Aristocrat Leisure Limited (ALL):
Aristocrat’s $US500 million ($677 million) purchase of Israeli social gaming company Plarium confirms the company’s status as a technology business, according to chief executive Trevor Croker. The deal, announced on Thursday, would mean digital sources would grow to 22 per cent of its overall revenue, based on results for the year to March 2017. Aristocrat will fund the acquisition via existing cash and an incremental $US425 million seven-year Term Loan B debt facility.
Virgin Australia Holdings Limited (VAH):
Virgin Australia chief executive John Borghetti says the domestic aviation market is showing signs of bouncing back, thanks to a pick-up in demand for corporate travel and capacity cuts. But there was still more work to do to put the airline back on the path to sustainable profit growth after years of losses. Virgin, Australia’s second-largest carrier said it expected conditions to improve in the first quarter after posting its fifth consecutive annual loss as it rebuilds its balance sheet following years of heavy investment and a crippling capacity war with Qantas. However, analysts welcomed Virgin’s $3.7 million underlying pre-tax loss, which was better than expected after a stronger-than-expected performance in the fourth quarter that continued in the first quarter of the current year. Virgin’s international business also returned to profit and the airline was cash-flow positive for the first time in five years. Analysts expect Virgin to post a pre-tax underlying $80 million profit this year.
Origin Energy Limited (ORG):
A further hefty write-down on Origin Energy’s APLNG gas export project in Queensland is set to tip impairments for the full year at the energy supplier to more than $3 billion, as analysts signal that a further adjustment cannot be ruled out. Origin advised of $1.2 billion of write downs it would take in the second half of 2016-17, with the total also reflecting the sale price it is expecting for its oil and gas spin-off, Lattice Energy, which is lower than the book value.
AGL Energy Limited (AGL):
The Chinese regulator has lifted the ban on the facility owned by troubled infant formula producer Bellamy’s Australia, removing a huge complication that emerged following the Tasmanian-based company’s purchase of the business in June. Bellamy’s, chaired by Janchor Partners’ John Ho, and acquired Camperdown Powder mainly to secure a crucial Chinese licence attached to the facility before regulatory changes being introduced on January 1, 2018. But just as the company was finalising the $60 million capital raising to fund the Victorian cannery and other initiatives, the Certification Accreditation Administration of the People’s Republic of China (CNCA) suspended Camperdown’s export licence, without providing reasons. ‘‘We are pleased that Camperdown’s suspended registration has today been lifted. Bellamy’s appreciates the important role the CNCA has in protecting Chinese consumers and the support of the Australia trade officials in assisting us throughout this process,’’ chief executive Andrew Cohen said in a statement to the market. Shares rose 4.6 per cent to finish at $8.24, the highest level since December and well above the $4.75 a share, at which it raised capital via a rights issue in June.
AMP Limited (AMP):
AMP chief executive Craig Meller says it is difficult for Australian life insurers to compete with the overseas players because the foreigners’ return expectations are ‘‘quite clearly lower’’ than their Australian rivals. ‘‘The challenge is that it’s difficult to be an Australian-based scale player when you’re competing against non-Australian based global scale players,’’ Mr Meller said. ‘‘The adjustments we made last year were an acknowledgement that the margins that we’ve enjoyed historically as a business weren’t going to be the margins that we get in the future.’’ The $15.8 billion wealth management giant confirmed two new reinsurance deals on Thursday to relieve the pressure on its life division.
Orora Limited (ORA):
The chief executive of $3.3 billion packaging group Orora says the North American economy has better prospects over the next year than Australia’s, largely because of substantially cheaper energy prices and lower cost pressures on households. Orora has 15 manufacturing plants and 60 distribution centres in North America, and 29 plants and 38 distribution centres in Australasia. The $2.04 billion in sales revenue from the North American businesses meant it overtook the Australasian unit as the company’s biggest revenue generator for the first time in 2016-17.
Woolworths Limited (WOW):
Global energy giant BP has promised to be more price competitive in Australia in an attempt to gain clearance for its $1.8 billion acquisition of Woolworths’ fuel business. The deal, which underpins BP’s and Woolworths’ ambitious convenience store plans, is now under a cloud because the competition regulator fears it may lessen competition in fuel and convenience retailing and lead to higher pump prices by removing a strong competitor.
(Source: AIMS)
Aristocrat’s $US500 million ($677 million) purchase of Israeli social gaming company Plarium confirms the company’s status as a technology business, according to chief executive Trevor Croker. The deal, announced on Thursday, would mean digital sources would grow to 22 per cent of its overall revenue, based on results for the year to March 2017. Aristocrat will fund the acquisition via existing cash and an incremental $US425 million seven-year Term Loan B debt facility.
Virgin Australia Holdings Limited (VAH):
Virgin Australia chief executive John Borghetti says the domestic aviation market is showing signs of bouncing back, thanks to a pick-up in demand for corporate travel and capacity cuts. But there was still more work to do to put the airline back on the path to sustainable profit growth after years of losses. Virgin, Australia’s second-largest carrier said it expected conditions to improve in the first quarter after posting its fifth consecutive annual loss as it rebuilds its balance sheet following years of heavy investment and a crippling capacity war with Qantas. However, analysts welcomed Virgin’s $3.7 million underlying pre-tax loss, which was better than expected after a stronger-than-expected performance in the fourth quarter that continued in the first quarter of the current year. Virgin’s international business also returned to profit and the airline was cash-flow positive for the first time in five years. Analysts expect Virgin to post a pre-tax underlying $80 million profit this year.
Origin Energy Limited (ORG):
A further hefty write-down on Origin Energy’s APLNG gas export project in Queensland is set to tip impairments for the full year at the energy supplier to more than $3 billion, as analysts signal that a further adjustment cannot be ruled out. Origin advised of $1.2 billion of write downs it would take in the second half of 2016-17, with the total also reflecting the sale price it is expecting for its oil and gas spin-off, Lattice Energy, which is lower than the book value.
AGL Energy Limited (AGL):
The Chinese regulator has lifted the ban on the facility owned by troubled infant formula producer Bellamy’s Australia, removing a huge complication that emerged following the Tasmanian-based company’s purchase of the business in June. Bellamy’s, chaired by Janchor Partners’ John Ho, and acquired Camperdown Powder mainly to secure a crucial Chinese licence attached to the facility before regulatory changes being introduced on January 1, 2018. But just as the company was finalising the $60 million capital raising to fund the Victorian cannery and other initiatives, the Certification Accreditation Administration of the People’s Republic of China (CNCA) suspended Camperdown’s export licence, without providing reasons. ‘‘We are pleased that Camperdown’s suspended registration has today been lifted. Bellamy’s appreciates the important role the CNCA has in protecting Chinese consumers and the support of the Australia trade officials in assisting us throughout this process,’’ chief executive Andrew Cohen said in a statement to the market. Shares rose 4.6 per cent to finish at $8.24, the highest level since December and well above the $4.75 a share, at which it raised capital via a rights issue in June.
AMP Limited (AMP):
AMP chief executive Craig Meller says it is difficult for Australian life insurers to compete with the overseas players because the foreigners’ return expectations are ‘‘quite clearly lower’’ than their Australian rivals. ‘‘The challenge is that it’s difficult to be an Australian-based scale player when you’re competing against non-Australian based global scale players,’’ Mr Meller said. ‘‘The adjustments we made last year were an acknowledgement that the margins that we’ve enjoyed historically as a business weren’t going to be the margins that we get in the future.’’ The $15.8 billion wealth management giant confirmed two new reinsurance deals on Thursday to relieve the pressure on its life division.
Orora Limited (ORA):
The chief executive of $3.3 billion packaging group Orora says the North American economy has better prospects over the next year than Australia’s, largely because of substantially cheaper energy prices and lower cost pressures on households. Orora has 15 manufacturing plants and 60 distribution centres in North America, and 29 plants and 38 distribution centres in Australasia. The $2.04 billion in sales revenue from the North American businesses meant it overtook the Australasian unit as the company’s biggest revenue generator for the first time in 2016-17.
Woolworths Limited (WOW):
Global energy giant BP has promised to be more price competitive in Australia in an attempt to gain clearance for its $1.8 billion acquisition of Woolworths’ fuel business. The deal, which underpins BP’s and Woolworths’ ambitious convenience store plans, is now under a cloud because the competition regulator fears it may lessen competition in fuel and convenience retailing and lead to higher pump prices by removing a strong competitor.
(Source: AIMS)
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