SPH is facing the same problem as SMRT

SPH is facing the same problem as SMRT

By: 
Goola Warden
23/06/17, 04:04 pm

SINGAPORE (June 23): Singapore Press Holdings' (SPH) media business once generated reliable cash flows that it invested in other ventures, especially property development.

But the dynamics of the media and property businesses have changed dramatically in the last 15 years.

To be sure, SPH’s property business has already overtaken its media business as the group’s main source of earnings.

Advertisement

For 1HFY2017 ended February, SPH reported $81.75 million in pretax profit from its property division, and only $50.61 million from its media business.

During the period, pre-tax profit from its media business dropped by half, while pre-tax profit from its property business climbed 11%.

Now, SPH is aggressively pushing ahead with further expansion of its property division. Over a week ago, it won a $1.13 billion bid for a 273,842 sf development site in Bidadari.

SPH’s media business is facing the same problem as SMRT Corp.

For years, the MRT train operator suffered weak profitability in the face of hefty investments and public opposition to fare hikes. It sustained itself for a while with rental income from retail space at its MRT stations, before it was taken private by Temasek Holdings last year.

A similar privatisation of SPH’s media business could be just what is needed now.

To read the full story, get your copy of The Edge Singapore (week of June 26), which is on sale now. 

sentifi.com

Sentifi - The Edge Markets Singapore - Top themes and market

Venture, Sarine, SGX bear watching as results season approaches

(Oct 23): As another reporting season approaches, market sentiment towards some of our holdings is riding high. Strong earnings reports for 3QFY2017 could quickly push some of these stocks higher, but any disappointment could lead to an ugly sell-off. In particular, Venture Corp is up 83.4% since we added it to our portfolio in Jan 4. On Aug 4, the company reported a 41.3% rise in revenue for 1HFY2017 to $1.8 billion and a 49.5% jump in earnings to $118.4 million. According to Eugene Chua, an analyst at OCBC Investment Research, Venture should benefit from a seasonally stronger 2HFY2017. ....
Read More >>

Right timing: STI encounters resistance, attempts breakout

SINGAPORE (Oct 20): Here are some charts this week for our technical analysis. Straits Times Index (daily)  The Straits Times Index (3,340) gained a further 21 points during the week, taking the total gain to around 50 points in the past two weeks. This is near the year’s high of 3,354, a level that provides resistance. The 50- and 100-day moving averages are attempting to turn up. But, short term indicators are approaching the top end of their range. Short term stochastics has flattened at its top end, while 21-day RSI is at 64, a level from which it had previously encountered resi....
Read More >>

k1 Ventures' 1Q earnings rise 10.6% to $11.6 mil

SINGAPORE (Oct 20): Investment holding company k1 Ventures posted a 10.6% increase in earnings to $11.6 million for the 1Q ended September, from $10.5 million a year ago. Revenue fell 80.2% to $2.4 million in 1Q18, from $12.3 million a year ago. The decrease was primarily due to the absence of investment income from Knowledge Universe Holdings, a holding company that has various interests in education-related ventures. However, group profit before tax rose 6.1% to $12.2 million in 1Q18, from $11.5 million a year ago. The increase was mainly due to a fair value gain associated with the....
Read More >>