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Networks rely on sports for ad dollars

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Original article by Max Mason
The Australian Financial Review – Page: 13 & 18 : 10-Jun-15

Concerns about an uncertain outlook for the advertising market prompted investors to sell down Australian media stocks on 9 June 2015. Nine Entertainment Company has partially attributed an earnings downgrade to slowing ad revenue. Ben Willee of Spinach Advertising notes that TV ad revenue is being affected by the growing use of mobile devices to access media content, while Starcom MediaVest Group CEO Chris Nolan says sports broadcasts are becoming a key source of viewers and ad revenue for TV networks.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SPINACH ADVERTISING PTY LTD, STARCOM MEDIAVEST GROUP, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, FOXTEL MANAGEMENT PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED – ASX TEN, FAIRFAX MEDIA LIMITED – ASX FXJ, TELSTRA CORPORATION LIMITED – ASX TLS, OPTIMUM MEDIA DIRECTION PTY LTD, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, PRESTO ENTERTAINMENT PTY LTD

Shareholder backs Nine despite downgrade

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Original article by Max Mason
The Australian Financial Review – Page: 27 : 9-Jun-15

Nine Entertainment Company has attributed a profit downgrade to a subdued TV advertising market in the second half of 2014-15. The media group has advised that its full-year EBITDA will be within the range of $A285m to $A290m, compared with earlier guidance of $A311m. Entcho Raykovski of Deutsche Bank expects free-to-air ad revenue to be three per cent lower in the second half.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, DEUTSCHE BANK AG, PERPETUAL LIMITED – ASX PPT, UBS HOLDINGS PTY LTD, WARNER BROS

Metcash is crunched in retail wars

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 5-Jun-15

Australian-listed Metcash has indicated that its financial accounts for 2014-15 will include asset write-downs totalling $A640m. The grocery group has also advised that dividends will be put on hold for 18 months. The revelations prompted a sharp fall in Metcash’s share price, which finished $A0.245 lower at $A1.14 on 4 June 2015. Metcash expects its full-year underlying EBIT to be within its forecast range of $A315m to $A330m.

CORPORATES
METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, NIKKO ASSET MANAGEMENT GROUP, UBS HOLDINGS PTY LTD, AUSTRALIAN FOOD AND GROCERY COUNCIL, McPHERSON’S LIMITED – ASX MCP

Cold snap heats up store clearance sales

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Original article by Sue Mitchell
The Australian Financial Review – Page: 18 : 3-Jun-15

The mid-season clearance sales of Australian retailers are expected to benefit from a chilly start to winter across much of the country. The cold weather is likely to boost demand for warm clothing, allowing department stores and specialty retailers to reduce their winter inventory. Myer has commenced its clearance sale more than a week ahead of schedule, and aims to sell about $150m worth of stock, while David Jones is offering big discounts in its mid-year sale.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, PORTMANS PTY LTD, SABA, OROTONGROUP LIMITED – ASX ORL, DAVID LAWRENCE, CUE, CREDIT SUISSE (AUSTRALIA) LIMITED, WESFARMERS LIMITED – ASX WES, COLES GROUP LIMITED, KMART AUSTRALIA LIMITED, TOP RYDE SHOPPING CENTRE

Woolworths on the hunt for new non-executive directors

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 9 : 2-Jun-15

Boardroom renewal is on the agenda at Woolworths, as it seeks a replacement for Ian Macfarlane following his resignation as a non-executive director in March 2015. The retail giant has not ruled out making more than one board appointment. David Thomas of CLSA says Woolworths should select a candidate with retail experience. Meanwhile, Woolworths has rejected suggestions that it is also seeking a successor to CEO Grant O’Brien.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, CLSA AUSTRALIA PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, RESERVE BANK OF AUSTRALIA, TESCO PLC, KELLOGG (AUSTRALIA) PTY LTD, JETSTAR AIRLINES PTY LTD, BAIN AND COMPANY

Blackley back on board for SCM M&A bonanza

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Original article by Dominic White
The Australian Financial Review – Page: 35 : 1-Jun-15

Southern Cross Media Group chairman Peter Bush expects mergers in Australia’s media sector if cross-media ownership laws are changed. He says the industry expertise of new CEO Grant Blackley will be an asset when dealing with the new media landscape. Bush adds that one of Blackley’s key tasks will be to assess the group’s "peak value". Blackley is a former CEO of the Ten Network.

CORPORATES
SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, TEN NETWORK HOLDINGS LIMITED – ASX TEN, FREE TV AUSTRALIA LIMITED, KEYSTONE GROUP PTY LTD

Burson eyes Metcash auto

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 1-Jun-15

Australian-listed Burson Group aims to open four automotive parts stores in Western Australia in coming months, with the first earmarked for the Perth suburb of Malaga. Meanwhile, CEO Darryl Abotomey says the company is a potential buyer of Metcash’s automotive division, but he adds that it would only do so if the transaction made "economic sense". Metcash flagged the sale of the business in May 2015.

CORPORATES
BURSON GROUP LIMITED – ASX BAP, METCASH LIMITED – ASX MTS, AUTOBARN PTY LTD, MIDAS MUFFLERS, AUTOMOTIVE BRANDS GROUP PTY LTD, ULTRA TUNE AUSTRALIA PTY LTD, KMART TYRE AND AUTO, AUTOMOTIVE HOLDINGS GROUP LIMITED – ASX AHG, COVS PARTS PTY LTD, GENUINE PARTS COMPANY, REPCO CORPORATION LIMITED

Blackley to work on keeping Ten

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Original article by Dominic White
The Australian Financial Review – Page: 16 : 29-May-15

Former Ten Network CEO Grant Blackley will become CEO of Southern Cross Media Group on 29 June 2015. He has indicated that the regional broadcaster will seek to negotiation a new affiliation agreement with Ten as quickly as possible, but has not ruled out ending the alliance. Blackley will receive a base salary of $A1.05m at Southern Cross, plus an incentives package.

CORPORATES
SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, APN NEWS AND MEDIA LIMITED – ASX APN, 2DAY FM AUSTRALIA PTY LTD, KIIS1065, WIN CORPORATION PTY LTD, KEYSTONE GROUP PTY LTD, FOUR SEASONS MEDIA PTY LTD

Bang & Olufsen Australia sold to luxury watches group

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Original article by Simon Evans
The Australian Financial Review – Page: 21 : 27-May-15

Emerald Group Investments intends to expand the Bang & Olufsen brand after buying the Australia and New Zealand business. Bang & Olufsen currently operates 10 retail outlets in Australasia, and Emerald Group CEO James Kennedy has declined to comment on the sale price. Emerald Group boasts annual revenue of about $A40m, and owns the LK Boutique stores in Sydney and Melbourne, which sell upmarket watches and jewellery.

CORPORATES
EMERALD GROUP INVESTMENTS PTY LTD, BANG AND OLUFSEN (AUSTRALIA) PTY LTD, BANG AND OLUFSEN A/S, LK BOUTIQUE, CROWN MELBOURNE LIMITED, THE STAR, COSTCO WHOLESALE CORPORATION, WAL-MART STORES INCORPORATED

Reach rule ‘putting local news at risk’

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Original article by Dominic White
The Australian Financial Review – Page: 30 : 25-May-15

Prime Media Group CEO Ian Audsley expects WIN Corporation to scrap more of its regional news bulletins following the closure of its newsrooms in Mackay and Mildura. WIN has attributed the move to factors such as the regulatory regime and the economic viability of local newsrooms. Audsley says the Australian Government’s lack of action on abolishing the so-called "reach rule" is contributing to the demise of regional broadcasters’ news services.

CORPORATES
WIN CORPORATION PTY LTD, PRIME MEDIA GROUP LIMITED – ASX PRT, AUSTRALIA. DEPT OF COMMUNICATIONS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET