News Corp eyes growth but flags job cuts as skills change

Original article by Max Mason
The Australian Financial Review – Page: 29 : 3-Jun-19

News Corp Australasia’s executive chairman Michael Miller says its Australian newspapers will achieve a third successive year of profitable growth in 2019-20. Miller notes that News Corp will be looking to bring in people with new skills to the company, while roles that are no longer needed will be abolished. Miller says that increases in digital subscriptions are reducing the company’s reliance on advertising, while he supports the turnaround strategy being adopted by pay-TV unit Foxtel.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, REA GROUP LIMITED – ASX REA

How the Murdochs lost the fight for Sky

Original article by Christopher Williams
The Australian Financial Review – Page: R1 & R6 : 31-May-19

The Murdoch family first tried to take full control of Sky in the UK in 2011 through News Corporation, but the attempt was unsuccessful. James Murdoch made another attempt to secure full control of Sky in 2016, this time through Fox. In announcing the bid, Murdoch expressed confidence that it would be approved by regulators within six months. Britain’s Culture Secretary Karen Bradley initially referred the bid to Ofcom, before referring it to the Competition & Markets Authority in September 2017. At around that time, Rupert Murdoch was in the process of putting together a mega media deal that would eventually end up with Comcast rather than Fox securing control of Sky.

CORPORATES
SKY PLC, NEWS CORPORATION – ASX NWS, 21ST CENTURY FOX INCORPORATED, GREAT BRITAIN. DEPT OF CULTURE, MEDIA AND SPORT, GREAT BRITAIN. COMPETITION AND MARKETS AUTHORITY, GREAT BRITAIN. OFFICE OF COMMUNICATIONS, COMCAST CORPORATION

Coles reviews promotions as waste hits $10b

Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 18 : 30-May-19

Grocery giant Coles has conceded that it is still heavily reliant on price discounting as a key driver of sales growth rather than the ‘every day low prices’ model that it has been pursuing for a decade. Nielsen estimates that discounting costs Australian grocery retailers about $51m a year; this includes "wastage" of about $10.1bn on the discounting of goods that consumers would have bought at the full price. Coles intends to review its discounting strategy, with the aim of scaling it back over a period of time.

CORPORATES
COLES GROUP LIMITED – ASX COLCOLES SUPERMARKETS AUSTRALIA PTY LTDTHE NIELSEN COMPANY (AUSTRALIA) PTY LTDAUSTRALIAN FOOD AND GROCERY COUNCILWESFARMERS LIMITED – ASX WESWOOLWORTHS GROUP LIMITED – ASX WOWCITIGROUP PTY LTD

Free-to-air TV hit as streaming lifts off

Original article by Andrew White
The Australian – Page: 19 : 30-May-19

Morgan Stanley has warned that the profits and advertising revenue of traditional media companies will decline as streaming video and music providers become more popular. This in turn has implications for the valuation of print and broadcast media companies. Morgan Stanley also says the rising cost of sports broadcasting rights may be unsustainable as TV networks’ revenue declines. The firm expects 70 per cent of Australian households to have access to a streaming service within five years.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITEDSTAN ENTERTAINMENT PTY LTDNETFLIX INCORPORATEDNINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NECSEVEN WEST MEDIA LIMITED – ASX SWMTEN NETWORK HOLDINGS LIMITEDPRIME MEDIA GROUP LIMITED – ASX PRTSOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXLHT&E LIMITED – ASX HT1NOVA ENTERTAINMENT PTY LTDWIN CORPORATION PTY LTDAUSTRALIAN BROADCASTING CORPORATIONSPECIAL BROADCASTING SERVICE (SBS)

Debt-free Galaxy Resources to back lithium processing plant in China

Original article by Brad Thompson
The Australian Financial Review – Page: 21 : 30-May-19

Galaxy Resources has revealed plans to acquire a minority stake in a new or existing lithium processing plant in China. The plant will process spodumene concentrate from Galaxy’s Mount Cattlin mine in Western Australia into lithium carbonate or lithium hydroxide. Galaxy chairman Martin Rowley says Mount Cattlin’s remaining mine life is relatively short, so it makes more sense to invest in a Chinese processing plant than to build one in Western Australia. Galaxy recently acquired a stake in rival lithium exporter Alliance Mineral Assets.

CORPORATES
GALAXY RESOURCES LIMITED – ASX GXYALLIANCE MINERAL ASSETS LIMITED – ASX A40POSCOJP MORGAN AUSTRALIA LIMITEDMINERAL RESOURCES LIMITED – ASX MINCOWAN LITHIUM LIMITED – ASX COW

Vale Sir Arvi Parbo AC, Kt. Memorial Commemoration & Video of Service at Melbourne Town Hall, May 27, 2019

20190501-Sir-Arvi-Parbo-800x600-01

Arvi Hillar Parbo, the second of four sons to Aado and Hilda (nee Rass), was born on 10th February 1926 in Tallinn, Estonia. His secondary education was interrupted by World War II. When the war ended in 1945, 19 year old Arvi Parbo entered a Displaced Persons Camp and became a refugee in Germany where he finished his secondary education, and in 1946 he enrolled at the Clausthal Mining Academy. After two years, he decided that because opportunities in mining were limited in Germany, he would emigrate.

He arrived in Melbourne in November 1949 and was sent to work in a quarry south of Adelaide. Arvi Parbo enrolled at Adelaide University and completed a degree in Mining Engineering (with First Class Honours) in 1955.

Professor John P. Morgan, from Adelaide University, helped Arvi secure a position with WMC in Western Australia. Arvi Parbo and Saima had met in a refugee camp in Germany, they travelled to Australia separately and did not meet again until a chance encounter in Adelaide years later. They married in Adelaide in 1953. Ellen was born in Adelaide and their two sons, Peeter and Martin, were born at Southern Cross, Western Australia.

In February 1968, Arvi Parbo was appointed General Manager of WMC, Director in September 1970, Managing Director in November 1971 and Chairman and Managing Director in October 1974.

In 1986, after 15 years as Managing Director of WMC, Sir Arvi Parbo relinquished the role, but remained Executive Chairman until December 1990 when he retired as an Executive, but remained Chairman until retirement in 1999.

In August, 1987, Sir Arvi Parbo was appointed a Director of The Broken Hill Proprietary Company Limited (BHP) and Chairman from May 1989 to May 1992.

Throughout his life, Sir Arvi Parbo was widely engaged in community and business organisations where his personal advice was welcomed and appreciated both in Australia and internationally.

Link to full Memorial Commemoration PDF here.

Watch full program of Memorial Commemoration here.

 

Murdoch siblings catapult up list

Original article by Michael Bailey
The Australian Financial Review – Page: 1 & 2 : 29-May-19

Lachlan Murdoch is ranked 18th on the 2019 Financial Review Rich List, with estimated personal wealth of $18bn. His sister Prudence MacLeod is ranked 22nd and is estimated to be worth $3.1bn. Rupert Murdoch’s other four children are not eligible for inclusion in the Rich List as they are not Australian citizens. The wealth of Murdoch’s children was boosted after they were each given 17 million shares in Walt Disney Company following the media giant’s acquisition of 21st Century Fox. Disney’s shares recently reached a record high.

CORPORATES
WALT DISNEY COMPANY, 21ST CENTURY FOX INCORPORATED, NOVA ENTERTAINMENT PTY LTD, MACDOCH VENTURES, NEWS CORPORATION – ASX NWS, CANVA PTY LTD, ARTESIAN CAPITAL MANAGEMENT (AUSTRALIA) PTY LTD, TEN NETWORK HOLDINGS LIMITED

Jones in $4m deal to stay on radio

Original article by Nick Tabakoff
The Australian – Page: 3 : 29-May-19

Macquarie Media has signed up Alan Jones for another two years as the host of 2GB’s breakfast program, following protracted negotiations. Jones has stressed that both himself and Macquarie chairman Russell Tate are happy with the new deal, and that it does not feature any onerous conditions. Jones has not ruled out remaining at 2GB beyond his new two-year contract, but says it is too soon to make such a commitment.

CORPORATES
MACQUARIE MEDIA LIMITED – ASX MRN, 2GB, RADIO 4BC BRISBANE PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC

Galaxy secures front-row seats to the next lithium IPO

Original article by Peter Ker
The Australian Financial Review – Page: 17 : 28-May-19

Galaxy Resources recently announced that it would acquire $22.5 million worth of shares in lithium exporter Alliance Mineral Assets. The transaction will make Galaxy the biggest shareholder in Alliance, with a stake in excess of 10 per cent. Galaxy will also be a shareholder in Cowan Lithium when it eventually lists on the Australian sharemarket; it acquired an interest in Cowan as a result of buying shares in Alliance’s predecessor company, Tawana Resources.

CORPORATES
GALAXY RESOURCES LIMITED – ASX GXY, ALLIANCE MINERAL ASSETS LIMITED – ASX A40, COWAN LITHIUM LIMITED – ASX COW, TAWANA RESOURCES NL, KIDMAN RESOURCES LIMITED – ASX KDR, WESFARMERS LIMITED – ASX WES

Empire grows as Seven West Media takes control of Community Newspapers

Original article by Hamish Hastie
The Sydney Morning Herald – Page: Online : 28-May-19

Seven West Media has struck a deal to buy out News Corp Australia’s 50.1 per cent stake in their Community News joint venture in Perth. Seven West Media’s Maryna Fewster says the portfolio of 12 community newspapers and 17 digital titles will complement the company’s existing media assets in Western Australia. Community News was incorporated in 1985, and its acquisition by Seven West Media will be completed by the start of July.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, COMMUNITY NEWS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC