1h fy 2008 financial results 14 apr...
TRANSCRIPT
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SINGAPORE PRESS HOLDINGS
1H FY 2008 FINANCIAL RESULTS1H FY 2008 FINANCIAL RESULTS
14 Apr 200814 Apr 2008
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�Sterling performance from Newspaper and Magazine with 10.9% increase in advertisement revenue
Operating profit surged 26.9% to S$238.3m
HIGHLIGHTS FOR 1H FY08
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Interim dividend up 1 cent (+14.3%) to 8 cents per share, payable on May 21, 2008
1H FY08 results boosted by continued strength of domestic economy
Double-digit growth in operating revenue of 16.7%
�Rise in revenue from Property operations, with contributions from Sky@eleven(S$40.3m) and Paragon (+8.9%)
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(75.5)
(2.4)
16.7
216,802211,525Net Profit
61,27014,988Investment Income
26.9187,789238,284Operating Profit #
522,685610,152Operating Revenue
%S$’ 000S$’ 000
Change1H FY 20071H FY 2008
Group
* Restated to take into account the retrospective adjustments relating to FRS 40 – Investment Property# Recurring earnings of the media and property business, including Sky@eleven development
Restated *
FINANCIAL HIGHLIGHTS FOR 1H FY08
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Last year’s investment income included
� One-time gain from sale of investments� Dividend income from MobileOne Ltd� Profit from capital reduction exercise by StarHub Ltd
Performance of investment portfolio in FY08 expected to be challenging given continued volatility
Portfolio allocation to remain conservative
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Lower investment income due to one-off gains last year & continued market volatility
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Revenue recognition to-date : S$111.6m� 4Q FY07 : S$71.3m� 1Q FY08 : S$16.1m� 2Q FY08 : S$24.2m
Expected project revenue > S$650m
Manpower shortage and inclement weather have resulted in delays Not expected to have any significant impact on costs
Sky@eleven – Progress Update
Still on track for grant of Temporary Occupation Permit (TOP) in FY2010
5
6
8.0%8.5%
7.5%8.4%
5.6%
11.7%
14.5%14.6%
8.5%8.1%
13.8% 14.3%
10.5%10.2%10.2%10.9%10.7%
6.8%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
3QFY07 4QFY07 FY07 1QFY08 2QFY08 HYFY08
SPH Newspaper Advertisement Revenue Y-O-Y Growth %
* Classified includes Recruitment and Notices
Display Classified* Total
Continued Strong performance from Display and Classified
6
7
-0.7%
-3.8%
12.6%
2.2%
-3.0% -2.3%
7.5%
-1.4%
16.1%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
ST SUT BT TNP ZB WB SM BH TM
Sustained circulation levels for newspapers
1H FY2008 Circulation Copies Y-O-Y Growth (%)
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Increase continued to be driven by new business initiatives & annual salary increment
1H FY2008 Staff Costs
Staff Costs increase (12.1%)
Headcount Increase(Feb 2008: 3,814; Feb 2007: 3,628)� Staffing for new media businesses� Increased operational needs for magazine
business
Annual Salary Increment� Followed NWC’s recommendation of
5% on average
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9
602575587
608
11,323 11,15511,371
10,962
300
350
400
450
500
550
600
650
3QFY07 4QFY07 1QFY08 2QFY089,000
10,000
11,000
12,000
13,000
14,000
LHS - Prices (US$)RHS - Ave Mthly Consumption (MT)
Newsprint Costs
US$ MT
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Average Newsprint Charge-Out Price & Monthly Consumption
Going forward, significant increase seen in newsprint market prices, driven by recent supply crunch in Asia, higher prices for raw materials and energy
10N
ewsprint P
rice Trends
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350
675
1000
91 Q1
92 Q1
93 Q1
94 Q1
95 Q1
96 Q1
97 Q1
98 Q1
99 Q1
00 Q1
01 Q1
02 Q1
03 Q1
04 Q1
05 Q1
06 Q1
07 Q1
08 Q1
US$ per metric ton
HK
(48.8 gs
m)
Euro
(45)U
S Eas
t (48.8)
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Efforts focused on sustaining operating margin
0
50
100
150
200
250
1H 04 1H 05 1H 06 1H 07 1H 0825%
27%
29%
31%
33%
35%
37%
39%
Note: Comparatives restated to take into account the retrospective adjustments relating to FRS 40 – Investment Property
S$m
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Recurring Income - Media & Property
Contribution from Sky@eleven
Recurring Earnings (S$’m) OperatingMargin
Operating Margin excluding Sky@eleven
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Online
Magazines
Outdoor
� Acquisition of Adkom for US$16m
� Operating margin above industry norm due to focus on luxury titles
� Fortified position as a major magazine publisher in the Asia-Pacific region
� A step closer to achieving revenue target of S$100m
� Launch of rednano.com.sg -Singapore’s first local search and directory engine
� The Straits Times Razor TV to be launched to target a rapidly-growing social networking market
� SPH Targeted Video Commercial (TVC) to enhance our media offerings to advertisers
� Expanding our reach in digital advertising through partnerships with SPC and SingHealth
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2Q FY2008
Strengthening our position with growth initiatives
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� Approx S$150m committed to online initiatives- S$100m for Search, Directories and Classified- S$50m for other online initiatives
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Investing in our growth for the future
� Secure the future of SPH’s long-term growth in a converging media landscape by leveraging on strength in print and advertising
� Continuing efforts to adopt new media paradigms to keep pace with latest online developments
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