Jul 2008 Financial News

OCM Releases Half Year Results

Jul 30, 2008

One Caribbean Media Limited
Results for the Half Year Ended June 30, 2008

Earnings Per Share
For the Half Year Ended June 30, 2008, One Caribbean Media Limited (OCM) reported Earnings Per Share (EPS) (inclusive of ESOP) of $0.59, up 13.5 per cent or 7 cents on the $0.52 reported in the same period in FY07. Q208 on Q207, the Group’s EPS grew by 12.1 per cent or $0.04 from $0.33 to $0.37.

Financial Highlights:
• Revenue, up 12.1 per cent or $26.6 million to $245.5 million
• Cost of Sales, up 6.8 per cent or $10.0 million to $158.2 million
• Gross Profit, up a significant 23.4 per cent or $16.5 million to $87.3 million
• Administrative Expenses, up 34.0 per cent or $8.6 million to $34.0 million
• Marketing Expenses, down 18.3 per cent or $0.4 million to $1.8 million
• Operating Profit, up 19.2 per cent or $8.3 million from $43.2 million to $51.5 million
• Dividend Income, up 100.8 per cent or $0.1 million to $0.2 million
• Interest Income, down 40.5 per cent or $1.3 million to $1.9 million
• Finance Costs, up a considerable 45.6 per cent or $0.2 million to $0.7 million
• Profit After Taxation, up 14.3 per cent or $4.9 million from $34.5 million to $39.4 million

Dividends
The Directors approved an Interim Dividend of 26 cents per share (2007: 25 cents) to be paid on August 28, 2008 to shareholders on the close of the Register as at August 18, 2008.

Outlook and Recommendation
OCM is currently trading at a price of $18.75. At the current price and our forecasted EPS of $1.40 for fiscal 2008, this share is trading at a price to earnings multiple of 13.4 times. At this time we recommend a HOLD on this share.


Nancy Chen
WISE Equity Research Team