Latest / What the Flux / ANZ profit rises but shares stall | LIV on edge of bankruptcy after Saudi retreat | Nine rebuilds for streaming wars

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ANZ profit rises but shares stall | LIV on edge of bankruptcy after Saudi retreat | Nine rebuilds for streaming wars · What the Flux

• 0:05
  Speaker 1: This is what the flux. I'm Brettan, I'm justin and
• 0:07
  Speaker 1: it's Monday, the fourth of May.
• 0:09
  Speaker 2: Get this one, juzzy boy. Forty four percent of all
• 0:11
  Speaker 2: new music uploaded to streaming platforms are made by AI.
• 0:14
  Speaker 2: That is according to tech Crunch. So now Spotify is
• 0:17
  Speaker 2: adding a verified by Spotify badge on human artists that
• 0:20
  Speaker 2: actually tells you the artist you're listening to is a
• 0:23
  Speaker 2: genuine human essentially made by a human badge.
• 0:27
  Speaker 1: Hard to tell the difference of these days, be man,
• 0:29
  Speaker 1: yep fox an. As we kick up the beginning of
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  Speaker 1: the new month, now is the perfect time to get
• 0:33
  Speaker 1: your finances in order for the month of May. You
• 0:35
  Speaker 1: want to know where you're spending going, how your savings going,
• 0:37
  Speaker 1: and tracking it throughout the whole month. The Flex Budgeting
• 0:40
  Speaker 1: tool helps you do it in under thirty seconds. To ike,
• 0:42
  Speaker 1: shut it, download the Flex app and get started saving
• 0:44
  Speaker 1: in May.
• 0:44
  Speaker 2: Three fresh stories today, juzzy boy, let's do it for
• 0:47
  Speaker 2: our first A and Z bank announced a six percent
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  Speaker 2: jump in half your profit to almost four billion dollars.
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  Speaker 2: But it shares barely moved on these results, and z.
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  Speaker 1: Ed must have been expecting big things. Be man, so
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  Speaker 1: tell me, what's going on here.
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  Speaker 2: ANZ is one of Australia's big four banks, lending to
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  Speaker 2: millions of households and businesses.
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  Speaker 1: And since AZ's new CEO entered the business last year,
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  Speaker 1: there's been a major shaker.
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  Speaker 2: We're talking a cut of three thousand, five hundred workers
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  Speaker 2: and aiming for eight hundred million bucks in cost savings
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  Speaker 2: this year alone.
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  Speaker 1: And be man, the cost cutting is working because they're
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  Speaker 1: operating expenses down four percent and the bank's upgraded its
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  Speaker 1: savings target too.
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  Speaker 2: In fact, AMZED announced eight three point eight billion dollars
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  Speaker 2: cash profit for the six months to March, which is
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  Speaker 2: up six percent year on year.
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  Speaker 1: And ahead of what analysts expected. And the Man. Despite
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  Speaker 1: these results, AMZT share price only rose point eight percent. So,
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  Speaker 1: Josie Boy, clearly growing isn't enough for investors. You actually
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  Speaker 1: have to grow faster than the market is growing. So
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  Speaker 1: what is the key learning here?
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  Speaker 2: A company can post record numbers and still be losing ground.
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  Speaker 2: It just depends on what you measure, Man. There are
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  Speaker 2: two ways to score a company's performance. One could be
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  Speaker 2: how am I doing compared to last year? And another
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  Speaker 2: could be how am I doing compared to everybody else?
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  Speaker 1: In this half of the year, ANZI passed the first test.
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  Speaker 2: You see, when you compare am Z against its previous results,
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  Speaker 2: home loans are up three percent year on year, deposits
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  Speaker 2: up four percent year on year, Chick. But when you
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  Speaker 2: compare it against the market, not quite as good.
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  Speaker 1: You see, b Man, the broader market for home loans
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  Speaker 1: grew seven point three percent in the same period.
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  Speaker 2: And deposits across system grew eleven percent.
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  Speaker 1: And suddenly those ANZ numbers were behind the growth of
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  Speaker 1: the overall market.
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  Speaker 2: In fact, ANZ slice of the Homeland market actually dropped
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  Speaker 2: from thirteen point six percent to thirteen point two percent
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  Speaker 2: over the period.
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  Speaker 1: So if you think about it like a running race,
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  Speaker 1: they ran faster than their own PB from last year,
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  Speaker 1: but everyone else ran even faster, so they still finished
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  Speaker 1: at the back.
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  Speaker 2: ANZ has basically admitted that they have only completed phase
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  Speaker 2: one of the plan, which was to cut costs well.
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  Speaker 1: Phase two will go on to win customers.
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  Speaker 2: So Josey Boy investors will be watching to see how
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  Speaker 2: they execute this supposed phase two.
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  Speaker 1: For our second story, Live Golf is months away from
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  Speaker 1: bankruptcy after its biggest backer has pulled its multi billion
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  Speaker 1: dollar backing from the Golf League.
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  Speaker 2: Live Golf players getting on the phone to PJA bosses
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  Speaker 2: begging right now, tell me more.
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  Speaker 1: Okay. So Live Golf is the spinoff professional Golf League,
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  Speaker 1: launching TI twenty twenty two with funding from Saudi Arabia's
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  Speaker 1: public Investment fact The goal was to rival the PGA Tour,
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  Speaker 1: and they managed to losse some of the world's top
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  Speaker 1: players with massive prizes, where Phil Mickelson, Dustin Johnson, and
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  Speaker 1: Ozzie Camsmith, amongst many others. Yeap.
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  Speaker 2: The Saudi Wealth Fund initially invested four hundred million bucks
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  Speaker 2: to get it up and running.
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  Speaker 1: And offered two hundred and fifty million dollars in annual
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  Speaker 1: prize money.
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  Speaker 2: But Jasi Boy, the Saudi Wealth Fund has told players
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  Speaker 2: and staff that will be withdrawing its funding at the
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  Speaker 2: end of the season.
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  Speaker 1: And what's the reason for this one?
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  Speaker 2: Well, Saudi Arabia says that the fallout from the USRN
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  Speaker 2: war has caused a squeeze on its economy.
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  Speaker 1: And they're reviewing all investments in their portfolio.
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  Speaker 2: And while Live Golf is expected to hit one hundred
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  Speaker 2: million bucks in revenue this year, it's still very reliant
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  Speaker 2: on its major backup so if.
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  Speaker 1: The wealth fund pulls out, Live Golf may be done
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  Speaker 1: and dust it.
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  Speaker 2: And this is one of the main challenges of having
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  Speaker 2: a concentrated funding risk.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: When your whole operation runs on one wallet, you don't
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  Speaker 2: have a true business, you have a true dependency.
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  Speaker 1: Concentrated funding risk is what happens when a company or
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  Speaker 1: an organization relies overwhelmingly on a single investor or client.
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  Speaker 2: And Live isn't the only business to have ever relied
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  Speaker 2: heavily on a single backup.
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  Speaker 1: No, no, no. The poster child for this is we Work.
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  Speaker 1: Of course, remember when soft Bank pumped in over ten
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  Speaker 1: billion dollars into we Work all the way up to
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  Speaker 1: a forty seven billion dollar valuation.
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  Speaker 2: I do It pretty much became the sole financial lifeline
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  Speaker 2: for them.
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  Speaker 1: But even SoftBank got gold feet ahead of WeWork's IBO
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  Speaker 1: in twenty nineteen, and for we Work there was no
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  Speaker 1: plan B.
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  Speaker 2: So WeWork's valuation went from forty seven bill to under
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  Speaker 2: eight bill in just a few weeks.
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  Speaker 1: And then we Work eventually filed for bankruptcy in twenty
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  Speaker 1: twenty three.
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  Speaker 2: So for Live Golf, the clock is well in Troy ticking.
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  Speaker 1: Yeah, they either need to turn a profit fast or
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  Speaker 1: find a new backer willing to foot the bill.
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  Speaker 2: Otherwise their biggest stars might find themselves going back to
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  Speaker 2: the PGA begging for their old spots.
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  Speaker 1: Back for our third and final story, nine Network has
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  Speaker 1: done a major overhaul of its tech and people to
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  Speaker 1: try and compete against the tiktoks, the youtubes and the
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  Speaker 1: Netflixes of the world.
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  Speaker 2: Nine really going the minimalist angle here, tell me more.
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  Speaker 1: Okay, So Nine's actually Australia's oldest TV network, launched back
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  Speaker 1: in nineteen fifty six.
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  Speaker 2: The same year the television actually in Australia and be Man.
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  Speaker 1: The nine network is Australia's largest free to air broadcaster.
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  Speaker 2: We're talking the owner of Channel nine nine Go nine
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  Speaker 2: GM and then The Stand and The Financial Review, Sydney
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  Speaker 2: Morning Herald, the Age, but the.
• 5:11
  Speaker 1: Man in the past few years have been brutal for
• 5:13
  Speaker 1: nine and all free to air networks.
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  Speaker 2: So now Josi Boy nine has released its new strategy
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  Speaker 2: called Future News.
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  Speaker 1: It's inspirational.
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  Speaker 2: Get this one. Nine's current newsroom runs on one hundred
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  Speaker 2: and twenty different tech platforms.
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  Speaker 1: Think video editing tools, graphic tools, social tools, and it
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  Speaker 1: has up to one hundred different job titles. So under
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  Speaker 1: this future news strategy, they're cutting the number of roles
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  Speaker 1: to core roles, and cutting the number of platforms to
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  Speaker 1: just three.
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  Speaker 2: And of course cutting the number of people too.
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  Speaker 1: Nine did say this isn't about cost cutting.
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  Speaker 2: Which is what companies always say when it's at least
• 5:42
  Speaker 2: a little bit about cost cutting. But ben Man, when
• 5:45
  Speaker 2: you've got free to air losing viewers and advertisers, something
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  Speaker 2: has got to give. So what's the key learning here?
• 5:49
  Speaker 1: In the battle for attention? Even the former giants need
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  Speaker 1: to try and reinvent themselves.
• 5:53
  Speaker 2: Ye, free to air networks in Australia are getting hit
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  Speaker 2: in both directions.
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  Speaker 1: On the one side, you've got viewers bailing out for Netflix,
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  Speaker 1: Disneyplas YouTube, and.
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  Speaker 2: On the other side advertisers follow the eyeball so Facebook
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  Speaker 2: and YouTube and now hoovering up the money that used
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  Speaker 2: to fund local news. In fact, Australian freeware TV in
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  Speaker 2: industry revenue has dropped at an annualized rate of five
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  Speaker 2: point two percent over the last five years to FI
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  Speaker 2: twenty five and.
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  Speaker 1: Be Man, it's not just nine struggling with this challenge.
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  Speaker 2: Now the Seven Network and ten and other broadcasts globally
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  Speaker 2: are all struggling with the same problem.
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  Speaker 1: In June twenty twenty four, seven West Media cut up
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  Speaker 1: to one hundred and fifty jobs two and they also
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  Speaker 1: restructured their business.
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  Speaker 2: So Josey Boyd, the challenge isn't only viewership, it's building
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  Speaker 2: a business model that can handle the new age of media.
• 6:32
  Speaker 1: Flex app at the beginning of the month is the
• 6:33
  Speaker 1: best time to start setting a plan and a goal
• 6:35
  Speaker 1: to start saving. If you want a plan and the
• 6:37
  Speaker 1: tools to help you get there, the Flux Budgeting Tool
• 6:39
  Speaker 1: will take you just thirty seconds to connect your accounts,
• 6:42
  Speaker 1: identify all your spending and saving so you can stay
• 6:44
  Speaker 1: on top of your money and hit those savings goals.
• 6:46
  Speaker 1: To make sure to download the Flux app and check
• 6:48
  Speaker 1: out the budgeting tool.
• 6:48
  Speaker 2: Thanks for listening and we'll see you on Wednesday.