Apr 2008 Financial News

PUB Releases Year End Results

Apr 01, 2008

Trinidad Publishing Company Limtied (PUB)
Results for the Year Ended December 31, 2007

Earnings Per Share
For the Year Ended December 31, 2007, Trinidad Publishing Company Limited (PUB) reported Earnings Per Share (EPS) of $1.21, which represented a 3.4 per cent increase on the $1.17 EPS of fiscal 2006. However, revaluation of the Company’s benefit plan in accordance with IAS 19 resulted in a $15 million surplus in fiscal 2006 compared with a $3.9 million surplus in fiscal 2007. Excluding the IAS adjustment, the Company’s EPS was up approximately 27 per cent. Q407 on Q406, the Company’s EPS, however, was down 17.5 per cent or 10 cents from $0.57 (Q406) to $0.47 (Q407).

Financials
Turnover for the period under review totaled $182.9 million, up 12.2 per cent or $19.8 million on the corresponding figure of fiscal 2006. Year on year, Income Before Taxation increased 5.3 per cent from $61.6 million (FY06) to $64.9 million (FY07). Income After Taxation ended the financial year at $48.2 million, up a minimal 2.9 per cent from $46.8 million in fiscal 2006.

Segment Performance
All divisions – print, radio and cable TV, continued to record growth in revenues and profitability in fiscal 2007

Print
A significant investment was made in the state of the art new press and production facilities. The look and feel of the Company’s media products are also being reengineered.

Radio
An additional frequency was launched and emerged as the leader in the East Indian music segment. Two FM frequencies were upgraded to digital ready status.

Television
The Company applied for and was granted a “free to air license” allowing for national coverage.

Dividends
The Board of Directors has declared a final dividend of 35 cents per share which will bring the total dividend paid to 50 cents for fiscal 2007 (2006: 50 cents). The final dividend will be paid on May 31, 2008.

Outlook
The Chairman has stated that the Company intends to undertake major investment plans in 2008 which will ultimately increase wealth to the Company and bring increased shareholder value in the years ahead.

Recommendation
The shares of PUB are currently trading at a price of $19.00. In light of the results for fiscal 2007 and the proposed investment initiatives for the upcoming year, we are forecasting an EPS of approximately $1.25 for fiscal 2008. At the current price and forecasted EPS, this share is trading at a price to earnings multiple of 15.2 times. At this time, we recommend a HOLD on this share.


Nancy Chen
WISE Equity Research Team