Singapore Press Holdings1HFY2010 Financial Results
13 April 2010
2
1H FY2010S$’ 000
1H FY2009S$’ 000
Change
Operating Revenue 672,670 627,411 7.2%
Operating Profit # 286,830 221,670 29.4%
Investment Income 13,657 (33,781) NM
Net Profit attributable to shareholders
258,034 160,055 61.2%
# Recurring earnings of the media and property business, including profits from Sky@eleven development
NM: Not meaningful
Improvement in operating revenue driven by growth in print ad revenue and strong contribution from Property
Group 1HFY10 financial highlights
3
Operating Revenue Composition
(S$672.7m)
9.4%51.7%
15.2%
5.6%18.1%
Advertisements - PrintCirculation Rental & ServicesProperty DevelopmentOthers
Recovery in core business and sturdy Property performance
� Operating revenue of the Newspaper and Magazine segment improved by S$11.9m (2.6%) to S$465.9m in tandem with the economic recovery
� Higher percentage of completion for Sky@elevencontributed to the S$31.4m (20.5%) increase in Property revenue
4
Print Advertisement Revenue
Composition (S$347.8m)
8.2%
59.8%
32.0%
Display
Classif ied *
Magazines & Others
Improvements in display and recruitment ads
� Print advertisement revenue was S$13.7m (4.1%) higher y-o-y
� Improvements were seen across majority of the display ad sectors
� Despite a strong rebound in recruitment ads, Classified ads declined marginally mainly due to weakness in the vehicles sector
* Classified includes Recruitment and Notices
5 * Classified includes Recruitment and Notices
Ne wspape r Ad Re v e nue Y -O-Y Growth (%)
10.0%
20.2%
2.0%
-15.7%-13.2%
-17.8%
-0.5%
6.4%
-23.7%
-30.1%
-21.5%
-6.0%
6.0%
-1.0%
-23.0%
15.0%
-18.0% -17.5%
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
3QFY09 4QFY09 FY09 1QFY10 2QFY10 H YFY10
Display Class if ied* Total
Positive trend in 2Q newspaper ad revenue
6
Daily Average Circulation Copies
0
50
100
150
200
250
300
350
400
THE STRA ITS
TIM ES
THE SUNDA Y
TIM ES
THE B USINESS
TIM ES
THE NEW
PA PER/THE NEW
PA PER SUNDA Y
LIA NHE ZA O
B A O
LIA NHE W A N
B A O
SHIN M IN DA ILY
NEW S
B ERITA
HA RIA N/ B ERITA
M INGGU
TA M IL M URA SU
Th
ou
san
ds
1H FY2010 1H FY2009
Group circulation revenue decreased by 2% in line with lower circulation copies sold
7
Total costs declined by 4.8% largely due to lower newsprint costs
Cost Composition (S$391.0m)
6.1%
10.9%
12.3%
12.6%
8.8%
8.7%
40.6%
Staff Cost Newsprint Property Development Cost
Depreciation Other Production Cost Other Overheads
Others
8
Average Newsprint Charge-Out Price &
Monthly Consumption
779
531 521
612
9,298
9,8299,6839,644
400
450
500
550
600
650
700
750
800
850
3QFY09 4QFY09 1QFY10 2QFY10
8,000
9,000
10,000
11,000
12,000
13,000
LHS - Prices (US$)
RHS - Ave Mthly Consumption (MT)
Newsprint charge-out rates expected to increase at a moderate level
9
-1.5%4,016 3,955Headcount as at end Feb 10
-1.3%3,998 3,946 Average Headcount
8.4%146,328 158,585Total Staff Cost (S$'000)
Change1HFY091HFY10Staff Cost
Staff costs increased by 8.4% due to higher variable bonus provision in line with improved newspaper profits
10
# Profit before Investment Income
* Restated for retrospective accounting adjustments (FRS 40)
Recurring Earnings# and Operating Margin
0
50
100
150
200
250
300
350
1H FY06* 1H FY07* 1H FY08 1H FY09 1H FY10
22.0%
24.0%
26.0%
28.0%
30.0%
32.0%
34.0%
36.0%
38.0%
40.0%
42.0%
44.0%
Profit before investment income (S$'m) Operating Margin Operating Margin excluding Sky@eleven
Recovery of operating margin as a result of rebound in ad revenue and lower newsprint costs
11
Group Investible Fund (S$0.8b)
12.5%
30.2%
19.6%
37.7%
Equities
Bonds
Investment Funds
Cash and deposits
Group investible fund
� Net investment income of
S$13.7m, a turnaround of
S$47.4m compared to
1HFY09
� The Group will maintain a conservative stance for this financial year
(As at Feb 28, 2010)
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� SPH set up a bond programme to raise up to S$1 billion
� The funds will be used to finance its general working capital, capital expenditure, corporate requirements (including acquisitions and investments) and/or refinancing its existing borrowings
� The first issue of S$600m (after the upsize option) will bear a fixed interest rate of 2.81% and mature in 2015
S$1b multicurrency medium term note programme
13
Sky@eleven
� Total project revenue in excess of S$650m, with S$573m recognised to-
date
� TOP will be obtained in the coming months
Paragon
� Continues to be at 100% occupancy, providing a steady recurrent income
stream.
Clementi Mall
� Expected handover from HDB in Aug 2010 and mall operations to begin in
the first half of 2011
Property
14
� In line with our dividend track record, the Board has declared an interim dividend of 7 cents per share
Interim dividend
15
NewspapersNewspapers
MagazinesMagazines
Book publishingBook publishing
Digital screensDigital screens
Static billboardsStatic billboards
Mobile marketing Mobile marketing
[SMS / LBA][SMS / LBA]
Mobile searchMobile search
RadioRadio
[English & Chinese][English & Chinese]
Events / Exhibitions Events / Exhibitions
/ Tradeshows/ Tradeshows
Ambient advertisingAmbient advertising
Installations Installations
Online display Online display
Online search Online search
Online classifiedsOnline classifieds
Database marketing Database marketing -- eDMeDM
SPH is on multiple platforms
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Maximising publicity for our valued partners
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ADVERTISERSADVERTISERSADVERTISERSADVERTISERSADVERTISERSADVERTISERSADVERTISERSADVERTISERS
PUBLICITYPUBLICITYPUBLICITYPUBLICITYPUBLICITYPUBLICITYPUBLICITYPUBLICITY
PROMOTIONSPROMOTIONSPROMOTIONSPROMOTIONSPROMOTIONSPROMOTIONSPROMOTIONSPROMOTIONSCONSULTANCYCONSULTANCYCONSULTANCYCONSULTANCYCONSULTANCYCONSULTANCYCONSULTANCYCONSULTANCY
INNOVATIONINNOVATIONINNOVATIONINNOVATIONINNOVATIONINNOVATIONINNOVATIONINNOVATION
LEVERAGELEVERAGELEVERAGELEVERAGELEVERAGELEVERAGELEVERAGELEVERAGEPRICEPRICEPRICEPRICEPRICEPRICEPRICEPRICE
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� An Orchard Road annual key campaign aimed at presenting Fashion for Everyone
� A six-week campaign (2 April to 9 May 2010) comprising fashion shopping and lifestyle experiences - from fashion styling workshops to fashion shows, from fashion photography exhibitions to contests/shopping privileges
� SPH has the proven ability to engage Singaporeans and visitors en-masse
� Orchard Road Business Association (ORBA) has appointed SPH as the campaign manager and official media partner
Fashion Season @ Orchard
Thank you
Please visit www.sph.com.sg
for more information.