FY2011 Financial Results 12 October 2011 Group FY2011 financial - - PowerPoint PPT Presentation

FY2011 Financial Results 12 October 2011

Group FY2011 financial highlights

FY2011 S$’000 FY2010 S$’000 Change % Operating Revenue

1,250,972 1,381,071 (9.4)

Operating Profit#

409,038 539,103 (24.1)

Investment Income

50,351 39,255 28.3

Net Profit attributable to shareholders

388,575 497,874 (22.0)

# This represents the recurring earnings of the media and property businesses. Results for the comparative period FY2010 included profits from the Group’s Sky@eleven development which was completed in May 2010.

2

FY2011 financial highlights

Operating Revenue FY2011 S$’000 FY2010 S$’000 Change % Newspaper and Magazine 1,013,285 974,125 4.0 Property 167,884 356,095 (52.9) Rental & Services 167,884 134,451 24.9 Property Development (Sky@eleven)

• 221,644

NM Others 69,803 50,851 37.3 1,250,972 1,381,071 (9.4)

NM: Not meaningful 3 

Newspaper and Magazine



Print advertisement revenue rose by S$41.6m (5.7%), driven by strong Display advertisement sales



Property



Robust growth in rental income of S$33.4m (24.9%) from Paragon and Clementi Mall



Others



Higher revenue from the exhibitions business for newly acquired and other shows, and from

• nline and other media businesses

Underpinned by higher advertisement revenues, robust growth in rental income and continued progress in the exhibitions and

• nline businesses

Profit/(Loss) before taxation FY2011 S$’000 FY2010 S$’000 Change % Newspaper and Magazine 365,603 364,678 0.3 Treasury and Investment 41,614 29,819 39.6 Property 75,566 235,109 (67.9) Rental & Services 75,566 80,893 (6.6) Property Development (Sky@eleven)

• 154,216

NM Others (26,101) (39,714) (34.3) 456,682 589,892 (22.6)

NM: Not meaningful

FY2011 financial highlights

4

Group FY2011 highlights

* Classified includes Recruitment and Notices 5 61.9% 16.6% 13.4% 8.1%

Operating Revenue Composition (S$1.3b)

Advertisements - Print Circulation Rental & Services Others

60.2% 30.6% 9.2%

Print Advertisement Revenue Composition (S$774.7m)

Display Classified * Magazines & Others

Ad revenue performance supported by strong growth in Property and Transport Display ads

* Classified includes Recruitment and Notices

6 17.4% 7.8%

• 1.0%

10.0% 8.3% 1.7% 1.0%

• 7.9%
• 3.1%
• 2.4%

11.8% 5.5%

• 3.5%

5.1% 4.5%

• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 1QFY11 2QFY11 3QFY11 4QFY11 FY11

Newspaper Ad Revenue Y-O-Y Growth (%)

Display Classified* Total

Circulation levels maintained through our focus on quality journalism and efforts on subscription drives

7

50 100 150 200 250 300 350 400 THE STRAITS TIMES THE SUNDAY TIMES THE BUSINESS TIMES THE NEW PAPER / THE NEW PAPER SUNDAY LIANHE ZAOBAO LIANHE WANBAO SHIN MIN DAILY NEWS BERITA HARIAN / BERITA MINGGU TAMIL MURASU / TAMIL MURASU SUNDAY Thousands

Daily Average Newspaper Circulation

FY2011 FY2010

Group FY2011 highlights

3.6%

8

40.5% 11.8% 8.9% 13.6% 18.5% 6.7%

Cost Composition (S$860.8m)

Staff Cost Newsprint Depreciation Other Production Cost Other Overheads Others

Staff costs rose 2.3%

Staff Cost FY2011 FY2010 Change % Total Staff Cost (S$'000) 348,461 340,464 2.3 Average Headcount 4,078 3,965 2.8 Headcount as at end Aug ‘11 4,054 4,041 0.3

9



The increase was attributable to salary increments and increased headcount, partially offset by lower variable bonus provision



Staff costs for FY2010 included government jobs credit

Higher newsprint prices led to 13.1% increase in newsprint costs year-on-year

10

Prices are expected to increase moderately as a result of cost pressures and a tighter regional market

607 651 666 680

10,289 9,408 10,631 10,241

8,000 9,000 10,000 11,000 12,000 400 450 500 550 600 650 700

1QFY11 2QFY11 3QFY11 4QFY11

Average Newsprint Charge-Out Price & Monthly Consumption

LHS - Prices (US$) RHS - Ave Mthly Consumption (MT)

Operating margin sustained above 30%

* Restated for retrospective accounting adjustments (FRS 40).

# This represents the recurring earnings of the media and property businesses.

^ Computed based on recurring earnings excluding Sky@eleven.

11

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 100 200 300 400 500 600 FY2007* FY2008 FY2009 FY2010 FY2011

Recurring Earnings# and Operating Margin^

Profit before investment income (S$'m) Sky@eleven profits (S$'m) Operating Margin^

Property

12 

Paragon was valued at S$2.3b in Aug 2011



Recorded year-on-year increase

• f S$15.0m (11.4%) from higher

rental rates



Clementi Mall was valued at S$590m in Aug 2011



100% leased with strong daily foot traffic



Maiden rental income of S$18.4m from partial operations this year

Both properties are expected to provide a steady recurrent income stream for the Group

Group investible fund



Investment income rose S$11.1m (28.3%) to S$50.4m



The Group will remain conservative in its asset allocation



Performance of the portfolio will be subject to volatility in the global financial markets

(As at Aug 31, 2011)

13 32.6% 20.3% 24.7% 22.4%

Group Investible Fund (S$1.3b)

Equities Bonds Investment Funds Cash and deposits

iPad and iPhone apps



The Straits Times (ST) and The Business Times Weekend (BT Weekend) edition extended their presence on digital platforms through the launch of iPad apps in Aug and Oct 2011 respectively



ST’s comprehensive news coverage and video content from ST RazorTV can be accessed through the iPad and enhanced iPhone app via subscription



The launch of the BT Weekend app comes ahead of a universal app on iPad and iPhone for the weekday edition of BT expected in the coming months

14

Extending our exhibitions footprint



COMEX, Singapore’s largest IT consumer exhibition, marked its biggest show ever in Sep 2011



822,000 visitors visited the event that covered five floors in the Suntec convention centre during the four- day show



835 exhibitors rang up some $70.5 million in sales - the most in its 17-year history



COMEX China - Singapore’s biggest IT and consumer technology exhibition will be making its debut in Beijing, in 2012



Leveraging on the potential of the Chinese market and Exhibits Inc’s capabilities in organising computer fairs such as COMEX and the IT Show



Bringing Singapore’s IT flavour to China’s consumer technology market, creating more opportunities for cross-border development, new innovations and creations for the Pacific Asia IT industry

15

Declared dividend per share of 24 cents

7 cents interim, 17 cents final

16

20 21 22 23 24 25 26 27 28 FY2007 FY2008 FY2009 FY2010 FY2011

26 27 25 27 24

Net dividend per share (cents)

Thank you

Please visit www.sph.com.sg for more information.