SPH posts higher 1Q earnings of $60.4 mil on investments income; media revenue drops 14%

SPH posts higher 1Q earnings of $60.4 mil on investments income; media revenue drops 14%

By: 
Samantha Chiew
12/01/18, 06:29 pm

SINGAPORE (Jan 12): Singapore Press Holdings reported 1Q18 earnings increased 32.1% to $60.4 million compared to $45.7 million in 1Q17.

The group’s total operating revenue for the first quarter ended November came in 7% lower at $258.8 million compared to $278.3 million a year ago.

Revenue from its media segment dropped 13.9% to $173.9 million from $201.9 million in 1Q17, but still remained the major contributor to its total revenue. The decline in revenue was due to a drop in advertisement and circulation revenue.

Revenue from the group’s property segment was 1.2% higher at $61.2 million from $60.5 million last year, on the back of higher rental income from the retail assets.

The group’s revenue from other segments increased by 48.2% to $23.6 million compared to $15.9 million in the same period last year, with contributions from the aged care business.

Other operating income increased about 139% to $8.55 million from $3.58 million last year, due to the dilution of interest on an associate’s IPO listing.

Gross profit for the quarter came in at $267.3 million, 5.2% lower than $281.9 million a year ago.

Finance costs increased by 16.6% to $8.81 million from $7.55 million in the previous year.

In 1Q18, the group made a gain of $12.4 million from its net income from investments, compared to a loss of $1.8 million recorded in 1Q17, mainly attributed to gains on disposal of investments and dividend income.

It also made a gain of $227,000 from the share of results of associates and joint ventures, compared to a loss of $1.07 million the same period a year ago, attributable to profits from an associate in the property segment.

Ng Yat Chung, CEO of SPH says, “We will roll out new products to deal with the disruption in the core media business. At the same time, we will continue to pursue other growth opportunities to diversify revenue streams.”

Shares in SPH closed 2 cents lower at $2.63 on Friday.

DBS undergoes target price cuts after a record FY18, but remains a 'buy'

SINGAPORE (Feb 19): Jefferies Singapore, OCBC Investment Research and RHB Research are maintaining their “buy” calls on DBS Group while lowering their price targets to $28.50, $29.31 and $28.80, respectively. This comes after the release of its 4Q18 results, which saw earnings grow 8% y-o-y to $1.32 billion to bring the bank’s earnings for the full year to a record high of $5.63 billion. In a Tuesday report, Jefferies analyst Krishna Guha says he has lowered his FY19-20 earnings per share (EPS) estimates on the back of reduced loan and non-interest growth, although valuations remai....
Read More >>

Winners and losers from Singapore's budget as election looms

SINGAPORE (Feb 19): Singapore Finance Minister Heng Swee Keat boosted health-care and military spending, gave tax rebates to citizens and tightened rules on foreign workers ahead of an election that could come as early as this year. Heng announced a new $8 billion support package for seniors in his budget speech on Monday, as well as measures to help local businesses adopt new technologies. The expansionary fiscal plan will push the overall budget deficit to 0.7% of gross domestic product in the year ending March 2020, from a revised surplus of 0.4% this year. The finance minister opened....
Read More >>

Sasseur REIT FY18 DPU exceeds IPO forecast by 12.6%

SINGAPORE (Feb 18): The manager of Sasseur REIT announced a 4Q18 DPU of 1.999 cents, 28.1% higher than forecast. This also brings 2H18 DPU to 3.541 cents and FY18 DPU to a total of 5.128 cents. Sasseur REIT offers investors the unique opportunity to invest in the fast-growing retail outlet mall sector in China through its initial portfolio of four quality retail outlet mall assets. 4Q18 distributable income came in at $23.6 million, 28.1% higher than forecast while EMA rental income came in 1.6% higher than forecast at $31.2 million. Based on the Feb 18 closing unit price of $0.71,....
Read More >>