How Paladin's directors made $71m, then fell out
- The windfall gain delivered on that Wednesday morning in the tropics came just under two years after Paladin inked a $443 million contract with the Department of Home Affairs to provide security and other services for refugees on Manus Island – a contract that later ballooned to $532 million.
- The sheer scale of Paladin's windfall is all the more startling given court documents, filed in an employment dispute with its former chief executive Craig Coleman, allege that just three weeks before being awarded the contract, the company was not prepared to perform its role.
- But despite being asked to step aside from the Home Affairs Manus Island contract over issues of non-compliance and at one stage being barred from entering PNG, the end of Paladin does not mean the end of Thrupp's involvement in the Asia-Pacific region or with the Australian government.
Amazon sales soar as pandemic wears on
- New York (CNN Business) - Amazon's sales and profit soared in the latest quarter as shoppers turned to the online giant to deliver goods to their homes in the pandemic.
- Amazon said Thursday sales grew 37% to $96.1 billion during the three months ended September 30, and profit increased 197% to $6.3 billion compared with the same period last year, beating analyst forecasts.
- Amazon expects sales to be between $112 billion and $121 billion during its final quarter of the year and operating income to be between $1 billion and $4.5 billion, including approximately $4 billion of costs related to the coronavirus.
- Amazon's core Prime shoppers skew higher income, which make them less susceptible to job losses stemming from the pandemic and a new stimulus bill not being passed in Congress, analysts say.
Comcast Burdened by Covid-19 Impact on Theme Parks, Movie Studio
- The coronavirus pandemic continued to pressure the finances of Comcast Corp., a cable and entertainment conglomerate whose theme-park business experienced an 81% revenue drop in the latest quarter.
- The Philadelphia-based company, owner of Xfinity-branded services, the NBCUniversal media empire and the Sky television business, said third-quarter net profit fell 37% to $2.02 billion from $3.22 billion a year earlier.
- Revenue slipped 4.8% to $25.53 billion from $26.83 billion.
Samsung posts highest revenue ever after boost in flagship phone sales
- Samsung Electronics has announced quarterly earnings for the July-September 2020 period, making 66.96 trillion won in revenue and 12.35 trillion in operating profit.
- That’s the highest quarterly revenue figure ever for the Korean electronics giant, which says that it was able to meet a boost in customer demand following COVID-19 disruption.
- Samsung says that an increase in demand for smartphones helped drive the revenue figures, while operating profit saw a 59 percent year-on-year increase that the company puts down to stronger sales of both memory chips and consumer products.
- However, Samsung warned of lower profits in the coming quarter due to an expected slump in memory demand and higher competition in the smartphone market.
- Looking to next year, Samsung says it plans to focus further on foldable phones as a way to differentiate its flagship lineup, while also aiming to make 5G more of a mass-market proposition.
Samsung reports bumper profits but warns of slump ahead
- Hong Kong (CNN Business) - Samsung reported bumper profits on Thursday, but warned that things won't be so rosy in the coming months as smartphone competition ramps up and demand for memory chips slows.
- The South Korean conglomerate reported operating profit rose nearly 60% to 12.35 trillion won ($10.9 billion) for the July-September quarter compared to the same period last year.
- Smartphone sales for the quarter were 29.81 trillion won ($26.3 billion), up 6% from the same period last year.
- But looking ahead, the company said it expects profit to decline in the fourth quarter, driven by weakening demand from server customers for memory chips.
- The earnings report comes shortly after the death of Lee Kun-hee — the business titan who led Samsung's rise from a modest South Korean company to a multinational conglomerate.
ANZ knows COVID crunch is still coming
- Yes, ANZ’s cash profit has been dragged down by 42 per cent to $3.8 billion – largely in line with analyst predictions – as the bank more than tripled its level of provisioning for bad debts to an eye-watering $2.7 billion.
- Elliott will no doubt be hoping it stays that way and is encouraged by the fact that the majority of customers who took loan deferrals when the pandemic hit have got back to making payments.
- Not only are deferrals rolling off, but the spectacular 11 per cent jump in deposits from households and businesses, to $329 billion, suggests stimulus cheques, superannuation withdrawals and loan drawdowns have been plonked into bank accounts, ready to be used as financial buffers if things get really ugly.
Why Andrew Forrest left one of the safest cities on the planet
- The deals – both commercial and philanthropic – are gathering pace, with Dr Forrest able to flex extraordinary financial muscle after a record-busting year by his iron ore miner, Fortescue Metals Group.
- Its extraordinary success this year, fuelled by record production and high iron ore prices, has pushed Dr Forrest up the ranks of the Financial Review Rich List with an estimated net wealth of $23 billion, up from $7.9 billion.
- It puts him in second place on the Rich List, which will be published in The Australian Financial Review Magazine on Friday.
- Dr Forrest said powering through the crisis was the result of its people and a culture that permeates all his organisations (Fortescue, Minderoo and investment group Tattarang).
Deutsche Bank Swings to Profit, Lowers Bad-Loan Provisions
- Deutsche Bank AG DB -3.04% said it returned to a third-quarter profit, beating expectations, as it benefited from strong performance in investment banking and a faster-than-anticipated recovery in its home market.
- At its investment-banking unit, which like its Wall Street rivals is making money helping companies issue debt and investors reset their portfolios, revenue was up 43%, though last year’s third-quarter figure was weak.
- The bank said it set aside €273 million to cover for loans turning sour—the lowest quarterly charge since the coronavirus outbreak earlier this year, signaling borrowers are continuing to repay credit.
- Deutsche Bank has the added comfort of being based in Germany, where the economy is performing better than expected in part because of heavy government spending that kept workers employed and companies functioning.
- In a recent Moody’s virtual conference, Mr. Sewing reaffirmed his belief banks will have to merge, but said he is focused on finishing Deutsche Bank’s overhaul first.
Sony boosts PlayStation profits despite looming PS5 launch
- The company announced PlayStation-related revenue of 507 trillion yen (~$4.9 billion) and an operating profit of 105 trillion yen (~$1 billion) for its July-September quarter, respective improvements of 52 and 40 percent on the same period a year ago.
- With the PlayStation 5 set to launch in a couple of weeks, normally you’d expect a significant negative impact on Sony’s books for the previous quarter as the company ramps up manufacturing before it starts to bring in more revenue.
- Sony does say that its profits were hit by an increase in costs, while revenue was reduced by a predictable decrease in PS4 sales.
- Sony has now revised its full-year gaming forecast upward slightly, expecting to make 2.6 trillion yen in revenue and 300 billion yen in profit by the end of March 31st.
Introducing the Rich Lister who didn’t want to be discovered
- This is the first in-depth profile interview he’s ever done, but it won’t be the last request for an interview: shares in Objective have kept climbing since his wealth was ruled off at $783 million for the 2020 Rich List.
- Over the past five years revenue at Objective has grown 40 per cent and net profit has jumped 2½ times to more than $11 million.
- Unlike many others in the sector who have cashed in on rallying share prices, he hasn’t sold a single share since listing Objective Corp 20 years ago.
- It puts it in good shape to make more acquisitions, which have fuelled its growth in recent years after Walls recognised that growing and incubating businesses internally can take an awful amount of time.
- Its most recent acquisition took Walls back to where it all began in Wollongong, where Objective scooped up government regulatory technology provider Itree.