Latest / What the Flux / A new challenger airline in Australia? | TPG Telecom rings in more investors | Reddit's share price gets upvoted

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A new challenger airline in Australia? | TPG Telecom rings in more investors | Reddit's share price gets upvoted · What the Flux

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  Speaker 1: This is what the flucks I'm bratt justin ads. Wednesday,
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  Speaker 1: the sixth of August, Juzzy Boy Open Ai says that
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  Speaker 1: chat jibt is on track to reach seven hundred million
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  Speaker 1: weekly uses this week. That means almost nine percent of
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  Speaker 1: the world's population are getting chat jibt to write emails,
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  Speaker 1: or create recipes or just be their personal psychologists.
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  Speaker 2: Are any humans speaking to each other anymore? We man
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  Speaker 2: it's over? What's them? With July done and dusted, the
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  Speaker 2: best performing socks on the ASX two hundred are here,
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  Speaker 2: and July was another month in the green three ASEX
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  Speaker 2: two hundred jumping two point three five percent. One company,
• 0:37
  Speaker 2: shap Right, jumps over forty percent. After some major news
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  Speaker 2: in the US, we have it all covered in the
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  Speaker 2: flux appisode. You want to learn more about which company's
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  Speaker 2: performed in Jai and make sure to check it out.
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  Speaker 1: Three profitable stories today, Juzzy Boy, Let's do it for
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  Speaker 1: our first. A new Challenger airline in Australia plans to
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  Speaker 1: compete against Quantus and Virgin within twelve months, but does
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  Speaker 1: not have a single plane yet.
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  Speaker 2: Jesus show aviation scene might be getting a new furry
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  Speaker 2: competitive be man, So tell me.
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  Speaker 1: More, okay, Josey boy. We know that Australia's domestic airline
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  Speaker 1: market is dominated by the big two dogs. Yep, We've
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  Speaker 1: got Quantus and it's trusty side kick Jetstar, and we've
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  Speaker 1: also got Virgin Australia. According to a report from the
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  Speaker 1: ahriable see, Virgin has thirty five percent of the market,
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  Speaker 1: Quantus has nearly thirty five percent and Jetstar has twenty
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  Speaker 1: nine percent of the domestic market. But now a new
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  Speaker 1: airline has announced plans to launch in Australia and rock
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  Speaker 1: the cabin.
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  Speaker 2: Yeah, the name is Koala Airlines and its supposedly plans
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  Speaker 2: to be flying high by late next year.
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  Speaker 1: But their current fleet is completely imaginary, like literally just
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  Speaker 1: graphic design at this stage.
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  Speaker 2: It's a mock up stage.
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  Speaker 1: And jose boy, what is Kohala's point of difference.
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  Speaker 2: Well, it's kind of unclear, but it's trying to position
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  Speaker 2: itself as a more strategic, disciplined alternative on the capital
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  Speaker 2: city routes.
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  Speaker 1: But we know from previous challenges the barriers to entry
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  Speaker 1: in this industry are almost insurmountable, just.
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  Speaker 2: Us Tiger, Bonza and Rex as well.
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  Speaker 1: So what's the key learning here.
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  Speaker 2: In business, barriers to entry refer to the obstacles that
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  Speaker 2: make it difficult for new companies to enter into that industry.
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  Speaker 1: In the airline game, these barriers are sky high. You
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  Speaker 1: need massive upfront capital to lease or buy aircraft. You
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  Speaker 1: need to secure airport slots across Australia, you need a
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  Speaker 1: higher train staff and meet very strict safety regulations. And
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  Speaker 1: then once you've done all of that, you need passengers
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  Speaker 1: who trust you to not vanish mid air.
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  Speaker 2: Then b men, you're up against legacy players like Quantistant
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  Speaker 2: Virgin who already have very deep pockets and infrastructure.
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  Speaker 1: And don't even get me started on their frequent flyer programs,
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  Speaker 1: so b Man.
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  Speaker 2: Between BONSA and Rex in Australia, the odds are most
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  Speaker 2: certainly against Koala.
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  Speaker 1: BONSA lasted just fifteen months in the skies.
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  Speaker 2: Well, Rex lasted only three years between announcing their capital
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  Speaker 2: city routes and collapsing.
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  Speaker 1: So Josi Boy. Even with a cute marsupial name, Koala
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  Speaker 1: will need more than mockups and the good vibes to
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  Speaker 1: become a real challenger.
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  Speaker 2: For our second story, TPG Telecom is handing back three
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  Speaker 2: billion dollars to investors and simplifying its business model to
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  Speaker 2: win over new investors.
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  Speaker 1: TPG Telecom is in the money. What is going on here?
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  Speaker 2: TPG started out in nineteen eighty six as a humble
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  Speaker 2: tech reseller called Total Peripherals Group.
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  Speaker 1: But in the early two thousands TPG grew into a
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  Speaker 1: major player in the Australian broadband and mobile market.
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  Speaker 2: And by twenty twenty, TPG merged with Voterafone Australia in
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  Speaker 2: a fifteen billion dollar deal that made them TPG Telecom
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  Speaker 2: and be Man. Tpgtelecom is now Australia's third largest telco
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  Speaker 2: with more than five million mobile customers.
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  Speaker 1: And now TPG's returning up to three billion dollars to
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  Speaker 1: their existing shareholders after selling off a big slice of
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  Speaker 1: its infrastructure business to Vocus Group.
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  Speaker 2: And be Man. Instead of just pocketing the cash, minority
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  Speaker 2: investors are being offered the option to reinvest up to
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  Speaker 2: six hundred and eighty eight million dollars back into TPG
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  Speaker 2: Telecom and.
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  Speaker 1: If this is all accepted, TPG's free float would increase
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  Speaker 1: from twenty three percent to thirty percent.
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  Speaker 2: Interesting, So what is the key learning here?
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  Speaker 1: The free float of a company is the portion of
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  Speaker 1: the company shares that are publicly available to buy and
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  Speaker 1: sell on a stock exchange.
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  Speaker 2: You see me, man. When most of the company's shares
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  Speaker 2: are tied up by just a few big investors, it
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  Speaker 2: can be very tricky for new investors to get in.
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  Speaker 1: In TPG's case, it's four biggest shareholders and roughly seventy
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  Speaker 1: seven percent of the company.
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  Speaker 2: So be man. By increasing the free flow, TPG will
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  Speaker 2: be able to reduce concentration of shares and improve liquidity.
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  Speaker 1: And increasing the free flow to thirty percent makes it
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  Speaker 1: easier and more appealing for new investors to jump on board,
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  Speaker 1: which could help support the share price and make TPG
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  Speaker 1: feel a bit less like an exclusive club. For our
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  Speaker 1: third and final story, Reddit has seen its share price
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  Speaker 1: skyrocket over thirty percent in the past five days as
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  Speaker 1: investors get very excited about its growth from a new revenue.
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  Speaker 1: Street memes seem to be a great business model. Does
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  Speaker 1: the boy tell me more?
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  Speaker 2: Okay?
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  Speaker 1: So.
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  Speaker 2: Reddit was founded in two thousand and five as the
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  Speaker 2: self proclaimed front page of the Internet.
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  Speaker 1: You know it's where it users up vote and down
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  Speaker 1: vote content across thousands of topic based for us called subreddits.
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  Speaker 2: Subreddits like bread staple to trees with over one hundred
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  Speaker 2: thousand subscribers. Now.
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  Speaker 1: Reddit listed on the New York Stock Exchange in March.
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  Speaker 2: Last year, and now it's announced a boom in its
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  Speaker 2: quarterly update. We'd been talking five hundred million bucks in
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  Speaker 2: revenue this quarter, which is up seventy eight percent compared
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  Speaker 2: to the same time last year, and gaily active users
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  Speaker 2: on its platform rose twenty one percent year of a
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  Speaker 2: year to over one hundred and ten million users.
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  Speaker 1: Now here's the interesting part, Jazzy Boy. Ninety three percent
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  Speaker 1: of reddits total revenue came from ads, and what about
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  Speaker 1: the other revenue. Well, this quote unquote other revenue category
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  Speaker 1: grew twenty four percent, and.
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  Speaker 2: This is the revenue from selling reddits data to AI
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  Speaker 2: companies like open ai and Google. Next minute, Reddit share
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  Speaker 2: price up thirty two percent over the past five days.
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  Speaker 1: So what is the key learning here.
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  Speaker 2: It's not just about ad dollars anymore. It's about data dollars.
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  Speaker 1: When you've got billions of posts, comments, and spicy debates,
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  Speaker 1: it turns out that you've also got a gold mine
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  Speaker 1: of data. And now they're managing to monetize more effectively
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  Speaker 1: in two key ways.
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  Speaker 2: Number One, they help advertisers build more targeted ad campaigns
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  Speaker 2: based on the conversations in the forum.
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  Speaker 1: And two they're selling access to that same data to
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  Speaker 1: AI companies and the man remind me again why AI
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  Speaker 1: companies would pay for this. Well, large language models or lms.
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  Speaker 1: They need huge amounts of human language data to learn
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  Speaker 1: how to respond like a real person.
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  Speaker 2: And Reddit has a lot of posts and a lot
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  Speaker 2: of everyday people talking about everyday things. In fact, there
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  Speaker 2: are one point two million new posts every day, along
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  Speaker 2: with roughly seven and a half million comments daily as well.
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  Speaker 1: So jaziboit for Reddit. It's a smart way to diversify
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  Speaker 1: income beyond advertising, and.
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  Speaker 2: Importantly, it opens up a new revenue stream that doesn't
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  Speaker 2: rely on annoying users with more ads.
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  Speaker 1: Uh huh.
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  Speaker 2: Fox am one Aussie company in the ASX two hundred
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  Speaker 2: jump by fourty three percent in July alone. It is
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  Speaker 2: very juicy and it's off the back of some big
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  Speaker 2: results in the US. If you want to learn more
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  Speaker 2: about this company and the other four companies that perform
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  Speaker 2: the best in July, make sure to check out the
• 6:52
  Speaker 2: flux out for more.
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  Speaker 1: Thanks for listening and we'll see you on Friday.