SPH

SPH: Feb total adex (ex-Internet) declined marginally (-0.4% YoY) to $172m – a slight deterioration from Jan’s subdued +2.7% YoY. But the Feb total adex trend masked a 16% YoY plunge in print adex to $66m (partly due to the Lunar New Year effect), representing the weakest expenditure in 2 years. TV and Cinema were the best performers in Feb, growing 20% YoY and 38% YoY respectively. Based on current run-rates, Deutsche estimates SPH booked approx $175m ad revenues in 2Q13e, up marginally by 1% YoY. This would take the 1H13e ad revenues to $380m, slightly light at 46% of FY13 estimates . The house maintains view that operational performance of SPH’s print business will remain subdued over the near-term. But investor focus will be on the potential REIT listing, where potential divestment gains of $0.80 – 1.00 per SPH share could support medium term ordinary div and/or inspire a special div. Deutsche maintains its Hold rating and TP $4.17.