SINGAPORE PRESS HOLDINGS LIMITEDSINGAPORE PRESS HOLDINGS LIMITED
1Q FY2009 FINANCIAL RESULTS1Q FY2009 FINANCIAL RESULTS12 January 200912 January 2009
1Q FY 2009S$’ 000
1Q FY 2008S$’ 000
Change
Operating Revenue 340,212 312,057
Operating Profit # 127,825 126,502
Investment (Loss)/Income
(33,674) 9,843 NM
Net Profit 73,007 111,930
Group FY08 Financial Highlights
2
9.0%9.0%
1.0%1.0%
- 34.8%- 34.8%
# Recurring earnings of the media and property business, including profits from Sky@eleven development
NM: Not meaningful
Group FY08 Financial Highlights
3
Group Operating Revenue
9.0% growth to S$340.2m
• Print advertisement revenue declined by 7.3% led by the fall in recruitment advertisements
• Property segment rose by 86.3%� Sky@eleven and Paragon contributed S$34.6m and
S$2.7m respectively to the increase
Recurring Earnings 1.0% higher than corresponding quarter last year
Net Profit Down 34.8% mainly due to net loss in fair value of investments from externally-managed funds following the global financial market meltdown
Investment Income
4
Net loss of S$33.7m
on investments
Mainly from the S$31.6m loss in
value of the Group’s externally-
managed funds following the global
financial market meltdown during
the quarter.
Increase in headcount and annual salary increment offset by lower variable bonus provision
Cost Management - Staff
5
Staff costs decreased 2.1%Staff costs decreased 2.1%
“We have slowed down our hiring, instituted a pay freeze for all seniormanagement staff, tightened our operations and strengthened our financial resources.” – Dr. Tony Tan Keng Yam, Chairman
Cost Management - Newsprint
6
Average Newsprint Charge-Out Price
& Monthly Consumption
575
656
772
588
10,592
11,355
11,825
10,962
300
350
400
450
500
550
600
650
700
750
800
2QFY08 3QFY08 4QFY08 1QFY09
9,000
10,000
11,000
12,000
13,000
14,000
LHS - Prices (US$) RHS - Ave Mthly Consumption (MT)
Despite sliding newsprint prices, charge-out remains high.
We continue to buy forward for our newsprint needs.
Operating Expenses
7
Operating expenses increased by S$9.5m (+23%)
In tandem with the expansion of our business activities
Recurring Earnings# and Operating Margin
8
# Profit before Investment Income* Restated to take into account the retrospective adjustments relating to FRS40 – Investment Property
Operating Margin above 35%
0
20
40
60
80
100
120
140
1Q FY05* 1Q FY06* 1Q FY07* 1Q FY08 1Q FY09
25%
27%
29%
31%
33%
35%
37%
39%
41%
43%
Profit before investment income (S$'m) Operating Margin Operating Margin excluding Sky@eleven
Newspaper Advertising Revenue Y-O-Y Growth %
9
-17% decline in Classified revenue mainly due to fall in Recruitment ads
* Classified includes Recruitment and Notices
8.5%8.4%
3.6%
6.9%
-4.0%
6.0%5.1%
14.6%
-6.8%
-17.0%
1.7%
4.2%
-9.3%
10.9%
6.5%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2QFY08 3QFY08 4QFY08 FY08 1QFY09
Display Classif ied* Total
-1.0% -0.7%
3.9%
-7.8%
-1.4%
-16.1%
11.7%
-1.7%
7.6%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
ST SUT BT TNP ZB WB SM BH TM
Circulation Copies Y-O-Y Growth %
10
2% fall in 1Q’s circulation volume
� Total revenue recognised to-date : S$260.1m
o 4Q FY07 : S$71.3m
o 1Q FY08 : S$16.1m
o 2Q FY08 : S$24.2m
o 3Q FY08 : S$38.1m
o 4Q FY08 : S$59.7m
o 1Q FY09 : S$50.7m
� Step-up in revenue recognition for FY2009
Property – Sky@eleven
11
Project on track for grant of Temporary Occupation Permit (TOP) in 2010
Revenue contribution of S$50.7m
Property - Paragon
12
Near 100%
occupancy
Won “Outstanding Efforts in Advertising & Promotions”& “Outstanding Efforts in Mall Maintenance” 2008
for Shopping Centre Scorecard
S$82m facade enhancement adding40,600 sq ft space
Revenue increased by S$2.7m
Launch of English newspaper – tabla!
13
To tap on the growing interest in India and the rising number of Indian
expatriates working and living in Singapore
A compelling platform for advertisers to engage the Indian Community
Acquisition of Shareinvestor.com
14
• One of the largest investor relations network in Asia
• Provides market data tools and financial applications
• Enhances SPH’s online offering to investors, advertisers and readers
• Enjoys synergies with editorial strength in print
Completed acquisition of Shareinvestors.com with a total consideration between S$12m to S$18m
Sphere Exhibits’ Inaugural Show
15
The Food Safari and Home Electronics Fair was attended by more than 250,000 people over 3 days in Nov 2008
25% stake in OpenNet
16
OpenNet secured the bid to build Singapore’s
Next Generation National Broadband Network (NBN)
• Expected equity investment of up to S$40m
• Boosts Singapore’s competitiveness and attractiveness as a global business and infocomm hub through faster and better broadband access
OpenNet
THANK YOU