The report card is finally in for Australia’s major companies and the profit results are better than expected.Particularly notable was BHP’s monster profit and those of the four big banks, which all managed to beat market expectations.The result with just a few stragglers left to report is that the ASX 200 added 23.3 points or 0.3% to 9,168.60 points on Friday, with that record close pumping up the index by an impressive 3.7% for the month of February.Consumer stocks one weak pointThere were a few areas of ...

Market Overview - Bitcoin has dropped to $60,000 from a record high of $124,000, indicating a downward trend in market froth [1] - Share markets, including the ASX 200 index, have seen significant declines, with a 2% drop on Friday [2] - A local market wipeout of nearly $65 billion occurred, marking the largest fall since April of the previous year, with all sectors closing lower [3] Sector Performance - The ASX technology sector fell by 12.6% for the week, driven by concerns over AI investments and their potential returns [6] - Major tech companies like Amazon saw an 11% drop in shares due to high capital expenditure plans, impacting technology stocks in Australia [7] - Real estate stocks weakened, with Goodman Group falling 6.1% and REA Group down 7.8% after disappointing profit results [11] Commodity and Mining Sector - Gold and silver prices have weakened, with silver experiencing a 2% increase after an 18% fall in the previous session [8] - Major mining companies like BHP, South32, and Newmont saw declines in their share prices, with BHP down 3.1% [9] - Rio Tinto shares remained flat after ending merger talks with Glencore [10] Upcoming Economic Indicators - The focus will shift to household spending data expected to show some weakening, while new home loan data is anticipated to increase by around 6% [14] - US jobs figures are expected to show an addition of around 50,000 jobs, with the unemployment rate steady at 4.4% [15]

Market Overview - Asian stock markets are mostly trading lower, influenced by negative cues from Wall Street, particularly in technology stocks amid valuation concerns and the impact of artificial intelligence [1][15] - The Australian stock market is sharply lower, with the S&P/ASX 200 falling below the 8,750 level, driven by weakness across all segments, especially mining stocks [2][3] Australian Market Details - The S&P/ASX 200 Index is down 159.40 points or 1.79 percent to 8,729.80, after reaching a low of 8,714.10 [3] - Major miners are experiencing declines: Rio Tinto down 0.4 percent, BHP Group down almost 3 percent, Fortescue down almost 1 percent, and Mineral Resources down more than 4 percent [3] - Oil stocks are also weak, with Santos down more than 1 percent, Woodside Energy down almost 2 percent, and Beach Energy down almost 4 percent [4] - Among tech stocks, Afterpay-owner Block is down almost 7 percent, WiseTech Global down almost 5 percent, and Appen down almost 9 percent [4] Banking and Gold Mining Sector - In the banking sector, ANZ Banking and National Australia Bank are down more than 1 percent each, while Commonwealth Bank and Westpac are down 0.1 percent each [5] - Gold miners are facing significant losses, with Evolution Mining and Northern Star Resources down more than 2 percent each, and Newmont and Genesis Minerals down more than 6 percent each [5] Company-Specific News - REA Group shares are down more than 10 percent after first-half financial results missed analysts' expectations [6] - Web Travel Group shares plummeted almost 29 percent following an audit announcement by the Spanish Tax Agency [6] Japanese Market Overview - The Japanese market is showing a mixed performance, with the Nikkei 225 Index up 255.48 points or 0.47 percent to 54,073.52 after earlier lows [7][8] - SoftBank Group is gaining almost 2 percent, while Fast Retailing is down almost 1 percent [8] - In the banking sector, Sumitomo Mitsui Financial is up almost 2 percent, and Mizuho Financial is gaining more than 2 percent [9] Economic Indicators - Japan's household spending decreased by 2.9 percent month-on-month in December, missing forecasts [12][13]

Financial Data and Key Metrics Changes - Revenues increased by 6% to $2.4 billion for the quarter, with total segment EBITDA expanding by 9% to $521 million, despite a one-time inventory-related charge at HarperCollins [4][20] - Net income from continuing operations was $242 million, a 21% decrease from the prior year, attributed to the absence of a favorable $87 million gain from the sale of PropertyGuru [4][21] - Adjusted EPS for the quarter was $0.40, compared to $0.33 in the prior quarter, with profitability margin rising from 21.4% to 22.1% [4][20] Business Line Data and Key Metrics Changes - **Dow Jones**: Revenues rose by 8% to $648 million, with segment EBITDA increasing by 10% to $191 million, achieving a record profit margin of 29.5% [21][24] - **Digital Real Estate Services**: Segment revenues grew by 8% to $511 million, with segment EBITDA up 11% to $206 million [25][20] - **Book Publishing**: Revenues increased by 6% to $633 million, although segment EBITDA declined by 2% to $99 million due to a one-time write-off [29][20] Market Data and Key Metrics Changes - In the U.S. market, Realtor.com saw revenues grow by 10% to $143 million, driven by improved lead volume and premium products [11][26] - In Australia, REA's revenues grew by 7% to $368 million, benefiting from yield growth and improved listing volumes [12][25] - Digital advertising revenue at Dow Jones reached a record level of $87 million, rising 12% supported by demand from the financial services sector [8][24] Company Strategy and Development Direction - The company is focused on transforming into a digital-first entity, increasing recurring revenues while reducing dependence on advertising [5][19] - There is a strong emphasis on operational efficiency and margin expansion, with a disciplined approach to capital expenditures [18][19] - The company is exploring AI partnerships to enhance its content offerings and is confident in its ability to monetize proprietary content in the evolving AI landscape [6][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of the fiscal year, citing strong performance in core business segments and a robust balance sheet [4][16] - The evolving impact of AI is acknowledged, with management confident in the company's unique content and its ability to meet the needs of AI companies [35][39] - The company anticipates continued strong revenue growth in B2B segments, particularly at Dow Jones, and is focused on maximizing shareholder value through share buybacks [19][51] Other Important Information - The company repurchased $172 million in shares during the quarter, significantly higher than the previous year [20][51] - The launch of the California Post is highlighted as a strategic move to enhance the company's media presence [15][16] Q&A Session Summary Question: Market reaction to AI and its implications for News Corp - Management clarified that AI's retrospective nature does not pose a significant threat, as the company produces contemporary, proprietary content that AI companies need to pay for [33][34] Question: Investment in Dow Jones and CapEx related to AI - Management expressed confidence in Dow Jones and indicated that CapEx for Dow Jones would be modestly down this year, while overall free cash flow is expected to grow [38][41] Question: M&A strategy and areas of interest - Management stated that they are constantly looking for reasonable investments but will prioritize organic growth and share buybacks [49][50] Question: Simplifying the company structure - Management emphasized a focus on generating long-term value and highlighted the positive trajectory of Realtor.com amidst competition [54][56] Question: Subscription revenue growth and pricing strategy at Dow Jones - Management noted that there is potential for price elasticity in subscriptions and highlighted the success in securing enterprise customers [63][66]

Market Overview - The ASX is expected to open down by -1.2%, influenced by declines in Wall Street [1] - The Nasdaq fell -1.6% amid a tech selloff, while the S&P and Dow both dropped -1.2% [2] - Global markets also experienced losses, with London down -0.9% and the Stoxx index down -1% [3] Commodities - Gold prices remained steady but slightly down, while silver saw a significant drop of -12.5%, trading at US$73.83/oz [4] - Iron Ore prices decreased by -1.9%, selling at $100.65 per tonne [7] - Brent Crude oil fell by -3%, now priced at $67.31 per barrel [7] Company News - Rio Tinto has abandoned merger talks with Glencore, which would have created the world's largest mining company; Rio Tinto's stock fell -2.6% in London, while Glencore's dropped -11% [5] - Advance Metals reported successful historic sampling tests at its Yoquivo silver-gold project, potentially leading to a resource upgrade next month [6] - MGX Resources completed a half-split acquisition of the Central Tanami gold project in the Northern Territory [6] - REA Group and Syntara are among the companies reporting today [6]

Market Performance - The Australian stock market showed an upward trend, with the S&P/ASX 200 index rising by 0.4% to 8755.50 points [1] Top Gainers - REA Group emerged as the leading stock in the early session, with a price increase of 2.6% [1] - Aristocrat Leisure saw a gain of 2.4% [1] - Woodside Energy Group ranked among the top three gainers with a rise of 2.3% [1] Top Losers - Pilbara Minerals recorded the largest decline, with a stock price drop of 1.4% [1] - Fortescue followed closely with a decrease of 1.1% [1] - BHP Group's stock fell by 1.0% [1] Currency Exchange - The exchange rate for USD to AUD remained stable at 1 AUD equaling 0.67 USD [1]

Rightmove’s grip on Britain’s property market makes it an attractive asset - M4OS Photos/Alamy An activist investor has bought a near £250m stake in Rightmove, piling fresh pressure on the embattled property giant. London-based Independent Franchise Partners (IFP) has built up a 5.8pc stake in the house-buying portal in recent weeks, becoming Rightmove’s third-biggest shareholder. The investment was made after the company warned its profit growth will slow next year because of investment in AI. That ann ...

Market Performance - The ASX experienced a significant gain of +1.3%, driven by strong performances in the Materials sector, which rose by +2.1% due to new all-time highs for gold [2][3] - The rally in the market is attributed to uncertainty in the U.S. regarding a potential government shutdown, which historically leads to stock surges [3] Top Performers - Gold miners and explorers led the market, with Westgold Resources (ASX:WGX) increasing by +7.6%, Bellevue (ASX:BGL) up by +3.6%, and Tambourah Metals (ASX:TMB) soaring by +57% [4] - BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) also saw gains, despite challenges from China's attempts to lower global prices [4] - CSL Ltd (ASX:CSL) rebounded with a +3.3% increase, benefiting from the overall sector performance [4] - Dart Mining (ASX:DTM) reported a remarkable +100% increase according to ADVFN.com [5] Underperformers - St George Mining (ASX:SGQ) was a notable underperformer, declining by -46.7% [6] - REA Group (ASX:REA) lagged after acquiring a controlling stake in Planitar, and News Corp (ASX:NWS) also saw a dip [6] - DroneShield (ASX:DRO) experienced a significant drop of -15% [6]

Group 1: Scentre Group (SCG) - Scentre Group's share price has increased by 16.9% since the beginning of 2025, with a portfolio of 42 shopping centres valued at over $34 billion and an occupancy rate exceeding 99% [1][2] - The company operates under the Westfield brand in Australia and New Zealand, attracting more than half a billion visitors annually [1] - For CY23, Scentre Group reported a debt/equity ratio of 87.3%, an average dividend yield of 4.8% over the last 5 years, and a return on equity (ROE) of 1.0%, which is below the expected 10% for a mature business [6][7] Group 2: REA Group - REA Group, known for its realestate.com.au platform, operates property websites in around 10 countries and receives over 55 million visits monthly on its Australian site [3][4] - The company has seen a revenue growth rate of 18.6% per year over the last 3 years, reaching $1,677 million in FY24, although net profit has decreased from $323 million to $303 million [9] - REA's last reported ROE was 18.9%, indicating strong performance relative to its growth-oriented business model [9] - Competitive advantages for REA include network effects and economies of scale, giving it greater market power compared to its main competitor, Domain [5]

Core Insights - The recent interest rate cuts in Australia have led to a significant increase in housing prices, making it difficult for average earners to afford homes in major cities [1][3] - A study indicates that approximately 83% of regions in Australia are unaffordable for average pre-tax income earners, which is around AUD 100,000 annually [1][3] - The minimum annual income required to purchase an average-priced home in capital cities is now approximately AUD 203,000 [3][6] Housing Affordability - National housing prices have risen by about 5% compared to the same period last year, with most increases occurring after the interest rate cuts in February [3][12] - In Sydney, the median home price is AUD 1,564,000, requiring an annual income of approximately AUD 294,615 to afford [6][7] - Brisbane's median home price is AUD 1,067,000, necessitating an annual income of around AUD 201,000 [7] - Melbourne's median home price is AUD 983,000, with a minimum income requirement of AUD 185,170 [7] Loan Repayment Burden - Housing affordability is defined as spending more than 30% of income on mortgage repayments, which is considered unsustainable in the long term [6] - Adelaide's median home price is AUD 916,000, requiring an annual income of nearly AUD 173,000 [7] - Perth's average housing affordability requires a similar annual income of about AUD 174,000 [7] Apartment Affordability - Purchasing an average-priced apartment in capital cities requires a minimum annual income of AUD 131,000, which is still above the national average income of AUD 105,000 [9][10] - In Melbourne, Perth, Canberra, and Adelaide, the minimum income needed to afford an average-priced apartment ranges from AUD 110,000 to AUD 120,000 [9] - In Brisbane, the minimum income for an average-priced apartment is close to AUD 135,000, while in Sydney, it is approximately AUD 162,000 [10] Market Dynamics - The high income levels required to enter the housing market are suppressing the rate of price increases, yet recent interest rate cuts continue to drive prices upward [12]