Latest / What the Flux / REA Group’s juicy profit | Human error wipes $400 million from TPG Telecom shares | Duolingo’s taking over the learning world

Transcript

REA Group’s juicy profit | Human error wipes $400 million from TPG Telecom shares | Duolingo’s taking over the learning world · What the Flux

• 0:05
  Speaker 1: This is what the Flux. I'm Brett and I'm Justin
• 0:07
  Speaker 1: and it's Friday eighty eighth.
• 0:08
  Speaker 2: The bog Juzzy Boy electric vehicles Maybe all the rage,
• 0:11
  Speaker 2: but range anxiety is still a big fear for some
• 0:14
  Speaker 2: buyers and this news isn't going to help. The Australian
• 0:17
  Speaker 2: Automobile Association did independent testing on a number of EV
• 0:20
  Speaker 2: models to see if their advertised range was accurate. On
• 0:24
  Speaker 2: they found that five popular evs like BYD and Teslav
• 0:27
  Speaker 2: all fell below their advertised rail, some up to twenty
• 0:31
  Speaker 2: three percent.
• 0:31
  Speaker 1: Less range anxiety through the room through the How often
• 0:35
  Speaker 1: do you check all the subscriptions that you pay for
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  Speaker 1: single month and show you how much you're spending. It
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• 0:55
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• 0:57
  Speaker 2: Three delightful stories today, Juzzy Boy, Let's do it for
• 1:00
  Speaker 2: our first Aria Group just announced juicy profit and a
• 1:04
  Speaker 2: bigger dividend as a parting gift from its retiring CEO.
• 1:08
  Speaker 1: Nowhing says, thanks for the memories like a fat dividend,
• 1:11
  Speaker 1: b Man. So what's going on here? So?
• 1:12
  Speaker 2: Aria Group is the asxisted company behind Real Estate dot
• 1:16
  Speaker 2: Com dot a U.
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  Speaker 1: Aka Australia's most visited property listing site.
• 1:19
  Speaker 2: They also own Realcommercial dot com dot a U, Flatmates,
• 1:23
  Speaker 2: Mortgage Choice, and Aria Group keeps re cementing its top
• 1:26
  Speaker 2: spot in the Australian market.
• 1:28
  Speaker 1: Get this. In FO twenty five, Aria's net profit jumped
• 1:31
  Speaker 1: twenty three percent to five hundred and sixty four mil.
• 1:33
  Speaker 2: And they increased their four year dividend by thirty one percent.
• 1:37
  Speaker 1: And why the big sudden gift of dividend from the
• 1:39
  Speaker 1: departing CEO.
• 1:40
  Speaker 2: Well, a big part of that profit spike came from
• 1:42
  Speaker 2: selling off its steak in Property Guru.
• 1:45
  Speaker 1: And it flex with a lazy four hundred and thirty
• 1:47
  Speaker 1: mil in cash on its balance.
• 1:49
  Speaker 2: Sheet because not only did profits jump, but it also
• 1:51
  Speaker 2: extended its market dominance over Domain and b Man.
• 1:54
  Speaker 1: After these announcements, Aria share price jump more than eight percent.
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  Speaker 2: Or two and a half billion bucks added to its
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  Speaker 2: market cacare.
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  Speaker 1: The equivalent of about four free standing houses Sydney.
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  Speaker 2: And the share price jump is largely because aria groups
• 2:05
  Speaker 2: network effects keep growing and growing. So what's the key
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  Speaker 2: learning here?
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  Speaker 1: A network effect is when a product or service becomes
• 2:11
  Speaker 1: more valuable as more people use.
• 2:13
  Speaker 2: It, and that's exactly what's going on with Aria Group.
• 2:16
  Speaker 1: Get this, b Man. Aria has an average of twelve
• 2:18
  Speaker 1: point one million monthly users.
• 2:20
  Speaker 2: Compare that to domains five point four million monthly users.
• 2:23
  Speaker 1: So, b Man, the more prospective home buyers scroll through Aria,
• 2:26
  Speaker 1: the more agents have to list.
• 2:28
  Speaker 2: On it, And the more that agents list on Aria,
• 2:30
  Speaker 2: the more buyers scroll, and so the cycle continues. And
• 2:33
  Speaker 2: juzzy boy, it's this flywheel effect that makes ARIA so
• 2:36
  Speaker 2: hard to compete with.
• 2:37
  Speaker 1: Yeah, and that dominance gives ARIA the confidence to lift
• 2:40
  Speaker 1: prices a.
• 2:40
  Speaker 2: Year after year, because when you're the gatekeeper to the
• 2:43
  Speaker 2: great Australian dream, you can charge whatever you like.
• 2:47
  Speaker 1: For our second story, the asex is recent human error
• 2:50
  Speaker 1: has seen four hundred million dollars in value wiped from
• 2:53
  Speaker 1: TPG telecom shares.
• 2:54
  Speaker 2: Not quite a typo, you can control, z z boy.
• 2:57
  Speaker 2: What's the story.
• 2:58
  Speaker 1: Okay, So the ax which is This insecurities exchange was
• 3:01
  Speaker 1: founded in nineteen eighty seven and is the eleventh largest
• 3:04
  Speaker 1: stock exchange in the world.
• 3:06
  Speaker 2: Behind exchanges like the NASDAQ, London Stock Exchange and Shanghai
• 3:09
  Speaker 2: Stock Exchange.
• 3:10
  Speaker 1: But a man, well, it's a stock exchange, it's also
• 3:12
  Speaker 1: a public company that's listed on its very own exchange.
• 3:16
  Speaker 1: Very meta indeed, and be man Like all stock exchanges,
• 3:19
  Speaker 1: the ASEX has a responsibility to facilitate reliable trading of
• 3:23
  Speaker 1: listed shares, but recently, Juzzyboy, the ASEX had a bit
• 3:26
  Speaker 1: of a fumbling of the ball. Earlier this week, the
• 3:29
  Speaker 1: ASEX announced that TPG Telecom was buying an Australian software
• 3:33
  Speaker 1: provider called Infomedia over five hundred million dollars.
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  Speaker 2: Tiny issue though it wasn't them.
• 3:37
  Speaker 1: Yep, it was actually TPG Capital Asia, which is a
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  Speaker 1: totally separate private equity firm that made the acquisition.
• 3:44
  Speaker 2: It's like mixing up bonds the fixed income investment with
• 3:47
  Speaker 2: bonds the undies, and this caused the market to react
• 3:51
  Speaker 2: to this incorrect news.
• 3:52
  Speaker 1: Next minute, TPG Telecom shares tanked over four percent, wiping
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  Speaker 1: four hundred mili of their company value.
• 3:57
  Speaker 2: When the ASEX finally stepped into action. They put a
• 4:00
  Speaker 2: temporary trading halt on TPG telecom shares.
• 4:03
  Speaker 1: And cancel trades made during the confusion.
• 4:05
  Speaker 2: But the damage was already done. So what is the
• 4:07
  Speaker 2: key learning here?
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  Speaker 1: Price sensitive announcements can send a company share price skyrocketing
• 4:12
  Speaker 1: or crashing in minutes.
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  Speaker 2: Yet one study found that seventy four percent of total
• 4:15
  Speaker 2: market reaction to price sensitive info happens within the first
• 4:18
  Speaker 2: hour of trading.
• 4:19
  Speaker 1: So accuracy and timing are critical.
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  Speaker 2: These human errors can have huge consequences.
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  Speaker 1: Yeah, when incorrect or incomplete information hits the market, even
• 4:27
  Speaker 1: for a short period of time and b Man, this
• 4:29
  Speaker 1: highlights the critical role that stock markets play in maintaining
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  Speaker 1: trust in financial market.
• 4:34
  Speaker 2: When the operator gets it wrong, it doesn't just shake
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  Speaker 2: confidence in the company affected.
• 4:37
  Speaker 1: Nope, it shakes confidence in the integrity of the whole market.
• 4:40
  Speaker 2: For our third and final story, Duo Lingos quarterly results
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  Speaker 2: have smashed investor expectations as more globe trotters look to
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  Speaker 2: learn a language and not quit.
• 4:51
  Speaker 1: Investors screaming moibn right now. B Man, Quantema Muss Dozi Boy.
• 4:57
  Speaker 2: Dual Lingo launched in twenty eleven as one of the
• 4:59
  Speaker 2: OG language learning apps.
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  Speaker 1: The idea was that it could gamify the painful process
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  Speaker 1: of learning grammar and slang in another language.
• 5:05
  Speaker 2: And it's fair to say that the duelingo owl named
• 5:08
  Speaker 2: Duo has become a bit of an Internet celebrity.
• 5:10
  Speaker 1: Part cheerleader, part mob boss, hunt you down if you
• 5:13
  Speaker 1: skip your French.
• 5:14
  Speaker 2: Less Clearly, Duo's gentle threats and low key bullying is
• 5:18
  Speaker 2: paying off. Due Lingo reported revenue of more than two
• 5:21
  Speaker 2: hundred and fifty two million US dollars for the quarter.
• 5:23
  Speaker 2: That was up forty one percent year on year and
• 5:25
  Speaker 2: well above analyst expectations. But if it wasn't enough, due
• 5:28
  Speaker 2: Lingo announced its biggest acquisition ever yep.
• 5:31
  Speaker 1: It bought a music game startup called next Beat as
• 5:33
  Speaker 1: part of its push to become an education super app.
• 5:36
  Speaker 2: Yep. Due Lingo doesn't want to stop at conjugating verbs.
• 5:39
  Speaker 2: He wants to teach you to roll out a full symphony.
• 5:42
  Speaker 2: So what is the key learning here? When you crack
• 5:44
  Speaker 2: how people learn, you can teach them almost anything.
• 5:47
  Speaker 1: Over the past fifteen years, due Lingo has built a
• 5:49
  Speaker 1: playbook to engage users in learning a language.
• 5:52
  Speaker 2: We're talking short lessons, streaks, rewards, and just the right
• 5:56
  Speaker 2: amount of guilt to keep people coming back and Josey boy,
• 5:58
  Speaker 2: there's no doubting that dueling go strategy is working.
• 6:01
  Speaker 1: Yeah, in the last quarter, it's daily active users jumped
• 6:03
  Speaker 1: forty percent to nearly forty eight million users.
• 6:06
  Speaker 2: And now they plan to take that same formula and
• 6:08
  Speaker 2: apply it beyond language learning.
• 6:10
  Speaker 1: Into maths, into music, into chess or whatever else can
• 6:13
  Speaker 1: be turned into a learning goal.
• 6:14
  Speaker 2: The upside is if someone signs up to learn Spanish
• 6:18
  Speaker 2: and ends up sticking around for piano, the lifetime value
• 6:21
  Speaker 2: of that individual user increases. All the costs to acquire
• 6:24
  Speaker 2: them in the first place stays the same Spotify, Netflix,
• 6:28
  Speaker 2: scan Ko, Binge, Microsoft.
• 6:30
  Speaker 1: The list of subscriptions never ever ends and flucks out
• 6:33
  Speaker 1: if you feel like there's a never ending amount of subscriptions,
• 6:36
  Speaker 1: if you're probably right and you're probably paying for them.
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• 6:43
  Speaker 1: not using anymore and say big bucks every single month.
• 6:46
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  Speaker 1: the subscription tracker.
• 6:49
  Speaker 2: Thanks for listening, and we'll see you on Monday.