Analyst report from Lim and Tan Securities on SPH 1Q result.
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SPH has reported its results for the 1QFY14.
Revenue for the Group’s Newspaper and Magazine
business of $255.9 mln was 2.9% yoy lower as
advertisement and circulation revenue declined by
2.8% and 4.7% respectively.
On the other hand, revenue for the Property
segment rose by 5.4% yoy to $50.8 mln on the back
of higher rental income from Paragon and The
Clementi Mall.
1QFY14 net profit of $88.8 mln (net of SPH REIT’s
profits attributable to non-controlling interests) was
6.6% yoy lower, mainly due to reduced earnings
from the Newspaper and Magazine business as well
as increased finance costs arising from additional
borrowings undertaken on the establishment of SPH
REIT.
Management said that the development of The
Seletar Mall is expected to be completed on
schedule at the end of 2014.
Given the lackluster results, consensus remains
Neutral on the stock, supported by decent yield of
about 5.5%.
Ref:
http://remisiers.org/cms_images/research...115_LT.pdf