Business – Page 75 – Michmutters

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Australian tech company Appen’s future uncertain as shares plunge by 27 per cent

Australian tech company Appen's future uncertain as shares plunge by 27 per cent

Shares for an Australian tech company have plunged after their earnings were 69 per cent lower than expected.

On Tuesday, Sydney-based artificial intelligence firm Appen posted its results for the first half of 2022, but that had a detrimental impact on its share price.

The company, which provides important data to tech giants around the world including Facebook, Google and Amazon, has been struggling in recent months.

According to The Australian, when its earnings were taken into account before interest, taxation, depreciation and amortization, it had made 69 per cent less than the same period the year before.

Appen generated $8.5 million in net profit over the last six months compared to $12.5 million in the same like period in 2021.

To top that off, the Aussie firm also posted a net loss of $3.8 million.

In total, it suffered a revenue drop of seven per cent to $182.9 million.

As a result, Appen’s share price dropped 27.3 per cent to $4.15 on Tuesday. At time of writing on Wednesday morning, it had recovered slightly, up by two per cent to come in at $4.24.

Appen’s CEO Mark Brayan blamed the poor performance on global market conditions as well as a weaker appetite for digital advertising.

During the earnings call, Mr Brayan said, per the Sydney Morning Herald: “With no improvement in July trading, there remains uncertainty about a continued slowdown of spending from our global customers and their exposure to weaker digital advertising demand.

“As a result, the conversion of forward orders to sales is less certain this year compared to prior years.”

Mr Brayan added in a statement to the ASX that conditions were “challenging” and that they were seeing a “flow-on effect” as customers spent less on advertising.

With lessening demand for their services, Appen also revealed that costs had blown out as the day to day running of the business became more expensive.

It cited investment in product and technology, heightened employee expenses, recruitment, and IT costs as another avenue where money was lost.

Like many other tech companies around the world, Appen has taken a dive, as its share price has fallen 62 per cent this year following massive gains at the height of the pandemic.

At their peak, Appen’s shares were worth around $43.50, back in August 2020. It is now trading at $4.24.

Appen first started on a downward trend in June, after its rival, Canadian IT firm Telus, scuppered a takeover deal.

The Canadian business had proposed a $9.50-per-share takeover bid for Appen, which would have made the Australian company worth $1.2 billion.

It’s unknown why Telus canned the deal.

News.com.au has contacted Appen for comment.

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Cost of Living crisis: WA wholesaler New West Foods warns of ‘perfect storm’ with food, pub prices set to rise

Cost of Living crisis: WA wholesaler New West Foods warns of 'perfect storm' with food, pub prices set to rise

WA’s biggest independent food distributor has warned consumers to expect further hikes at their favorite pubs and restaurants – and eventually supermarkets – as supply chain pressures and skyrocketing input costs continue to drive up prices.

The price of vegetable oil supplied by New West Foods to hundreds of eateries across WA has almost doubled since August 2020, with eggs up 75 per cent over the same two-year period.

Salmon has jumped 50 per cent while cheese and bacon are both up around 35 per cent.

Even the humble frozen chip – a staple of takeaway menus everywhere – has climbed 25 per cent.

The scale of price rises over the past two years.
Camera IconThe scale of price rises over the past two years. Credit: The West Australian

The majority of those price rises have come in the last 12 months as myriad factors combined to create what New West Foods managing director Damon Venoutsos said was the “perfect storm” for food costs.

Mr Venoutsos described distribution businesses like his own as the “canary in the coal mine” for price increases because – unlike supermarkets and fast-food chains – they did not enter into long-term agreements with suppliers.

“Most of the time we get 30 days’ notice from our suppliers that prices are going up whereas your big retailers (such as Coles and Woolworths) and quick service restaurants (such as KFC) can lock in their prices for anything up to six months ,” he said.

“Often we’re using the exact same supplier so while I don’t know when (the supermarkets) are going to catch up, it’s inevitable they will have to.”

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Telstra to deregister radio sites after accusations of ‘hindering’ Optus 5G rollout

Telstra to deregister radio sites after accusations of 'hindering' Optus 5G rollout

Telstra has been ordered to deregister more than 150 radio sites under a court-enforceable order, after Australia’s consumer watchdog raised concerns the company was “hindering” a rival telco’s 5G rollout.

The Australian Competition and Consumer Commission (ACCC) launched a lengthy investigation after over concerns about the telecommunication giant’s registration of 315 low-band radiocommunications sites back in January.

Low-band spectrum, such as 900MHz, can transmit over greater distances and is used by mobile network operators to provide coverage and capacity.

The ACCC probe raised concern Telstra’s regulation of the 315 sites would have “hindered” or prevented its rival Optus from deploying its 5G network, thereby preventing it from engaging in competitive conduct.

Under the court undertaking, Telstra is now required to deregister all remaining radiocommunications sites registered in the 900MHz band.

The company holds a license for parts of the 900MHz spectrum band until June 2024.

But up until January, Telstra was making little use of the spectrum and had not registered a new site since 2016.

Optus successfully bid for licenses in the low-band spectrum following an auction by the Australian Communications and Media Authority (ACMA) in December last year.

Telstra then registered the other 315 low-band radiocommunications sites.

They later deregistered 153, with 162 remaining registered.

The undertaking, agreed to by the ACCC, requires Telstra to deregister all remaining radiocommunications sites it registered with the ACMA in the 900MHz spectrum band in January 2022 which would have prevented Optus early access to the spectrum.

ACCC chair Liza Carver said the undertaking meant more Australians in regional and metropolitan areas would have access to a choice of 5G services.

“This is critical as 5G network coverage becomes an increasingly important factor in consumer choice in mobile phones and mobile plans,” she said.

“Competition is key to driving innovation and investment in new technology and providing consumers with greater choice, better quality services and lower prices.”

The new court order comes after Telstra announced it would return all of its call centers to Australia after ongoing consumer demand.

“What we heard loud and clear was that you wanted a change in the way we answered our calls, so we did it,” CEO Andrew Penn said last month.

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$15 For A Bloody Pint? Australian Beer Prices Surge After Tax Hike

$15 For A Bloody Pint? Australian Beer Prices Surge After Tax Hike

First they came for the property market, and I did not speak out — because there was no way in Hell I could afford anything to begin with. Then they came for the humble Bunnings snag, and I did not speak out — because I’m usually too hungover to make it out for a sizzle on time, anyway. Then they came for Australian beer prices… and now there’s really nothing left to live for. Is there?

August has kicked off in remarkably grim fashion after the Australian Tax Office (ATO) raised the excise on the good stuff by 4% during its semi-annual CPI indexation review. According to the Brewers Association of Australia, this represents the biggest increase in over 30 years.

Now, thanks to the inescapable matter of inflation, Aussie beer drinkers will be parting with a little more of their hard-earned paycheques just to enjoy a frosty sharpener.

RELATED: The Most Popular Beers In Australia (State By State)

“We have seen almost 20 increases in Australia’s beer tax over the past decade alone,” said John Preston, Brewers Association of Australia CEO.

“Sadly, we’re now seeing the impact as pub patrons will soon be faced with the prospect of regularly paying around $15 for a pint at their local.”

“For a small pub, club, or other venue, the latest tax hike will mean an increase of more than $2,700 a year in their tax bill – at a time when they are still struggling to deal with the ongoing impacts of the pandemic.”

“Over the last two years, we’ve done the right thing, followed the government mandates, closed down when we had to and operated under really difficult restrictions,” Tony Fyfe, Co-Owner of Hemmingway’s Brewery in Cairns, said of the rising Australian beer prices all the way back in February.

“This is just another kick in the guts… it’s really, really tough to work with.”

australian beer prices tax hike 2022

Prior to the ATO’s decision, Australians were already shelling out $2.26 in tax per liter of pub-poured grog. While this might seem like a negligible sum, as pointed out by Perth Nowthat was almost half of what you’d pay in a typical carton of full-strength beer and 17 times more than the $0.13 you’d pay in Germany.

In 2020, a report conducted by University of Adelaide economist Kym Anderson AC determined Aussies paid the world’s fourth-highest beer tax, only behind Norway, Japan, and Finland. Given the latest development, we may very well be on track to secure the thorned crown.

Bob Hawke is rolling in his grave right now.

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Five Guys Melbourne | Urban List Melbourne

Five Guys Melbourne | Urban List Melbourne

While the melbourne burger scene is known to serve up some pretty damn delicious stacks, we are finally getting the opportunity to sink our teeth into some of the world’s most hyped burgers—Five Guys.

The cult-followed burger chain has already cemented itself in the Sydney community and now it’s time for Melbourne’s time in the sun with a brand spanking 79-seat diner opening up on Southbank this coming Monday 8 August.

“We have been searching many years to find our first Victorian site, and know the location of our first store is fantastic in the bustling Southbank region,” says Robby Adronikos, Five Guys Brand Manager

If you’re not yet acquainted with this US-based burger chain, Five Guys is known for two things: burgers and fries. But these burgers are unlike anything you’ll find at a typical fast-food joint. Five Guys operate on a “no freezer” promise—their brioche buns are freshly grilled, the ground beef patties are shaped by hand and their hand-cut chips are fried on demand, skin-on and straight to your table.

The burgers are customizable from staple hamburgers to the bacon cheeseburger with over 15 free toppings including pickles, jalapenos, grilled mushrooms and more. You can also opt for their all-beef hot dogs with the added option of melted American-style cheese; and creamy, customizable shakes that you can jazz up with mix-ins like crispy bacon, real bananas, fresh strawberries, or cold-brewed coffee made daily in-store.

There’ll be plenty more details to spill once Five Guys open up, so stay tuned for more.

Want to check out the best burgers in Melbourne? right this way.

Image credit: Five Guys (supplied)

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John Barilaro appointment: US documents show NSW trade staffers in New York earn a combined $961k

John Barilaro appointment: US documents show NSW trade staffers in New York earn a combined $961k

Four NSW trade staffers earning a combined $961,000 are working in the New York trade office where John Barilaro was going to be employed.

Foreign agent registration papers lodged with the US government two weeks ago show the four staffers will be employed full-time on the 34th floor of an office building in the heart of mid-town Manhattan, directly opposite the landmark Chrysler Building.

It’s the same building that houses the Consulate General of Australia and the federal government’s Austrade office.

One of the four people who registered with the Justice Department is the state’s current Trade and Investment Commissioner Joe Kaesshaefer, who works out of a WeWork office in San Francisco in California.

He told the US government his “primary business address” would be the office in New York, but an Investment NSW spokesman said he would actually continue to work from San Francisco.

“Mr Kaesshaefer will remain in San Francisco and travel as required,” the spokesman said.

It’s understood Mr Kaesshaefer will work from home.

Mr Barilaro would have been the boss of the New York office and had planned to begin that work last month, but he was forced to give up the job after public outrage over his appointment.

Mr Kaesshaefer declared to the US government that his role would be managing the operations in the New York office on a full-time basis, earning about $264,000 a year.

Two other staffers will earn about $230,000 each per year, and the fourth about $237,000.

The three junior staffers will all have the title Trade and Investment Director and each said they’d be “responsible for building and maintaining bilateral relationships with US government officials and business leaders for the promotion of trade and investment opportunities in NSW”.

All four staffers are US citizens.

“Investment NSW’s international network of staff provide vital on the ground support to help NSW exporters to succeed internationally as well as facilitating new investment opportunities for companies looking to grow or establish their business in NSW,” the agency spokesman said.

“New York-based staff currently report to the San Francisco-based Trade and Investment Commissioner, who has been in the role for more than five years.”

The declarations, which the US government requires from anyone intending to do work in the country on behalf of a foreign government, also reveal the trade office had set aside $100,000 for “disseminating information”.

A job contract signed by Mr Barilaro for the role of Senior Trade and Investment Commissioner to the Americas, which was released to parliament this week, showed he was meant to be seconded to a corporation the NSW government set up in the US once his visa had come through.

The company, NSW Government US Office, Inc, was registered as a non-profit, nonstock corporation the day before New Year’s Eve with Investment NSW chief executive Amy Brown as head of the company, US records show.

A senior deputy of hers, Kylie Bell, is listed as the company’s director.

The company was registered in the corporate haven of Delaware, a state with beneficial regulations for companies.

The NSW government hired the prominent registered agent Corporation Trust Company to incorporate the US operation, and the government trade office was formally registered at 1209 Orange Street in Wilmington, Delaware, an address famous for housing thousands of companies.

Ms Brown has previously told a parliamentary committee looking into the hiring of Mr Barilaro that the lease for the 103.7 square meter New York office was signed on September 1 last year.

“It was taken as a shell, and it took six months minimum to do the fit-out to make it a usable office space,” Ms Brown said.

The fit-out of the office cost $905,000, she said.

Ms Brown gave evidence to the committee again on Wednesday.

Also on Wednesday, Premier Dominic Perrottet announced his Trade Minister, Stuart Ayres, would resign over the Barilaro appointment.

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Cleaner unleaded petrol locked in for 2024 but prices will rise

Cleaner unleaded petrol locked in for 2024 but prices will rise

The Federal Government has completed the paperwork for the introduction of low-sulfur unleaded petroleum three years ahead of schedule – still more than a decade behind Europe – but it will cost motorists more at the bowser.

Paul Gover
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Australian motorists will finally get access to better quality, lower sulfur unleaded petrol three years earlier than originally planned – but more than a decade after Europe introduced the same strict quality measures – after the Federal Government rubber-stamped the legislation for its introduction on 15 December , 2024.

The move cuts three years from the waiting time for low-sulphur unleaded petrol and should clear the way for a newer generation of engine technology in modern cars in Australian showrooms.

The new fuel will have a maximum sulfur content of 10 parts-per-million, down from the current standard of 50ppm for premium unleaded and 150ppm for regular unleaded.

As previously reported by DriveEurope mandated 10ppm unleaded in January 2009 and Australia’s fuel quality has languished at the same level as developing countries ever since.

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“Last month, the Australian Government made legislation that brings forward the 10 ppm sulfur limit for all petroleum sold in Australia from 2027 to 2024,” a spokesperson for the Department of Climate Change, Energy, the Environment and Water said in a statement to Drive.

“The previous Government announced an intention to bring forward the 10 ppm sulfur limit from 2027 to 2024, however they did not make the required legislative instrument to bring the changes into force.

“The Australian Government is exploring a range of measures to improve Australia’s fuel quality to complement its commitment to stronger action on climate change and putting Australia on track to achieve net zero emissions by 2050.

“The commencement of the reduced sulfur petroleum standards in 2024 will mean all fuel sold at the pump from 15 December 2024 will have a maximum sulfur level of 10 ppm.”

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The change brings Australia into line with the world’s best standard for unleaded petroleum, but a full 14 years after Europe made the switch and more than 20 years since European regulations first targeted the sulfur content in unleaded fuel in 2000.

The change also comes with a cost to motorists, as the department forecasts a slight rise in fuel prices.

“The reduced sulfur petroleum will have a marginal price premium of around 0.6 to 1.0 cents per liter, which equates to an additional cost of around $8 per household over three years,” the spokesperson told Drive.

“The health savings outweigh the increased costs to motorists by around $760 million.”

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Key to the cleaner fuel program is the upgrading of Australia’s two remaining fuel refineries — Ampol in Brisbane and Shell/Viva Energy at Geelong — in a move also intended to safeguard the country’s fuel supplies and stocks.

The number of refineries has been dropping for nearly a decade, with two — Shell at Clyde and Caltex at Kurnell, both in Sydney — decommissioned in 2012 and 2014 respectively.

Since 2019, the BP refinery in Perth and the Mobil facility in Melbourne have also closed.

The change to low-sulfur unleaded petroleum follows the earlier requirement for a similar sulfur level in diesel fuel sold in Australia following upgrades to local refineries since 1 January 2009.

Paul Gover

Paul Gover has been a motoring journalist for more than 40 years, working on newspapers, magazines, websites, radio and television. A qualified general news journalist and sports reporter, his passion for motoring led him to Wheels, Motor, Car Australia, Which Car and Auto Action magazines. He is a champion racing driver as well as a World Car of the Year judge.

Read more about Paul Gover LinkIcon

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KKR-backed Australian Venue Co nabs eight Melbourne hotels for $100m

KKR-backed Australian Venue Co nabs eight Melbourne hotels for $100m

Amid a huge influx of capital into the booming pub sector, Mr Waterson said AVC, which is backed by Wall Street private equity giant Kohlberg Kravis Roberts (KKR), was now a “good-sized business” that would go close to doubling 2021 pre -tax earnings of $86 million this financial year.

Plans to float AVC in 2021, when it was valued at $1.32 billion, have been put on ice.

“Sales have been incredibly strong. This remains a great sector. Trade has recovered really well,” Mr Waterson said.

Sand Hill Road founders (from left) Andy Mullins, Tom Birch, Doug Maskiell and Matt Mullins at the Garden State Hotel. pat scala

He added that the latest acquisitions reflected AVC’s confidence in Melbourne’s hospitality industry.

The jewel in the crown is undoubtedly The Espy Hotel, one of Melbourne’s best known live-music venues, which Sand Hill Road purchased in 2017 and restored after years of neglect.

Another is the multi-level Garden State Hotel on Flinders Lane, Melbourne’s popular late night eating and drinking laneway.

“We have enormous respect for these venues and the teams who have made them what they are. We’re excited to welcome the team and to continue operating the venues with the passion, expertise and excellence that the Sand Hill Road team has delivered to date,” Mr Waterson said.

He said the vast majority of the Sand Hill Road leadership team and venue teams would be joining AVC.

Sand Hill Road, which was started in 2000 by five friends – brothers Andy and Matt Mullins, Andrew Larke, Doug Maskiell and Tom Birch – will retain ownership of The Espy freehold title. The group also owns the Waterside Hotel on Flinders Street in the CBD, which is closed for renovations and was not part of the deal with AVC.

The seven other venues acquired by AVC have different freehold owners including the Zagame family, which owns the Garden State Hotel.

“AVC is an awesome company, led by awesome people. And we know that the introduction of our own people into their team will create amazing opportunities for all,” Mr Mullins said.

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Telstra to deregister radio sites after accusations of ‘hindering’ Optus 5G rollout

Telstra to deregister radio sites after accusations of 'hindering' Optus 5G rollout

Telstra has been ordered to deregister more than 150 radio sites under a court-enforceable order, after Australia’s consumer watchdog raised concerns the company was “hindering” a rival telco’s 5G rollout.

The Australian Competition and Consumer Commission (ACCC) launched a lengthy investigation after over concerns about the telecommunication giant’s registration of 315 low-band radiocommunications sites back in January.

Low-band spectrum, such as 900MHz, can transmit over greater distances and is used by mobile network operators to provide coverage and capacity.

The ACCC probe raised concern Telstra’s regulation of the 315 sites would have “hindered” or prevented its rival Optus from deploying its 5G network, thereby preventing it from engaging in competitive conduct.

Under the court undertaking, Telstra is now required to deregister all remaining radiocommunications sites registered in the 900MHz band.

The company holds a license for parts of the 900MHz spectrum band until June 2024.

But up until January, Telstra was making little use of the spectrum and had not registered a new site since 2016.

Optus successfully bid for licenses in the low-band spectrum following an auction by the Australian Communications and Media Authority (ACMA) in December last year.

Telstra then registered the other 315 low-band radiocommunications sites.

They later deregistered 153, with 162 remaining registered.

The undertaking, agreed to by the ACCC, requires Telstra to deregister all remaining radiocommunications sites it registered with the ACMA in the 900MHz spectrum band in January 2022 which would have prevented Optus early access to the spectrum.

ACCC chair Liza Carver said the undertaking meant more Australians in regional and metropolitan areas would have access to a choice of 5G services.

“This is critical as 5G network coverage becomes an increasingly important factor in consumer choice in mobile phones and mobile plans,” she said.

“Competition is key to driving innovation and investment in new technology and providing consumers with greater choice, better quality services and lower prices.”

The new court order comes after Telstra announced it would return all of its call centers to Australia after ongoing consumer demand.

“What we heard loud and clear was that you wanted a change in the way we answered our calls, so we did it,” CEO Andrew Penn said last month.

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Why none of the big four banks wants to be the first to raise interest rates

Why none of the big four banks wants to be the first to raise interest rates

The central bank has made one point beyond debate – its three top priorities are inflation, inflation and inflation.

How the big four banks respond to the RBA is even more curious – a curious dance and an exercise in game theory.

It’s a competition about who goes first. Hiding behind another bank works best.

It feels bizarre given borrowers are aware that all the banks will pass on the RBA’s rate rise in full. The banks fully understand the RBA has given them the cover to allow them to raise rates by half a percentage point.

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By 3.30pm on Wednesday – more than 24 hours after the RBA statement – none of the four major banks had said a word. (Macquarie had moved the previous evening on savings and borrowing rates.)

Privately, ANZ, Westpac and NAB have spent the day pointing the finger at the Commonwealth Bank, hoping that, as the largest player, it would take the lead.

One bank assured me that being first to move left that bank exposed because customer focus groups found that branding was damaged for the first mover in raising rates.

Frequently the first mover is left out to dry for hours before the rest follow suit.

This kind of bank gamesmanship was understandable in years gone by when the RBA was lowering rates and the banks were not passing the full cut onto borrowers.

In this instance, it was important to see what the other banks were doing.

This time around with all passing on the full rate rise, the difference between the banks will come down to how they treat depositors.

It is a market that is now being carefully watched by customers and by the treasurer, Jim Chalmers.

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He has already launched a shot across the bow of the big banks that have captured hundreds of millions in profits by arbitraging higher lending rates and not fully passing it to depositors.

How the banks respond to savers is particularly important because there is an additional $260 billion parked in bank accounts than there was before COVID-19 struck.

But transparency around savings rates is muddier. There are so many types of rates, depending on size, duration, honeymoon periods and caps applied, that it is difficult to compare apples and apples.

But it is a major competition battleground for the banks – and the real area to watch. Chalmers certainly is.