COST CONTROL

ANZ to cut $1bn in search of growth

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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.

CORPORATES
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

Myer cuts another 50 jobs as sales fall

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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.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, HOUSE OF FRASER HOLDINGS PLC, TOURISM AUSTRALIA PTY LTD, J WALTER THOMPSON AUSTRALIA PTY LTD, OGILVY AUSTRALIA

Nine, Fairfax cuts won’t hit newsrooms

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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.

CORPORATES
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

Banks urged to slash branches to offset rising costs

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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.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Diggers still doing deals as gold price dips

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Original article by Matt Chambers
The Australian – Page: 20 : 6-Aug-18

Mergers and acquisitions activity and rising costs are among the issues that are likely to attract debate during the annual Diggers & Dealers mining conference in Kalgoorlie. Justin Osborne of Gold Road Resources expects larger gold producers to continue to pursue exploration deals in the near-term, although he says M&A activity may increase in coming years. Stuart Mathews, the local head of Gold Fields, says it would be open to appropriate acquisitions in the exploration space but its existing assets are its focus at present.

CORPORATES
DIGGERS AND DEALERS FORUM, GOLD ROAD RESOURCES LIMITED – ASX GOR, GOLD FIELDS LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Fairfax and News deal extends future of print

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Original article by Max Mason
The Australian Financial Review – Page: 17 : 19-Jul-18

Fairfax Media and News Corp Australia have struck a landmark deal to share some newspaper printing and distribution facilities in New South Wales and Queensland. Fairfax will print some News Corp publications on its printing presses in North Richmond, while News Corp will in turn print some Fairfax publications. The deal is expected to generate annual cost savings of $A15m for Fairfax, and CEO Greg Hywood says it will help ensure the long-term viability of print newspapers.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, GOOGLE INCORPORATED

Village eyes rebound as salaries, discounts cut

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Original article by Jemima Whyte
The Australian Financial Review – Page: 13 & 16 : 11-Jul-18

Village Roadshow will use the proceeds of a $51m right issue to reduce its debt. The new shares will be offered at $1.65 apiece, which represents a discount of 24 per cent to the stock’s most recent trading price. The theme parks and cinemas group has also advised that it will cease offering discounted tickets via resellers, with co-CEO Graham Burke noting that the majority of consumers now buy tickets directly from Village Roadshow. The company will reduce its joint CEOs’ salaries and its directors’ fees as part of a strategy to cut costs.

CORPORATES
VILLAGE ROADSHOW LIMITED – ASX VRL, WARNER BROS MOVIE WORLD ENTERPRISES, SEAWORLD, WET `N’ WILD WATER PARK, TOPGOLF, VILLAGE ROADSHOW CORPORATION LIMITED, ARDENT LEISURE GROUP – ASX AAD, DREAMWORLD, GROUPON AUSTRALIA PTY LTD

Optus to hang up on Virgin Mobile

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Original article by Supratim Adhikari
The Australian – Page: 19 : 24-May-18

Optus has confirmed that it will discontinue the Virgin Mobile brand in Australia, as part of its strategy to reduce costs. The decision to scrap the brand will result in the closure of about 36 stores and the loss of 200 jobs. Meanwhile, the Federal Court has ordered Optus to pay a $A1.5m fine after it falsely advised broadband customers that they had just 30 days rather than up to 18 months to switch to the NBN when it became available in their area.

CORPORATES
SINGTEL OPTUS PTY LTD, VIRGIN MOBILE (AUSTRALIA) PTY LTD, VIRGIN MOBILE HOLDINGS (UK) PLC, FEDERAL COURT OF AUSTRALIA, NBN CO LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AMAYSIM AUSTRALIA LIMITED – ASX AYS, THE KANTAR GROUP, TELSTRA CORPORATION LIMITED – ASX TLS

Hywood seeks cuts as Fairfax print sales fall

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Original article by Dana McCauley
The Australian – Page: 17 & 21 : 22-Feb-18

Fairfax Media has posted a 2017-18 interim net profit of $A38.5m, which is 54 per cent lower than previously. Underlying net profit fell 10 per cent to $A76.3m and revenue was down four per cent at $A877m. The Australian Metro Media division’s print advertising revenue and circulation revenue were down 13.4 per cent and 3.9 per cent respectively. Fairfax reduced costs by 11 per cent during the half-year, and CEO Greg Hywood says the group will seek further cost cuts. He also says Fairfax will be open to mergers and acquisitions, while it intends to sell or discontinue 28 print publications in New Zealand.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, METRO MEDIA PUBLISHING PTY LTD, STUFF LIMITED, MACQUARIE MEDIA LIMITED – ASX MRN, STAN ENTERTAINMENT PTY LTD, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Seven cuts dividend to focus on debt

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

Seven West Media has posted a 2017-18 interim underlying net profit of $A100.7m, which is 5.2 per cent higher than previously. EBITDA was up 3.5 per cent at $A176.8m, but revenue fell 10.4 per cent to $A809.4m. The media group reduced its costs by $A13.8m during the first half, and it aims to cut costs by $A40m over the full year. CEO Tim Worner says dividends have been put on hold to enable Seven to reduce its debt and capitalise on potential merger opportunities in the wake of the federal government’s cross-media ownership reforms.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, YAHOO!7 COMMUNICATIONS AUSTRALIA PTY LTD, AUSTRALIAN FOOTBALL LEAGUE, MACQUARIE GROUP LIMITED – ASX MQG