introduction to singapore press holdingssph.listedcompany.com/misc/faq_030511.pdf · dominant...
TRANSCRIPT
Introduction to Introduction to Singapore Press Holdings Singapore Press Holdings
Introduction to Introduction to Singapore Press Holdings Singapore Press Holdings
Updated on 3 May 2011
123 May 07
Frequently Asked QuestionsFrequently Asked Questions
Reference slide no.
1. Why is SPH so dominant in the Singapore media industry? 3 – 4
2. Who are the controlling shareholders of SPH and what is their stake?
5
3. Newspaper circulation is falling globally. What is SPH doing about declining circulation?
6
2
4. Is SPH’s newspaper business affected by the Internet and other media?
7
5. What are the growth areas of the Group? Will SPH expand overseas?
8-13
6. What is the Group’s property Strategy? 14-15
7. What other projects is SPH investing in? 16
8. What is SPH’s operating margin and is it sustainable? 17
9. What is SPH’s dividend policy? 18
Magazines
Leading Magazine Publisher in
Singapore & Malaysia
Broadcasting
2 radio stations and 20% stake in free-to-air TV
A Leading Media Organisation A Leading Media Organisation
Newspapers
Dominant Newspaper Publisher in Singapore
SPH
3
Property
-Paragon-Clementi Mall (60%)
Investments-Approx. S$1b of investible funds
including MobileOne (13.9%) & Starhub (0.8%)
- OpenNet (25%)
New Media
News portals, Online classifieds,
Search and directories
Events/Out-of-homeEvents and
outdoor advertising
SPH
Dominant Newspaper Publisher in SingaporeDominant Newspaper Publisher in Singapore
SPH publishes 18 out of 19*
newspapers 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.
4
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
* SPH also has a 40% stake in Today – a freesheet by MediaCorp^ Source: SPH
SPH ShareholdingSPH 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
5
� SPH has a diversified shareholder base as our shares
are widely held by global and local institutions, as well as
individuals
* Newspaper and Printing Presses Act, Chapter 206 of Singapore^ Ministry of Information, Communications and the Arts
Maintaining High Newspaper ReadershipMaintaining 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 i3
6Remarks: Nielson Fieldwork period: July-June: year indicated refers to the year when fieldwork was completed
Source: Nielson Media Research, Media Index (1992 – 2010)
SPH newspapers maintained its popularity and high readership
despite the challenging environment
Print vs. Internet Media in SingaporePrint 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 81%^, the internet’s share of the media ad market remains under 2%*
� 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
7
� 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
^ Source: Infocomm Development Authority of Singapore (IDA), IDA’s Annual Surveys on Infocomm Usage in Households and by Individuals, Mar 2010* Source: Nielsen Media Research Adex
Growth Thrusts in Media Adjacencies Growth Thrusts in Media Adjacencies
Magazines Internet
8
Events
SPHSPH
Classified &
Directories
Magazines Magazines -- A Growth StoryA Growth Story
Fashion & Beauty
� 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 : Sep 2004 (Singapore & Malaysia)
� Hardwarezone : Oct 2006 (Singapore & the region)
� Blu Inc Media HK : Dec 2007 (Hong Kong & China)
� Luxury Insider (34%) : Oct 2010 (Singapore, Hong Kong & China)
� More than 400% growth in ad revenue since 2004
9
Women’s lifestyle
Men’s & Special Interest
Luxury
Custom PublishingSingapore
editionMalaysia edition
Indonesia edition
Thailand edition
Vietnam edition
Her World – in various countries with customised local content
� More than 400% growth in ad revenue since 2004
InternetInternet
News & Infotainment
www.businesstimes.com.sg
cyberita.asia1.com.sg
tamilmurasu.tamil.sg
www.straitstimes.com
SPH is committed to develop innovative new media platforms that synergise with its traditional media offerings
10
Omy is Singapore's first bilingual news and interactive portal that caters to needs of the new bilingual internet generation
STOMP (Straits Times Online Mobile Print) integrates content and activities in three platforms of print, online and mobile
Razor TV, a novel & interactive web TV. An initiative to engage audience and capture new eyeballs
RazorTV Social Networking
Online Classifieds Online Classifieds –– Establishing a Regional Establishing a Regional FootprintFootprint
� Expanded classifieds business into Malaysia, The Philippines, Indonesia and Australia with Schibsted ASA The Philippines
� ST701 is Singapore’s leading e-marketplace for Jobs, Cars, Property & Shops
11
Malaysia, The Philippines, Indonesia and Australia with Schibsted ASA
� Mudah.my is the No. 1 website in Malaysia and Ayosdito.ph is ranked the Top 2 classified website in The Philippines*
� Developed online directory, 701Panduan in Malaysia with Star Publications (Malaysia) Berhad
* Source: comScore internet media rankings, Sep 10
Malaysia
Indonesia
The Philippines
Australia
EventsEvents
� 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
� It expanded its portfolio of consumer and
12
� It expanded its portfolio of consumer and trade shows through the acquisition of Bizlink Exhibition Services and Eastern Directories in 2010
Leader in Digital Out-Of-Home advertising in Singapore with a retail network that reaches out to 80 per cent of Singapore
OutOut--ofof--Home AdvertisingHome Advertising
� 8 LED screens at strategic locations (Central Business District, Orchard Road, suburban hubs)
13
suburban hubs)
� More than 500 plasma and LCD screens at major malls and banks in Singapore
� Build on track record of Paragon and Sky@eleven
� Aim to establish presence in the retail mall sector over the long term
� Buy and hold attractive infrastructure to ride Singapore’s
PropertyProperty
Strategy
14
� 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
Paragon Clementi Mall
Property Property
15
� Premier luxury shopping mall along Orchard road, valued at S$2.28bn in Jul 2010
� A new suburban retail mall, strategically located in a good residential catchment area with high human traffic expected
� SPH has a 60% stake with NTUC Income and NTUC Fairprice holding the remaining 40%
Synergistic Acquisitions 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
16
� 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
High Operating MarginsHigh Operating Margins
34.5
36.8
38.6 38.239.0
34.8 34.633.2
17
30.5
33.2
2006* 2007* 2008 2009 2010
Operating Margin (%) Operating Margin excluding Sky@eleven (%)
*Restated for applicable retrospective accounting adjustments (FRS 40 & FRS 102)
Remarks: Computed based on recurring earnings
Dividend Track RecordDividend Track Record
26.024.0
27.025.0
27.0
25
30
35
40
(cents) 60
80
100
120
(%)
18
10
15
20
2006 2007 2008 2009 2010
0
20
40
LHS - Dividend per share RHS - Dividend Payout Ratio
^ Reflected on a net basis for comparison purposes