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Rising costs and tough TV ad market eat into Nine’s profit

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Original article by Lilly Vitorovich
The Australian – Page: 19 : 23-Aug-19

Nine Entertainment Company has posted a 2018-19 statutory net profit from continuing operations of $216.6m, which is three per cent higher than previously. Challenging conditions in the advertising market saw the Nine Network’s revenue fall by six per cent to $1.09bn; its costs rose four per cent to $876.6m, and Nine expects a similar increase in costs during 2019-20. The group’s publishing division posted full-year earnings of $82.7m, compared with $50.2m previously. Shareholders will receive a final dividend of $0.05 per share, and a full-year payout of $0.10.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, FAIRFAX MEDIA LIMITED, MACQUARIE MEDIA LIMITED – ASX MRN, STAN ENTERTAINMENT PTY LTD, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, SEVEN WEST MEDIA LIMITED – ASX SWM

Potash bull sees upside in BHP push at Jansen

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 22-Aug-19

BHP expects to have a capital expenditure budget of about $US8bn for fiscal 2021, and CEO Andrew Mackenzie has indicated that less than $US500m will be allocated to the Olympic Dam mine in South Australia and the Jansen potash project in Canada. A decision on whether to proceed with the Jansen project is likely within 18 months. Getting it to the production stage is slated to cost between $US5.3bn and $US5.7bn, and Tal Lomnitzer of Janus Henderson says rising global demand for food means the project will deliver long-term benefits for BHP and its shareholders.

CORPORATES
BHP GROUP LIMITED – ASX BHP, JANUS HENDERSON GROUP PLC – ASX JHG, ELLIOTT MANAGEMENT CORPORATION

ABC loses bid to see federal police reasons for search warrant

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Original article by Hannah Wootton
The Australian Financial Review – Page: 11 : 21-Aug-19

The Federal Court has ruled that the ABC had no "proper basis" for its claim that the Australian Federal Police failed to consider public policy factors when it applied for a warrant to search the public broadcaster’s Sydney offices in June. These factors included the protection of journalists’ sources and the implied freedom of political communication in the Constitution. The ABC is seeking to have the AFP’s warrant declared invalid and return of documents that were seized in the raid.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN FEDERAL POLICE, FEDERAL COURT OF AUSTRALIA

Seven set for tough result as ratings flop

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Original article by Zoe Samios, Leo Shanahan
The Australian – Page: 23 : 19-Aug-19

Tribeca Investment Partners’ Jun Bei Liu expects Seven West Media to announce weak earnings and writedowns when its 2018-19 financial results are released on 20 August. The media group had issued a profit warning in May, and the Seven Network’s audience share is currently 2.4 per cent lower year-on-year. In contrast, the Nine Network’s audience share has risen by 3.4 per cent. New Seven West CEO James Warburton has noted that the Seven Network has some "ageing formats"; data from OzTAM shows that ‘My Kitchen Rules’ and ‘House Rules’ in particular have lost significant audience share in recent years.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, NINE NETWORK AUSTRALIA LIMITED, TEN NETWORK HOLDINGS LIMITED, TRIBECA INVESTMENT PARTNERS PTY LTD, OZTAM PTY LTD

Lynas on short leash as Malaysia extends licence

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Original article by Brad Thompson
The Australian Financial Review – Page: Online : 16-Aug-19

Malaysian authorities have extended Lynas Corporation’s operating licence for its $1 billion rare earths processing plant at Kuantan for just six months, with the licence due to expire on 2 September. The plant processes rare earths from Lynas’s Mt Weld mine in Western Australia, and is the largest source of rare earths outside of China. Lynas CEO Amanda Lacaze had said recently that it would be happy with a three-year extension to its licence, although a five-year extension would be ideal.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, WESFARMERS LIMITED – ASX WES

Program interruption: Nine caught on back foot as CFO Barnes exits

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Original article by Zoe Samios
The Australian – Page: 19 : 15-Aug-19

Nine Entertainment has confirmed speculation that CFO Greg Barnes is to leave the company, with Nine stating Barnes will finish with it after the release of its full year results on 22 August. Nine’s integration with Fairfax following their $4 billion merger is currently in progress, and it is considered unusual for a CFO to be leaving at such a time. Barnes had been CFO at CSR before joining Nine, while recruiting firm Spencer Stuart has been hired to find his replacement.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED, CSR LIMITED – ASX CSR, SPENCER STUART AND ASSOCIATES

JB Hi-Fi bucks trend, lifts sales and profit

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 16 : 13-Aug-19

JB Hi-Fi released its results for the 12 months ending June on 12 August, with Australia’s largest consumer electronics retailer reporting a net profit of $249.8 million, up 7.1 per cent. Sales rose by 3.5 per cent to $7.09 billion, while JB Hi-Fi declared a final dividend of $0.51 per share, bringing its total dividends for the year to $1.42. CEO Richard Murray says he is "cautiously optimistic" about the coming year, while he is forecasting sales of around $7.25 billion for 2019-20.

CORPORATES
JB HI-FI LIMITED – ASX JBH

Reynolds welcomes deal on rare earths with non-Chinese customer

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Original article by Brad Thompson
The Australian Financial Review – Page: Online : 13-Aug-19

Federal Defence Minister Linda Reynolds says it is important that Australia ensures it has secure supplies of critical resources, in particular rare earths. Reynolds notes that defence firms need access to rare earths, as rare earths are used in the production of defence equipment. She welcomed the announcement on 12 August by heavy rare earths supplier Northern Minerals that it had signed a 100 per cent off-take agreement with Thyssenkrupp, which is one of the largest materials distributors to the Western world. The announcement followed just days after Northern Minerals terminated an off-take agreement with Chinese firm Lianyugang Zeyu New Materials Sales Company.

CORPORATES
AUSTRALIA. DEPT OF DEFENCE, NORTHERN MINERALS LIMITED – ASX NTU, LIANYUGANG ZEYU NEW MATERIALS SALES COMPANY, LYNAS CORPORATION LIMITED – ASX LYC

Nine jumps on remaining Macquarie stake for $113.9m

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Original article by Max Mason
The Australian Financial Review – Page: 15 : 13-Aug-19

Nine has announced a $1.46 per share offer for the remaining 45.5 per cent of Macquarie Media that it does not already own, with Nine to pay around $114 million for the stake. Macquarie Media is the owner of radio stations 2GB in Sydney and 3AW in Melbourne. Businessman John Singleton, who owns 32.3 per cent of Macquarie Media, stands to receive $81 million if the deal goes through. Nine acquired its majority stake in Macquarie Media as a result of its $4 billion merger with Fairfax Media in 2018.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED, 2GB, 3AW SOUTHERN CROSS RADIO PTY LTD

Aunty vows to lift regional focus

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Original article by Lilly Vitorovich
The Australian – Page: Online : 12-Aug-19

Federal Communications Minister Paul Fletcher has moved to change the ABC’s charter, so to boost its coverage of rural and regional areas. He has also reintroduced legislation that would require two members of the ABC’s board to have links to regional areas. Judith Whelan, the ABC’s recently appointed director of regional and local operations, believes it is already doing a lot of work in regional areas. Whelan also rejects suggestions that the ABC has a left-wing bias.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN BROADCASTING CORPORATION, FAIRFAX MEDIA LIMITED