Yahoo Finance 
Investor CentralSingapore Press Holdings Limited - Is it looking to acquire more websites like sgCarMart and Chope?
24/10/2013 – Singapore Press Holdings' (SPH) management has highlighted certain initiatives for its growth and cost savings but brokers are reserving their judgment until they see how the company executes on them.
Till then, they hold a neutral view on the stock.
Maybank Research maintained its HOLD rating with a target price of S$4.18 and OCBC Research also maintained its HOLD rating with a target price of S$4.14.
CIMB Research is NEUTRAL on the stock with a target price of S$4.11.
The Group has engaged a consultant to review new growth opportunities whilst exploring ways to strengthen the core media business.
It has identified various initiatives which, when implemented, would generate annual cost savings of about S$19 mln.
The project team is working on initiatives to further improve revenue and profits.
Two examples of such initiatives include cutting back on number of unsold newspapers and workflow changes to better utilise the printing presses.
It has also established an S$100 mln New Media Fund to invest in media-related businesses to stimulate growth.
The company announced these earnings for FY13 on October 11:
Revenue: -2.6% YoY to S$1.2 bln
Profit: -25% to S$431 mln
Cash flow from operations: (S$233.9 mln) vs S$71.3 mln
Dividend: 8 cents per share vs 9 cents per share
Special dividend: 7 cents per share vs 8 cents per share
Dividend (FY13): 40 cents per share vs 24 cents per share
SPH's profit fell due to lower newspaper revenues, higher interest expense from the debt taken on at SPH REIT and lower investment income.
Investor Central. Asian insights for global investors. We ask the tough questions of Asian companies which global investors need answers to.
1. How is the New Media Fund different from investment/acquisition in normal course of business? What returns are they hoping for?
SPH will set up an S$100 mln New Media Fund to invest in media-related businesses.
CIMB Research says SPH is targeting acquisitions of new media start-ups to enhance its online offerings to advertisers.
Why do they need to set up a special fund for this? Can't the acquistion/s be made in the normal course of business?
2. Is it looking to acquire more websites like sgCarMart and Chope?
(Total:5 questions)
While our purpose is to ask the questions which the man on the street would ask, and to help the everyday investor make informed investments, please note that:
Our articles and presentations ('our contents') are not investment advice nor should they be construed as investment advice or any recommendation of any kind; nor meant to cast allegations or insinuations of any kind against any individuals or entities. Before acting on the material in our contents, you should either seek independent advice tailored to your particular circumstances and intentions or rely on your own judgement.
Our articles and presentations express our observations, opinions and theoretical analysis based on the facts that we have gathered or have been provided to us. While we endeavour to ensure that our contents are accurate and are presented in good faith, we cannot and do not warrant the accuracy, adequacy or completeness of the material or that the material is suitable for its intended use; and we disclaim any such warranties express or implied that may be presumed by any party; neither do we take responsibility for the views of companies or other stakeholders or observers or sources quoted or hyperlinked in our contents. While every precaution has been taken in the preparation of our contents, we (and our principals) shall not be liable for any losses or damage or inconveniences due allegedly to errors or omissions in any facts or due allegedly to reliance on our contents in any way whatsoever; nor for any damage to any computer hardware, date information or materials allegedly caused by our contents.
All expressions of opinion and observations in our contents are subject to change without notice and we do not undertake a duty to update and supplement our contents or the information contained herein in the event we obtain any further or more complete information.
©2013 Investor Central® - a service of Hong Bao Media
