Introduction to Singapore Press Holdings

Transcription

1 Introduction to Singapore Press Holdings Updated on 20 October May 07

2 Frequently Asked Questions Reference slide no. 1. Why is SPH so dominant in the Singapore media industry? Who are the controlling shareholders of SPH and what is their stake? 3. Newspaper circulation is falling globally. What is SPH doing about declining circulation? 4. Is SPH s newspaper business affected by the Internet and other media? 5. What are the growth areas of the Group? Will SPH expand overseas? What is the Group s property Strategy? What other projects is SPH investing in? What is SPH s operating margin and is it sustainable? What is SPH s dividend policy? 18 2

3 A Leading Media Organisation Newspapers Broadcasting 2 radio stations and 20% stake in free-to-air TV Dominant Newspaper Publisher in Singapore Magazines Leading Magazine Publisher in Singapore & Malaysia Events/Outof-home Events and outdoor advertising SPH New Media News portals, Online classifieds, Search and directories Property -Paragon -Clementi Mall (60%) Investments -Approx. S$1b of investible funds including MobileOne (13.9%) & Starhub (0.8%) - OpenNet (25%) 3

4 Dominant Newspaper Publisher in Singapore SPH has a spectrum of products including the 166-year-old English flagship daily, The Straits Times, and the 88-year-old Chinese daily, Lianhe Zaobao. SPH publishes 18 out of 19 * newspapers in Singapore 77% of population above 15 years old read one of SPH s news publications daily In Singapore, newspapers has more than 50%^ share of the media ad market 4 * SPH also has a 40% stake in Today a freesheet by MediaCorp ^ Source: SPH

5 SPH Shareholding SPH is governed by the Newspaper and Printing Presses Act * in Singapore, which states that no person shall hold >5% of the shares of a newspaper company without the approval of the MICA^ Minister SPH has a diversified shareholder base as our shares are widely held by global and local institutions, as well as individuals 5 * Newspaper and Printing Presses Act, Chapter 206 of Singapore ^ Ministry of Information, Communications and the Arts

6 Maintaining High Newspaper Readership We continue to invest in new initiatives catering to readers and advertisers needs My Paper, the world s first bilingual newspaper Tabla!, an English newspaper for the Indian expatriate community Student publications e.g. IN, Little Red Dot, Thumbs Up, Thumbs Up Junior ZBComma, Gen G and i 3 SPH newspapers maintained its popularity and high readership despite the challenging environment 6 Remarks: Nielson Fieldwork period: July-June: year indicated refers to the year when fieldwork was completed Source: Nielson Media Research, Media Index ( )

7 Print vs. Internet Media in Singapore In Singapore, newspapers has more than 50% share of the media ad market While the proportion of households with internet access reached 82%^, the internet s share of the media ad market remains around 7%* SPH s print media has maintained its dominance despite the presence of the internet Easy access to shops, entertainment and other amenities is Singapore s lifestyle and this offers a superior experience to online shopping Locals frequently visit international websites, which makes online advertising very challenging Our newspapers provide local content that readers are unable to find on other online sources Effectiveness of our print product that reaches 3 million individuals daily Local newspaper reading habits are still strong As readers have to pay to access our online news, we have continued to maintain strong newspaper readership 7 ^ Source: Infocomm Development Authority of Singapore (IDA), IDA s Annual Survey on Infocomm Usage in Households for 2010, April 2011 * Source: PricewaterhouseCoopers LLP, 2011

8 Growth Thrusts Magazines Online Classified SPH Events Property 8

9 Magazines - A Growth Story A leading publisher in Singapore and Malaysia More than 100 magazine titles in Singapore and the region Expansion to regional countries through acquisitions and organic growth Blu Inc Group Hardwarezone Blu Inc Media HK Luxury Insider (34%) : Sep 2004 (Singapore & Malaysia) : Oct 2006 (Singapore & the region) : Dec 2007 (Hong Kong & China) : Oct 2010 (Singapore, Hong Kong & China) More than 400% growth in ad revenue since 2004 Fashion & Beauty Men s & Special Interest Women s lifestyle Her World in various countries with customised local content Luxury Singapore edition Malaysia edition Indonesia edition Thailand edition Vietnam edition Custom Publishing 9

10 Internet SPH is committed to develop innovative new media platforms that synergise with its traditional media offerings News & Infotainment Apps cyberita.asia1.com.sg Tamilmurasu.tamil.sg RazorTV Razor TV, a novel & interactive web TV. An initiative to engage audience and capture new eyeballs Social Networking STOMP (Straits Times Online Mobile Print) integrates content and activities in three platforms of print, online and mobile Omy is Singapore's first bilingual news and interactive portal that caters to needs of the new bilingual internet generation 10

11 Online Classifieds Establishing a Regional Footprint ST701 is Singapore s leading e- marketplace for Jobs, Cars, Property & Shops Expanded classifieds business into Malaysia, The Philippines, Indonesia and Australia with Schibsted ASA The Philippines Mudah.my is the No. 1 website in Malaysia^ and Ayosdito.ph is ranked the Top 2 classified website in The Philippines * Malaysia Indonesia Developed online directory, 701Panduan in Malaysia with Star Publications (Malaysia) Berhad Australia 11 ^ Source: Effective Measures, Jul 2011 * Source: comscore, Jun 2011

12 Events SPH forayed into the events business through fully owned subsidiary, Sphere Exhibits Pte Ltd Sphere aims to be the leading lifestyle event company behind exciting and innovative fairs, shows, events and exhibitions Expanded its portfolio of consumer and trade shows through the acquisition of Bizlink Exhibition Services and Eastern Directories in 2010 Extending footprint into Beijing with COMEX China in

13 Out-of-Home Advertising Leader in Digital Out-Of-Home advertising in Singapore with a retail network that reaches out to 80 per cent of Singapore 11 LED screens at strategic locations (Central Business District, Orchard Road, suburban hubs) More than 500 plasma and LCD screens at major malls and banks in Singapore 13

14 Property Strategy Build on track record of Paragon Aim to establish presence in the retail mall sector over the long term Buy and hold attractive infrastructure to ride Singapore s population growth Property yields and capital appreciation to boost Group s total returns Property projects dependent on future opportunities 14

15 Property Paragon Clementi Mall Premier luxury shopping mall along Orchard road, valued at S$2.32b in Aug 2011 A suburban retail mall, strategically located in a good residential catchment area with high human traffic expected SPH has a 60% stake in the mall which was valued at S$590m in Aug

16 Synergistic Acquisitions Acquisition of Shareinvestor, an internet financial services and technology company and market leader in Singapore, Malaysia and Thailand Enjoys synergies with various SPH online entities, in particular The Business Times and its website, businesstimes.com A book publishing subsidiary which taps on the Group s wealth of editorial content This award-winning team has the expertise to publish books across a broad spectrum of product categories, including Illustrated Non-fiction, Fiction, Trade, Reference and Educational School and Library Material for the export market 16

17 Operating Margins sustained above 30% 40% 35% 30% 25% 35% 35% 31% 33% 33% 20% 15% 10% 5% 0% FY2007* FY2008 FY2009 FY2010 FY *Restated for applicable retrospective accounting adjustments (FRS 40) Note: Computed based on recurring earnings excluding

18 Dividend Track Record (cents) (%) LHS - Dividend per share RHS - Dividend Payout Ratio * 0 * Computed based on recurring earnings of SPH 18

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