Surf wear retailer Billabong recorded an 18% decline in first half profit due to the high Australian dollar, although the decline was in line with the company’s previous guidance.
The company said net profit for the six months to December 31 was down 18% to $57.2 million compared to the previous corresponding period.
Revenue was up 15.7% to $837.1 million. Despite the result the company’s shares rose over 4% to $8.32 in early morning trade.
The company said in a statement that it will record a flat full-year net profit in line with its previous guidance.
“Thereafter, assuming global trading conditions gradually improve, in particular in the Australian consumer environment, the group expects to return to more historic EPS growth rates in excess of 10% per annum in constant currency terms.”
ANZ has recorded a 27% rise in first half underlying profit to $1.4 billion, although the company still warns that frugal consumers are causing lower credit growth within the business.
Group lending grew by 2% quarter on quarter, with bad debt charges dropping nearly 50% to $294 million. Chief executive Mike Smith has said conditions are still volatile.
“This isn’t an easy environment for banks,” he said. “The costs of re-regulation, higher funding costs and volatility in the markets mean that we are going to have to be much more efficient in the way we use capital.”
Smith also warned that higher funding costs could mean the level of international funding being pumped into the economy could be threatened and said that a tax on bank profits could ultimately harm the economy.
“Australia cannot afford to frighten off foreign investors by giving oxygen to populist policy proposals,” he said at today’s briefing.
The Australian share market opened flat this morning despite a solid result on Wall Street, where stocks rose due to data showing that consumer prices have continued to rise.
The benchmark S&P/ASX200 index was down four points or 0.09% to 4933.9 at 12.10 AEST while the Australian dollar rose to $US1.01 due to higher commodity prices.
AMP shares gained 2.55% to $5.64, Commonwealth Bank shares lost 0.06% to $53.96, NAB shares lost 0.19% to $26.37 and ANZ fell 2.73% to $24.95.
Consolidated Media Holdings recorded an 87% drop in first half net profit to $45 million, but the company says contributions from pay-television are improving
Revenue from continuing operations fell by 17.9% to $4.7 million. Executive chairman John Alexander said in a statement profit from Foxtel, which came to just over $19 million, was a welcome development.
“CMH’s first half result of $45.3 million, driven by improved equity accounted contributions from FOXTEL and Premier Media Group, is a positive result in a challenging retail environment,” Alexander said.
Swatch Group has sued Bloomberg, accusing the company of secretly recording a conference call and then writing up a transcript for clients.
According to Reuters the company is filing a copyright infringement case against Bloomberg due to the call, which took place on February 8.Bloomberg said that it will defend its actions.
“If a public company discloses financial performance information to a select group of analysts, that company has a responsibility to be transparent and provide that information to everyone,” a spokesperson told Reuters.
“The investing public has a right to know and we’ll continue to provide transcripts and recordings from analyst calls to our audiences. We don’t think the Copyright Act says otherwise.”
The Dow Jones Industrial Average gained 29 points or 0.24% to 12,318.47 – the highest level recorded in nearly two and a half years.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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