SPH reports a Full Year Net Profit
of $428.5 million
SINGAPORE, 12 October 2006 - Mainboard-listed Singapore
Press Holdings Limited (SPH) today reported its full year results
for year ended 31 August 2006. Profit before investment income and
exceptional items improved 2.6% to $361.1 million from $351.9 million
a year ago. After taking into account one-off items such as write-back
of impairment losses for The Paragon this year and gain on sale
of the Group’s substantial stake in StarHub Limited last year,
net profit for the year was $428.5 million compared to $488.3 million
in the previous financial year.
The Group’s operating revenue posted an increase of 1.4% to
$1.02 billion. Revenue for the Newspaper and Magazine operations
grew 1.7% to $907.0 million while Property segment rose 10.4% to
$98.7 million.
Total operating expenses at $670.3 million was marginally up by
0.9%. Materials, consumables and broadcasting costs were lower by
7.1% mainly attributable to cost savings from the cessation of TV
broadcasting operations last year partially offset by 9.2% increase
in newsprint costs arising from higher newsprint prices and consumption.
Staff costs were slightly down by 0.1% mainly due to savings arising
from the cessation of TV broadcasting operations offset by annual
salary increment and increase in headcount. Total headcount as at
end August 2006 was 3,585, compared to 3,443 a year ago mainly due
to the launch of new editorial products and ventures into outdoor
advertising and other media businesses. Increase in other operating
expenses by 15.6% was mainly attributable to higher operating costs
associated with the new business ventures, higher premises cost
incurred by The Paragon in line with increased level of activities,
and staff outplacement benefits paid.
Group investment income was $81.7 million against $248.6 million
last year. Excluding the one-time gain of $128.5 million from the
disposal of the Group’s substantial stake in StarHub Limited
and $12.8 million income arising from a capital reduction exercise
undertaken by an investee company last year, the balance variance
was mainly attributable to lower contribution from externally-managed
investments and lower profit on sale of internally-managed investments
partially offset by higher dividend income received.
The exceptional gain of $66.8 million mainly arose from the write-back
of impairment losses for The Paragon ($70.5 million) in view of
its strong sustained valuation. This was partially offset by impairment
charges pertaining to the Group’s investment in the outdoor
advertising and magazine businesses. The exceptional loss of $38.5
million last year comprised mainly charges associated with the media
merger and impairment of goodwill that arose from the acquisition
of new magazine business.
Commenting on the outlook for the next financial year, Mr Alan
Chan, Chief Executive Officer of SPH said: “The Group’s
print advertisement revenue is expected to remain stable, and despite
a declining trend in global newspaper circulation sales, the Group
continues to sustain its level of circulation sales. The Paragon
is likely to continue returning healthy rental yields amidst the
positive sentiments in the property market. The Group, being cognizant
of the increasingly important role of technology in today’s
media landscape, will actively pursue opportunities to leverage
on technology for content creation and advertising across various
media platforms. Overall, the Directors expect the recurring earnings
for the current financial year to be satisfactory.”
Mr Alan Chan added: “The Company will be seeking shareholders’
approval to implement a Performance Share Plan so as to enable the
Company to motivate employees to achieve superior performance as
well as to align the interests of employees and shareholders.”
The Directors of SPH have proposed a Final Dividend of 17 cents
per share, comprising a Normal Dividend of 8 cents per share and
a Special Dividend of 9 cents per share in respect of the financial
year ended 31 August 2006. These dividends are on tax-exempt (one-tier)
basis and will be paid on 22 December 2006. Together with the Interim
Dividend paid during the year, total Dividend payout for FY 2006
will be 24 cents.
Please see attached announcement and fact sheets of SPH Full Year
Results
Issued by Singapore Press Holdings Limited
Co. Regn. No: 198402868E
For more information, please contact:
Juliana Chong
Manager
Corporate Communications
Tel: 6319 1895
Email: julianac@sph.com.sg
Francis Mah
Asst Manager
Corporate Communications
Tel: 6319 1028
Email: mahys@sph.com.sg
About Singapore Press Holdings Limited
Main board listed Singapore Press Holdings Limited is the leading
media company in Singapore, in the print, Internet and broadcasting
platforms. It publishes 14 newspapers in the four official languages,
including Singapore's first free Chinese newspaper, My Paper, and
over 80 magazine titles. Everyday, 2.7 million individuals, or 83
per cent of the people above 15 years old, read one of the SPH publications.
Its Internet Business Unit manages the online editions of SPH's
major newspapers, which enjoy over 100 million pageviews from 6
million unique visitors every month. More recent online additions
are the classified website, ST701, and STOMP (Straits Times Online
Mobile Print), a portal that connects, engages and interacts with
readers on the Internet and via mobile messaging.
SPH owns and operates Paragon, the prime shopping and office building
in the heart of Orchard Road. Paragon features international brands
and luxury goods, restaurants serving wide-ranging cuisines and
lifestyle facilities such as spas and a fitness club.
SPH also owns a 20% stake in MediaCorp TV Holdings Pte Ltd, which
operates free-to-air channels 5, 8, U and TV Mobile, and a 40% stake
in MediaCorp Press Pte Ltd, which publishes free sheet Today. SPH
has a 70% stake in SPH UnionWorks, which operates two entertainment
radio channels, Radio 100.3 in Chinese and Radio 91.3 in English.
In addition, SPH holds an 80% stake in SPH MediaBoxOffice Pte Ltd,
Singapore's largest LED network media company, and a 35% stake in
TOM Outdoor Media Group, a leading outdoor advertising company in
China.
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