SPH results in line with expectations

Singapore Press Holdings announces that its net profit for the 1st half of 2006 was S$183 million which is in line with expectations. This lower earning can be attributed to a decreasing investment income and higher newsprint expenses. As operational costs increases, Singapore Press Holdings should still benefit from better advertising revenues. It was reported that the advertising industry was one of the fastest growing one in Asia. This indicates the increasing use of advertisement as a media for communications. Furthermore a booming economy in Asia Pacific could likely pull up the retail and mass consumer industry. This would benefit SPH greatly.

In addition to its earnings results, SPH also announces an interim dividend of S$0.07 per share and total dividends for the year is expected to be around S$0.28 per share which would mean a yield of around 6.4% for FY06. This would represent a relatively good DPS yield.