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What Investors Need To Know About Singapore Press Holdings Limited’s Latest Full-Year Earnings

Yesterday, the top media organisation in Asia, Singapore Press Holdings Limited (SGX: T39), released its financial results for the fiscal year ended 31 August 2014 (FY2014). SPH has three main operating segments, namely, Newspaper and Magazine, Property, and Others.

For FY2014, SPH’s total revenue fell 2% year-on-year to S$1.22 billion. This was mainly because of a top-line dip of 6% in its Newspaper and Magazine segment. The segment, which had clocked revenue of S$931.7 million, had suffered declines in advertisement and circulation revenue. Falling advertising revenue has been plaguing the company since FY2012.

The other two segments did well. The Property business saw a 3.5% increase in revenue to S$205 million due to higher rental income from Paragon and The Clementi Mall. SPH owns the two malls through SPH REIT (SGX: SK6U). Revenue from the Others segment ballooned 56.7% to S$78.5 million, attributable to higher revenue from exhibitions, sgCarMart (which was acquired in April last year) and the radio business.

During the year, SPH sold a part of its stake in 701Search, an online classified business, to Telenor. It booked a gain of S$52.9 million due to the sale. Despite the one-off gain, net profit for FY2014 was at S$404.3 million, 6.2% lower compared to FY 2013, after taking into account profits and fair value gains attributable to non-controlling interests of SPH REIT.

The decrease in profit led SPH’s earnings per share to fall from S$0.27 in the previous year to S$0.25.

A final dividend of 14 Singapore cents per share – made up of an ordinary dividend of 8 cents and a special dividend of 6 cents – will be paid out for the fourth quarter. Together with the interim dividend of 7 Singapore cents already paid in the second quarter, total dividends dished out by SPH for FY2014 will be 21 Singapore cents. This translates to a dividend yield of 5.04% based on the company’s closing share price of S$4.17 on Wednesday.

Mr Alan Chan, Chief Executive Officer of SPH, commented on the latest results:

“FY2014 marks a milestone year for the Group. Having completed the organisational review during the year, the Group has undertaken a journey of transformation to counteract the challenges presented by a rapidly evolving media landscape. We have gained traction in our quest and will be intensifying efforts to reinvigorate the core media business. We will also continue to pursue opportunities that position the Group for sustainable growth and value creation. On this note, we look forward to the opening of The Seletar Mall by the end of the year.”

SPH is currently going at 16.7 times its 2014 earnings based on its close price yesterday.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.