Aug 2006 Financial News

Trinidad Publishing Company Releases Half Year Results

Aug 23, 2006

Trinidad Publishing Company (PUB) reported stellar results for the half year ended June 30 2006 as its Earnings Per Share (EPS) grew 81.82 per cent from 22 cents to 40 cents. According to the Managing Director, Mr. G. Kissoon, the commendable performance of the Company was attributable to increased market demand based on a buoyant economy, strong brands across the three divisions of the Company, improved operational efficiency and effective business strategies. He added that the Company’s network capacity houses a key advantage in a crowded market with fragmented audiences.

Turnover increased 46.81 per cent to $77.846 million while Income Before Taxation rose 68.48 per cent to $20.846 million. The Effective Tax Rate declined from 27.43 per cent in 2005 to 23.81 per cent in 2006. Ultimately, the Company’s after tax profits grew 76.88 per cent to $15.882 million driven by its Guardian operations. Mr. Kissoon lamented that this was reflective of the confidence of advertisers in the quality of the product and readership profile.

In light of these results, we are forecasting a year end EPS of $1.30. At the current price of $17.05 and this forecasted EPS, PUB is trading at a price/earnings ratio of 13.12 times. At this price/earnings ratio, this share can be fundamentally deemed a ‘BUY’. However, due to the fact that over 65 per cent of its issued share capital is held by substantial interests, there may not be an immediate reaction in the share price to these results.

Sreshtha Tewari
WISE Research Team