-editors
→ four at news desk

• Business Times: 17

Resentment and confusion
According to the source, the most baffling move was the retrenchment of a few young reporters.

The source said the cost of keeping these young reporters is “very, very low” and the cut was perceived to be arbitrary.

The source also said direct supervisors of the reporters “had absolutely no say” in deciding if the juniors should be kept. And they only found out who on their staff and how many got axed at 9am on Thursday, when the retrenchment exercise began in earnest.

The collective view is that the new SPH chief executive, Ng Yat Chung, is a big fan of cost-cutting, which will not be good news for the newsroom staff.

Consolidation of resources
The source also said there is a consolidation of resources in the various newsrooms to streamline manpower.

The New Paper sports desk will move to ST in November, and ST money desk will move to BT.

Mothership.sg understands that Warren Fernandez, editor-in-chief of SPH’s English/ Malay/ Tamil Media Group is going to hold another meeting on Friday at 5pm just for ST.

Photographer who covered townhall event laid off
Another SPH source said one photographer who took photos of the company-wide townhall meeting on Thursday morning was retrenched after he filed his work.

However, the source also said the silver lining is that job offers have started to come in for some of those affected.

There is also a sense of relief for those who did not get cut, but there is no assurance they won’t be next down the road in a few years’ time.

https://mothership.sg/2017/10/sph-source...rried-out/

1) I think it will be a loss to SPH media if it retrenches its young staff. As previously mentioned by another VB, content is produced by humans. And if the news/opinion pieces written by the older staff are not bringing in more "eyeballs," SPH media will have greater difficulty in generating content that can connect with its readers, thereby impacting its circulation or page views. If it wanted to attract more readers, it would have hired more and better writers/reporters to provide more diverse/varied stories.

2) If direct supervisors “had absolutely no say” in the fate of their subordinates, it implies that the list was made by someone high up. Probably someone who chose to keep the people they think will best support the paper's national agenda. If so, then we can expect more of the same in terms of the content produced by SPH media. Which means more of the same in terms of financial results.

3) A lot of these retrenched writers/reporters/journalists, young and old, will be very upset. Especially if journalism is their passion, and they studied at institutions such as Columbia University. Some of these people who wish to continue to write stories will eventually start their own online blogs -- like mothership -- and become another of SPH media's competitor. I foresee more high-quality news blogs such as mothership and bertha henson. If SPH media does not provide what the market wants, then there will be new entrants who does so.

[CY09]

I made the assumption current SPH's Ops cash flow before WC is 350 mil and will continue. Netting off 243 Mil for dividends (15 cents), income tax of 58mil, dividends to non controlling interest of 42 mil, finance cost of 31 mil, there is a shortfall of 24 mil. SPH is also receiving dividends from M1 etc and SPH's dividend income is quite constant annually at the 20+ mil range.

What is this selling off asset I am referring to? It is called Paragon (freehold) which the parent has recently sold to SPH reit in a block of 99 years. How much is Paragon valued with its 90+ lease on SPH reit balance sheet? Answer: s$2.7 Billion* and increasing thanks to brilliant financial valuers (engineers)

It is like a perpetual asset which can be continuously offloaded.

*Valuation will also increase thanks to inflation and a certain 6.9 million white paper

[chialc88]

Good morning valuebuddies,
  Faith makes all things possible. Love makes them easy - Dwight L. Moody

Would you like to continue more analysis or taking actions on SPH (counter)?

It's clear that SPH has a respectable business.

It's also clear that SPH is not doing very well.

Most of all, SPH is in it's declining mood/mode (biz and price-wise).

You must make a decision to continue to do more analysis to to take actions.

If you choose to do more analysis, then skip to the next post.

If you choose to take actions, then you need to decide to buy more or to sell.

For seller, skip to the next post (and I hope that you're not going to sell short.)

For buyer, then you will need to decide your entry strategy, how much and when to buy.

For me, it's quite easy.

There will be 3 trenches to buy.

The first trench is now.

The second trench will be when the price drop by 15-20%.

The third trench will be activated when the price drop further by another 15-20%.

Code:

Ha Ha. I lied.
If SPH drop by another 15%, then 4th trench will kick in.
.... and then last trench will kick in if it drop by another 15%

Less thinking; more doing - SMOL 
Less analyzing, more investing.
Less talking; more doing. 
link

D2 property for you?

[gzbkel]

"Less thinking; more doing". This approach may work better in certain fields, but investing is not one of them.

[karlmarx]

SPH spent some $10m to buy some listed shares. But in which company?

http://infopub.sgx.com/FileOpen/Rule%207...eID=475310

[touzi]

Cautious optimism from one of SPH's senior staff.

http://www.straitstimes.com/opinion/citi...ng-again-0

A recent slew of news and developments coming out from the global media industry offer hope for news publishers like Singapore Press Holdings (SPH), which publishes The Straits Times. Even as SPH retrenched staff nearly three weeks ago, it is also mindful of the bright spots in the media industry. Let me count the ways in which the news business is looking hopeful again.

1. PEOPLE ARE MOVING AWAY FROM CLICK-BAIT INFORMATION, AND GRAVITATING TOWARDS CREDIBLE NEWS

2.FREE IS SO YESTERDAY. PAYING FOR WHAT YOU USE IS THE NEW NORM

3. CONTENT IS KING AGAIN

4. FOR SINGAPORE MEDIA, THE FIGHT FOR AUDIENCES RESTS ON THE ROBUSTNESS AND RICHNESS OF OUR CONTENT

[CY09]

I like point 4 the richness of our content is key.

To me, the key is to generate unbiased news. As of now, many Singaporean are no longer buying into its content. The public is no longer aware if sph reporters are hired to relay the truth or merely act on behalf of those in power.

Until sph can shake off this stigma, its public audience will shrink. This is something in my opinion, a task the current ex civil service mgmt is unable to do.

[yeokiwi]

It is not even restraining only in local scenes. They are just as politically correct for neighboring countries and strategic friends.

Can they ever do the equivalent NYtimes reporting on 1MDB? => A new agency that is thousands of miles away from Malaysia is reporting more in detail than them.
Or detailed reporting on indonesians hoarding illegal money in Singapore??
Or the Thaksin family vs Thai Gov?

For malaysia news and opinions, I think Malaysiakini is far ahead of them. Can they beat them?? Unlikely.

Unless they just want to be the next Discovery or National Geographics, it is ok to keep winning "best website infographic award".

[cfa]

No many trust what they write , this explains why the drop in the subscriptions .