egolinews.com

News Corporation (NWS) reported a drop in third quarter net income to US$839 million from US$2.7 billion a year ago. However, the company said it is ideally situated to benefit from the increase in consumer spending, advertising and access to new platforms.

New Corp said in defence of the result that the company recorded a net gain of US$1.2 billion on the partial sale of its ownership stake in NDS in the previous corresponding period as well as a US$1.2 billion non-cash tax benefit.

Chairman and CEO, Rupert Murdoch, said the earnings figures confirmed that no content company is stronger than News Corporation at building both fiscal and operational momentum.

“Our global portfolio of sought-after content is ideally situated to benefit from the increase in consumer spending, advertising and access to new platforms we are seeing across our regions,” Mr Murdoch said.

”The unique strengths of our cable channels – young, vibrant franchises with phenomenal growth and potential — now generate almost half of our operating profit, ensuring that our stakeholders will continue to benefit from News Corporation’s sustained revenue, profit and cash flow strength for years to come.”

The company said revenue increased 19% compared to the pcp to US8.8 billion, with growth reported in all major business segments.

Newscorp also said total segment operating income of US$1.25 billion, was a 55% increase compared to a year ago.

”This improvement rises to 67% after considering the absence of the US$60 million in operating income from NDS Group plc which is no longer consolidated this year,” the company said.

”These results reflect particularly strong earnings growth at the Filmed Entertainment, Cable Network Programming, and Newspapers and Information Services segments.”

Newcorp said this growth was partially offset by decreases at the Direct Broadcast Satellite Television and Other segments.

At the close of trade yesterday, Newscorp shares were trading at $19.80.

Aristocrat Leisure Limited (ALL) reiterated comments that the company does not expect broader growth in the key global gaming markets before 2011. The gaming machine operator and manufacturer said it would maintain its focus on holding share and building its capability and competitiveness in order to make the most of improved conditions through 2011 and beyond.

CEO and managing director, Jamie Odell, said today Aristocrat was still in the first 12 months of its turnaround program.

“In addition, and as we said in February, we expect to continue to face tough trading conditions over the remainder of this year,” Mr Odell said.

”Our focus in 2010 will therefore be on accelerating the implementation of our strategic plan, and ensuring Aristocrat is well positioned to take advantage of opportunities as markets improve through 2011 and beyond.”

The company reported revenue for the full year to 31 December 2009 of $908.6 million, 15.9% below the prior period, and a net loss after tax of $157.8 million for the full year, as a result of abnormal charges.

Looking at the year-to-date, Mr Odell said operator revenues in the US have declined compared to the prior corresponding period, and the overall market opportunity continues to be constrained in line with expectations. 

Aristocrat’s progress in Australia is broadly in line with expectations at this early point, while as had been previously flagged overall market conditions continue to be depressed in Japan.

”While it is still relatively early in the year I would also reiterate the potential adverse impact on our company’s 2010 net profit of sustained strength in the Australian dollar through 2010, as well as the increased interest funding costs associated with the Convertible Bonds litigation,” he said.

”A one cent movement in the Australian dollar impacts our bottom line by around $1.3 million.”

Mr Odell said the company expects the translational impact of FX to be seen predominantly in the first half.

Aristrocrat therefore anticipates overall performance for 2010 would be weighted towards the second half of the year.

As at 1353 AEST, Aristocrat shares were down 13c to $4.30.

Aristocrat Leisure Limited (ALL) reiterated comments that the company does not expect broader growth in the key global gaming markets before 2011. The gaming machine operator and manufacturer said it would maintain its focus on holding share and building its capability and competitiveness in order to make the most of improved conditions through 2011 and beyond.

CEO and managing director, Jamie Odell, said today Aristocrat was still in the first 12 months of its turnaround program.

“In addition, and as we said in February, we expect to continue to face tough trading conditions over the remainder of this year,” Mr Odell said.

”Our focus in 2010 will therefore be on accelerating the implementation of our strategic plan, and ensuring Aristocrat is well positioned to take advantage of opportunities as markets improve through 2011 and beyond.”

The company reported revenue for the full year to 31 December 2009 of $908.6 million, 15.9% below the prior period, and a net loss after tax of $157.8 million for the full year, as a result of abnormal charges.

Looking at the year-to-date, Mr Odell said operator revenues in the US have declined compared to the prior corresponding period, and the overall market opportunity continues to be constrained in line with expectations. 

Aristocrat’s progress in Australia is broadly in line with expectations at this early point, while as had been previously flagged overall market conditions continue to be depressed in Japan.

”While it is still relatively early in the year I would also reiterate the potential adverse impact on our company’s 2010 net profit of sustained strength in the Australian dollar through 2010, as well as the increased interest funding costs associated with the Convertible Bonds litigation,” he said.

”A one cent movement in the Australian dollar impacts our bottom line by around $1.3 million.”

Mr Odell said the company expects the translational impact of FX to be seen predominantly in the first half.

Aristrocrat therefore anticipates overall performance for 2010 would be weighted towards the second half of the year.

As at 1353 AEST, Aristocrat shares were down 13c to $4.30.

David Jones Limited (DJS) announced it would stock surfwear brands, Quiksilver and Roxy from 1 August this year. The company the signing of these brands would mark the first time in almost two decades that a leading surf brand would be available in an Australian department store.

David Jones said that until execution of the David Jones Department Store Exclusive Supply Agreement, both Quiksilver and Roxy were only available in Australia in surf shops, snow shops and specialty youth culture/streetwear shops and chains.

David Jones group general manager of Apparel, Cosmetics & Accessories, Colette Garnsey, said the announcement is a history making and market changing agreement.

Quiksilver Asia Pacific CEO, Greg Healy, said the group believes that to continue to be a market leader in the industry, it must look to differentiate what it sells, who it sells to and through which channels.

David Jones said the Quiksilver and Roxy Kids ranges would be available in 32 David Jones stores, of which 16 would house Quiksilver and Roxy concept areas in the Childrenswear departments.

“We expect Quiksilver and Roxy to be among the top three revenue generating brands within the next 12 months in the Childrenswear category,” Ms Garnsey said.

”The addition of Quiksilver and Roxy is category changing and will propel substantial growth such as the development of our youth category where we have experienced 40% growth over the past three years.”

As at 1050 AEST, David Jones shares were down 2c to $4.73.

Ruralco Holdings Limited (RHL) said it expects net profit after tax for the first six months of the year to be approximately 15% to 25% higher than the previous corresponding half-year result of $6.3 million.  The company said it is well positioned to take advantage of improved seasonal conditions throughout the country, in particular Tasmania.

Ruralco said its real estate businesses have performed better over the first six months of the year and recent acquisitions in integrated water solutions and grain marketing have contributed to the improved results.

Managing director, John Maher, noted the Stockfeed, Seed and Grain division continues to be negatively affected by lower levels of demand for stockfeed in the Tasmanian dairy market and reduced grain prices.

Mr Maher added that full year profit would depend on continued improvement of farm input prices and soft commodity values, as well as a steady recovery of real estate and rural property markets.

As at 1422 AEST, Ruralco shares were up 14c to $2.97.

West Australian Newspapers Holdings Limited (WAN) reported a post-tax operating profit of $22 million for the quarter ended 31 March 2010, up 14.4% on the same quarter last year. For the financial year-to-date the result is still a down 8%, however the newspaper is narrowing its losses.

CEO Chris Wharton said the result showed continuing improvements from those first seen last November and December.

”It reflects not only an improving advertising environment but also our efforts to manage our cost base while improving our newspapers,” Mr Wharton said.

“Within The West Australian we saw gross advertising revenue for the quarter record period on period growth of 8.9%.”

Encouragingly, Mr Wharton said the remainder of the year looked solid for the newspaper group.

It seems the share price can’t take a trick however. In the half year results to 31 December, when results were down 15% from the previous corresponding, WAN’s share price tumbled over 4%.

Despite the better performance this calendar year, WAN’s shares had fallen another 34c, or 4.1% to $7.88 by 1400 AEST today.

Super Cheap Auto Group Limited (SUL) this morning said it would buy camping and leisure store Ray’s Outdoors for $54 million. Super Cheap Auto said it would fund the acquisition through a capital raising, constituting a fully underwritten institutional placement and a non-underwritten share purchase plan.

Managing Director, Peter Birtles, said the acquisition would mean, with its current offering in the outdoor space, BCF Boating Camping and Fishing, that it was in a market leading position with over 100 stores and nearly $400 million in sales annually.

”Over time, we believe there is capacity to grow the network to 160 stores across Australia and New Zealand with approximately $600 million of sales,” Mr Birtles said.

The transaction is expected to be EPS accretive in FY11, growing to high single digit accretion in FY12 based on consensus broker estimates, the company added.

The retailer said the institutional placement would constitute around 15.9 million new shares at a price of $4.80 per share to raise $76.32 million.

At the close Friday, Super Cheap Auto shares were trading at $5.07.

Seven Network Limited (SEV) announced that the requisite majority of its shareholders and TELYS3 holders voted to approve the schemes of arrangement that would effect the proposed merger of Seven and the WesTrac Group. The company said the schemes of arrangement comprise the Share Scheme under which Seven would become a subsidiary of Seven Group Holdings, and the TELYS3 Scheme under which TELYS3 holders would exchange their TELYS3 securities for TELYS4, a similar hybrid security issued by Seven Group Holdings.

Seven said 88.78% of votes and 69.27% of holders voted in favour of the merger at the meeting this morning.

Executive chairman of Seven and the WesTrac Group’s current owner, Australian Capital Equity, Kerry Stokes, said the company believes the combination of the two companies would offer growth opportunities.

”The Share Scheme and TELYS3 Scheme are now subject to a Court Hearing for approval, and we will not comment further until that process has run its course,” Mr Stokes said.

Seven said it would apply to the Federal Court for orders approving the schemes at a hearing scheduled for Friday, 23 April 2010 and approved by the court, it intends to lodge the court orders approving that scheme with ASIC on Thursday, 29 April 2010, such that the Share Scheme would become effective on and from that date.

As at 1527 AEST, Seven shares were down 3c to $7.71.

Seven Network Limited (SEV) announced that the requisite majority of its shareholders and TELYS3 holders voted to approve the schemes of arrangement that would effect the proposed merger of Seven and the WesTrac Group. The company said the schemes of arrangement comprise the Share Scheme under which Seven would become a subsidiary of Seven Group Holdings, and the TELYS3 Scheme under which TELYS3 holders would exchange their TELYS3 securities for TELYS4, a similar hybrid security issued by Seven Group Holdings.

Seven said 88.78% of votes and 69.27% of holders voted in favour of the merger at the meeting this morning.

Executive chairman of Seven and the WesTrac Group’s current owner, Australian Capital Equity, Kerry Stokes, said the company believes the combination of the two companies would offer growth opportunities.

”The Share Scheme and TELYS3 Scheme are now subject to a Court Hearing for approval, and we will not comment further until that process has run its course,” Mr Stokes said.

Seven said it would apply to the Federal Court for orders approving the schemes at a hearing scheduled for Friday, 23 April 2010 and approved by the court, it intends to lodge the court orders approving that scheme with ASIC on Thursday, 29 April 2010, such that the Share Scheme would become effective on and from that date.

As at 1527 AEST, Seven shares were down 3c to $7.71.

Harvey Norman Holdings Limited (HVN) said sales for the nine months ended 31 March 2010 increased 2.2% to $4.64 billion when compared to sales for the previous corresponding period. The electrical and furniture retailer said like-for-like sales for the same period rose 1.4%.

Harvey Norman said it should be noted that the sales data has been negatively affected by a 2.9% deterioration in the NZ$, a 13.6% deterioration in the Euro and a 21.6% deterioration in the UK Pound.

Total sales for the March quarter were flat compared to the pcp, while like for like sales were up 1.2%.

As at 1121 AEST, Harvey Norman shares were down 14c to $3.43.