SPH FY18 earnings fall 20% to $281 mil on absence of divestment gain

SPH FY18 earnings fall 20% to $281 mil on absence of divestment gain

Samantha Chiew
15/10/18, 06:40 pm

SINGAPORE (Oct 15): Singapore Press Holdings (SPH) reported FY18 earnings fell 19.7% to $281.1 million from $350.1 million in FY17.

In FY18, the group did not record any gain on divestment of a joint venture compared to $149.7 million recognised in FY17.

Operating revenue for the financial year ended Aug 31 came in 4.8% lower at $982.6 million, compared to $1.03 billion in the same period last year.

This drop in overall operating revenue was led by a 9.6% y-o-y decline in media revenue to $655.8 million. The group’s property revenue also saw a slight decline of 0.7% y-o-y to $242.4 million. But this was partly offset by a 34% y-o-y increase in other revenue to $84.4 million.

Other operating income increased by 18.5% to $23.1 million from $19.5 million a year ago, mainly due to a gain arising from the dilution of interest on the IPO listing of MindChamps Preschool.

Finance costs increased by 19.8% to $37.5 million, compared to $31.3 million in the previous year, mainly due to interest cost on the $280 million term loan taken up during the year to fund the development of The Woodleigh Residences and The Woodleigh Mall.

As at end Aug, the group’s cash and cash equivalents stood at $359.5 million.

The group has proposed a final dividend of 7 cents per share for FY18, comprising a normal dividend of 3 cents per share and a special dividend of 4 cents per share. This is lower than the final dividend of 9 cents per share declared a year ago.

The dividends for FY18 will be payable on Dec 21.

“Print continues to experience headwinds, but we are seeing encouraging results from our efforts to digitise the core Media Business. We are making good progress in growing our Property, Digital Portfolio and Aged Care businesses, including our recently acquired assets in the Purpose-built Student Accommodation sector,” says Ng Yat Chung, CEO of SPH.

SPH and Keppel on Sept 27 announced a pre-conditional voluntary offer for M1 at $2.06 per share. Axiata Group Bhd, the majority shareholder of M1 that holds a 28.7% stake, is currently reviewing its options and has yet to announce its decision.

Shares in SPH closed 1 cent lower at $2.62 on Monday. 

Frasers Centrepoint Trust poised to ride on popularity of suburban retail malls, analysts say

SINGAPORE (May 27): Suburban retail malls are quickly gaining favour in Singapore, stealing local visitors away from the famed Orchard Road shopping belt. And Frasers Centrepoint Trust (FCT), which currently owns a portfolio of six suburban malls, looks poised to capitalise on this trend. Already in FCT’s suburban mall portfolio are Causeway Point, Northpoint City North Wing, Changi City Point, YewTee Point, Anchorpoint, and Bedok Point. The retail REIT has also proposed to acquire the one-third interest in Sapphire Star Trust, which owns the Waterway Point mall in Punggol, from its sp....

Singapore startup Trax is raising funds at $1.1 billion value

SINGAPORE (May 27): Trax, a Singapore-based startup serving the retail industry, is finalising a deal to raise US$100 million ($137 million) at a pre-money valuation of about US$1.1 billion, a price tag that could make it the second most valuable startup in the city-state. The company is talking with a few private equity firms and the new funding round is expected to close by the end of June, Chief Executive Officer Joel Bar-El said in an interview ahead of a conference at Singapore Exchange on Monday. Trax raised US$125 million last year in a round led by Chinese private equity firm Boyu C....

CapitaLand's merger with Ascendas-Singbridge to herald new growth era: DBS

SINGAPORE (May 27): DBS Group Research believes CapitaLand’s (CAPL) merger with Ascendas-Singbridge (ASB) will herald a new era of growth for the property group. See: CapitaLand and Ascendas-Singbridge in $11 bil deal to create Asia’s largest diversified real estate group DBS sees the combined entity emerging stronger financially and with an operational scale that puts it among the largest real estate managers globally. “Our RNAV is revised upwards to $5.42, accounting for ASB numbers and our target price is raised to $4.00 on the back of a similar 25% discount to RNAV. Buy,” ....