BUSINESS FORECASTING – AUSTRALIA

Domino’s boss red-faced at missed target

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 25 : 16-Aug-17

Domino’s Pizza Enterprises has posted a lower-than-forecast 2016-17 underlying net profit of $A118.5m. The result was 29 per cent higher than previously, compared with guidance of 32.5 per cent growth. Same-store sales growth in Australia and New Zealand fell from 17.4 per cent in the first half to 10 per cent in the second half, and Domino’s has flagged growth of just eight per cent in 2017-18. Domino’s has flagged net profit growth of around 20 per cent in 2017-18.

CORPORATES
DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, DEUTSCHE BANK AG, WATERMARK FUNDS MANAGEMENT PTY LTD

Santos deflated by $880m in impairments

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Original article by Matt Chambers
The Australian – Page: 19 : 16-Aug-17

Santos has advised that its 2017 half-year accounts will include after-tax impairment charges totalling $US690m ($A880m). This includes a $US870m write-down in the value of its 30 per cent stake in the Gladstone LNG project, which was prompted by a downgrade in the group’s oil price assumptions for the next five years. The write-downs will be offset by a $US330m after-tax write-back associated with its Cooper Basin assets. Deutsche Bank expects Santos to post an underlying interim net profit of $US121.6m.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, DEUTSCHE BANK AG, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, AWE LIMITED – ASX AWE, RBC CAPITAL MARKETS, MACQUARIE GROUP LIMITED – ASX MQG, ENGIE SA

Amazon will benefit us: Brambles chair

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Original article by Lisa Allen, Eli Greenblat
The Australian – Page: 19 : 14-Aug-17

Brambles chairman Stephen Johns says that although Amazon will be a "disruptive force" for Australian retailers, its entry into the local market could present an opportunity for the logistics group. He adds that the AmazonFresh business in particular should benefit Brambles’ CHEP and IFCO pallet operations. Morgan Stanley says department stores are likely to be hardest hit by Amazon’s arrival in Australia.

CORPORATES
BRAMBLES LIMITED – ASX BXB, AMAZON.COM INCORPORATED, AMAZONFRESH, CHEP AUSTRALIA, IFFCO GROUP OF COMPANIES, MORGAN STANLEY AUSTRALIA LIMITED, WESFARMERS LIMITED – ASX WES, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, JB HI-FI LIMITED – ASX JBH, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD

Nick Scali dives after caution on outlook

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Original article by Eli Greenblat
The Australian – Page: 19 : 11-Aug-17

Listed furniture retailer Nick Scali has posted a 2016-17 net profit of $A37.2m, which is 42.4 per cent higher than previously, while revenue rose by 14.7 per cent to $A232.9m. Same-store sales rose by 10 per cent, but MD Anthony Scali expects lower growth in 2017-18, noting that economic conditions and the housing market have a direct impact on furniture retailers. Shareholders will receive a fully franked final dividend of $A0.20 per share, and a full-year payout of $A0.34.

CORPORATES
NICK SCALI LIMITED – ASX NCK, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN

Auto classifieds firm fancies $1b opportunities offshore

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Original article by Max Mason
The Australian Financial Review – Page: 17 : 10-Aug-17

Carsales.com.au has posted a 2016-17 net profit of $A109.5m, compared with $A109.3m previously. The listed automotive classified advertising group’s revenue increased by eight per cent to $A372.1m and EBITDA totalled $A176.5m. CEO Cameron McIntyre says the group’s international division could eventually contribute more earnings and revenue than its Australian business. He flags emerging markets such as Asia and Latin America as those offering the best growth potential for its international division.

CORPORATES
CARSALES.COM LIMITED – ASX CAR, CITIGROUP PTY LTD, TYRESALES.COM, REDBOOK

Be cautious about retail landlords, Citi warns clients

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 37 : 8-Aug-17

Shares in listed retail property trusts such as Vicinity Centres, Scentre Group and Westfield Corporation have struggled recently, due to concern that their tenants will be damaged by the arrival of Amazon in Australia. However, the general consensus of analysts is that retail real estate investment trusts will post earnings growth of five per cent for 2018. Citigroup is less optimistic than some of its peers, predicting growth of just 3.5 per cent.

CORPORATES
VICINITY CENTRES – ASX VCX, SCENTRE GROUP – ASX SCG, WESTFIELD CORPORATION – ASX WFD, AMAZON.COM INCORPORATED, CITIGROUP PTY LTD, BUNNINGS GROUP LIMITED, CHARTER HALL RETAIL REIT – ASX CQR, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, CLSA AUSTRALIA PTY LTD, GOODMAN GROUP – ASX GMG, STOCKLAND – ASX SGP, INVESTA OFFICE FUND – ASX IOF, MIRVAC GROUP – ASX MGR, BWP TRUST – ASX BWP

Netflix leads as streamers take down pay TV

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Original article by Max Mason
The Australian Financial Review – Page: 23 : 8-Aug-17

Telsyte estimates that the number of paid streaming video subscriptions in Australia totalled 3.7 million in June 2017, and it is expected to top 3.8 million by mid-2018. This includes the Foxtel Now streaming service, while the total number of traditional pay-TV subscriptions is 3.3 million. The Telsyte analysis shows that Netflix boasts a 55 per cent share of the streaming video market, ahead of Stan with 24 per cent. Telsyte MD Foad Fadaghi says a number of factors are contributing to the uptake of streaming services.

CORPORATES
TELSYTE PTY LTD, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, FOXTEL NOW, FOXTEL MANAGEMENT PTY LTD, PRESTO ENTERTAINMENT PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, AMAZON.COM INCORPORATED, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, CRICKET AUSTRALIA, ULTIMATE FIGHTING CHAMPIONSHIP, NATIONAL BASKETBALL ASSOCIATION, SINGTEL OPTUS PTY LTD, ENGLISH PREMIER LEAGUE, TELSTRA CORPORATION LIMITED – ASX TLS

CBA tipped to grind out $9.8b profit

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Original article by James Frost
The Australian Financial Review – Page: 16 : 8-Aug-17

Analysts expect the Commonwealth Bank of Australia to post a cash profit of $A4.9bn for the second half of 2016-17, an increase of 5.8 per cent, and a full-year cash profit of $A9.8bn. The banking major’s provision for bad and doubtful debts is likely to remain largely unchanged, while its net interest margin is tipped to have declined by two basis points in the second half. CBA’s earnings guidance is likely to come under scrutiny in the wake of its money-laundering scandal, while the bank is forecast to increase its dividend for the second half to $A2.24 per share.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, UBS HOLDINGS PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN

Exxon’s Dory could ease east coast gas shortage

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Original article by Matt Chambers
The Australian – Page: 20 : 8-Aug-17

Saul Kavonic of Wood Mackenzie says the Dory gas discovery in Bass Strait could potentially relieve pressure on east coast gas supplies in the long-term. However, he adds that this assumes that the contingent resource estimate of 2.2 trillion cubic feet is proven by further exploration work. Kavonic also notes that no major production at Dory would be likely until at least 2023. ExxonMobil acquired the Dory gas field from Liberty Petroleum earlier in 2017.

CORPORATES
EXXONMOBIL CORPORATION, LIBERTY PETROLEUM, WOOD MACKENZIE, BHP BILLITON LIMITED – ASX BHP, APACHE CORPORATION

Rio could return up to $13.2b to shareholders over next 18 months

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Original article by James Thomson
The Australian Financial Review – Page: 20 : 4-Aug-17

Rio Tinto shareholders will receive a full-year dividend of $US2.60 per share for calendar 2017, after the interim dividend was increased from $US0.45 to $US1.10 per share. The resources giant will also repurchase up to $US1bn worth of its London-listed shares, and Paul Young of Deutsche Bank says it has the capacity to undertake about $US2bn worth of buybacks annually from 2018. Meanwhile, CEO Jean-Sebastien Jacques says Rio Tinto will only consider acquisitions that add value for shareholders.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, COAL AND ALLIED INDUSTRIES LIMITED, YANCOAL AUSTRALIA LIMITED – ASX YAL, IRON ORE COMPANY OF CANADA