Introduction to Singapore Press Holdings
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Introduction to Singapore Press Holdings Updated on March 2015 23 May 07 1 Frequently Asked Questions Reference slide no. 1. Why is SPH dominant in the Singapore media industry? 3 – 4 2. Newspaper circulation is falling globally. What is SPH doing 5 about declining circulation? 3. Is SPH’s newspaper business affected by digital and other 6 – 7 media? 4. What is the impact of government policy measures on the 8 newspaper business? 5. What are the growth areas of the Group? Will SPH expand 9 – 16 overseas? 6. What is the Group’s property strategy? 17 – 20 7. What is SPH’s operating margin and is it sustainable? 21 8. What is SPH’s dividend policy? 22 2 A Leading Media Organisation Media Dominant Newspaper publisher in Singapore and top Magazine publisher in Singapore & Malaysia Leading digital news content provider in Singapore Digital Classified Others Property Singapore’s Exhibitions -Media Fund leading -SPH REIT & Events -Education e-marketplaces for Treasury & -The Seletar Mall cars and property Investment Consumer and trade events Approx. $1.7b of investible funds including M1 (13.9%) and Starhub (0.8%) 3 Dominant Newspaper Publisher in Singapore SPH has a spectrum of products including the English flagship daily, The Straits Times (since 1845), and the Chinese daily, Lianhe Zaobao, with a history of more than 90 years. SPH publishes 19 out of 20* licensed newspapers in Singapore In Singapore, Almost 70% of population above newspapers has 15 years old read one more than 50% share of SPH’s news of the media ad publications daily market * SPH owns 40% of Today, a freesheet by MediaCorp 4 Maintaining high newspaper readership We continue to invest in new initiatives catering to readers’ and advertisers’ needs . Revamp of our products including The Straits Times, Lianhe Zaobao, Lianhe Wanbao, The New Paper, Berita Harian/Minggu and MyPaper . Launch of tablet and mobile phone versions (iPad, iPhone and Android) for The Straits Times, The Business Times, Lianhe Zaobao and Lianhe Wanbao . Continued subscription campaigns . The Straits Times is Singapore’s #1 mobile news app . Zaobao, Asiaone and MyPaper rank amongst the top 10 most downloaded news apps in Singapore SPH newspapers maintain popularity and high readership despite challenging environment Source: Nielson Media Research, Media Index 5 Print vs digital media in Singapore . In Singapore, newspapers have more than 50% share of the media ad market . While the proportion of households with internet access (>80%^) is one of the highest globally, the internet’s share of the media ad market remains about 10%* . 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 long tail Our newspapers provide local content that readers are unable to find on other online sources Effectiveness of our print product that reaches close to 3 million individuals daily Local newspaper reading habits are still strong We have continued to maintain strong newspaper readership (print and digital), with our competitively priced subscription packages ^ Source: Infocomm Development Authority of Singapore (IDA), IDA’s Annual Survey on Infocomm Usage in Households for 2013 * Source: PricewaterhouseCoopers LLP, June 2014 6 Daily Average Newspapers Circulation August 2014 Majority of digital subscribers also subscribe for print 7 Ad revenue slowed as property and transport sectors continued to face headwind 5.0% Newspaper Ad Revenue Y-O-Y Growth (%) 0.0% -1.7% -2.9% -5.0% -5.9% -7.0% -7.3% -7.1% -7.4% -7.9% -8.0% -10.0% -7.8% -9.8% -9.1% -10.3% -10.3% -10.2% -15.0% 1QFY14 2QFY14 3QFY14 4QFY14 FY14 Display Classified* Total * Classified includes Recruitment and Notices 8 Growth Thrusts Online Magazines Classified SPH Events and Property Exhibitions 9 Magazines - A Growth Story . A leading publisher in Singapore and Malaysia . More than 100 magazine titles in Singapore and the region . 70 digital titles . Expansion to regional countries through acquisitions and organic Fashion & Beauty growth Blu Inc Group : Sep 2004 (Singapore & Malaysia) Hardwarezone : Oct 2006 (Singapore & the region) Blu Inc Media HK : Dec 2007 (Hong Kong & China) ACP Magazines : Nov 2011 (Singapore, Malaysia & Indonesia) . More than 400% growth in revenue since 2004 Men’s & Special Interest Women’s lifestyle Her World – in various countries with customised local content Luxury Singapore Malaysia Indonesia Thailand Vietnam edition edition edition edition edition Custom Publishing 10 Magazines MALAYSIA CHINA HONG KONG THAILAND SINGAPORE VIETNAM INDONESIA PHILIPPINES From 5 titles in 2003, to over 100 titles in Singapore and beyond 11 Web and Mobile SPH is committed to developing innovative new media platforms that synergise with its traditional media offerings News & Infotainment www.asiaone.com www.tnp.sg cyberita.asia1.com.sg www.straitstimes.com Apps Tamilmurasu.tamil.sg www.businesstimes.com.sg RazorTV Social Networking Razor TV, a novel & interactive web TV. An STOMP (Straits Times Online initiative to engage audience and capture Mobile Print) integrates content new eyeballs 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 12 Singapore’s leading e-marketplace for cars SgCarmart is the number one car classified site in Singapore that offers car listings, car auctions, valuation and a car forum. It achieved page views of about 44 million and 1 million unique visitors*. * As at January 2015 13 Singapore’s leading e-marketplace for property Streetsine offers real time, relevant and proprietary information and other services for efficiently transacting real estate in Singapore. It has established strategic partnerships with 14 major real estate agencies in Singapore and sees more than 200,000 listing searches each month. 14 Regional Online Classified . Expanded classified business into the region focusing on Malaysia and Vietnam . SPH holds a 33.3% stake in mudah.my and chotot.vn, which are the No. 1 classified websites in Malaysia and Vietnam respectively . Joint venture with Naspers to Thailand develop platforms in Thailand Indonesia (18.6% stake) and Indonesia (13.3% stake) . Enterprise value of S$303 million^ 15 ^ As at 1 September 2013 Events and Exhibitions . Since 2008, Sphere expanded rapidly to become a regional leader in events and exhibitions . Our portfolio of more than 30 shows spans across a variety of themes (consumer, trade and conferences) and covers a wide spectrum of sectors. Expanding regional presence in Malaysia, Myanmar, Philippines and Sri Lanka, through acquisition and bringing homegrown shows to the region. 16 Events and Exhibitions Consumer Trade Conference • Baby & Kids • Building • Healthcare • Tertiary Education Technology • General • Events • Manufacturing Management Management Solutions • Banking • Food & Electronics • Franchising & • Hospitality & • Furniture & Licensing Tourism Lifestyle • Gifts & Stationery • Civil Aviation • Gourmet • Office Equipment • Urban • Motherhood • Food & Beverage Development & • Technology • Automation & Real Estate • Roadshows Laboratory • Weddings 17 Property strategy . Build on track record of Paragon in the retail mall sector . Buy and hold attractive infrastructure in Singapore . Property yields and capital appreciation to boost Group’s total returns . Property projects dependent on future opportunities 18 SPH REIT Paragon The Clementi Mall . Suburban retail mall, strategically . Premier luxury shopping mall on located in a good residential catchment Orchard road, valued at S$2.6b* area with high levels of visitation . 100% occupancy . Valued at S$0.5b* . 100% occupancy Total returns of 25% for maiden year Delivered a distribution yield of 6.01% to shareholders (based on IPO price of $0.90 per unit on 24 July 2013) 19 * Based on latest valuation as at 31 August 2014 The Seletar Mall 1. In Jan 2012, SPH won the tender for the Sengkang commercial site at a bid price of S$328m 2. Attractive location: fast-growing population good mix of public housing and private homes upcoming Seletar Aerospace Park easy access to LRT station and expressways 3. Gross development value of S$0.5b* 4. The mall opened on 28 November 2014 with full occupancy 5. Average footfall is above 1 million visitors per month 6. Pipeline asset for injection into SPH REIT 7. Malls usually take at least one to two rental cycles to stabilise and be yield accretive. As The Seletar Mall has just commenced operations, it is still too early to tell when it will be injected into SPH REIT. * Based on valuation at Aug 2014 21 Healthy Operating Margin S$'m Recurring Earnings* and Operating Margin** 600 40.0% 35.0% 500 30.0% 400 25.0% 300 20.0% 15.0% 200 10.0% 100 5.0% 0 0.0% FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 (Restated)^ Recurring earnings (S$'m) Sky@eleven profits (S$'m) Operating Margin * This represents the recurring earnings of the media, property and other businesses. ** Computed based on recurring earnings excluding Sky@eleven. ^ With effect from FY2013, the Group changed its accounting policy for investment properties from cost to fair value model. The change was applied retrospectively and accordingly, the comparative financial statements for FY2012 were restated 22 Dividend Track Record (cents) 40 110% 96.2%^ 94.4% 107.8% 100% 30 90.2% 90% 20 80.4% 80% 10 27 24 24 22 21 70% 0 60% 2010# 2011 2012 2013 2014 Interim & Final Div (LHS) Div Payout Ratio* (RHS) * Computed based on Group recurring earnings net of SPH REIT’s non-controlling interest (S$315m) # FY2010 included profits from the Group’s Sky@Eleven development ^ Excludes special dividend of 18 cents paid pursuant to the establishment of SPH REIT 23 Thank you Please visit www.sph.com.sg for more information.