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Seven West tightens belt in slow ad market

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Original article by Lilly Vitorovich, Stephen Brook
The Australian – Page: 21 : 15-Nov-18

Seven West Media has advised that its net cost savings for 2018-19 will be within the range of $20m to $30m, compared with previous guidance of $10m to $20m. CEO Tim Worner says Seven will seek to capitalise on any opportunities that arise from the proposed merger between Nine Entertainment and Fairfax Media. Meanwhile, chairman Kerry Stokes has told Seven’s AGM that foreign digital platforms continue to have an advantage over traditional media companies in competing for advertising revenue.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, CRICKET AUSTRALIA, BIG BASH LEAGUE, FOXTEL MANAGEMENT PTY LTD

Kiwi publisher says consortium keen to buy Financial Review

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Original article by Max Mason
The Australian Financial Review – Page: 17 : 15-Nov-18

New Zealand businessman Todd Scott has expressed interest in buying "The Australian Financial Review" if Fairfax Media’s proposed merger with Nine Entertainment Company proceeds. Scott owns "The National Business Review", a weekly business newspaper that boasts about 5,000 subscribers. He says a deal to acquire the AFR would be backed by a consortium of wealthy New Zealanders. Scott adds that the consortium would look at acquiring Fairfax’s NZ division, Stuff, if the AFR were not for sale.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, STUFF LIMITED, TPG CAPITAL LP, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, NZME LIMITED – ASX NZM, NEW ZEALAND. COMMERCE COMMISSION, COURT OF APPEAL (NEW ZEALAND), NEIGHBOURLY, MEDIAWORKS (NZ) LIMITED

Fairfax within reach as Nine sticks to script

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Original article by Lilly Vitorovich
The Australian – Page: 17 & 21 : 15-Nov-18

Shareholders at Nine Entertainment Company’s AGM have been told that it will be better placed to compete with digital giants for advertising revenue if the merger with Fairfax Media proceeds. Nine chairman Peter Costello and CEO Hugh Marks expect Fairfax shareholders to approve the deal on 19 November, saying the feedback from Fairfax directors and investors has been positive. Costello has also stressed that Nine will retain all of Fairfax’s brands. Meanwhile, Nine has advised that it still expects 2018-19 earnings to be within the range of $280m to $300m.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, STAN ENTERTAINMENT PTY LTD, MACQUARIE MEDIA LIMITED – ASX MRN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, SEVEN WEST MEDIA LIMITED – ASX SWM, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, OWNERSHIP MATTERS PTY LTD, CGI GLASS LEWIS PTY LTD, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, CITIGROUP PTY LTD, NETFLIX INCORPORATED, GOOGLE INCORPORATED, FACEBOOK INCORPORATED

ABC news chief backs staff amid Guthrie-Milne fallout

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Original article by Lilly Vitorovich, John Ferguson
The Australian – Page: 5 : 14-Nov-18

The fallout from a "Four Corners" story on the ABC’s recent leadership crisis is continuing, with Liberal senator Eric Abetz saying it demonstrated that the public broadcaster is in "disarray". Amongst other things, former MD Michelle Guthrie alleged that ex-chairman Justin Milne had touched her inappropriately, while allegations were raised about political interference at the ABC. Meanwhile, director of news Gavin Morris has praised the ABC’s staff, noting their ­integrity and professionalism.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

ABC execs paid bonuses to stay

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Original article by Stephen Brook
The Australian – Page: 24 & 26 : 12-Nov-18

Sources within the ABC have indicated that its board approved bonuses to retain a number of senior executives after Michelle Guthrie succeeded Mark Scott as MD in 2016. Acting MD David ­Anderson is said to be among the executives who received a retention bonus. Former COO David Pendleton, who resigned in 2017, is also said to have been offered such a bonus. Executive remuneration at the public broadcaster has come under scrutiny after its latest annual report showed that bonus payments exceeded $2m in 2017-18.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION

Nine-Fairfax deal has investor support

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Original article by Max Mason
The Australian Financial Review – Page: 34 : 12-Nov-18

Fairfax Media’s merger with Nine Entertainment Company will require the support of at least 75 per cent of votes cast at the newspaper publisher’s meeting of shareholders on 19 November. The Australian Council of Superannuation Investors and leading proxy advisors are said to support the merger, although the proposed deal has been criticised by the Media, Entertainment & Arts Alliance. The merger is also subject to approval by the Federal Court.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, STAN ENTERTAINMENT PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, CGI GLASS LEWIS PTY LTD, OWNERSHIP MATTERS PTY LTD, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA

AUD breakout topside loses steam, wage price data now in focus – AFEX Monday Update – November 12, 2018

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The Australian dollar finally enjoyed some upside in the first half of last week after many months of downward pressure. The initial breakout of the long-term downtrend that had been in play since January on the first day of the month quickly gained momentum. An overall optimistic RBA coupled with the Democrats winning majority in the House of Representatives during the US Midterms gave even more support to the AUD, enabling it to test resistance just above 0.7300, before the moves ran out of steam throughout Friday’s trading sessions.

The moves initially appeared technical, with the AUD reaching a double top near 0.7300 resistance and traders taking profits on the moves, but with the US printing strong producer price index late in the session, the AUD/USD losses extended and it closed the week at 0.7225.

Looking ahead and there are several key economic releases this week that should help drive the Australian dollar:

  • Australian wage price index (Wed)
  • Chinese fixed asset investment and industrial production (Wed)
  • US CPI (Wed)
  • Australian employment (Thu)
  • US retail sales (Thu)

With the US Fed likely to keep raising interest rates whilst the RBA remains on hold, the attractiveness of higher US interest rates should keep the USD supported over the longer-term. As a result, if the AUD is to find any support short-term, it needs to see domestic data outperform. The RBA is unlikely to move on interest rates until it sees inflation and wage growth lift. Therefore Wednesday’s quarterly wage prix index will be closely monitored by traders. A strong number would likely see the AUD retest last week’s highs at 0.7302, however a weak number would likely put further weight on the Aussie and potentially see a 0.71 handle once again.

James King
Head of FX Dealing, AFEX
www.afex.com

News Corp in talks over content fee deal with Facebook, Google

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Original article by Lilly Vitorovich
The Australian – Page: 21 : 9-Nov-18

News Corp CEO Robert Thomson says it is holding discussions with Facebook, Google and Amazon over the payment by them of a content carriage fee for distributing its content. Thomson made his remarks as News Corp revealed revenue for its most recent quarter was up 23 per cent. He said the current financial year was off to "an impressive start", and that News Corp was continuing to focus on "digital development". News Corp’s shares rose by 4.2 per cent on 8 November on the back of its latest results announcement.

CORPORATES
NEWS CORPORATION – ASX NWS, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, AMAZON.COM INCORPORATED, REA GROUP LIMITED – ASX REA

Different audiences: ACCC won’t oppose Nine-Fairfax deal

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Original article by Max Mason
The Australian Financial Review – Page: 17 : 9-Nov-18

The Australian Competition & Consumer Commission advised on 8 November that it would not oppose the proposed merger between Nine Entertainment and Fairfax Media. Fairfax shareholders will now vote on the transaction on 19 November, while the Federal Court will then need to approve the deal. If both Fairfax shareholders and the Federal Court give the go-ahead for the merger, the combined entity, to be known as Nine, will begin on trading on 10 December. The ACCC cited the fact that Nine and Fairfax had mostly different content that targeted different audiences as the main reason for not opposing their merger.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, FEDERAL COURT OF AUSTRALIA, CGI GLASS LEWIS PTY LTD, OWNERSHIP MATTERS PTY LTD, ISS PROXY AUSTRALIA, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

Leading magazines increase readership on a year ago

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Original article by Roy Morgan
Market Research Update – Page: Online : 9-Nov-18

A total of 15,117,000 Australians aged 14+ (74.1 per cent) read magazines whether in print or online either via the web or an app. That is up 0.7 per cent, or 110,000, from a year ago according to the results released on 8 November from the Roy Morgan Australian Readership report for the 12 months to September 2018. Readership of print magazines was at over 13.6 million Australians aged 14+ (66.8 per cent), down 0.4 per cent, or 57,000, from a year ago. Nine of Australia’s Top 15 magazines grew their print readership over the past year, with six of the leading titles growing their readership by at least 5 per cent on a year ago. National Geographic had the strongest performance of Australia’s leading magazines growing its print readership by 21.2 per cent to 1,275,000, on the back of its special ‘Plastic or Planet’ edition. Roy Morgan CEO Michele Levine says print magazine readership in Australia is growing with over 15 million Australians reading magazines whether in print or online

CORPORATES
ROY MORGAN LIMITED