UOB KayHian says the 1Q11 performance was within expectations. It notes, net profit declined 29% on year due to the absence of development earnings after the completion of Sky@eleven in 4Q10.
Singapore Press Holdings today reported net profit attributable to shareholders for the first quarter ended 30 November 2010 (1Q 2011) fell 29.3% y-o-y to $102.3 million.
Profit from the Newspaper and Magazine segment improved by 10.0%, driven by the increase in print advertisement revenue.
Singapore Press Holdings said first-quarter net income fell to $102.3 million from $144.7 million a year earlier. Analysts had expected profit of $103.7 million, based on three estimates compiled by Bloomberg.
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Daiwa forecasts Singapore Press Holdings (T39.SG) will report a 1Q FY11 adjusted net profit of $126.6 million (down 12.5% on year), “due primarily to a lack of property-development business in 1Q” (says Clementi Mall will contribute only in 2Q) on revenue of $344.0 million.
The house’s forecast is 9.6% above consensus “which we attribute to our forecast of continued strong advertising volume growth throughout FY11 due to a resilient domestic consumer economy.”
The index represents the cumulative value of ordinary dividends paid by the stock components of the 30-member benchmark index, the Straits Times Index, and will pave the way for “creating products like derivatives, tracker funds, exchange-traded funds and other structured products,” according to a statement sent to the exchange.
Notes, FY10’s “sterling performance” due to strong rebound in ad revenue, Sky@eleven’s contribution, low newsprint cost. Expects ad revenue growth to taper off to 7% in FY11, 5% thereafter.
Says FY10 results in line, 20 cents DPS “tad above consensus’ average, but below what we had hoped for”; full year DPS (includes interim dividend) at 27 cents vs 25 cents in FY09. Notes, operating profits within expectations on higher ad revenues (+9% to $733 million), economic recovery, offset partially by lower property contributions.
Singapore Press Holdings (T39.SG) extends yesterday’s 1.9% gain, +0.5% at 26-month high of $4.23 in active trade despite retreat by most other blue chips, as media group’s defensive traits supportive, says Dow Jones. Prospect of handsome dividend payout, when company releases fiscal FY10 results on Oct. 12, also helping sentiment.
Singapore Press Holdings said today that it has dismissed Peter Khoo Chong Meng, a senior vice-president in the English & Malay Newspapers Division, after he voluntarily admitted to receiving illegal payments and misappropriating shopping vouchers handled by his Editorial Projects Unit.
These vouchers were intended for branding and promotion activities of The Straits Times, which his unit organises.
SPH says Khoo, who served the company for 22 years, has made restitution of $196,500 for the payments he admitted to receiving illegally and for the vouchers he misappropriated.
Singapore Press Holdings (T39.SG) +0.7% at $4.11, extending largely steady recovery since falling to over 5-week low of $3.91 in mid-August, as media group’s defensive traits make stock safer bet than higher-beta plays at time when investor sentiment increasingly edgy given uncertainty over global economic outlook, says Dow Jones.
Singapore Press Holdings (T39.SG) surrenders early gains, flat at $3.95 in light trade vs $3.98 intraday high, still holding near six-week low of $3.91 set last Thursday, which expected to offer support near term, according to Dow Jones.
Stock continues to underperform STI, down 4.4% since beginning August vs benchmark down 2.2% over same period, as SPH widely regarded as close proxy to Singapore economy, which expected to grow at much slower pace in 2H10 vs +17.9% on-year in 1H10.
Wage costs in Singapore expected to keep rising due to tight labour market, but this could benefit demand for companies in consumer-related sectors, such as Singapore Press Holdings (T39.SG), Singapore Airlines (C6L.SG), CapitaLand (C31.SG), Frasers Centrepoint Trust (J69U.SG), Raffles Medical (R01.SG), says Credit Suisse.
JPMorgan upgrades Singapore Press Holdings (T39.SG) to Neutral from Underweight, raises target price to $3.80 from $3.50 on stronger-than-expected 3Q results from rebound in advertising revenue and better rental income, says Dow Jones’
“Results beat JP Morgan and consensus estimates on the back of a stronger rebound in ad revenue, better rental reversion at Paragon, and slightly higher profit booked at Sky@Eleven. We note that revenue from core business recovered to the pre-crisis level with low operating costs,” house says.
Singapore Press Holdings (T39.SG) is up 1.5% at $3.99 as media group’s fiscal 3Q results, guidance supportive.
UBS, which has Buy call with $4.50 target, expects advertising revenue growth to remain resilient as SPH is proxy to Singapore economy.
“We expect this trend to continue in the coming quarters, especially since areas such as retail, tourism and the job market could sustain their growth in the near term.”
Singapore Press Holdings (T39.SG) off 0.5% at $3.91 on mild profit-taking after sustained rise in last six sessions, says Dow Jones.
Investors pausing for breather while awaiting media group’s fiscal 3Q10 results, guidance for coming quarters due Monday. Some analysts expect more upside for stock pending Singapore’s advance 2Q10 GDP data due July 14.
