SPH reported a 2QFY15 PATMI of S$69.6m, down 14.4% mostly due to the absence of divestment gains recognized in 2QFY14; but partially offset by higher income from investments, a stronger share of results of JV/associates and a higher operating profit of S$68.0m over 2QFY15 which increased 27.1% YoY. We judge these results to be broadly within expectations, and 1HFY15 revenues and operating profit now makes up 47.1% and 48.8% of our full year forecast, respectively. We like that management has successfully managed cost-side pressures over the quarter; and staff costs, material and production costs, and operating other expenses all similarly fell 6.3%, 17.0% and 21.6% YoY, respectively. An interim dividend of 7.0 S-cents per share was declared. Maintain HOLD with an unchanged fair value estimate of S$3.85.
2QFY15 results mostly in line
Singapore Press Holdings (SPH) reported a 2QFY15 PATMI of S$69.6m, down 14.4% mostly due to the absence of divestment gains recognized in 2QFY14; but partially offset by higher income from investments, a stronger share of results of JV/associates and a higher operating profit of S$68.0m over 2QFY15 which increased 27.1% YoY. Topline for the quarter dipped 3.0% YoY to S$270.3m mainly as media revenues continue to slip (down 7.1% to S$202.8m), with advertisement and circulation revenues both falling 8.0% and 7.7%, respectively. The impact of the weaker media numbers, however, was partially negated with contributions from the newly-opened Seletar Mall and revenues from the property segment increased 17.2% to S$60.6m. We judge these results to be broadly within expectations, and 1HFY15 revenues and operating profit now makes up 47.1% and 48.8% of our full year forecast, respectively. In addition, the board declared an interim dividend of 7.0 S-cents per share, which is similarly within expectations and unchanged from that in the same period last year.
Cost pressures were well managed
We like that SPH has successfully managed cost-side pressures over the quarter; and staff costs, material and production costs, and operating other expenses all similarly fell 6.3%, 17.0% and 21.6% YoY, respectively. The group’s staff headcount was kept mostly flat at 4,310 as at end 2QFY15 versus 4,316 at 2QFY14. Newsprint prices continued to inch down to S$573/MT versus S$586/MT in 4QFY14, and average monthly consumption also fell to 6,811 MT from 7,847 MT. While display and classified ad revenues in 2QFY15 fell 8.2% and 8.4% YoY, respectively, management indicated that they are seeing signs of the ad spend outlook stabilizing and that the Singapore Adex benchmark registered a YoY uptick in the month of Feb-15 after four consecutive declines. We opt to maintain our HOLD rating with an unchanged fair value estimate of S$3.85, but would keep a close eye on more visibility for a turnaround in the group’s core media business which could be a key positive catalyst ahead.
Singapore Press Holdings (SPH) reported a 2QFY15 PATMI of S$69.6m, down 14.4% mostly due to the absence of divestment gains recognized in 2QFY14; but partially offset by higher income from investments, a stronger share of results of JV/associates and a higher operating profit of S$68.0m over 2QFY15 which increased 27.1% YoY. Topline for the quarter dipped 3.0% YoY to S$270.3m mainly as media revenues continue to slip (down 7.1% to S$202.8m), with advertisement and circulation revenues both falling 8.0% and 7.7%, respectively. The impact of the weaker media numbers, however, was partially negated with contributions from the newly-opened Seletar Mall and revenues from the property segment increased 17.2% to S$60.6m. We judge these results to be broadly within expectations, and 1HFY15 revenues and operating profit now makes up 47.1% and 48.8% of our full year forecast, respectively. In addition, the board declared an interim dividend of 7.0 S-cents per share, which is similarly within expectations and unchanged from that in the same period last year.
Cost pressures were well managed
We like that SPH has successfully managed cost-side pressures over the quarter; and staff costs, material and production costs, and operating other expenses all similarly fell 6.3%, 17.0% and 21.6% YoY, respectively. The group’s staff headcount was kept mostly flat at 4,310 as at end 2QFY15 versus 4,316 at 2QFY14. Newsprint prices continued to inch down to S$573/MT versus S$586/MT in 4QFY14, and average monthly consumption also fell to 6,811 MT from 7,847 MT. While display and classified ad revenues in 2QFY15 fell 8.2% and 8.4% YoY, respectively, management indicated that they are seeing signs of the ad spend outlook stabilizing and that the Singapore Adex benchmark registered a YoY uptick in the month of Feb-15 after four consecutive declines. We opt to maintain our HOLD rating with an unchanged fair value estimate of S$3.85, but would keep a close eye on more visibility for a turnaround in the group’s core media business which could be a key positive catalyst ahead.
No comments:
Post a Comment