COMPANY RESULTS – AUSTRALIA

Aristocrat Leisure lands games giant Big Fish for $1.3 billion

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Original article by John Stensholt
The Australian Financial Review – Page: 19 : 1-Dec-17

Aristocrat Leisure’s push to reduce its reliance on poker machine sales continued on 30 November with its announcement that it had acquired US social gaming firm Big Fish Gaming for $US900 million ($A1.3 billion). The purchase will increase the percentage of its revenue that comes from digital sources to around 38 per cent, and follows its August purchase of Israeli-based game developer Plarium. Aristocrat also handed down its 2017 fiscal year results on 30 November, reporting a net profit of $A495 million, up 41 per cent, earned on revenue of about $A2.4 billion.

CORPORATES
ARISTOCRAT LEISURE LIMITED – ASX ALL, BIG FISH GAMING INCORPORATED, PLARIUM LLC, CHURCHILL DOWNS, MOODY’S INVESTORS SERVICE INCORPORATED, VIDEO GAMING TECHNOLOGIES INCORPORATED

Nine won’t rush into mergers, Costello declares

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Original article by Darren Davidson
The Australian – Page: 18 : 14-Nov-17

Nine Entertainment Company has advised that its EBITDA for 2017-18 will be at the higher end of its newly revised range of $A204m to $A230m. It had previously flagged full-year EBITDA of between $A186m and $A207m. Meanwhile, chairman Peter Costello says the Federal Government’s cross-media ownership reforms may not lead to significant consolidation in the sector, as technology has reduced the impact of the reforms. He adds that the Nine Network’s strong ratings performance shows that the company can prosper on its own.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, TEN NETWORK HOLDINGS LIMITED – ASX TEN, CBS CORPORATION, STAN ENTERTAINMENT PTY LTD, CRICKET AUSTRALIA

Westpac CEO says political consensus needed to lift business confidence

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Original article by James Eyers,James Frost
The Australian Financial Review – Page: Online : 7-Nov-17

Westpac CEO Brian Hartzer has urged Australia’s politicians to find common ground on issues such as energy policy and infrastructure spending, so as to encourage business confidence. He made his remarks while announcing on 6 November that Westpac had recorded an annual profit of $A8.1 billion. Westpac predicts that Australian gross domestic product will grow by just 2.5 per cent in 2018, compared with forecast global growth of 3.5 per cent. Hartzer does not expect any change in interest rates for some time to come.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC,AUSTRALIA. DEPT OF THE TREASURY,RESERVE BANK OF AUSTRALIA,AUSTRALIAN LABOR PARTY,AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ,NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Newcrest ramps up Cadia mine’s output

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Original article by Peter Ker
The Australian Financial Review – Page: 22 : 27-Oct-17

Newcrest Mining’s gold production for the September quarter was slightly below analysts’ forecasts, at 522,917 ounces. However, Newcrest had flagged lower output for the quarter due to maintenance work at its Lihir mine in Papua New Guinea. Newcrest has also advised that it has resumed production at both caves at the Telfer mine, where mining was disrupted by a "seismic event" in April. The company expects to have access to all parts of the mine by the end of 2017.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, RBC CAPITAL MARKETS

Fortescue adamant that wide iron ore discount will revert

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Original article by Tess Ingram
The Australian Financial Review – Page: 17 : 27-Oct-17

Fortescue Metals Group’s cash reserves rose from $US1.8bn to $US2.3bn in the September quarter. Iron ore shipments totalled 44 million tonnes, with "C1" costs falling marginally to $US12.15 per tonne. Fortescue has reduced its price realisation guidance for the second time in 2017-18, and now expects to receive between 70 and 75 per cent of the benchmark index price for its lower-grade ore. CEO Nev Power suggested earlier in 2017 that the price discount would not be sustained, but he now says it is difficult to predict when it will narrow.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MACQUARIE GROUP LIMITED – ASX MQG

Wesfarmers’ Scott eyes the long game

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 24 : 26-Oct-17

Grocery giant Coles has reported an 0.3 per cent decline in sales for the September quarter, to $A9.4bn. Same-store food and liquor sales increased by just 0.4 per cent, down from 0.7 per cent growth in the previous three months and well below the forecasts of some analysts. Wesfarmers’ incoming MD Rob Scott remains upbeat about the outlook for Coles, forecasting that it will return to sales growth in the second half of 2017-18. Meanwhile, Kmart has reported same-store sales growth of 4.9 per cent, but Target has posted a 6.4 per cent decline.

CORPORATES
COLES GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WESFARMERS LIMITED – ASX WES, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, OFFICEWORKS SUPERSTORES PTY LTD, BUNNINGS GROUP LIMITED, WOOLWORTHS LIMITED – ASX WOW, CITIGROUP PTY LTD, VIVA ENERGY AUSTRALIA LIMITED

Metro radio drags on Southern Cross

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Original article by Darren Davidson
The Australian – Page: 19 : 25-Oct-17

Southern Cross Austereo has advised that revenue fell by two per cent year-on-year in the September 2017 quarter, due to the sale of a TV station in northern New South Wales. The group’s revenue was seven per cent lower on a reported basis, and its metropolitan radio stations posted a revenue decline of six per cent. However, its regional radio stations reported revenue growth of two per cent, and regional TV revenue was 3.5 per cent higher.

CORPORATES
SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, SOUTHERN CROSS AUSTEREO PTY LTD, PODCASTONE, HIT NETWORK, TRIPLE M CORPORATION PTY LTD, NINE NETWORK AUSTRALIA LIMITED

Oil Search production levels hit a new record

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Original article by James Thomson
The Australian Financial Review – Page: 25 : 18-Oct-17

Australian-listed Oil Search has reported production of 7.91 million barrels of oil equivalent for the September quarter, which is nine per cent higher than previously. The company has advised that the record quarterly production means full-year output should be at the higher end of its forecast of between 29 mboe and 30.5 mboe. Oil Search benefited from a strong contribution from the Papua New Guinea LNG project, for which expansion plans are being developed.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, EXXONMOBIL CORPORATION, TOTAL SA, RBC CAPITAL MARKETS

Upbeat Evolution flags higher 2018 cash flow

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Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 17-Oct-17

Evolution Mining produced 220,971 ounces of gold in the September 2017 quarter, which is 1.3 per cent higher than in the three months to June. The gold miner has reported an all-in sustaining cost of $US620 ($A786) per ounce for the latest quarter. Evolution’s operating cash flow rose to a record $707m in 2016-17, and finance director Lawrie Conway believes that this can increase by 15-20 per cent in 2017-18. This is despite the recent sale of the Edna May mine to Ramelius Resources.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, RAMELIUS RESOURCES LIMITED – ASX RMS, GLENCORE PLC, BARRICK GOLD CORPORATION, RBC CAPITAL MARKETS

Questions over QBE’s plan for $1b buyback

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Original article by Alice Uribe
The Australian Financial Review – Page: 19 : 4-Oct-17

QBE Insurance Group has increased its provision for natural disaster claims in 2017 to $US1.75bn ($A2.24bn), in the wake of a series of such events in Australia and abroad. The insurer has advised that this will reduce its pre-tax earnings by about $US600m. David Ellis of Morningstar and David Spotswood of Shaw & Partners suggest that QBE may have to put its share buyback on hold. QBE recently advised that it has repurchased about 5.5 per cent of its stock to date.

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, MORNINGSTAR PTY LTD, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, FITCH RATINGS LIMITED, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SUNCORP GROUP LIMITED – ASX SUN, FLORIDA CITIZENS PROPERTY INSURANCE CORPORATION, CITIGROUP PTY LTD, S&P GLOBAL RATINGS