Google’s gross revenue dwarfs tax bill again

Original article by Michael Bailey
The Australian Financial Review – Page: 20 : 15-May-20

Google Australia had gross revenue of $4.8 billion in 2019, of which around $4.3 billion came from advertisers, according to accounts lodged with the corporate regulator on 14 May. However, the top line in its accounts shows revenue of just $1.2 billion; Google Australia says it sees itself as just as an agent that sells advertising product created by its US parent, only booking the commission it earns on each sale as revenue. Accordingly, its gross profit only amounted to $823 million, while its tax bill came in at just $100 million.

CORPORATES
GOOGLE AUSTRALIA PTY LTD

Bad debts hang over Westpac dividend plans

Original article by James Frost, Aleks Vickovich, James Eyers
The Australian Financial Review – Page: 15 & 19 : 4-May-20

Westpac’s dividend payout is likely to be a key focus for investors when its half-year financial results are released on 4 May. Westpac has already advised of $1.6bn in impairment charges for coronavirus-related loan losses. Matt Williams of Airlie Funds Management says Westpac should not pay an interim dividend, arguing that investors expect companies to preserve capital in the current environment. David Walker of Clime Asset Management in turn expects Westpac to pay a much lower half-year dividend and opt for a dividend reinvestment plan.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AIRLIE FUNDS MANAGEMENT PTY LTD, CLIME ASSET MANAGEMENT PTY LTD

Right as rain: Evolution sticks to guidance

Original article by Brad Thompson
The Australian Financial Review – Page: 22 : 24-Apr-20

Evolution Mining has advised that its gold production fell by three per cent to 165,502 ounces in the March quarter, while it still expects full-year output of about 725,000 ounces. This excludes the contribution of the Red Lake mine in Canada, which it acquired from Newmont Goldcorp. Meanwhile, Evolution has indicated that concerns about water supply at the Cowal mine in drought-affected New South Wales have eased due to recent rainfall and the completion of a water pipeline upgrade.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NEWMONT GOLDCORP CORPORATION

Chinese demand has BHP optimistic

Original article by Nick Evans
The Australian – Page: 16 : 22-Apr-20

BHP produced 68 million tonnes of iron ore in the March quarter, a year-on-year increase of four per cent. Production for the first nine months of 2019-20 rose to a record 205 million tonnes. BHP notes that demand for iron ore in China remains strong, but it has flagged a potential double-digit fall in steel production outside of China in 2020. BHP’s quarterly production report also shows that output at its coal mines in Queensland was 16 per cent lower than in the December quarter and seven per cent lower year-on-year.

CORPORATES
BHP GROUP LIMITED – ASX BHP

NAB reveals $1.4bn writedowns

Original article by Joyce Moullakis
The Australian – Page: 16 : 21-Apr-20

National Australia Bank has advised that its cash profit for the six months to 31 March will be marred by writedowns totalling $1.14bn. This includes a $188m provision for customer remediation and an impairment charge of $742m associated with its software capitalisation policy. Westpac recently warned that its half-year results will include some $1.43bn worth of write-downs. Meanwhile, analysts expect the major banks’ loan losses and dividend payouts to be a key focus for investors when their interim results are released.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Westpac flags $1.4b first-half hit, expects more to come

Original article by James Frost
The Australian Financial Review – Page: 15 & 18 : 15-Apr-20

Westpac has advised that its financial accounts for the first half of fiscal 2020 will include provisions of $1,030m associated with Austrac’s money-laundering probe. Westpac will also increase its provisions for customer remediation and legal costs by $260m. The financial hit will reduce Westpac’s common equity tier 1 capital ratio by about 30 basis points, to 10.5 per cent. Dermot Ryan of AMP Capital expects Australian banks that report their half-year results in May to slash their dividend payouts.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AMP CAPITAL INVESTORS LIMITED

Earnings haven’t been revised low enough

Original article by William McInnes
The Australian Financial Review – Page: 31 : 8-Apr-20

Earnings per share forecasts for S&P/ASX 200 companies have been reduced by seven per cent since February, due to the impact of the coronavirus pandemic. Macquarie argues that this downgrade is too small, given that Australia’s GDP growth is expected to contract in 2020; the broker adds that the financial market appears to have priced in a much higher decline. Macquarie notes that forecasts are difficult at present as many listed companies have withdrawn their earnings guidance in response to the pandemic.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG

Seven pulls guidance amid advertising uncertainties

Original article by Max Mason
The Australian Financial Review – Page: 25 : 25-Mar-20

Seven West Media has withdrawn the earnings guidance it issued in February, citing the impact of the coronavirus pandemic. Seven had already downgraded its underlying EBIT guidance for 2019-20 at its half-year results presentation. Seven’s advertising revenue will be hit by the AFL’s decision to suspend its 2020 season until at least the end of May. It is also the official broadcaster of the Tokyo Olympic Games, which were to have been a key source of advertising revenue for the media group in 2020.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM

Earnings shredded as virus fears bite

Original article by Eli Greenblat, David Rogers
The Australian – Page: 17 & 24 : 26-Feb-20

The coronavirus outbreak has become a major theme for the February reporting season, with a growing number of listed companies issuing earnings downgrades due to the impact of the virus. Treasury Wine Estates, Blackmores and Seek are among the latest companies to issue profit warnings; Treasury has downgraded its earnings expectations for the third time in 2020. Meanwhile, retail group Mosaic Brands had advised that its dividends have been put on hold until the impact of the coronavirus becomes clear.

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, BLACKMORES LIMITED – ASX BKL, SEEK LIMITED – ASX SEK, MOSAIC BRANDS LIMITED – ASX MOZ

Westpac warns of hit to bottom line

Original article by Aleks Vickovich
The Australian Financial Review – Page: 19 : 20-Feb-20

Westpac has used a market update for the first quarter of 2019-20 to advise that its earnings for the financial year will be affected by factors such as the Austrac scandal, storms and the bushfires crisis. Citigroup has responded by downgrading its half-year earnings per share forecast by seven per cent, while its forecast for the full year has been reduced by five per cent. Westpac could face fines of up to $2bn for breaching anti-money laundering laws, while it is the subject of two class actions over the scandal.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE