SINGAPORE PRESS HOLDINGS SINGAPORE PRESS HOLDINGS 3Q FINANCIAL - - PowerPoint PPT Presentation

1

SINGAPORE PRESS HOLDINGS SINGAPORE PRESS HOLDINGS

3Q FINANCIAL RESULTS 3Q FINANCIAL RESULTS 11 July 2007 11 July 2007

2

FINANCIAL HIGHLIGHTS FOR 3Q FY07

Print advertisement revenue for 3Q surged 10.4% Operating expenses up 5% in line with stronger

• perating results & continual investment in new media

initiatives Operating profits up 15.2% Investment income for 3Q more than doubled to $75.3m

3

8.4 48.3

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

(8.5) 174,645 159,775 Profit Attributable to Shareholders (100.0) 69,149

• Exceptional Items

125,550 186,137 Profit before Exceptional Items 139.1 31,497 75,312 Net Income from Investments 15.2 94,502 108,822 Profit before Investment Income and Exceptional Items# 265,653 288,059 Operating Revenue % S$’ 000 S$’ 000

Change FY 2006 FY 2007

Group

3Q 3Q

FINANCIAL HIGHLIGHTS (cont’d)

4

SPH Newspaper Advertisement Revenue Y-O-Y Growth %

* Classified includes Recruitment and Notices

• 7.5%
• 3.0%
• 5.7%
• 1.3%

4.3% 11.7% 4.7% 6.6% 7.9% 8.0% 9.3% 7.2% 3.2% 8.1% 0.9%

• 0.2%

3.9%

• 1.0%

2.1% 10.2% 5.5%

• 10.0%
• 8.0%
• 6.0%
• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%

3QFY06 4QFY06 FY06 1QFY07 2QFY07 3QFY07 YTDFY07

Display Classified* Total

Positive trends for Display and continued growth of Classified Positive trends for Display and continued growth of Classified

5

• 1.8%
• 0.6%

5.5% 6.5%

• 1.1%
• 3.7%
• 1.4%
• 2.7%
• 5.0%

0.0% 5.0% 10.0%

ST SUT BT TNP BH LHZB LHWB SMDN

YTD FY2007 Circulation Copies Y YTD FY2007 Circulation Copies Y-

• O

O-

• Y Growth (%)

Y Growth (%)

6

50 100 150 200 250 300

SPH Group 3Q FY2007

Advertisement - Print Circulation Rental & Services Others Staff Cost Newsprint Other Production Cost Others

Cost increase well Cost increase well-

• managed

managed

Operating Revenue & Costs $18.4m $0.4m $1.6m $1.6m $2.8m $2.8m $8.3m $0.0m $0.0m $1.6m $1.6m

Costs Costs Total : $8.6m (5.0%) Total : $8.6m (5.0%)

$’m

Operating Revenue Operating Revenue Total : $22.4m (8.4%) Total : $22.4m (8.4%)

$1.9m

FY07 FY06 FY07 FY06

(+10.4%) (-0.8%) (+6.6%) (+6.6%) (+28.2%) (+28.2%) (+12.0%) ( (-

• 0.1%)

0.1%) (+8.1%) ( (-

• 2.9%)

2.9%)

7

3Q FY2007 Staff Costs 3Q FY2007 Staff Costs

Staff Costs increase

(12.0%) Variable Bonus Provision

~ Higher operating profits ~ New performance-based incentive scheme

Headcount

(May FY2007: 3,684; May FY2006: 3,583)

~ New subsidiaries ~ New print and online initiatives

Annual Increment

~ Follow NWC’s recommendation of 4-5% on

average

8

Newsprint Costs Newsprint Costs

Average Newsprint Charge-Out Price & Monthly Consumption

608 586 602 606 594

11,323 10,054 10,783 10,812 11,166 300 350 400 450 500 550 600 650 3QFY06 4QFY06 1QFY07 2QFY07 3QFY07 9,000 10,000 11,000 12,000 13,000 LHS - Prices (US$) RHS - Ave Mthly Consumption (MT)

9

Recurring Income Recurring Income -

• Media & Property

Media & Property #

#

Sustaining an operating margin of around 35%

# Profit before investment income

50 100 150 200 250 300 350

YTD Q3 03 YTD Q3 04 YTD Q3 05 YTD Q3 06 YTD Q3 07

Profit before investment income 10% 15% 20% 25% 30% 35% 40% Operating Margin (%) Profit before investment income Operating Margin

10

Moving ahead Moving ahead

• Expanded contract publishing

business

• Further consolidation under SPH

Magazines for greater resource efficiency and content synergy

• HardwareZone garnered numerous

accolades: i) No. 1 Online Media award for IT News, Marketing Magazines ii) 3 Top awards, Hitwise (Hardware, IT Media, Net Communities and Chat) iii) Highest campaign placement - May, AdRelevance

11

Moving ahead Moving ahead

• Top 10 advertising portals for IT,

finance and business news - Marketing Magazines AsiaOne clinched Top 5 positions in all 3 categories

• Marked 1st anniversary with month-

long celebrations

• Widened reach to readers via

multimedia platform

• Exploring further working
• pportunities with advertisers

12

Investing in New Media Investing in New Media

http://www.st701.com.sg http://www.stomp.com.sg

• 1st year with phenomenal growth
• Over 70 m page-views recorded

to date

• Reinforced positioning as leading

local citizen journalism site

• Constantly generating new ideas

and be on top of what’s the latest interest on the Net

• Expanding ST701’s market share

through coordinated efforts in print,

• nline and outdoor media

13

Investing in New Media Investing in New Media

• Potential regional projects identified

SPH Buzz pod

• New generation newsstands

launched in June 2007 to better reach out to consumers

• Synergies with the

Company’s print and radio

• perations
• Plans to establish new buzz pods islandwide.

8 already in operation.

• Aim to provide Singapore’s first online search engine

focusing on all things local

• Launched nation-wide business data collection drive to

build and expand database

Total investment by SPH expected to be around $50m

14

Investing in New Media Investing in New Media

• Continue to extend its
• utdoor advertising network

with new site acquisitions

• Cairnhill Place
• The Arcade
• Funan DigitaLife Mall
• Chinatown Point
• Lucky Plaza lamp-posts
• SPC petrol stations
• Reactrix, a high-impact

advertising medium, was launched as another choice

• ffering to advertisers.
• Increased application download

and zap rate

• Extensive advertising and

promotion plans launched

15

Properties Properties

• Construction is underway
• Recognition of profits depends on construction

progress

• Upward revaluation of Paragon - $1.82bn

(20% increase from Jun ‘06)

• Rental yield expected to be healthy amidst strong

sentiments in the property market

• Property yield expected to maintain at above 4%

based on market valuation

16

~ Thank you ~