Singapore Press Holdings (SPH)

[KopiKat]

so they are losing money on all online initatives

It's a 'Damned If You Do' (Loses $$) & 'Damned If You Don't' (Others use it to compete with their mainstream adverts biz) kind of situation..

[Drizzt]

why is it losing money if the startup cost and maintenance cost is lower?

[CityFarmer]

why is it losing money if the startup cost and maintenance cost is lower?

It is already a known fact that the internet related biz are in red. The question is raised during one the previous AGM, the answer is SPH need to keep a significant present in the internet community, to avoid been caught out of surprise.

The losing of the "Others" are in the range of 35-60 S$Mils, but after MICE biz included into the "Others", the segment improve gradually.

The loses is perceived as "insurance premium" for media biz. I am always discounted it as CE in my valuation of FCF.

[Drizzt]

hmm thanks. but the enemy is not internet. the enemy seems to be free media.

i spoken to people at reservist, colleagues friends seems no one acquires straits times anymore for our generation

[CityFarmer]

hmm thanks. but the enemy is not internet. the enemy seems to be free media.

i spoken to people at reservist, colleagues friends seems no one acquires straits times anymore for our generation

Effort need to produce media content. No one will do it for free.

The distribution of the media content may change, but source of the content is always with SPH in Singapore

It is come with no surprise, when SPH mandate licensing fee to refer to digital version of article. It is also no surprise SPH sue Yahoo recently. It is the transition shifted gradually...

[Drizzt]

u are only constrain to news pertaining to the country. the biggest competition is channelnewsasia i suppose and they are offering it free. the question u ask is how many sources will reproduce the digital version of their article.

[bran]

Quoting from Kopikat
11.4 Investment income fell by S$25.5 million (63.8%) to S$14.5 million mainly due to mark-to-market losses arising from volatility in foreign exchange rates and lower dividend income. In addition, last year’s income included a reversal of provision for loss on derivative financial instrument.

Was digging through to understand this a bit more as the size of it is not small. As at end Aug 2011, ST and LT investments made up S$982mn (360mn in LT and 622mn in ST). This is not a small number as it is 25% of the total assets, 44% of total equity and 60 cents per share.
Furthermore, investment income is about 11% of PBT in 2011.

Last year’s annual report broke it down further and re-arranging the numbers a little (see notes 14 and 19). Left out some less significant numbers
Quoted Securities- Equities (LT + ST): 410mn (346- LT and 64 ST)
Bonds (ST): 204mn
Quoted funds: 259mn (ST)
Unquoted funds: 55.8 (ST + LT)
Quoted Securities at fair value (??): 49mn

Derivatives (in a couple of lines)
Current asset: 5,105
Non-current liabilities: (6,421)
Current liability : (381)
From note 19, it suggests that the liabilities are interest rate swaps and currency forward (I assume its related to their loans and expenses in foreign currencies)

1. Seems SPH is amassing a larger amount of investments over time, even their SG securities alone is >10% of their total assets.
2. In the annual report, I cannot obtain further details on what these investments are about. The accounting rules may not require them to show the breakdowns but it makes understanding their investments a little more difficult
3. Should SPH be so involved in the investment business?

[Vested]

[CityFarmer]

u are only constrain to news pertaining to the country. the biggest competition is channelnewsasia i suppose and they are offering it free. the question u ask is how many sources will reproduce the digital version of their article.

The value of the newspaper is on news commentary and contribution from columnist.

Channelnewsasia provides slightly different source of content vs newspaper. The co-existence of TV news program and newspaper already there for long time, there are not replacing each other, but supplementing each other.

---

Quoting from Kopikat
11.4 Investment income fell by S$25.5 million (63.8%) to S$14.5 million mainly due to mark-to-market losses arising from volatility in foreign exchange rates and lower dividend income. In addition, last year’s income included a reversal of provision for loss on derivative financial instrument.

Was digging through to understand this a bit more as the size of it is not small. As at end Aug 2011, ST and LT investments made up S$982mn (360mn in LT and 622mn in ST). This is not a small number as it is 25% of the total assets, 44% of total equity and 60 cents per share.
Furthermore, investment income is about 11% of PBT in 2011.

Last year’s annual report broke it down further and re-arranging the numbers a little (see notes 14 and 19). Left out some less significant numbers
Quoted Securities- Equities (LT + ST): 410mn (346- LT and 64 ST)
Bonds (ST): 204mn
Quoted funds: 259mn (ST)
Unquoted funds: 55.8 (ST + LT)
Quoted Securities at fair value (??): 49mn

Derivatives (in a couple of lines)
Current asset: 5,105
Non-current liabilities: (6,421)
Current liability : (381)
From note 19, it suggests that the liabilities are interest rate swaps and currency forward (I assume its related to their loans and expenses in foreign currencies)

1. Seems SPH is amassing a larger amount of investments over time, even their SG securities alone is >10% of their total assets.
2. In the annual report, I cannot obtain further details on what these investments are about. The accounting rules may not require them to show the breakdowns but it makes understanding their investments a little more difficult
3. Should SPH be so involved in the investment business?

[Vested]

SPH had accumulated sufficient retained earning with its huge free cash flow from media biz, and the Skyeleven property project recently. Good dividend was paid out, but still substantial earning was retained. In FY2011, the retained earning is 1.4 S$ billions

The retained earning is a reserve for future expansion. But the cash should not just sit there idling, so most was invested into short-term and long-term investment, and the rest in cash

When the retained earning reaching a size, a capital distribution will occur. It happen on FY2003/2004, stock-split (1-to-5?) when retained earning approaching 1.9 S$ billions. After distribution, the retained earning depleted to 1.1 S$ billions.

The retained earning is used for expansion if need arises. In the recent Sengkang Mall investment, the retained earning had partially funded the investment. Retained earning depleted to approx 1.3 S$ billions after the investment.

(vested)

[Drizzt]

i just feel that people our group do not place that much of an emphasis on editorial quality vs free info.

[CityFarmer]

i just feel that people our group do not place that much of an emphasis on editorial quality vs free info.

I am not so sure on the statement

What i am sure that the forummers here seem enjoying ST articles very much...