Aurizon Holdings Ltd (AZJ):
Aurizon has officially dropped its bid for a federal concessional loan to build a common-user rail line that would have served Adani’s Carmichael mine. The rail freight company issued a statement this morning confirming it would withdraw its application to the Northern Australia Infrastructure Facility (NAIF) for funding to assist with a rail solution for the development of the Galilee Basin. It comes after months of pressure on Premier Annastacia Palaszczuk, who opted during the election to veto a loan for a similar application from Indian conglomerate Adani and promised no taxpayer funds would go towards supporting the mine. Managing director and chief executive Andrew Harding said Aurizon would continue to support the development of the untapped basin but could not continue with its proposal due to the lack of progression on customer contracts. “When developed it has the potential to provide a major boost to the national economy and create thousands of jobs in regional Queensland,” Mr Harding said. “We believe Aurizon can play a key role in helping facilitate a multi-user, open access rail solution for the various new mines in the region. “However, while we are in ongoing discussions with several Galilee Basin mine proponents we have not yet progressed to definitive contractual arrangements with any proponent.
Myer Holdings Ltd (MYR):
Myer Holdings has issued a first-half trading update. In December, Myer reported a deterioration in trading where total sales to the end of November were down 2.3 percent and comparable store sales were down 1.8 percent. Total sales during the first two weeks in December were down 5 per cent. Total sales during January are down 6.5 per cent and for the first-half down 3.6 percent to $1.7 billion, or 3 per cent lower on a comparable store sales basis. Despite the sales shortfall through December and January, Myer remains comfortable with the quality of its inventory. Sales online in the first-half were up 48.9 per cent. Myer boss Richard Umbers said: "The significant deterioration in trading reflects ongoing challenging retail conditions with widespread industry discounting, a subdued performance of Myer's Stocktake Sale and a continued shift in consumer behaviour characterised by reduced foot traffic and an increase in online shopping." Now, first-half net profit will be between $37 million and $41 million pre implementation costs and individually significant items. Myer anticipates a non-cash impairment charge to be taken at the first half 2018 result and declined to provide full-year profit guidance.
News Corp (NWS):
News Corp reported a 3 per cent increase in revenue in the second quarter, driven by sustained digital growth, positive currency fluctuations, and the digital real-estate business. For the three months ended December 21, the company posted revenue of $US2.18 billion, compared to $US2.12 billion in the prior corresponding period. The revenue gain was also boosted by the acquisitions of Australian Regional Media and Australian News Channel, operator of the Sky News channels. The company recorded a net a loss of $US66 million compared to $US219 million in the same period a year earlier, and a loss of 14 cents a share, compared with a loss of 50 cents a share in the prior year. The revenue result was slightly ahead of estimates from analysts polled by Bloomberg, who had forecast $US2.13 billion in revenue. The news and information-services business, which accounts for just under two-thirds of the company’s top line, reported flat revenue at $US1.3 billion. The News and Information Services segment recorded strong paid digital subscriber growth at key news mastheads, led by The Wall Street Journal with a 29 per cent increase in its digital-only subscribers to approximately 1.4 million.
REA Group Limited (REA):
REA Group, the country’s largest online real-estate classifieds company, said its first-half net profit fell by 55 per cent despite a rebound in home-listing volumes in Sydney and Melbourne. REA (REA), which operates websites including realestate.com.au, posted a net profit for the six months through December of $132.4 million. That was down from $292.lm year earlier when the company banked a $161.6m gain on the sale of its European operations to private equity firm Oakley Capital. Directors declared an interim dividend of 47 cents per share, up from 40c in the corresponding period a year earlier. Australia’s residential real-estate market has shown signs of softening in recent months, with data from CoreLogic Inc. showing prices fell by 0.3 per cent nationally between October and December led by weakness in Sydney. Some analysts expect prices to keep dropping this calendar year, with AMP Capital predicting an around 5 per cent fall in Sydney and Melbourne.
Scentre Group (SCG):
Shopping centre giant Scentre Group is forging ahead with major developments, kicking off its $NZ790 million redevelopment of the Westfield Newmarket complex, where it is aiming to create a world-class retail and lifestyle centre in the heart of Auckland. The deal will see Scentre (SCG), led by Peter Allen, pour $NZ400m into the redevelopment that will span multiple sites over four and half hectares and add to its pipeline of local projects that include an overhaul of Sydney’s historic David Jones Market Street store and a new centre at harbourside Barangaroo. Westfield Newmarket is half owned by Singaporean giant GIC Real Estate and will be fashion focused centre that will house outlets for top Australasian retailers. The centre will include a rooftop dining and entertainment precinct and an Event Cinemas complex offering V-Max and Gold Class.
SKYCITY Entertainment Group Limited (SKC):
Casinos operator Skycity Entertainment Group has lifted its first-half net profit by 11.6 per cent to $NZ93.5 million ($A86.8 million). The New Zealand-based group (SKC), which generates most of its earnings from its Auckland casino but also operates casinos in Adelaide and Darwin, says it had experienced modest growth at its combined NZ properties, stable performance from its combined Australian properties, and a recovery in its international business. Skycity’s revenue for the six months to December 31 rose by 4.0 per cent to $NZ554.7 million, and the company will pay an interim dividend of 10 NZ cents per share, unchanged from a year ago and unfranked for Australian shareholders.
Aurizon has officially dropped its bid for a federal concessional loan to build a common-user rail line that would have served Adani’s Carmichael mine. The rail freight company issued a statement this morning confirming it would withdraw its application to the Northern Australia Infrastructure Facility (NAIF) for funding to assist with a rail solution for the development of the Galilee Basin. It comes after months of pressure on Premier Annastacia Palaszczuk, who opted during the election to veto a loan for a similar application from Indian conglomerate Adani and promised no taxpayer funds would go towards supporting the mine. Managing director and chief executive Andrew Harding said Aurizon would continue to support the development of the untapped basin but could not continue with its proposal due to the lack of progression on customer contracts. “When developed it has the potential to provide a major boost to the national economy and create thousands of jobs in regional Queensland,” Mr Harding said. “We believe Aurizon can play a key role in helping facilitate a multi-user, open access rail solution for the various new mines in the region. “However, while we are in ongoing discussions with several Galilee Basin mine proponents we have not yet progressed to definitive contractual arrangements with any proponent.
Myer Holdings Ltd (MYR):
Myer Holdings has issued a first-half trading update. In December, Myer reported a deterioration in trading where total sales to the end of November were down 2.3 percent and comparable store sales were down 1.8 percent. Total sales during the first two weeks in December were down 5 per cent. Total sales during January are down 6.5 per cent and for the first-half down 3.6 percent to $1.7 billion, or 3 per cent lower on a comparable store sales basis. Despite the sales shortfall through December and January, Myer remains comfortable with the quality of its inventory. Sales online in the first-half were up 48.9 per cent. Myer boss Richard Umbers said: "The significant deterioration in trading reflects ongoing challenging retail conditions with widespread industry discounting, a subdued performance of Myer's Stocktake Sale and a continued shift in consumer behaviour characterised by reduced foot traffic and an increase in online shopping." Now, first-half net profit will be between $37 million and $41 million pre implementation costs and individually significant items. Myer anticipates a non-cash impairment charge to be taken at the first half 2018 result and declined to provide full-year profit guidance.
News Corp (NWS):
News Corp reported a 3 per cent increase in revenue in the second quarter, driven by sustained digital growth, positive currency fluctuations, and the digital real-estate business. For the three months ended December 21, the company posted revenue of $US2.18 billion, compared to $US2.12 billion in the prior corresponding period. The revenue gain was also boosted by the acquisitions of Australian Regional Media and Australian News Channel, operator of the Sky News channels. The company recorded a net a loss of $US66 million compared to $US219 million in the same period a year earlier, and a loss of 14 cents a share, compared with a loss of 50 cents a share in the prior year. The revenue result was slightly ahead of estimates from analysts polled by Bloomberg, who had forecast $US2.13 billion in revenue. The news and information-services business, which accounts for just under two-thirds of the company’s top line, reported flat revenue at $US1.3 billion. The News and Information Services segment recorded strong paid digital subscriber growth at key news mastheads, led by The Wall Street Journal with a 29 per cent increase in its digital-only subscribers to approximately 1.4 million.
REA Group Limited (REA):
REA Group, the country’s largest online real-estate classifieds company, said its first-half net profit fell by 55 per cent despite a rebound in home-listing volumes in Sydney and Melbourne. REA (REA), which operates websites including realestate.com.au, posted a net profit for the six months through December of $132.4 million. That was down from $292.lm year earlier when the company banked a $161.6m gain on the sale of its European operations to private equity firm Oakley Capital. Directors declared an interim dividend of 47 cents per share, up from 40c in the corresponding period a year earlier. Australia’s residential real-estate market has shown signs of softening in recent months, with data from CoreLogic Inc. showing prices fell by 0.3 per cent nationally between October and December led by weakness in Sydney. Some analysts expect prices to keep dropping this calendar year, with AMP Capital predicting an around 5 per cent fall in Sydney and Melbourne.
Scentre Group (SCG):
Shopping centre giant Scentre Group is forging ahead with major developments, kicking off its $NZ790 million redevelopment of the Westfield Newmarket complex, where it is aiming to create a world-class retail and lifestyle centre in the heart of Auckland. The deal will see Scentre (SCG), led by Peter Allen, pour $NZ400m into the redevelopment that will span multiple sites over four and half hectares and add to its pipeline of local projects that include an overhaul of Sydney’s historic David Jones Market Street store and a new centre at harbourside Barangaroo. Westfield Newmarket is half owned by Singaporean giant GIC Real Estate and will be fashion focused centre that will house outlets for top Australasian retailers. The centre will include a rooftop dining and entertainment precinct and an Event Cinemas complex offering V-Max and Gold Class.
SKYCITY Entertainment Group Limited (SKC):
Casinos operator Skycity Entertainment Group has lifted its first-half net profit by 11.6 per cent to $NZ93.5 million ($A86.8 million). The New Zealand-based group (SKC), which generates most of its earnings from its Auckland casino but also operates casinos in Adelaide and Darwin, says it had experienced modest growth at its combined NZ properties, stable performance from its combined Australian properties, and a recovery in its international business. Skycity’s revenue for the six months to December 31 rose by 4.0 per cent to $NZ554.7 million, and the company will pay an interim dividend of 10 NZ cents per share, unchanged from a year ago and unfranked for Australian shareholders.
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