Yr End Results 31-8-95 - Final - Singapore Press Holdings

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8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group’s business. It must include a discussion of any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on Business Segments/ Review of Results Business Segments The Group is organised into three major operating segments, namely Newspaper and Magazine, Treasury and Investment and Property. The Newspaper and Magazine segment is involved in the publishing, printing and distributing of newspapers and magazines. The Treasury and Investment segment manages the investment activities of the Group. The Property segment holds and manages properties owned by the Group. Other operations under the Group, which are currently not significant to be reported separately, are included under “Others”. These comprise our businesses and investments in Internet, outdoor advertising, radio broadcasting and TV broadcasting. Review of Results 8.1 Group operating revenue grew 1.4% against last year to S$1,021.4 million. Excluding the revenue generated by SPH MediaWorks and Streats prior to their cessation on January 1, 2005, Group operating revenue would have increased by S$40.1 million or 4.1% year-on-year. Revenue for the Newspaper and Magazine segment rose by 1.7%, mainly driven by the 1.8% increase in print advertisement revenue to S$676.3 million and 2.0% growth in circulation revenue (after absorption of S$10.1 million in GST) to S$208.9 million. Property segment posted 10.4% increase in revenue over last year to S$98.7 million amidst improving sentiments in the property market. The Group’s operating revenue from other segments registered a 40.4% decline, due to the loss of revenue contribution from the defunct TV broadcasting arm cushioned by higher Internet revenue and contribution from the outdoor advertising arm. higher consumption 8.2 Materials, consumables and broadcasting costs were lower by S$12.9 million (7.1%). The decrease is mainly attributable to cost savings from the cessation of TV broadcasting operations last year, partially offset by 9.2% increase in newsprint costs arising from higher newsprint prices and consumption. Staff costs were down by S$0.2 million to S$268.0 million mainly due to savings arising from the cessation of TV broadcasting operations offset by annual salary increment and increase in headcount to support the launch of new editorial products and ventures into outdoor advertising and other media businesses. Other operating expenses were up S$22.1 million comprising mainly higher operating costs associated with the ventures into outdoor advertising and other media businesses, higher premises cost incurred by The Paragon in line with increased level of activities, and staff outplacement benefits paid. Last year also 16
included a credit of S$4.9 million of costs capitalised to broadcasting inventory, which did not recur this year. 8.3 Consequently, profit before investment income and exceptional items at S$361.1 million was 2.6% higher than last year. 8.4 Group investment income at S$81.7 million was S$166.9 million lower than last year. Excluding the one-time gain of S$128.5 million from the disposal of the Group’s substantial stake in StarHub Limited and S$12.8 million income arising from a capital reduction exercise undertaken by an investee company last year, the balance variance was mainly attributable to lower contribution from externallymanaged investments and lower profit on sale of internally-managed investments partially offset by higher dividend income received. 8.5 The Group’s share of losses of associates and jointly controlled entity comprised mainly losses from MediaCorp TV Holdings (S$2.1 million) and Traffic Corner Publishing (S$1.2 million) offset by profits from MediaCorp Press Ltd (S$2.8 million) and TOM Outdoor Media Group Ltd (S$0.5 million). 8.6 The exceptional gain of S$66.8 million mainly arose from the write-back of impairment losses for The Paragon (S$70.5 million) in view of its strong sustained valuation. This was partially offset by impairment charges pertaining to the Group’s investment in the outdoor advertising and magazine businesses. The exceptional loss of S$38.5 million last year comprised mainly charges associated with the media merger (S$25.9 million) and impairment of goodwill that arose from the acquisition of new magazine business (S$12.9 million). 8.7 Taxation charge of S$81.1 million was arrived at after accounting for tax on the taxable income at the corporate tax rate of 20%. During the year, adjustments were made for prior year’s overprovision in taxation of S$2.3 million. Last year’s taxation charge took into account group relief of S$17.2 million from utilisation of SPH MediaWorks Ltd’s tax losses and capital allowances. 9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results No forecast was made previously. 17
Page 1 and 2: 1(a) SINGAPORE PRESS HOLDINGS LIMIT
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Yr End Results 31-8-95 - Final - Singapore Press Holdings

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