Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Singapore Press Holdings — H1 2015 Earnings Presentation
17 slides from Singapore Exchange's earnings presentation, Apr 14, 2015
Slide 1: 1H FY15 Financial Results
1H FY15 Financial Results 14 April 2015
Slide 2: Group 1H FY15 financial highlights
Group 1H FY15 financial highlights 1H FY15 1H FY14 Change S$’000 S$’000 % Operating Revenue 577,350 607,239 (4.9) Operating Profit# 170,337 170,368 NM Net income/(loss) from investments 20,882 (416) NM Gain on partial divestment of 701Search - 52,863 NM Net Profit attributable to shareholders 138,97
Slide 3: Group 1H FY15 financial highlights: operating revenue
Group 1H FY15 financial highlights 1H FY15 1H FY14 Change Operating Revenue S$’000 S$’000 % Media^ 447,247 482,190 (7.2) Property 112,016 102,486 9.3 Others^ 18,087 22,563 (19.8) 577,350 607,239 (4.9) Media • Advertisement revenue fell S$27.7m (7.6%) • Circulation revenue fell S$6.7m (7.3%) Property
Slide 4: Group 1H FY15 financial highlights: profit before taxation
Group 1H FY15 financial highlights 1H FY15 1H FY14 Change Profit/(Loss) before taxation S$’000 S$’000 Note % Media 120,817 124,434 (2.9) (a) Property 71,375 65,596 8.8 (b) Treasury and Investment 11,815 (9,099) NM (c) Others (16,024) 35,920 NM (d) 187,983 216,851 (13.3) (a) Reduced profits due to lo
Slide 5: Group 1H FY15 highlights
Group 1H FY15 highlights Operating Revenue Composition Media (S$577.4m) Advertisement Revenue Composition (S$335.7m) 7.6% 19.4% 18.2% 24.3% 14.8% 58.2% 57.5% Advertisements (Media) Display Circulation Classifieds * Rental & Services Other revenue Magazines & Others * Classifieds includes Recruitment
Slide 6: Advertising market continued to soften
Advertising market continued to soften Newspaper Ad Revenue Y-O-Y Growth (%) 5.0% 0.0% -5.0% -7.1% -7.4% -8.0% -8.3% -8.6% -7.8% -8.7% -10.0% -9.5% -9.2% -8.4% -8.8% -9.1% -9.0% -9.8% -10.2% -9.0% -10.3% -10.3% -15.0% 3QFY14 4QFY14 FY14 1QFY15 2QFY15 1HFY15 Display Classifieds* Total * Classifieds i
Slide 7: Adex declined 6% in 1H FY15
S$’m Adex declined 6% in 1H FY15 10.0 Adex Y-O-Y change 1.3 5.0 (0.8) 0.0 -5.0 -1.3 (-0.6%) -10.0 -9.2 (-4.3%) -15.0 -13.0 (-6.8%) -20.0 -25.0 -25.9 (-11.9%) -27.1 -30.0 (-12.9%) -35.0 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Source : Nielsen Media Research AIS, Adex 7
Slide 8: Circulation copies maintained at last year's level
Circulation copies maintained at last year’s level 500 Daily Average Newspaper Circulation 450 400 350 300 Thousands 250 200 150 100 50 0 The Straits The The New Lianhe Lianhe Shin Min Berita Tamil Times/ The Business Paper/ The Zaobao Wanbao Daily News Harian/ Murasu/ Sunday Times New Paper Berita
Slide 9: Group 1H FY15 highlights: cost composition
Group 1H FY15 highlights Cost Composition (S$415.6m) 20.5% 45.1% 12.4% 6.2% 8.1% 7.7% Staff Cost Newsprint Premises Cost Depreciation Other Materials, Production & Distribution Costs Other Operating Expenses 9
Slide 10: Staff costs declined by 2.5%
Staff costs declined by 2.5% Change 1H FY15 1H FY14 % Staff Costs (S$'000) 187,587 192,408 (2.5) Average Headcount 4,310 4,316 (0.1) Decline in staff costs mainly arose from lower bonus provision as compared against last year. 10
Slide 11: Newsprint prices expected to soften in the near term
Newsprint prices expected to soften in the near term Average Newsprint Charge-Out Price & 700 Monthly Consumption 11,000 650 10,000 607 598 586 600 573 9,000 8,416 550 8,147 7,847 8,000 500 6,811 7,000 450 400 6,000 3QFY14 4QFY14 1QFY15 2QFY15 LHS - Prices (US$) RHS - Avg Mthly Consumption (MT) 11
Slide 12: Operating margin sustained around 30%
Operating margin sustained around 30% S$’m Recurring Earnings# and Operating Margin 250 45% 40% 200 35% 30% 150 25% 20% 100 15% 10% 50 5% 0 0% 1H FY11 1H FY12 1H FY13 1H FY14 1H FY15 Profit before investment income (S$'m) Operating Margin # This represents the recurring earnings of the media, proper
Slide 13: Property performance lifted by The Seletar Mall
Property performance lifted by The Seletar Mall Paragon The Clementi Mall The Seletar Mall • Net Property Income (NPI) grew 9.9% to S$82.0m, boosted by the maiden contribution from the fully leased Seletar Mall which officially opened on November 28, 2014. • Paragon and The Clementi Mall also record
Slide 14: Group investible fund
Group investible fund Group Investible Fund (S$1.9b) • Conservative stance maintained on investment allocation, focused on 38.3% 33.3% capital preservation • Returns are expected to be commensurate with low risk- 5.3% 23.1% return profile to mitigate against volatility Equities Bonds Investment Fund
Slide 15: Updates on Regional Digital Strategy
Updates on Regional Digital Strategy • The Group will continue to focus its efforts on Mudah.my and Chotot.vn (33.3% stake), the leading classifieds websites in Top online classifieds Largest classifieds website Malaysia and Vietnam website in Malaysia, with in Vietnam, with monthly monthly page vie
Slide 16: Interim dividend
Interim dividend The Board has declared an interim dividend of 7 cents per share 16
Slide 17: Thank you
Thank you Please visit www.sph.com.sg for more information.
Singapore Press Holdings — H1 2015 Earnings Presentation on 6ix