Nov 2007 Financial News

PUB Releases Nine Months Results

Nov 08, 2007

Trinidad Publishing Company Limited (PUB)
Results for the Nine Months Ended September 30, 2007

For the Nine Months (NM) Ended September 30, 2007, Trinidad Publishing Company Limited (PUB) reported Earnings Per Share (EPS) of 74 cents, up a noteworthy 23.33 per cent on the EPS for the corresponding period in FY06. Q307 on Q306, the EPS was up by an outstanding 33.33 per cent.

Turnover for the Nine Month period stood at $124.08 million, an increase of 4.59 per cent on the same figure for NM06. Q307 on Q306, this figure was up by a larger margin of 10.29 per cent from $40.79 million to $44.99 million. Income Before Taxation ended the period under review at $39.61 million, an increase of 22.94 per cent or $7.39 million on NM06. The Effective Tax Rate for NM07 was 25.76 per cent compared to a similar Tax Rate of 25.19 per cent for NM06. Thus, Income After Taxation ended the period at $29.41 million, up 21.99 per cent or $5.30 million on the comparable figure for FY06.

The Chairman has noted that these commendable results were achieved despite further fragmentation in the broadcast industry as well as intensified competition in the industry as a whole. Additionally, the Directors are confident that this growth trend will continue to year end.

PUB last closed at a price of $19.92 on the local exchange. In light of these results we have adjusted our forecasted EPS upwards to $1.45 for FY07. At the current price and this forecast, this share is trading at a price to earnings multiple of 13.74 times. This is an attractive multiple for this share since PUB usually trades in the band of 15 to 18 times. Additionally, using a multiple of 16 times and the forecasted EPS of $1.45, this share has an expected return of approximately 16 per cent or a target price of $23.20. Thus, we recommend a BUY on this share.


Gia Singh
WISE Equity Research Team