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SPH Q312 Results

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Extracts,

11.1 Group operating revenue of S$962.7 million for YTD 3Q 2012 was S$27.3 million (2.9%) higher compared to YTD 3Q 2011. Revenue for the Newspaper and Magazine business of S$758.2 million was marginally lower by S$4.5 million (0.6%). Print advertisement revenue was S$583.2 million, slightly lower by S$0.5 million (0.1%) compared to the same period a year ago. Circulation revenue declined by S$3.4 million (2.2%) to S$151.8 million.

Rental income for the Group grew by S$24.1 million (20.2%) to S$143.5 million. Clementi Mall recorded rental income of S$27.7 million, an increase of S$20.3 million (271.2%) as the mall was not fully operational last year. Paragon’s rental income increased by S$3.5 million (3.2%) as a result of higher rental rates achieved.

Operating revenue from the Group’s other businesses rose by S$7.8 million (14.6%) to S$60.9 million, with the increase coming from the internet and exhibitions businesses.


11.3 Consequently, recurring earnings for YTD 3Q 2012 of S$323.9 million was S$18.5 million (6.1%) higher than that of YTD 3Q 2011.

11.4 Investment income fell by S$25.5 million (63.8%) to S$14.5 million mainly due to mark-to-market losses arising from volatility in foreign exchange rates and lower dividend income. In addition, last year’s income included a reversal of provision for loss on derivative financial instrument.


11.7 Overall, net profit attributable to shareholders was S$281.4 million, S$11.1 million (3.8%) lower compared to YTD 3Q 2011.

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11.4 {Investment income fell by S$25.5 million (63.8%) to S$14.5 million mainly due to mark-to-market losses arising from volatility in foreign exchange rates and lower dividend income. In addition, last year’s income included a reversal of provision for loss on derivative financial instrument.}

Without 11.4, 3Q's investment income lost of S$25.5 million, 3Q result will be definitely much better.
So i think base on this 3Q result, going forward, 4Q result should be better. ( But always, anything can happen.)
Let's see what's the coming Monday Market's verdict. Up or Down or Neutral? If market's conditions remain, i think SPH's price will be neutral to up slightly.
Vested

(13-07-2012, 09:18 PM)Temperament Wrote: [ -> ]..... If market's conditions remain, i think SPH's price will be neutral to up slightly.

Many forumers noticed the recent strength in our stock market, notably the telcos and blue chips counters. Even the poor GDP flash estimates did not dent the sentiment.

I just came across a news article "Money changers run out of Malaysian ringgit" at CNA website.
http://www.channelnewsasia.com/stories/s...05/1/.html

It was reported that ".....The ringgit is under pressure as Malaysia's general election looms and as investors exit emerging Asian markets for safer assets....."

If that is true, the rally may last a little bit longer as the Malaysia's PM has not yet called a GE and sph price may go up more than slightly. Hope some research houses can study and report whether the same phenomenon happened at previous GEs of our northen neighbour.

The same news article also mentioned that
".....Singapore companies with operations in Malaysia could see profits take a hit.
However, Malaysian companies with operations in Singapore may see currency gains as they repatriate profits."

so don't anyhow wack the market on monday.

(13-07-2012, 10:02 PM)wsreader Wrote: [ -> ]

(13-07-2012, 09:18 PM)Temperament Wrote: [ -> ]..... If market's conditions remain, i think SPH's price will be neutral to up slightly.

Many forumers noticed the recent strength in our stock market, notably the telcos and blue chips counters. Even the poor GDP flash estimates did not dent the sentiment.

I just came across a news article "Money changers run out of Malaysian ringgit" at CNA website.
http://www.channelnewsasia.com/stories/s...05/1/.html

It was reported that ".....The ringgit is under pressure as Malaysia's general election looms and as investors exit emerging Asian markets for safer assets....."

If that is true, the rally may last a little bit longer as the Malaysia's PM has not yet called a GE and sph price may go up more than slightly. Hope some research houses can study and report whether the same phenomenon happened at previous GEs of our northen neighbour.

The same news article also mentioned that
".....Singapore companies with operations in Malaysia could see profits take a hit.
However, Malaysian companies with operations in Singapore may see currency gains as they repatriate profits."

so don't anyhow wack the market on monday.

"so don't anyhow wack the market on monday."
When i read this, i find it funny and laugh. But for some day traders, whacking the market is not unusual. Ha! Ha! again.

Warren buffett today announces he is buying ConocoPhilips spinoff and he mentions about newspapers

Would He Invest in News Corp's Publishing Unit? “I would rather buy newspapers myself directly…I like buying individual papers at the right price. The prices should be low because their revenues are going to decline over time. We are not buying into a business where revenues are going to increase. We have to buy them at the right price. We have to buy papers that are subject to less erosion because they have lost their primacy.”

Read more: http://www.marketfolly.com/2012/07/warre...z20W7Z9Rr2

Clementi mall would probably be fully leased for the whole of 3QFY12, so rental income would probably stay at about $48+mil per quarter going forward unless there is AEI.
Additional rental income from seletar mall will only come on stream in about 3 years. Income from Newspaper and Magazine business would probably continue to see decline, so I expect the recurring income to fall.

Although newspaper classified ad revenue has dropped about -9% yoy for 2 consecutive quarters, I suspect some of the lost ad revenue may be booked under other business due to the set up of STJobs?

btw, how often you visit hungrygowhere to decide where to have your meals? There is no further breakdown of the performance of other business, so it is difficult for old tech people like me to get a handle on how profitable is the investment in internet business.

(13-07-2012, 11:33 PM)Drizzt Wrote: [ -> ]Warren buffett today announces he is buying ConocoPhilips spinoff and he mentions about newspapers

Would He Invest in News Corp's Publishing Unit? “I would rather buy newspapers myself directly…I like buying individual papers at the right price. The prices should be low because their revenues are going to decline over time. We are not buying into a business where revenues are going to increase. We have to buy them at the right price. We have to buy papers that are subject to less erosion because they have lost their primacy.”

Read more: http://www.marketfolly.com/2012/07/warre...z20W7Z9Rr2

Don't quite get what he is trying to say. What he means by "not buying into a business where revenues are going to increase"? Meaning he wants to buy businesses which revenues are decreasing?

(14-07-2012, 12:24 AM)wsreader Wrote: [ -> ]btw, how often you visit hungrygowhere to decide where to have your meals? There is no further breakdown of the performance of other business, so it is difficult for old tech people like me to get a handle on how profitable is the investment in internet business.

The interesting thing is, 'hungrygowhere' was not bought over by SPH, but by singtel (for $12M, must be a record for a local website)! Suddenly, the competition for ads-$$ in the virtual arena just got a lot more tougher for SPH! AND, we don't even know if they are really making any $$ there!

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(14-07-2012, 01:09 AM)Some-one Wrote: [ -> ]

(13-07-2012, 11:33 PM)Drizzt Wrote: [ -> ]Warren buffett today announces he is buying ConocoPhilips spinoff and he mentions about newspapers

Would He Invest in News Corp's Publishing Unit? “I would rather buy newspapers myself directly…I like buying individual papers at the right price. The prices should be low because their revenues are going to decline over time. We are not buying into a business where revenues are going to increase. We have to buy them at the right price. We have to buy papers that are subject to less erosion because they have lost their primacy.”

Read more: http://www.marketfolly.com/2012/07/warre...z20W7Z9Rr2

Don't quite get what he is trying to say. What he means by "not buying into a business where revenues are going to increase"? Meaning he wants to buy businesses which revenues are decreasing?

It means he knows he can buy such biz (facing Revenue declines) on the cheap as few would be competing with him to bid up the price. But, he's also selective as he'll only buy those that are "that are subject to less erosion" ie. Revenue declining but at a lower pace (which means it's either well run or / and in his target area of small towns where people continue to read newspaper for the community news, as what he'd previously mentioned).

For full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Jul 14, 2012
SPH posts net profit of $99.8m
Profit fall of 13.1% in third quarter due to lower investment income

By ALVIN FOO

MEDIA group Singapore Press Holdings reported a 13.1 per cent drop in third-quarter net profit, mainly due to a fall in investment income.

Earnings for the three months to May 31 came in at $99.8 million, about $15 million lower than the $114.8 million seen a year ago.

However, recurring earnings rose 2.2 per cent to $112.6 million on the back of the media and property businesses performing creditably.

Operating revenue grew 0.9 per cent to $331.8 million, largely due to a 12.8 per cent increased contribution from the property segment.

Revenue from newspapers and magazines dipped 0.6 per cent to $261.4 million.

Print advertising revenue remained stable, up 0.4 per cent to $201.8 million, while circulation revenue fell 3.6 per cent to $51.8 million due to fewer copies sold.

Rental income grew 12.8 per cent to $48.7 million.

Clementi Mall recorded rental income of $9.5 million, $3.5 million higher than a year ago - a period when the complex was not fully operational.

Revenue from the Paragon mall in Orchard Road increased $1.9 million, or 5.3 per cent, on the back of higher rental rates.

Operating revenue from SPH's other businesses dropped 4.1 per cent to $21.8 million due to reduced income from the exhibitions business.

Volatility in financial markets sent investment income slumping 59.9 per cent to $9.5 million.

Newsprint costs dropped $1.4 million, or 5.1 per cent, due to lower print volume, while staff costs rose $6 million, or 6.8 per cent, due to salary increments, variable bonus provision, and a higher headcount from the acquisition of ACP Magazines.
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from investor relations

The annual report also provides the segmental results (page 170). SPH's investments in internet, online classifieds, exhibitions and ShareInvestor's financial portal services are presented in 'Others' segment, as these operations are currently not significant to be reported separately.

so they are losing money on all online initatives