Sunday, April 13, 2014

SPH Q2 review

SPH Q2 results was out.

I only want to find out 2 things.

1) Is its media business still  deteriorating?

2) Is property segment able to offset the deterioration?

Here are the numbers.



Operating profits include the recurring media AND property business, property income exclude valuation gains but is before accounting for minority interest.

So, we can see the media business is still deteriorating.

Property income is stable and growing, but after accounting for minority interest, will still be a falling number, not enough to offset the fall in media business.

Display advertisement fees is still very weak, and although Singapore has some quarters of strong GDP from 2Q 2013, it does not show in the advertisement revenue generated. All segments of advertisements show weakness.

Without the one off gain from the partial disposal of 701 stake, Q2 numbers will be horrible.

Well, the only thing to look forward to is the Seletar mall which will be complete in December 2014 and start to contribute in 2015.

SPH should have no problem maintaining the dividends in the short run, but if the deterioration does not stop, even with stronger economic numbers, then either they have to go big in property development, or they need operate even more cost efficiently, or they could raise the ASP of papers. 19 mio annual savings, if you ask me, is not really significant.

The weird thing is: There is a research report saying SPH might test $4.4 in the coming weeks. Hmm... I would start shorting SPH if it does go to $4.4, hahahaha



  1. well from the numbers it is isnt it!

  2. Hi Kyith,

    Er.... It is deteriorating, and property segment cannot offset it.

    Is that what you want to say, right now, that is the numbers.

    Management say they will manage growth and not decline, lets give them a few quarters to see if they could do it.

  3. how many one off gain can there be? yes, without it, the result is quite bad.. any views regarding the net loss/gain from investments 1H2014 (416) VS 1H2013 7263?

  4. Hi Tan,

    Actually the loss is bigger as it wipe out the gain in Q1.

    I am not overly concerned, as the loss is relatively small compare to other segments.

    I think I will not write off SPH yet, since SPH reit can gear up for acquisition.

    SPH has enough money to develop another mall, or property, and wait for Seletar Mall to Mature and inject it to reit.

    The bleeding Others segment, in no longer bleeding so badly even if you take away the 701 sale, lets just hope things improve from here

  5. strange i thought i didnt see the paragraph below the image. now i see it.

  6. I have problem uploading the full picture, so I took it down and edit it.Your eyes not playing tricks on you.

  7. SPH takes down a printing line with 1 time charge. Another is the higher one time bonus resulting much higher cost. Wonder what will the result be like overall if we have consider them ?

  8. Hi Cory,

    I did not go into details but I think these measures are part of the 19 mio savings they say will materialize. Put in the 19 mio, annually the numbers still look bad. They need the economy to start humming again or go big into property

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