Singapore Press Holdings - Media headwinds unabated
- SPH announced that 2QFY17 PATMI dipped marginally by 1.2% YoY to S$53.5m while group recurring earnings on an operating level declined 22.2% YoY to S$53.0m, which was partially offset by a S$9.5m bump in investment income from divestment gains.
- In terms of the topline, group operating revenue fell 8.2% YoY to S$238.0m mostly due to weaker contributions from the media business which fell 11.9% YoY.
- Ad revenues also fell 16.8% YoY as management cited continued headwinds in its operating environments due to the slowing economy and the unabated disruption of the media industry.
- That said, the group’s property segment pulled in stable numbers with revenues inching up 1.3% YoY as rental income rose.
- We deem this set of results to be mostly within our expectations.
- Maintain SELL on the stock on valuation grounds with an unchanged fair value estimate of S$3.41.