Jun 2008 Financial News

PUB Releases First Quarter Results

Jun 05, 2008

Trinidad Publishing Company Limited (PUB)
Results for the First Quarter Ended March 31, 2008

Earnings Per Share
For the First Quarter Ended March 31, 2008, Trinidad Publishing Company Limited (PUB) reported Earnings Per Share (EPS) of $0.18, which represented a 5.3 per cent fall on the $0.19 reported in Q107. According to the Chairman this decline was as a result of expenses associated with a number of major investments undertaken in all three divisions with the media group (print, radio, and television) as well as a slowdown in advertising demand in the first quarter.

Financials
• Turnover, down 7.7 per cent or $3.0 million to $35.4 million
• Income Before Taxation, down 23.9 per cent or $2.5 million from $10.5 million to $8.0 million
• Income After Taxation, down 9.3 per cent or $0.7 million from $7.9 million to $7.1 million

Strategic Initiatives
Print
The Company invested in the acquisition of a new state of the art press which will afford many benefits including:
• greater speed and capacity that print will be produced
• the capability to publish all pages in colour
• increased savings from a reduced number of copies to be run before registration of print as well as a reduction in the number of poor quality advertisements to be reproduced

The Trinidad Guardian is to be reengineered, moving away from the G-size to a more contemporary look. The new rebranded paper is a more portable size and promises to be more organized with easy navigation and colour-coded sections for easy reference. It is anticipated that this new paper will be launched on June 10, 2008.

Radio
Two FM frequencies were upgraded to a digital platform.

Television
The Company was granted a “free to air” license allowing for national coverage which will be launched in the third quarter of 2008. This expanded coverage will better position the Company to offer greater content including news, current affairs, sports and entertainment.

Recommendation
The major investments undertaken will improve the long term market position of the Company and thereby bring increased shareholder value in the years ahead.

The shares of PUB are currently trading at a price of $21.00. At the current price and forecasted EPS of $1.25 for fiscal 2008, this share is trading at a price to earnings multiple of 16.8 times. At this time, we recommend a HOLD on this share.


Nancy Chen
WISE Equity Research Team