PRESS DIGEST-Australian Business News - Oct 23
Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Ten Network (TEN.AX) executive chairman Nick Falloon says the advertising market appears to have turned. The remark comes following the release of the media broadcaster's fiscal 2009 results, which show increased demand for television advertising since last month. Demand is expected to continue into next year, and Ten's new top rating programs include MasterChef and Talkin' 'Bout Your Generation. Macquarie Research Equities analyst Alex Pollak says that Ten's capital-city television advertising market share was up 1 percent. Page 43.
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Mining giant BHP Billiton's (BHP.AX) (BLT.L) chairman, Don Argus, has scrutinised the Federal Government's Carbon Pollution Reduction Scheme (CPRS). Mr Argus told the Melbourne Mining Club that the corporate bond market should be expanded, and the Government's workplace relations changes would have a negative effect. BHP has deferred commentary about CPRS to the Minerals Council of Australia. Mr Argus, formerly the National Australia Bank chief executive, will step down from his role in 2010. Page 43.
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A high-definition (HD) digital video recorder and 36 new television (TV) channels will be launched next month - four months ahead of schedule - forcing Austar United Communications (AUN.AX) to downgrade its earnings forecast. The subscription TV provider's chief executive, John Porter, says that moving to HD earlier will cost a 'couple of million in gross margin and a couple of million in marketing and launch costs,' which will affect earnings. The launch was moved forward due to the 'noise around Freeview.' Page 43.
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Packaging company Amcor (AMC.AX) is preparing for another year of earnings unpredictability and the rising value of the Australian dollar could cancel out profits from its recent acquisition of Alcan Packaging. Amcor paid A$2.4 billion for Alcan's flexible, tobacco and pharmaceutical packaging assets. Analysts believe the currency's rise may reduce Amcor's reported profits by A$40 million this year. Macquarie Equities says that Amcor's dividend may dwindle by A4c to A13c per share. Page 44.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The Queensland Government says that two participating companies will be enough to guarantee the construction of a 'missing' railway link to central Queensland's coalfields. Three coal ports currently service the Bowen Basin behind Rockhampton and Mackay, but the lines that run to Abbot Point and Dalrymple Bay are not interconnected. Queensland Premier Anna Bligh called the project the 'Suez Canal' of central Queensland's coal sector, because it would 'revolutionalise' coal transport in the Sunshine State. Page 19.
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Melbourne-based resources company Newcrest Mining (NCM.AX) has reported a 5 percent fall in first-quarter gold production during the last three months. The move comes following lower grade ore at Indonesia's Gosowong, and commissioning problems at Papua New Guinea's Hidden Valley. Royal Bank of Scotland analyst Warren Edney says that production was lower for the quarter, but the company's steady output guidance was significant. There has been faster-than-expected commissioning of the Gosowong expansion in Indonesia. Page 20.
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Anglo-Swiss exploration company Xstrata (XTA.L) has bolstered its proposed construction of a new harbour between Queensland's Gladstone and Rockhampton. According to documents submitted to the Federal Environment Department, the project is still in progress and the location has been changed from Port Alma to Balaclava Island. A spokesman from Xstrata says the company has applied for 'significant project' status from the Queensland Government. The port is expected to commence operation in 2014. Page 20. Continued...
