COMPANY RESULTS – AUSTRALIA

Ten investors weigh class action

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Original article by Darren Davidson
The Australian – Page: 17 & 28 : 31-Aug-17

Australian Shareholders’ Association director Allan Goldin says it is too soon to know whether Ten Network investors will pursue a class action against the failed network. The ASA has held preliminary talks with law firms after it was revealed that Ten’s shareholders will receive no payout if CBS acquires the network. Meanwhile, Foxtel CEO Peter Tonagh says CBS has indicated that it intends to be a long-term owner of Ten. He also says Foxtel achieved its best monthly sales on record in July, with growth driven by the new Foxtel Now streaming service.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, CBS CORPORATION, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, FOXTEL MANAGEMENT PTY LTD, FOXTEL NOW, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, NETFLIX INCORPORATED, AMAZON.COM INCORPORATED, GOOGLE INCORPORATED, YOUTUBE INCORPORATED, FACEBOOK INCORPORATED, TWITTER INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, FOX SPORTS AUSTRALIA PTY LTD

Telco nets 1million customers

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Original article by Michael Bailey
The Australian Financial Review – Page: 26 : 29-Aug-17

Amaysim Australia has posted a 2016-17 net profit after tax of $A11.5 million, which is seven per cent lower than previously. Amaysim’s statutory earnings increased by 35 per cent to $A33.8 million, while its revenue rose by 29 per cent to $A326.7 million. Shareholders will receive a fully franked final dividend of $A0.051 per share. Amaysim shares closed up five per cent at $A1.75 on 28 August.

CORPORATES
AMAYSIM AUSTRALIA LIMITED – ASX AYS, CLICK ENERGY, SINGTEL OPTUS PTY LTD, AUSBBS

Nine proceeds with caution on cricket rights

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Original article by Darren Davidson
The Australian – Page: 21 : 25-Aug-17

Write-downs resulted in Nine Entertainment Company reporting a 2016-17 net loss of $A203.4m, although its underlying profit was 2.7 per cent higher at $A123.6m. Revenue of $1.24bn was three per cent lower. CEO Hugh Marks says Nine is keen to acquire the rights to the Big Bash League as well as renew its existing cricket broadcasting rights, and he hopes for a swift conclusion to negotiations with Cricket Australia. However, he has cautioned that the subdued advertising market means Nine cannot afford to pay much more than at present for sports broadcasting rights.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, CRICKET AUSTRALIA, STAN ENTERTAINMENT PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, AMAZON.COM INCORPORATED, TWITTER INCORPORATED, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, YOUTUBE INCORPORATED, FOXTEL MANAGEMENT PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, BIG BASH LEAGUE

Wild ride for majors as profit season unfolds

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Original article by David Rogers
The Australian – Page: 27 : 24-Aug-17

The August 2017 reporting season has prompted large movements in the shares of some blue-chip stocks. Data from Bloomberg shows that 30 companies in the benchmark S&P/200 Index have experienced share price movements of at least five per cent on the day their latest financial results were released. AMP Capital’s Shane Oliver notes that a similar number of stocks have outperformed and underperformed the market, although investors have tended to react more savagely than usual to stocks that failed to meet earnings expectations.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, BLOOMBERG LP, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, TELSTRA CORPORATION LIMITED – ASX TLS, HEALTHSCOPE LIMITED – ASX HSO, ACONEX LIMITED – ASX ACX, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SIRTEX MEDICAL LIMITED – ASX SRX, WOOLWORTHS LIMITED – ASX WOW, MONADELPHOUS GROUP LIMITED – ASX MND, THE A2 MILK COMPANY LIMITED – ASX A2M, VIRTUS HEALTH LIMITED – ASX VRT, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, McMILLAN SHAKESPEARE LIMITED – ASX MMS, AVEO GROUP – ASX AOG, BEACH POINT CAPITAL MANAGEMENT LP, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, FORTESCUE METALS GROUP LIMITED – ASX FMG, MACQUARIE GROUP LIMITED – ASX MQG

Failed oOh! merger leaves $3.4m sting in the tail for APN Outdoor

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Original article by Stephen Brook
The Australian – Page: 28 : 22-Aug-17

APN Outdoor Group has posted a 2017 interim net profit of $A15.8m, which is 19 per cent lower than previously. The result was marred by pre-tax costs of $A3.4m arising from its proposed merger with oOh!media, which was abandoned following indications that it was likely to be rejected on competition grounds. APN Outdoor’s revenue for the half-year rose by eight per cent to $A162.3m, as the company continued to expand its network of digital advertising billboards.

CORPORATES
APN OUTDOOR GROUP LIMITED – ASX APO, OOH!MEDIA LIMITED – ASX OML, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, YARRA TRAMS, METRO TRAINS MELBOURNE PTY LTD, ADELAIDE METRO, PERTH RAIL

Reporting season needs a real kick-along

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Original article by Philip Baker
The Australian Financial Review – Page: 20 : 21-Aug-17

To date some 76 companies in the S&P/ASX 200 companies have released their financial results so far in the August reporting season. Just 20 per cent of stocks to have issued guidance for 2017-18 have upgraded their earnings-per-share forecast. Blue-chip stocks such as Qantas and BHP Billiton will need to deliver solid earnings results in the next two weeks in order to bolster investor sentiment and boost the benchmark index. A major issue during the current reporting season has been the dearth of companies to have exceeded expectations.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, QANTAS AIRWAYS LIMITED – ASX QAN, WOOLWORTHS LIMITED – ASX WOW, MACQUARIE WEALTH MANAGEMENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, JANUS HENDERSON GROUP PLC – ASX JHG, JB HI-FI LIMITED – ASX JBH, IOOF HOLDINGS LIMITED – ASX IFL, ORIGIN ENERGY LIMITED – ASX ORG, SUNCORP GROUP LIMITED – ASX SUN, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, JAMES HARDIE INDUSTRIES PLC – ASX JHX, NEWCREST MINING LIMITED – ASX NCM, CROWN RESORTS LIMITED – ASX CWN, CHALLENGER LIMITED – ASX CGF, KOGAN.COM LIMITED – ASX KGN, THE A2 MILK COMPANY LIMITED – ASX A2M

Retailer Godfreys sucks it up and goes back to basics

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Original article by Simon Evans
The Australian Financial Review – Page: 26 : 18-Aug-17

Vacuum cleaner retailer Godfreys Group has posted a 2016-17 net loss of $A18.4 million. Revenue declined by 2.9 per cent to $A174.1 million, while 22 of its company stores were converted to franchise outlets during the year. Analysts see Godfreys falling behind stores like JB Hi-Fi and Harvey Norman in the $A1.3 billion Australian vacuum cleaner sector, while the pending arrival of Amazon presents another challenge for the group.

CORPORATES
GODFREYS GROUP LIMITED – ASX GFY, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AMAZON.COM INCORPORATED, WERTHEIM SCHRODER AND COMPANY, HOOVER (AUSTRALIA) PTY LTD, DYSON INDUSTRIES LIMITED

NBN reality hits Telstra investors

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Original article by Max Mason
The Australian Financial Review – Page: 1 & 2 : 18-Aug-17

Telstra has reported 2016-17 EBITDA of $A10.7 billion, up two per cent, while its profit from ongoing operations rose 1.1 per cent to $A3.9 billion. However, shares in the telco fell by 10.6 per cent on 17 August after it advised that dividend payments will be reduced in coming years, as it has to absorb higher costs in regard to the rollout of the national broadband network. Delian Entchev of Watermark Funds Management says Telstra should have changed its dividend payout ratio some time ago.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, NBN CO LIMITED, WATERMARK FUNDS MANAGEMENT PTY LTD, AUTOHOME INCORPORATED, CITI AUSTRALIA PTY LTD

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

Rio hands out China bonanza

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Original article by James Thomson, Tess Ingram
The Australian Financial Review – Page: 1 & 22 : 3-Aug-17

Rio Tinto has posted a 2017 interim net profit of $US3.3bn, which is 93 per cent higher than previously, while underlying earnings rose by 152 per cent to $US3.9bn ($A4.9bn). The strong result was driven by its iron ore division, whose earnings rose by 87 per cent to $US3.3bn. Shareholders will receive a record interim dividend of $US1.10 a share, compared with just $US0.45 for the same period in 2016. Meanwhile, CEO Jean-Sebastien Jacques is upbeat about the outlook for the Chinese economy.

CORPORATES
RIO TINTO LIMITED – ASX RIO, YANCOAL AUSTRALIA LIMITED – ASX YAL, COAL AND ALLIED INDUSTRIES LIMITED, SHAW AND PARTNERS LIMITED, CITIGROUP PTY LTD, BARCLAYS BANK PLC