Singapore Press Holdings FY2009 Financial Results 12 October 2009
Group FY2009 Financial highlights FY 2009 S$ 000 FY 2008 S$ 000 Change Operating Revenue 1,301,367 1,301,011 - Operating Profit # 496,959 501,688-0.9% Investment Income (6,186) 47,748 NM Net Profit 421,881 437,444-3.6% # Recurring earnings of the media and property business, including profits from Sky@eleven development NM: Not meaningful 2
Strong contribution from Sky@eleven offset decline from Newspaper and Magazine segment Impacted by the recession, revenue of Newspaper and Magazine segment, which is closely linked to the Singapore domestic economy, declined by 12.0% to S$892.4m Strong property performance Revenue recognised for Sky@eleven increased by S$104.3m Revenue from Paragon increased by S$5.3m Slight decline of 3.6% in profit attributable to shareholders 3
% Decline in ad revenue has moderated in 4Q 20.0% N ewspaper A d R evenue Y-O-Y Gro wth (%) ST Sat paper size appears to be building in recent times Decline in Classified ads was mainly due to fall in Recruitment ads that is expected to improve as the economy recovers 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% -30.0% -35.0% -4.0% -9.3% -17.0% -16.0% -15.7% -13.2% -17.8% -18.0% -17.5% -20.1% -23.0% -21.5% -23.7% -26.1% -30.1% 1QFY09 2QFY09 3QFY09 4QFY09 FY09 Display Classified* Total 4 * Classified includes Recruitment and Notices
Despite the recession, circulation revenue increased by 4.1% as a result of our cover price increase 20.0% C irculatio n C o pies Y-O-Y Gro wth (%) 15.0% 10.0% 7.2% 5.0% 0.5% 1.4% 0.0% -5.0% -2.8% -2.2% -0.7% -1.9% -10.0% -8.6% -15.0% -11.4% -20.0% The Straits Times The Sunday Times The Business Times The New Paper Lianhe Zaobao Lianhe Wanbao Shin M in Daily News Berita Harian Tamil M urasu 5
Circulation of The New Paper and Lianhe Wanbao The New Paper The New Paper has provided human-interest reports and sports coverage for more than 20 years. The decline in circulation is largely attributed to the current recession, 2 free newspapers and the internet effect. Lianhe Wanbao Revamped simultaneously with Shin Min Daily News in Oct 2007, this Chinese evening daily was repositioned to attract a younger group of readers. While the revamp resulted in a rebalancing between the 2 evening dailies, Lianhe Wanbao has since attracted new advertisers with its refreshed image. 6
Staff Costs and headcount FY2009 Staff costs decreased 13.9% Lower bonus provisions Singapore Government Jobs Credit grant Wage cuts implemented by the Group in Apr 09 Total headcount as at Aug 09 was 3,941 (Aug 08: 3,918) 7
FY09 Newsprint charge-out price averaged at US$747 850 800 750 700 650 600 550 500 450 400 827 772 779 10,592 612 9,644 9,192 9,683 1QFY09 2QFY09 3QFY09 4QFY09 13,000 12,000 11,000 10,000 9,000 8,000 LHS - Prices (US$) RHS - Ave Mthly Consumption (MT) 8
FY10 Newsprint Outlook Newsprint charge-out rates will moderate as market prices remain soft in the near term. Newsprint prices may rise during the current financial year in line with the economic recovery. 9
Property Sky@eleven Revenue of S$451.9m has been recognised to-date Latest resale price maintained above launch price On track to obtain TOP in 2010 10
Property Paragon Operating revenue increased S$5.3m (+4.7%) in FY09 99% occupancy Paragon is expected to continue to provide a steady recurrent income stream Revaluation of Paragon at S$1.98b in Jul 09 11
Operating Margin sustained despite global recession 550 500 450 Recurring Earnings # and Operating Margin 40.0% 35.0% 400 350 300 250 30.0% 25.0% 20.0% 200 FY05* FY06* FY07* FY08 FY09 15.0% Profit before investment income (S$'m) Operating Margin Operating Margin excluding Sky@eleven 13 # Profit before Investment Income * Restated for retrospective accounting adjustments (FRS 40 & FRS102)
Investible funds FY09 Group Investible Fund ($1.0b) 30.1% 28.0% Due to the global financial crisis, the Group recorded a net loss of S$6.2 million on its investment portfolio 16.8% 25.1% Equities Bonds Investment Funds Cash and deposits Equity holdings consist mainly of M1 and Starhub Fixed income investments are mainly investment grade corporate bonds and Singapore Government Securities 14
Declared dividend per share of 25 cents (7 cents interim, 18 cents final) Dividend per Share 28.00 26.00 24.00 22.8 24 26 27 25 22.00 20.00 18.00 16.00 14.00 12.00 10.00 FY05 FY06 FY07 FY08 FY09 Net Dividend per Share (Cents) 15
Promising initiatives from our new media Launched in November 2007, Mudah is SPH s first overseas JV in online classifieds No. 1 Malaysian Classifieds website No. 2 Malaysian local website > 150 million page views per month Beijing Guangzhou Shenzhen Malaysia Shanghai Singapore The Philippines Launched in March 2009 Making significant headways within 6 months and fast catching up with market leader Top 3 Classifieds website in The Philippines 16
Successful execution of greenfield and acquisition projects Moving into book publishing; Maximising the wealth of content available Entering MICE industry; Organised 5 shows in FY09 Launched online classifieds website in The Philippines Sep 08 Nov 08 Mar 09 Feb 09 Launched online directory website in Malaysia 17 Providing investor relations and online financial services
Thank you Please visit www.sph.com.sg for more information.