Saturday, April 14, 2012

SPH: net profit of $84.1 million

SPH has reported a net profit of $84.1 million for the second quarter ending Feb 29.

Presentation slides:$file/2QFY12presentationv2.1_final.pdf?

Some highlights include:
Newspaper and Magazine
•Print advertisement revenue dipped by S$1.2m (0.3%)
•Circulation revenue declined by S$1.4m (1.4%)

•Clementi Mall recorded rental income of S$18.2m
•Revenue from Paragon increased by $1.6m (2.2%)

•Increase attributed to the Internet and exhibitions businesses

An interim dividend of 7c is also declared. This is the same amount as the previous year for the same period.

My Thoughts:
SPH has been expanding its business to the property sector in the past few years. We have seen increase in rental income from the completion of Clementi mall. Earlier this year, SPH won the tender for the Sengkang commercial site with United Engineer Limited (UEL) with SPH holding a 70% stake. Development is expected to take about 4 years to complete. Once is it completed, SPH revenue is expected to increase further. 

In the mean while, with SPH monopolistic business in local publication and attractive dividend yield, I am likely to top up on my stake on this company on market weaknesses.

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