Singapore Press Holdings3Q FY2009 Financial Results13 July 2009
Group Financial Highlights – 3Q FY09
3Q FY 2009S$’ 000
3Q FY 2008S$’ 000
Change
Operating Revenue 327,063 344,365 - 5.0%
Operating Profit # 131,301 135,103 - 2.8%
Investment Income 17,597 25,666 - 31.4%
Net Profit 126,725 133,399 - 5.0%
# Recurring earnings of the media and property business, including profits from Sky@eleven development
NM: Not meaningful
Impacted by the economic downturn, the Group’s Newspaper andMagazine segment declined, offset by a strong Property performance
3
8.4%6.9%
-4.0%
-16.0%
-9.6%
-17.8%
-6.8%
6.0%
-17.0%
-26.1%
-21.3%
-30.1%
1.7%
6.5%
-9.3%
-20.1%
-14.3%
-23.0%
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
4QFY08 FY08 1QFY09 2QFY09 HYFY09 3QFY09Display Classified* Total
Newspaper Ad Revenue Y-O-Y Growth (%)
* Classified includes Recruitment and Notices
Classified revenue fell 30.1% mainly due to fall in Recruit ads
4
Circulation Copies Y-O-Y Growth (%)
Circulation revenue increased by S$1.9m in 3Q
5
• Staff costs decreased 18.9% to S$70.8m
– Pay cuts implemented by the Group from Apr 09
– Decrease in profit-related bonus
– S$3.4m Singapore Government Jobs Credit grant
Staff Costs – 3Q FY09
Salaries
Headcount • Total headcount increased to 3,971
– Result of the Group’s continued investment in its new media businesses.
6
588
656
772
827
779
11,825
11,355
10,592
9,192
9,644
400
450
500
550
600
650
700
750
800
850
3QFY08 4QFY08 1QFY09 2QFY09 3QFY09
8,000
9,000
10,000
11,000
12,000
13,000
LHS - Prices (US$) RHS - Ave Mthly Consumption (MT)
Average Newsprint Charge-out Price & Monthly Consumption
Charge-out for FY09 is expected to be below US$800 per tonne
7
Property – Sky@eleven
• Revenue of S$365.0m has been recognised to-date
• Latest resale units above launch price
• On track for TOP in calendar year 2010
8
Property – Paragon
• Rental income increased S$0.6m (+2.1%) in 3QFY09
– 40,000 sq ft NLA added after facade enhancement
– 98% occupancy
• Revaluation of Paragon
– S$1.98b as of Jul 09
9
Recurring Earnings# and Operating Margin
# Profit before Investment Income
^ Restated to take into account the retrospective adjustments relating to FRS102 – Share-based Payment in FY2006
* Restated to take into account the retrospective adjustments relating to FRS40 – Investment Property
Overall margins sustained with profits from Sky@eleven
10
Investible Funds – 3Q FY09
• Equity holdings consist mainly of M1 and Starhub
• Fixed income investments are mainly investment grade corporate bonds and Singapore Government Securities
• Investment funds consists mainly of long-term private equity with established partners
11
• Monitoring the situation and taking necessary actions (improving revenue and managing costs)
• Positioning the Company for long-term growth.
Positioning for Recovery
12
Sphere Exhibits
• Licence 2 Play (May 2009)
• The Kidz Academy (Jun 2009)
Successfully organized 2 more events, providing additional platforms for advertisers to reach out directly to their target audiences.
Thank you
Please visit www.sph.com.sg
for more information.