SINGAPORE PRESS HOLDINGS. 1H FY 2008 FINANCIAL RESULTS 14 Apr 2008

Transcription

1 1 SINGAPORE PRESS HOLDINGS 1H FY 2008 FINANCIAL RESULTS 14 Apr 2008

2 HIGHLIGHTS FOR 1H FY08 2 1H FY08 results boosted by continued strength of domestic economy Double-digit growth in operating revenue of 16.7% Sterling performance from Newspaper and Magazine with 10.9% increase in advertisement revenue Rise in revenue from Property operations, with contributions from Sky@eleven(S$40.3m) and Paragon (+8.9%) Operating profit surged 26.9% to S$238.3m Interim dividend up 1 cent (+14.3%) to 8 cents per share, payable on May 21,

3 FINANCIAL HIGHLIGHTS FOR 1H FY08 3 Group 1H FY H FY 2007 Change S$ 000 Restated * S$ 000 % Operating Revenue 610, , Operating Profit # 238, , Investment Income 14,988 61,270 (75.5) Net Profit 211, ,802 (2.4) * 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 3

4 4 Lower investment income due to one-off gains last year & continued market volatility 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 4

5 Progress Update 5 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 Still on track for grant of Temporary Occupation Permit (TOP) in FY2010 5

6 SPH Newspaper Advertisement Revenue Y-O-Y Growth % % Continued Strong performance from Display and Classified 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% 13.8% 11.7% 10.2% 10.7% 8.1% 8.4% 8.5% 6.8% 5.6% 14.3% 14.6% 14.5% 10.2% 10.9% 10.5% 8.5% 7.5% 8.0% -4.0% 3QFY07 4QFY07 FY07 1QFY08 2QFY08 HYFY08 Display Classified* Total * Classified includes Recruitment and Notices 6

7 1H FY2008 Circulation Copies Y-O-Y Growth (%) % 15.0% Sustained circulation levels for newspapers 12.6% 16.1% 10.0% 7.5% 5.0% 2.2% 0.0% -5.0% -0.7% -3.8% -3.0% -2.3% -1.4% ST SUT BT TNP ZB WB SM BH TM 7

8 1H FY2008 Staff Costs 8 Increase continued to be driven by new business initiatives & annual salary increment 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 8

9 Newsprint Costs US$ Average Newsprint Charge-Out Price & Monthly Consumption ,323 11, , QFY07 4QFY07 1QFY08 2QFY08 LHS - Prices (US$) RHS - Ave Mthly Consumption (MT) 10,962 14,000 13,000 12,000 11,000 10,000 9,000 MT Going forward, significant increase seen in newsprint market prices, driven by recent supply crunch in Asia, higher prices for raw materials and energy 9

10 Newsprint Price Trends US$ per metric ton 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 HK (48.8 gsm) Euro (45) US East (48.8)

11 Recurring Income - Media & Property 11 Efforts focused on sustaining operating margin S$m 1H 04 1H 05 1H 06 1H 07 1H 08 Recurring Earnings (S$ m) Operating Margin Contribution from Sky@eleven Operating Margin excluding Sky@eleven 39% 37% 35% 33% 31% 29% 27% 25% Note: Comparatives restated to take into account the retrospective adjustments relating to FRS 40 Investment Property 11

12 Strengthening our position with growth initiatives 12 2Q FY2008 Online 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 Magazines 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 Outdoor Expanding our reach in digital advertising through partnerships with SPC and SingHealth 12

13 Investing in our growth for the future 13 Secure the future of SPH s long-term growth in a converging media landscape by leveraging on strength in print and advertising Approx S$150m committed to online initiatives - S$100m for Search, Directories and Classified - S$50m for other online initiatives Continuing efforts to adopt new media paradigms to keep pace with latest online developments 13

14 - Thank you - 14