Original article by Cliona O’Dowd
The Australian – Page: 21 : 24-Oct-19
Data from the Australian Prudential Regulation Authority shows that the nation’s four major banks closed 207 branches during 2018-19, and 750 since 2014. Westpac has closed 333 branches in the last five years, including those of its subsidiaries, ahead of ANZ Bank with 190. A Westpac spokesman has defended the closures, noting that less than two per cent of banking transactions are now undertaken in its branches. More than 1,000 ATMs nationwide have also been scrapped in the last year.
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ST GEORGE BANK LIMITED, BANK OF MELBOURNE LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, FINANCE SECTOR UNION
Original article by Max Mason
The Australian Financial Review – Page: 15 & 18 : 3-Oct-19
The number of people who report directly to Seven West Media CEO James Warburton has been reduced from 17 to just eight as part of a broader restructuring at the group. Seven West Media will also hire three new executives, including the newly-created role of chief content officer. Seven will also streamline its operating divisions and shed staff as it seeks to reduce costs by about $20m in 2019-20. Warburton had flagged an overhaul at Seven West Media when he took the helm in August.
SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, FAIRFAX MEDIA LIMITED, TEN NETWORK HOLDINGS LIMITED
Original article by James Frost
The Australian Financial Review – Page: 17 & 22 : 9-Aug-19
AMP has announced a loss of $2.3bn for the first half of 2019 and a new strategy to turn around its fortunes. Amongst other things, the wealth manager aims to reduce costs by about $300m a year. AMP has also flagged plans to significantly reduce the number of financial advisers in its network and place more emphasis on so-called roboadvice. AMP will also continue to pursue the sale of its life insurance business to Resolution Life, while it will issue new shares at $1.50 apiece via a $650m capital raising.
AMP LIMITED – ASX AMP, RESOLUTION LIFE GROUP LIMITED, MERLON CAPITAL PARTNERS PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD
Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 19-Jun-19
Coles Group has outlined plans to reduce costs by $1bn over the next four years in a bid to arrest the 20 per cent downturn in earnings over the last two years. The proceeds from the cost-cutting program will be redirected to initiatives such as refurbishing stores and enhancing Coles’ online operations. Coles plans to open about 10 new stores in 2020, compared with 21 in 2019. It also intends to refurbish 75 stores in 2020, up from 50 in fiscal 2019. Coles shares closed 3.44 per cent higher at $13.21 on 18 June.
COLES GROUP LIMITED – ASX COL, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS GROUP LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, WESFARMERS LIMITED – ASX WES, VERTIUM ASSET MANAGEMENT PTY LTD
Original article by James Fernyhough, Max Mason
The Australian Financial Review – Page: 13 & 16 : 5-Jun-19
Telstra CEO Andy Penn has advised that the focus of the telco’s ‘T22’ strategy cost-cutting will shift to its indirect workforce from 2019-20. Telstra boasts about 40,000 indirect workers, who include contractors, call-centre workers and customer service staff. Penn has signalled that the telco will shed about 25 per cent of these workers over the next two years. Telstra unveiled plans in mid-2018 to retrench some 8,000 direct employees over the next several years. The ACTU has accused Telstra of putting profits ahead of people, jobs and service.
TELSTRA CORPORATION LIMITED – ASX TLS, ACTU, NEW STREET RESEARCH
Original article by Max Mason
The Australian Financial Review – Page: 17 : 14-May-19
Sports rights and associated production costs accounted for $800m of Foxtel’s $1.6bn expenditure on programming costs in 2018. The pay-TV group’s total operating expenditure for the calendar year was $2.56bn. Parent company News Corp has indicated that there is potential to reduce spending on "non-marquee" sports content, as well as non-sports programming costs. Foxtel is also reviewing the prices of its programming packages and has not ruled out an increase.
FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, KAYO SPORTS, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, RUGBY AUSTRALIA, FOOTBALL FEDERATION AUSTRALIA LIMITED, THE A LEAGUE PTY LTD, THE W LEAGUE, SOCCEROOS, TEN NETWORK HOLDINGS LIMITED
Original article by Joyce Moullakis
The Australian – Page: 17 & 22 : 2-May-19
The ANZ Bank has posted a 2018-19 interim cash profit of $3.56bn, which is two per cent higher than previously. The result for the six months to 31 March included provision for $175m worth of remediation charges. CEO Shayne Elliott has flagged further cost-cutting measures in coming years, although he has downplayed talk of further staff cuts and branch closures. Meanwhile, Elliott says the banking sector’s mortgage loan repayment buffer of 7.25 per cent should be revised, given that the cash rate is just 1.5 per cent at present.
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, TRIBECA INVESTMENT PARTNERS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA
Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 22-Mar-19
Myer Holdings has stressed that customer-facing staff will not be affected by the department store group’s latest job cuts. CEO John King has advised that 50 employees will be retrenched, primarily in store administration, marketing and merchandising roles. Myer is expected to shed further jobs when it begins reducing the amount of space it leases in some of its stores. Myer retrenched 30 executives and managers in August 2018, shortly after King took the helm.
MYER HOLDINGS LIMITED – ASX MYR, HOUSE OF FRASER HOLDINGS PLC, TOURISM AUSTRALIA PTY LTD, J WALTER THOMPSON AUSTRALIA PTY LTD, OGILVY AUSTRALIA
Original article by Max Mason
The Australian Financial Review – Page: 27 : 15-Oct-18
Grant Samuel & Associates has deemed Fairfax Media’s proposed merger with Nine Entertainment Company to be in the best interests of the newspaper publisher’s shareholders. The scheme booklet for the merger indicates that the deal is expected to generate cost synergies of about $50m a year, primarily by combining the sales teams and back-office functions, and by using shared technology platforms. The scheme booklet has emphasised that there are no plans to combine the Fairfax and Nine newsrooms or retrench journalists. However, it concedes that job losses in other areas are likely.
FAIRFAX MEDIA LIMITED – ASX FXJ, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, GRANT SAMUEL AND ASSOCIATES PTY LTD, STAN ENTERTAINMENT PTY LTD, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA
Original article by Richard Gluyas
The Australian – Page: 19 : 8-Oct-18
Morgan Stanley argues that Australia’s major banks could generate significant savings by closing bank branches and placing greater emphasis on mobile banking. This is one of four scenarios outlined in a new report; however, Morgan Stanley notes that banks are unlikely to significantly reduce the cost of their networks in the next year, given that the sector is under scrutiny at present. Morgan Stanley adds that the major banks could potentially generate large savings by reviewing their multibrand strategies.
MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ