Woolworths to allow credit/debit transactions

Woolworths has backed down in a fight over the use of debit-card credit accounts in its supermarkets.

From next week, customers to the supermarket chain and its other outlets such as Big W will be allowed to use credit accounts when paying with their debit cards after Woolworths came to an agreement with Visa and MasterCard.

Previously, Woolworths had made it impossible for customers to use credit accounts on debit cards after a decision by its financial services department not to allow the transactions because of the costs to the supermarket chain.

Credit card companies charge retailers for individual transactions on the debit card credit accounts, but yesterday Woolworths refused to disclose how much the decision would cost the company.

Woolworths estimated it had been losing thousands of customers because the debit card facility was not able to be used as it was intended by the credit card companies.

"From 7th September, Visa and MasterCard debit cardholders will be able to choose the 'credit' option at the register when shopping at stores including the Woolworths supermarkets chain, Big W, Safeway, BWS, Dan Murphys, Dick Smith, Thomas Dux and Caltex Woolworths petrol outlets," Woolworths said in a statement yesterday.

"We recognise that some customers were inconvenienced by not having the option to press 'credit' when using their Visa or MasterCard debit card.

"We are very pleased that all our customers will now be able to pay the way they want when shopping with us," the company said.

Source: http://www.theaustralian.com.au/business/woolies-retreats-on-debit-card-impasse/story-e6frg8zx-1226463483661

Coles visits dairy farm to address $1 milk issue

 

A public letter of dismay to supermarket giant Coles from the wife of a dairy farmer may have stirred the big retailer into taking direct action to help milk suppliers crushed by low prices.

 

Jane Burney's comments about Coles' $1 a litre house brand milk and its seemingly superficial concern for farmers portrayed in its big budget television advertising campaigns attracted 73,000 supporting 'likes' on Facebook early this month.

 

But two weeks ago Ms Burney, who is married to fifth generation Manning Valley dairy farmer Murray Polson, secured a meeting with a high-ranking Coles representative on their farm at Oxley Island.

 

Coles' government and corporate affairs advisor Chris Mara travelled from Melbourne to spend 90 minutes with the family, encouraging Ms Burney to explain the frustrations and struggles NSW farmers were undergoing thanks to Coles' $1/L milk price.

 

Although Coles officials are not commenting on what was discussed, Ms Burney asked the company to commit to immediately lifting farmgate milk prices, and commit to moving towards a sustainable price for the fresh milk industry.

 

She also called on Coles to provide more transparency in its negotiations with milk processors, particularly in regard to flow-on impacts on the farmgate price.

 

Also at the meeting was Kempsey dairy farmer Mike Jeffery, "Austral Eden", and Australian Dairy Farmers (ADF) executive member Adrian Drury.

 

Mr Jeffery said Coles had two weeks to respond to Ms Burney's points, and further action by farmers could take place depending on the retailer's response.

 

Ms Burney believed Coles' actions had been "positive for the industry".

 

"I don't think it was just a PR stunt. I think it will lead somewhere and I think (they) will gain a bit of understanding of what it is like to be a dairy farmer," she said.

 

"The people who set this (discount milk price) scheme up obviously have no understanding of the cost involved... and we are not getting a sustainable price."

 

Mr Mara's farm visit included a tour of some of the modern infrastructure on the property.

 

"The reality is farms like this are equipped with the latest technology to continue milking into the next generation but (Coles') pricing standard is taking that away from the next generation," Ms Burney said.

 

"These aren't old, broken down farms, or broken down farmers for that matter.

 

"Many have children to follow on the land, but who just aren't able to.

 

"This whole 'Down Down' milk pricing campaign is destroying our farms, our families, and ultimately their spirit, I mean, the fact farmers are crying - and these are 60-year-old men."

 

Ms Burney said Mr Mara rejected suggestions low farm gate prices would eventually lead to fresh milk shortages for consumers, saying, that would never happen because consumers love fresh milk.

 

"They may love it, but when we are all out of business and unable to produce fresh milk, I don't know where it is going to come from," she said.

 

"Chris Mara also tried to say processors aren't fulfiling their obligations in passing on any price increases, but the processors' brands are also losing market share to generic milk.

 

"The whole supply chain is losing money."

 

Ms Burney's decision to post a letter to Coles on its Facebook site was partly prompted after watching a Coles television commercial promoting its support of Australian farmers.

 

She said the campaign was insulting.

 

The subsequent overwhelming public support she received from her letter was completely unexpected.

 

"I just wrote how I feel, and it struck a chord with people."

Source: http://theland.farmonline.com.au/news/state/dairy/general/letter-to-coles-stirs-up-milk-debate/2621586.aspx?storypage=0

Can Windows 8 revitalise the phone industry?

The first glimpses of the much-awaited mobile devices based on Windows 8 operating system have started doing the rounds on technology forums and blogs.

South Korean electronics giant Samsung last week previewed its first smartphone that is based on Windows 8, at the IFA consumer electronics show in Berlin.

Finnish phone manufacturer Nokia, which entered into a strategic partnership with Microsoft last year, is expected to announce its line-up of Windows 8 mobile devices at an event in New York later this week.

The previews of the next generation Windows mobile phone bear significance not just ahead of the international launch of Windows 8 on October 26, but also against the backdrop of the high-profile patent wars being played out in international courts by key players in the mobile technology space — Apple, Samsung and other manufacturers using Google’s Android operating system.

Samsung had decried the U.S. jury verdict asking it to pay over $ 1 billion as fine to Apple for patent infringements. It said the verdict might lead to a loss of choices to the American consumer.

With Windows 8 devices, the list of smartphone options and enabling technologies is only bound to increase.

The next generation mobile phones will sport game-changing technologies such as near-field communications that will reinvent the way file-sharing and mobile money transactions are done.

Samsung’s new ATIV S phone, its first device to run Windows 8, sports a HD Super AMOLED screen, a dual-core 1.5 Ghz processor and has integrated NFC chip, among other.

Nokia too will be counting heavily on Windows 8 to rescue it from its recent predicaments.

There is a lot of hype surrounding the event slated for September 5 on what it could mean not just to Nokia but to the Microsoft Windows ecosystem in the mobile space that Apple has been dominating over the past three years with its iPad and iPhone.

Analysts feel that the recent reverses that Samsung faced in the U.S. courts might eventually lead to a scenario where more innovations would find its way into the smartphone industry.

It could also lead to a substantial increase in smartphone prices if the companies decide to coexist and pay each other royalties.

Source: http://www.thehindu.com/sci-tech/gadgets/article3851544.ece

Lachlan Murdoch buys out DMG radio

Lachlan Murdoch has moved to increase his Australian media interests by taking full control of DMG Radio Australia in a deal worth more than $100 million.

Late on Sunday, Mr Murdoch’s private investment company, Illyria, confirmed an agreement to buy the 50 per cent of DMG Radio Australia that it did not already own from the London-based Daily Mail and General Trust.

It is believed Illyria has paid $100 million (£66 million) in cash to increase its stake. Daily Mail and General Trust will also receive a further sum equivalent to 50 per cent of DMG’s final dividend for the financial year ending September 30, 2012.

The deal will give Mr Murdoch full control of the company behind the Nova and Smooth FM brands.

It will also re-ignite speculation about the media heir’s future.

Rupert Murdoch’s eldest son has grown his media footprint in Australia since 2005, when he resigned as deputy chief operating officer at News Corporation.

Speculation that he will return to full-time executive duties at News Corp increased after his brother and heir apparent at News, James Murdoch, was embroiled in a phone-hacking scandal at the company’s UK newspaper operations.

But the purchase of the remaining stake in DMG Radio suggests Illyria’s portfolio of local media investments remains Lachlan’s top priority.

The 40-year-old father of three, who lives in Sydney’s eastern suburbs, still serves as a News Corp director and is chairman of free-to-air broadcaster Ten Network.

Illyria invested $128 million for an 8.9 per cent stake in Ten in November 2010. Since then, shares in Ten have lost more than 70 per cent.

The broadcaster has struggled for decent ratings at a time when the advertising market has made it difficult for all media companies to grow earnings. It parted ways with its programming head of the past 15 years, David Mott, last week.

However, Mr Murdoch made a $6.5 million profit in June when he sold Illyria’s 9 per cent stake in regional television company Prime Media Group for $22 million.

DMG Radio can also be regarded as one of Mr Murdoch’s more successful investments. The business has doubled its earnings before interest, tax, depreciation and amortisation since Illyria became a shareholder in 2009. Mr Murdoch and chief executive Cathy O’Connor have cut costs and introduced more ads on Nova to boost revenue.

The business had an enterprise value of about $165 million when Illyria became an investor, compared with market estimates of $285 million now.

“We are pleased to move to 100 per cent ownership of DMG Radio Australia,” Mr Murdoch said in a statement.

“When we acquired our 50 per cent interest in DMGRA in November 2009 we set out to create one of Australia’s leading media companies. Over the past three years, working alongside DMGRA’s wonderful staff, we have successfully implemented our growth strategy.”

Mr Murdoch has installed a new management team under Ms O’Connor.

Besides increasing advertising on Nova they have closed down the baby boomer-oriented station Vega and launched easy listening station Smooth FM.

Recent ratings surveys by Nielsen show Smooth FM achieved close to 5 per cent cumulative audience share in both Sydney and Melbourne in August.

“We have great confidence in the continuing potential of radio, great confidence in the management team we have built under Cathy O’Connor, and look forward to further growing DMGRA in the coming years,” Mr Murdoch said.

Analysts have postulated that Mr Murdoch could soon look to consolidate his Australian media assets with those of his family.

A potential Ten-DMG tie-up makes strategic sense as it would create a national network of FM radio and television stations which would be attractive to advertisers targeting the youth audience.

Citi analyst Justin Diddams estimated such a deal, offering the combined group substantial cross-promotional benefits, could be valued up to $250 million.

The next step would be for Illyria’s media assets to be combined with News Corp’s Australian assets.

News Corp is in the process of separating its fast-growing entertainment assets, including its US-based film studios and cable television stations, from the newspapers on which the company was founded.

The move is designed to insulate the more valuable entertainment assets from potential regulatory fallout from the hacking scandal, and to unlock value for institutional shareholders.

But under the demerger, all the Australian assets, including stakes in Foxtel and Fox Sports Australia, and its suite newspapers, will be housed in the publishing-based entity.

CLSA analyst Digby Gilmour said in February News Corp might consider buying Ten to further diversify its Australian assets away from print.

Source: http://afr.com/p/national/lachlan_murdoch_radio_bet_Htoh1DfWuNadX3iak4D7VI

Apple and Samsung still neck and neck outside US

A Japanese court has rejected patent claims made by Apple against Samsung, a victory for the latter company after its crushing defeat in the US last week and a reminder of the global scope of the patent war between the two technology giants.

While Apple prevailed over Samsung in the US, winning $US1 billion in damages from a federal jury, the two companies remain neck-and-neck in legal disputes in almost a dozen countries. For example, a judge in South Korea, where Samsung is based, handed down a split decision in a patent case shortly before the jury verdict in the US case.

“Internationally, it’s been a mixed picture for Apple,” James Bessen, economist and lecturer at the Boston University School of Law, said. “Part of that is because most other countries don’t have the same attitude toward software patenting that the US has.”

For both companies, Japan makes up a far smaller proportion of sales than the all-important American market. But the Tokyo ruling suggests that despite Apple’s victory last week, the jostling between the two companies for the upper hand in the fast-growing smartphone and tablet businesses is just beginning.

The Tokyo District Court ruled that Samsung’s Galaxy smartphones and tablets did not violate an Apple patent on technology that synchronises music and videos between devices and servers. Apple, based in Cupertino, California, sued Samsung in Tokyo last year in a case that sought ¥100 million ($1.23 million) in damages.

That is a far cry from the billions in damages that Apple had sought from Samsung in federal court in San Jose, California. A nine-member jury there ultimately decided on an award of $US1 billion after several days of deliberation.

Some law professors who have studied international patent disputes say the outcome of that case may be unique in the global tussle between the two companies. Mr. Bessen said that’s partly because the United States is the only major jurisdiction where patent disputes are heard before juries, and foreign companies often face a higher risk of losing cases in such a setting.

“I wouldn’t expect there to be a lot of judgments like this one,” said Ronald A. Cass, a former law professor and vice chairman of the International Trade Commission, who is now a legal consultant.

Apple has filed other patent suits in Japan against Samsung, including one claiming that the Korean company copied the bounce-back effect when a user scrolls to the end of a list on the iPhone and iPad. And Apple has asked for an injunction that would prevent Samsung from shipping some Galaxy smartphones to Japan. Samsung has also sued Apple in Japan, asserting that both the iPhone and iPad infringe on Samsung patents.

In a statement, Samsung Electronics, based in Suwon, South Korea, said the ruling had validated its claims that it had not copied Apple.

“Samsung has strongly asserted that its technology is altogether different and does not infringe on Apple patents. The ruling recognizes the legitimacy of Samsung’s assertions and is highly valid,” it said.

Kristin Huguet, an Apple spokeswoman, declined to comment.

Apple hardly needs a lift in Japan. The iPhone was the top-selling smartphone there in 2011, while Samsung’s Galaxy series trailed in the No. 5 spot — behind smartphones made by Sharp, Fujitsu and Sony, according to the MM Research Institute, based in Tokyo. Globally, however, Samsung is the largest smartphone maker.

But even in Japan, the operating system most commonly used by Samsung and other smartphone makers, Android from Google, has grown steadily, posing a challenge to Apple.

Android captured 58 percent of the Japanese market in the first quarter of 2012, compared with the 38 percent market share claimed by Apple’s mobile operating system, iOS, according to the research firm Nielsen.

Many analysts see Apple’s suits against Samsung as a proxy battle against Google and Android, which Apple has called a copy of iOS.

The patent war between Apple and Google has set off a debate about the future of technological innovation — one that has intensified since the jury in California ruled in Apple’s favor. The jury said Samsung smartphone and tablet products violated Apple’s patents protecting designs and functions, including the rectangular shape and rounded edges of the iPhone.

Some experts say such rulings will force smartphone makers to focus on innovating rather than copying, while others say designers could now be stifled by the need to constantly second-guess whether new designs or functions violate other companies’ patents.

Meanwhile, Japanese electronics makers have figured little in the smartphone patent wars, underscoring how negligible a threat they now pose to either Apple or Samsung in the sector.

Samsung, the world’s largest seller of smartphones, and Apple, the world’s second-largest, together control a little more than 50 percent of the global smartphone market, the research firm Strategy Analytics has said.

Japanese smartphone makers like Sharp and Fujitsu, on the other hand, have little presence beyond Japan’s shores.

Source: http://www.afr.com/p/technology/court_win_for_samsung_after_hammering_Bi0PUbhZSqUnsumFQ0zeOI

Aussies "shopping with a frown"

Australians are spending again at restaurants, cafes and department stores but they're not exactly whistling as they shop, with depressed consumer confidence and entrenched pessimism leading a new report to depict consumers as ''shopping with a frown''.

Research from Deloitte Access Economics on the state of and forecast for Australia's retail sector has found national retail sales actually increased 2.8 per cent over the first six months of the year.

This beat the yearly rate of growth seen in the past two years as consumers kept away from shopping centres and stores to pump up their savings or pay down debt.

Deloitte partner David Rumbens said that without much fanfare the spending environment has changed since the beginning of the year and that for the first time since 2009 Australian retailers were on track to maintain their level of sales on a real per capita basis.

But just don't expect to see too many grins on the faces of shoppers, he added.

''It seems that while Australian consumers are out there shopping, they are not happy about it,'' Mr Rumbens said. ''Consumer sentiment remains well entrenched in pessimist territory.

''Consumers remain rightly concerned about risks to the Australian economy and feelings of job security are low.

''That means that today's retail recovery remains a somewhat fragile one,'' he said.

Mr Rumbens said the biggest sales gains came from retail sectors that had suffered the worst over the past two years; department stores up 5.5 per cent in real terms for the first six months of 2012 and clothing retailers up 6.1 per cent.

''People have the ability to spend and they are worried about the future, especially job security, and it seems they are holding back on big purchases - for example household goods such as furniture and whitegoods - but they are more content to spend on food, clothing and smaller items.''

He said the high national savings rate, hitting around 10 per cent in the wake of the global financial crisis, had set Australians up to now free up a bit of their cash to spend at the shops with spending for the year to June at about the historic trend rate of the last 10 years.

''The savings rate isn't increasing any more, it is starting to edge down.

''People are perhaps still complaining and are worried, but there is now a bit of a disconnection between what they are saying in terms of their sentiment and their actual spending.''

Mr Rumbens said perhaps consumer sentiment was not a perfect prediction of spending levels.

He said investment spending would still be a key driver for the Australian economy in 2012-13, which will continue to favour the north and west of the country.

''Job opportunities and wage growth are likely to follow those leads, as key supports for retail,'' Mr Rumbens said.

Source: http://www.brisbanetimes.com.au/business/were-buying-again-but-with-a-frown-20120902-258ct.html

Media companies post $6bn in writedowns

More than $6 billion in writedowns were charged to the balance sheets of media companies during profit reporting season as the realities of the modern world caught up with the sector.


The long-term structural shifts of audiences and a pronounced downturn in advertising spending, which hit some companies harder than others, led to billion-dollar impairment charges.

Fairfax Media wrote down the value of its assets to the tune of $2.98bn, News Corporation (publisher of The Australian) issued a $US2.8bn charge and APN News & Media slashed the value of its New Zealand assets by $NZ485 million ($320m).

Seven Group Holdings also weighed in and cut the value of its 32.5 per cent stake in Seven West Media by $483.5m.

Earnings before interest, taxes, depreciation, and amortisation - the best measure of underlying performance - was a mixed bag depending on which pocket of the media sector was being examined.

Fairfax Media chief executive Greg Hywood said the downturn in the advertising market was the worst he had experienced since becoming a journalist in the 1970s.

But the pure play digital media companies had reason to cheer. Realestate.com publisher REA Group, which is majority-owned by News Limited, Carsales.com, and jobs website SEEK all posted substantial double digit gains.

"They report their numbers, disappear, beaver away and amass targeted national audiences that advertisers are enjoying and getting a lot of cut through with so it's not all dire," Citi equities analyst Justin Diddams said.

"It's only dire for a couple of players who are losing share."

Southern Cross Austereo posted a solid result, with EBITDA up more than 40 per cent. Chief executive Rhys Holleran told Media the result was testament to the "thesis of diversity", with a downturn in ad revenue from the company's TV assets parried by gains in other parts of the business.

"A lot of clients like to see the portfolio effect when times are difficult," Mr Holleran said after SCA reported its first full result since Southern Cross Media acquired Austereo Group.

Although some media companies have already taken steps to reduce heavy debt, with Seven undertaking a $440m capital raising ahead of profit season, profit season revealed that some were still carrying alarming levels of debt, which will continue to weigh down on earnings.

"Very small changes in revenues can have a large ripple effect on earnings and subsequently cash generation and balance sheet metrics. Sometimes it can be a very small thread that can unravel the whole thing," Mr Diddams said.

This also means media company chief executives will focus on reducing costs in the year ahead. The trick will be balancing cuts against a reduction in the quality of content and output.
"It's just a reality," Seven Group chief executive Peter Gammell told Media.

"If the advertising market is not growing strongly, you can't afford costs to blow out, and the reality is we all need to accept a low-growth environment. And in this environment we have to challenge our previous ways of doing business to be more efficient, otherwise we just go backwards."

PwC expects Australia's total entertainment and media market to grow at a 4.1 per cent compound annual growth rate to $38.2bn in 2016.

Growth will be subdued in the near term, Mr Diddams says.

"At this stage, if you have an optimistic outlook, the total ad market should post 1 to 2 per cent growth in financial year 2013; and if it's flat, that's still a good result," he said.

Source: http://www.theaustralian.com.au/media/monday-section/media-companies-post-6-billion-in-writedowns/story-fna1k39o-1226463441274