Singapore Press Holdings 01 (May 08 - Nov 11)

[old friend]

Hi L,

SPH full year ending is 31 August 2008, one and a half months from now. In other words, the full year results and final dividends will be announced together sometime in the 1st half of Oct 2008.

3Q (ending 31 May) results will be out after 5pm today. I am hoping for some surprises.

Advertising Revenue from March 2008 to May 2008 should drop a fair bit, if i can remember the thinness of Strait Times & LianHe ZaoBao for the past 4 month's due to lack of many property launches from 1st March 2008 to 31st May 2008.

But Paragon was revalued upwards to $2b in Jun 2008, implying a increase rentals from Paragon in Q4?

Just my 2 cents.

[LenaHuat]

Well, the verdict is out. Now I can sit back and wait.
This mark-to-revaluation (which is unrealized gain) of Paragon does not appeal to me. I prefer CDL's conservative accounting . But I like SPH's 'cash-up-front' biz. No need to worry abt AR. I also don't expect a revolutionary turnaround of SPH's multimedia biz. Newspaper biz in many parts of the world, are stalling in their growth paths.

[iam802]

I think SPH is good for band trading (or dividend play etc)

I won't expect it to go up a lot more.

At this moment, I just could not see where the growth is.

Media is a tough business. And more people are turning away from newspaper.

There is no 'news' in newspaper in this Internet era.

It exists maybe as a medium for propaganada. Challenging times ahead for SPH.

[kennynah]

bey pio poh....

[winston]

UPDATE 1-Singapore Press profit hit by poor investment gains
Fri Jul 11, 2008 7:02am EDT
By Melanie Lee

SINGAPORE, July 11 (Reuters) - Singapore Press Holdings (SPRM.SI: Quote, Profile, Research, Stock Buzz), Southeast Asia's biggest newspaper publisher, suffered a 15.6 percent decline in quarterly profit after investment gains were hit by turmoil in the world's financial markets.

Investment income for the three months to the end of May plunged nearly two thirds, it said in a statement. But it added that investment earnings a year ago included proceeds from a capital cut by MobileOne (MONE.SI: Quote, Profile, Research, Stock Buzz), in which it owns a stake. Net profit for the first nine months of the year fell 8 percent.

Singapore Press, which has a near monopoly on newspaper publishing in Singapore and owns the pro-government daily Straits Times, reported net profit of S$133.4 million ($98 million) in the three months to May compared with S$158 million a year ago.

"The Singapore economy is forecasted to grow at a more moderate pace in 2008. Advertising revenue...is expected to perform in tandem with the economy," Chief Executive Alan Chan said in a statement.

Total operating costs increased 15.6 percent, reflecting an increased headcount for one of its properties. But rental income at its most valuable asset, the swanky "Paragon" mall on the Orchard Road shopping belt, increased 12 percent. The mall was valued at S$2 billion last month.

Investment gains plunged to S$25.7 million from S$75.3 million a year ago.

SPH said circulation of its flagship Straits Times newspaper fell 0.7 percent year-to-date. It expects newsprint prices to increase due to higher raw material and energy costs.

SPH shares are popular with investors and analysts because for its high dividends. Last week, Credit Suisse kept an "outperform" rating on the stock, but cut its earnings forecast due to higher costs.

Thirteen analysts polled by Reuters Estimates before Friday's results forecast full-year net profit of around S$478 million for the full year to August, down from S$506.2 million in 2006/2007. Singapore Press Holdings employs around 1,000 journalists at its English, Chinese, Malay and Tamil publications.

The firm's shares closed 0.24 percent lower to S$4.18 before the release of the results. They lost 7 percent since the start of the year, outperforming a 15.55 percent drop in the Straits Times Index

[Musicwhiz]

Strange that a newspaper company needs to rely on "investment income" to determine higher or lower net profits. Call me cynical but they should focus on growing their core business - newspapers and publications, instead of venturing into "investments". Perhaps the Singapore market is saturated and SPH is finding it difficult to increase readership numbers without resorting to price increases ?

And being a total monopoly, they should not have a problem with raising prices either.

[kennynah]

overall, businesses that derive revenue only from singapore will always have limitations to their earnings growth...we are just too small, hence customer base is also relatively small....

SPH is a political mouthpiece, which is all that they are ... i do not ever see it as a "for profit" organization...

i will not buy SPH's shares for investment, only for one reason...it cannot grow

just TOL....

[millionairemind]

Written By Dow Jones Newswires on 14 Jul 2008 Dow Jones News Add comments (0)

0815 GMT [Dow Jones] STOCK CALL: JPMorgan cuts target price for Singapore Press Holdings (T39.SG) to S$5.15 from S$5.50, based on sum-of-parts valuation, to reflect reduced value of media group’s core newsprint business. Also cuts FY08-09 earnings forecasts 17% to factor in lower investment income, higher staff costs. But keeps Overweight call, citing stock’s defensive traits, attractive dividend yield. Fiscal 3Q08 net profit down 15.6% on year at S$133.4 million due to 65.9% fall in investment income in wake of volatile global financial markets. Stock down 1.0% at S$4.14.(FKH)

[iam802]

All time low since last year subprime

Will it break this support?

[kennynah]

the volume appears to be tappering down since price decline in Mar08....this P/V indication does not show aggressive sellings..