MAINTAIN: GK Goh Research - Jan 24, 2004 (BT)

BackJan 24, 2004

Brokers' Take

MAINTAIN: GK Goh Research

Jan 24, 2004
The Business Times


GK Goh Research, Jan 21

DECEMBER newspaper advertising expenditure (Adex) increased 5.3 per cent year on year (yoy) to $63.4 million, according to data released by AC Nielsen. Excluding the TODAY newspaper, newspaper Adex rose by a smaller 3.7 per cent yoy to $55.5 million in December - a recovery compared to the negative 7.8 per cent in November.

For the year 2003, newspaper Adex declined 1.4 per cent yoy to $681.6 million while newspaper Adex (ex-TODAY) fell 3 per cent yoy to $610.2 million.

Overall, Singapore Adex for December rose 9.1 per cent yoy to $176.4 million, helped mainly by stronger radio Adex (up 32 per cent to $17.1 million) and magazines (up 56 per cent to $11.7 million), besides firmer newspaper Adex. TV Adex firmed by 2.6 per cent yoy to $72.6 million.

For the first four months of SPH's financial year ending August 2004, newspaper Adex (ex-TODAY) showed a marginal decline of 1.8 per cent yoy.

We are maintaining our outlook of 5 per cent growth in SPH's print advertising revenue growth for FY04 given the expected economic recovery in 2004. We maintain our fair value of $20.81 per share for SPH (SPH SP, Hold, $19.80).


Compiled by Quak Hiang Whai