1 SINGAPORE PRESS HOLDINGS SINGAPORE PRESS HOLDINGS 3Q FINANCIAL RESULTS 3Q FINANCIAL RESULTS 11 July 2007 11 July 2007
2 FINANCIAL HIGHLIGHTS FOR 3Q FY07 Print advertisement revenue for 3Q surged 10.4% Operating expenses up 5% in line with stronger operating results & continual investment in new media initiatives Operating profits up 15.2% Investment income for 3Q more than doubled to $75.3m
3 FINANCIAL HIGHLIGHTS (cont’d) Group 3Q 3Q FY 2007 FY 2006 Change S$ ’ 000 S$ ’ 000 % Operating Revenue 288,059 265,653 8.4 Profit before Investment Income 108,822 94,502 15.2 and Exceptional Items # Net Income from 75,312 31,497 139.1 Investments Profit before Exceptional Items 186,137 125,550 48.3 Exceptional Items - 69,149 (100.0) Profit Attributable to 159,775 174,645 (8.5) Shareholders # This represents the earnings of the media and property businesses on a recurring basis.
4 SPH Newspaper Advertisement Revenue Y-O-Y Growth % Positive trends for Display and continued growth of Classified Positive trends for Display and continued growth of Classified 18.0% 16.0% 14.0% 11.7% 12.0% 10.2% 9.3% 10.0% 8.0% 8.1% 7.9% 6.6% 7.2% 8.0% 5.5% 4.7% 6.0% 4.3% 3.9% 4.0% 3.2% 2.1% 2.0% 0.9% 0.0% -0.2% -2.0% -1.3% -1.0% -4.0% -3.0% -6.0% -5.7% -8.0% -10.0% -7.5% 3QFY06 4QFY06 FY06 1QFY07 2QFY07 3QFY07 YTDFY07 Display Classified* Total * Classified includes Recruitment and Notices
5 YTD FY2007 Circulation Copies Y- -O O- -Y Growth (%) Y Growth (%) YTD FY2007 Circulation Copies Y 10.0% 6.5% 5.5% 5.0% 0.0% -0.6% -1.1% -1.4% -1.8% -2.7% -3.7% -5.0% ST SUT BT TNP BH LHZB LHWB SMDN
6 SPH Group 3Q FY2007 Cost increase well- -managed managed Cost increase well Operating Revenue Operating Revenue Total : $22.4m (8.4%) Total : $22.4m (8.4%) $2.8m $2.8m $’m 300 (+28.2%) (+28.2%) Costs Costs $1.6m $1.6m Total : $8.6m (5.0%) Total : $8.6m (5.0%) Operating Revenue & Costs (+6.6%) (+6.6%) 250 $0.4m (-0.8%) 200 $1.6m $1.6m (- ( -2.9%) 2.9%) 150 $1.9m (+8.1%) $0.0m $0.0m 100 (+10.4%) $18.4m (- -0.1%) 0.1%) ( 50 $8.3m (+12.0%) 0 FY06 FY06 FY07 FY07 Advertisement - Print Other Production Cost Staff Cost Rental & Services Circulation Others Newsprint Others
7 3Q FY2007 Staff Costs 3Q FY2007 Staff Costs Variable Bonus Provision ~ Higher operating profits ~ New performance-based incentive scheme Headcount Staff Costs (May FY2007: 3,684; May FY2006: 3,583) increase ~ New subsidiaries (12.0%) ~ New print and online initiatives Annual Increment ~ Follow NWC’s recommendation of 4-5% on average
8 Newsprint Costs Newsprint Costs Average Newsprint Charge-Out Price & Monthly Consumption 650 13,000 606 608 602 594 600 586 12,000 550 11,323 500 11,166 10,812 10,783 11,000 450 400 10,000 10,054 350 300 9,000 3QFY06 4QFY06 1QFY07 2QFY07 3QFY07 LHS - Prices (US$) RHS - Ave Mthly Consumption (MT)
9 Media & Property # # Recurring Income - - Media & Property Recurring Income Sustaining an operating margin of around 35% 40% 350 Profit before investment income 35% 300 Operating Margin (%) 30% 250 25% 200 20% 150 15% 100 10% 50 YTD Q3 03 YTD Q3 04 YTD Q3 05 YTD Q3 06 YTD Q3 07 Profit before investment income Operating Margin # Profit before investment income
10 Moving ahead Moving ahead • Expanded contract publishing business • Further consolidation under SPH Magazines for greater resource efficiency and content synergy • HardwareZone garnered numerous accolades: i) No. 1 Online Media award for IT News, Marketing Magazines ii) 3 Top awards, Hitwise (Hardware, IT Media, Net Communities and Chat) iii) Highest campaign placement - May, AdRelevance
11 Moving ahead Moving ahead • Marked 1st anniversary with month- long celebrations • Widened reach to readers via multimedia platform • Exploring further working opportunities with advertisers • Top 10 advertising portals for IT, finance and business news - Marketing Magazines AsiaOne clinched Top 5 positions in all 3 categories
12 Investing in New Media Investing in New Media • Expanding ST701’s market share through coordinated efforts in print, online and outdoor media http://www.st701.com.sg • 1st year with phenomenal growth • Over 70 m page-views recorded to date • Reinforced positioning as leading local citizen journalism site • Constantly generating new ideas and be on top of what’s the latest interest on the Net http://www.stomp.com.sg
13 Investing in New Media Investing in New Media • Aim to provide Singapore’s first online search engine focusing on all things local • Launched nation-wide business data collection drive to build and expand database • Potential regional projects identified Total investment by SPH expected to be around $50m • New generation newsstands launched in June 2007 to better reach out to consumers • Synergies with the Company’s print and radio operations • Plans to establish new buzz pods islandwide. 8 already in operation. SPH Buzz pod
14 Investing in New Media Investing in New Media • Increased application download and zap rate • Extensive advertising and promotion plans launched • Continue to extend its outdoor advertising network with new site acquisitions - Cairnhill Place - The Arcade - Funan DigitaLife Mall - Chinatown Point - Lucky Plaza lamp-posts - SPC petrol stations • Reactrix, a high-impact advertising medium, was launched as another choice offering to advertisers.
15 Properties Properties • Construction is underway • Recognition of profits depends on construction progress • Upward revaluation of Paragon - $1.82bn (20% increase from Jun ‘06) • Rental yield expected to be healthy amidst strong sentiments in the property market • Property yield expected to maintain at above 4% based on market valuation
16 ~ Thank you ~
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