CORPORATE PROFITS – AUSTRALIA

Department stores aren’t dying, says DJ’s owner

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Original article by Sue Mitchell
The Australian Financial Review – Page: 23 : 24-Aug-18

David Jones’s operating profit fell by 49.6 per cent to $64 million in the year to June 2018, as advised by parent company Woolworths Holdings. This compared to an operating profit of $127 million for the previous corresponding period. Department store earnings were down 58 per cent to $5 million. Sales for the second half of the reporting period increased by 2.2 per cent, while sales for the first seven weeks of 2018-19 have risen by 3.7 per cent.

CORPORATES
DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, COUNTRY ROAD LIMITED, ZARA, HENNES OCH MAURITZ AB, LOUIS VUITTON, CHANEL INCORPORATED, WALT DISNEY COMPANY

Northern Star not budging on cash stash

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Original article by Brad Thompson
The Australian Financial Review – Page: 27 : 24-Aug-18

Gold miner Northern Star Resources has posted a 2017-18 net profit of $194.1m, which is three per cent higher than previously. EBITDA rose by four per cent to $442.9m and revenue was up 11 per cent at $964m. The company has spent $212m on exploration in the last five years, and it has allocated a further $60m for exploration in 2018-19. Northern Star Resources has cash reserves of $443m, but CEO Bill Beament has downplayed talk of capital management initiatives. He says a healthy balance sheet is desirable given that the company is in growth mode.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, RBC CAPITAL MARKETS, S&P GLOBAL MARKET INTELLIGENCE

Content and data to underpin Nine growth

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Original article by Max Mason
The Australian Financial Review – Page: 21 : 24-Aug-18

Nine Entertainment Company has posted a 2017-18 underlying net profit of $156.7m, which is 26.8 per cent higher than previously. Underlying EBITDA was up 25.1 per cent at $257.2m and revenue rose 6.5 per cent to $1.3bn. Nine boasted a 38.6 per cent share of free-to-air metropolitan advertising revenue in 2017-18, ahead of Seven West Media with a 38.1 per cent share. Nine CEO Hugh Marks is upbeat about the media group’s outlook, highlighting its capabilities in delivering content across media platforms and targeted advertising via its addressable TV technology.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, 9NOW, STAN ENTERTAINMENT PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, FAIRFAX MEDIA LIMITED – ASX FXJ, WILSON ASSET MANAGEMENT

Lihir gold output to hit 1 million oz: Newcrest

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Original article by Peter Ker
The Australian Financial Review – Page: 24 : 23-Aug-18

Newcrest Mining has posted a 2017-18 net profit of $US202m, which is 34 per cent lower than previously. A $US155m insurance payout arising from seismic events at the Cadia mine partially offset impairment charges associated with other assets. Newcrest has also advised that gold production at its Lihir mine is expected to be within the range of 950,000 and 1.05 million ounces in 2018-19. Rival gold miners St Barbara and Saracen Mineral Holdings have reported net profits of $227m and $75.6m respectively.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, ST BARBARA LIMITED – ASX SBM, SARACEN MINERAL HOLDINGS LIMITED – ASX SAR

Warning over gas glut: Oil Search

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Original article by Andrew White
The Australian – Page: 23 : 22-Aug-18

Oil Search has posted a 2018 interim net profit of $US79.2m ($107.7m), which is 39 per cent lower than previously. Production fell by 31 per cent to 10.24 million barrels of oil equivalent after its Papua New Guinea operations were disrupted by an earthquake in February. Oil Search expects full-year output of 24 million to 26 million boe. Meanwhile, CEO Peter Botten has questioned whether all four of the proposed LNG import terminals in the eastern states would be economically viable.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, AGL ENERGY LIMITED – ASX AGL, FORTESCUE METALS GROUP LIMITED – ASX FMG, EXXONMOBIL CORPORATION

BHP frees cash for shareholders

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Original article by Matt Chambers
The Australian – Page: 19 & 23 : 22-Aug-18

BHP Billiton has posted a 2017-18 underlying profit of $US8.93bn, which is 33 per cent higher than previously. The resources giant boasted free cash flow of $US12.5bn for the financial year, and it expects to return about $US20bn to shareholders in 2018-19, including the proceeds from the recent sale of its shale assets in the US. Shareholders will receive a full-year dividend of $US1.18 per share for 2017-18, including a record final dividend of $US0.63.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, PENDAL GROUP LIMITED – ASX PDL, RIO TINTO LIMITED – ASX RIO

Seven West open to closer News Corp ties

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Original article by Max Mason
The Australian Financial Review – Page: 19 : 22-Aug-18

Seven West Media has posted a 2017-18 net profit of $135.8m, following a $744.3m loss in the previous financial year. Revenue was 3.2 per cent lower at $1.6bn and underlying EBIT fell 9.9 per cent to $235.6m, while Seven forecasts growth in underlying EBIT of 5-10 per cent in 2018-19. CEO Tim Worner says Seven may seek to strengthen its commercial partnerships or forge new deals in the wake of Nine Entertainment’s proposed merger with Fairfax Media. He notes that Seven already has an alliance with News Corp, but he has downplayed suggestions of a merger.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, YAHOO!7 COMMUNICATIONS AUSTRALIA PTY LTD, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, PRIME MEDIA GROUP LIMITED – ASX PRT

Outdoor advertiser reaps growth rewards

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Original article by Stephen Brook
The Australian – Page: 27 : 21-Aug-18

Australian-listed oOh! Media has posted a 2018 interim net profit of $9.2m, which is three per cent higher than previously. The outdoor advertising group’s EBIT was up 11 per cent at $37.9m and revenue increased by 11 per cent to $192m. CEO Brendon Cook says oOh! Media will ramp up its investment in digital billboards and an online trading platform as part of its growth strategy. Shareholders will receive a fully franked interim dividend of $0.035 per share.

CORPORATES
OOH!MEDIA LIMITED – ASX OML, ADSHEL PTY LTD, HT&E LIMITED – ASX HT1, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, JUNKEE MEDIA PTY LTD, APN OUTDOOR GROUP LIMITED – ASX APO, JC DECAUX SA, QANTAS AIRWAYS LIMITED – ASX QAN

Music to the ears of investors as the beats go on

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Original article by David Rogers
The Australian – Page: 27 : 21-Aug-18

The August corporate reporting season in Australia has generally been positive, with about half the companies that have reported to date announcing earnings and dividend payouts that met expectations. This has been reflected in share prices, with stocks that have beaten expectations rising by 2.8 per cent on average and those that failed to do so tending to fall by around three per cent. However, Jason Steed of JP Morgan notes that earnings per share forecasts have been downgraded for 29 per cent of stocks, while just nine per cent have been upgraded.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG, MORGAN STANLEY AUSTRALIA LIMITED, BRAMBLES LIMITED – ASX BXB, COLLECTION HOUSE LIMITED – ASX CLH, ARB CORPORATION LIMITED – ASX ARB, COCA-COLA AMATIL LIMITED – ASX CCL, STANDARD AND POOR’S ASX 200 INDEX, RIO TINTO LIMITED – ASX RIO, AGL ENERGY LIMITED – ASX AGL, CHALLENGER LIMITED – ASX CGF, MINERAL RESOURCES LIHIR PTY LTD, PACT GROUP HOLDINGS LIMITED – ASX PGH, COCHLEAR LIMITED – ASX COH, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, SEEK LIMITED – ASX SEK, ANSELL LIMITED – ASX ANN

Fortescue chair Forrest’s dividend hit

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 20-Aug-18

Fortescue Metals Group posted a net profit of $US2.09bn in 2016-17, but the consensus of analysts is that its profit for 2017-18 will be around 49 per cent lower. JPMorgan is more bearish, forecasting that Fortescue’s net profit could fall by up to 59 per cent to just $US856m. The firm expects Fortescue to announce a full-year dividend of $0.20 per share, following an interim dividend of $0.11. Company founder and chairman Andrew Forrest received $467m worth of dividend payments in 2016-17, but this could fall to just $207.7m in 2017-18 based on JPMorgan’s numbers.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, JP MORGAN AUSTRALIA LIMITED, GLENCORE PLC, WHITEHAVEN COAL LIMITED – ASX WHC, MINERAL RESOURCES LIMITED – ASX MIN, EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST, HANCOCK PROSPECTING PTY LTD