STW Comms
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Indepth analysis of ASX listed shares
- BUY, Hold and Sell Recommendations
- Ideas Lab
- Special Reports
- Alan Kohler’s Weekend Briefing
- Interviews with CEO’s & top influencers
- Money Cafe and Talking Finance
- Super Advice and Q&A with Ask Alan
STW Communications’ full year result (it has a calendar year end) produced no surprises. Revenue increased 6.1% to $323m, with net profit increasing 5.8% to $41m, in line with previous guidance of between 5% and 10%. Earnings per share also increased 6.5% to 11.4 cents, and a 5-cent fully franked final dividend was declared (ex date 30 Mar), bringing the annual total to 8 cents, up 23% from 2010.
| Full-year 31 December | 2011 | 2010 | Change (%) |
| Revenue ($m) | 323 | 304 | 6 |
| EBITDA ($m) | 72 | 69 | 4 |
| Net profit ($m) | 41 | 39 | 7 |
| Underlying cash flow ($m) | 55 | 57 | -4 |
| EPS (c) | 11.5 | 10.8 | 7 |
| DPS (c) | 8.0 | 6.5 | 23 |
| Franking (%) | 100 | 100 | n/a |
The growth was broadly spread across STW’s online and traditional advertising businesses. While conventional advertising channels such as TV, print and radio are still important, 23% of the company’s revenue now comes from online advertising businesses. That’s expected to increase to 27% in 2012. Though online services produce higher margins, STW’s overall profit growth is likely to remain in the single-digits as competition increases.
STW is also acquiring businesses across Asia, which has increased the net debt-to-equity ratio to 31%. That will increase further with acquisitions, but for now interest payments are comfortably covered 7.4 times by underlying operating cash flow. We’d prefer lower debt levels, but it’s unlikely to happen under current management.
With the share price jumping 6% following the results announcement and 16% since The mad men of STW from 8 Dec 11 (Long Term Buy – $0.85), we’re downgrading a notch to HOLD.
Note: The model Income portfolio owns shares in STW Communications.
Call 1300 880 160
Start a chat
Schedule a call
