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Singapore Press Holdings: Nobody said it was easy
SPH has shown some green shoots with its digital-first strategy, but the turnaround of the group’s media business still appears to be some time away. Indeed, as the popular Coldplay song goes – “nobody said it was easy”. 2QFY18 results were largely within our expectations, with the tapering YoY decline in print advertisement of particular encouragement. The group’s approach to having integrated marketing offerings is indeed a sound approach to arrest the abovementioned decline, but this hinges on, we believe, a meaningful ramp-up in daily average digital circulation. SPH’s property portfolio should tide it through in the meantime, as it accounts for ~60% of the group’s 1HFY18 profit. Following adjustments, we increase our fair value slightly from S$2.51 to S$2.52.
We increase our fair value slightly from S$2.51 to S$2.52.