Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


MARKET CLOSE: NZ shares rise as Sky TV earnings surprise

MARKET CLOSE: NZ shares rise as Sky TV earnings surprise, paced by Telecom

By Suze Metherell

Feb. 24 (BusinessDesk) – New Zealand stocks rose, led by Sky Network Television, after the nation’s pay-TV operator posted earnings that beat estimates. Telecom rebounded from a selloff on Friday when it posted a modest gain in earnings and announced a rebranding strategy.

The NZX 50 Index rose 42.005 points, or about 0.9 percent, to 4969.645. Within the index 21 stocks rose, 19 fell and 10 were unchanged. Turnover was a larger-than-average $179 million and included about $47 million of Telecom stock.

Sky TV jumped 5.7 percent to $6.08, leading the index higher. New Zealand’s dominant pay-TV company posted a first-half net profit of $82.1 million on lower programming costs and as more subscribers switched to its premium services.

Telecom rose 3.2 percent to $2.45. The nation’s biggest telecommunications provider disappointed investors on Friday after it posted a 2.5 percent gain in first half earnings, announced plans to rebrand as Spark and develop an internet television service to rival Sky TV.

Of New Zealand’s top fifty listed companies, nearly half have reported first-half or full-year earnings over the past two weeks.

“Sky TV came out with a positive surprise, which is good, they’ve had a strong day,” said David Price, broker at Forsyth Barr. “It’s actually been a familiar sort of thing with this results round - we’ve seen companies that have disappointed get hammered on the day, and then the following trading day they make up for what they lost the previous day.”

Among companies that reported earnings last week, Fletcher Building, New Zealand’s biggest listed company, rose 1.2 percent to a three month high $9.87. Auckland International Airport rose 1 percent to $3.735 and Sky City Entertainment Group rose 2.9 percent to $3.91. Online auction site Trade Me Group slipped 0.5 percent to $4.03.

Freightways gained 2.8 percent to $4.70. New Zealand’s largest listed courier service reported a 3 percent lift in its first-half earnings and growth in its secure data destruction business.

“Freightways was a positive result, we saw some good volume growth for the first time in a while, and the outlook from them was positive,” Price said.

Chorus fell 1.1 percent to $1.42. The telecommunication provider reported a 7.1 percent decline in first-half profit and won’t pay an interim dividend as it prepares for regulated price cuts on its copper wires in December.

Xero, the cloud-based accounting software company, rose 0.4 percent to $39.95 and has risen 23 percent this year. Fellow growth stock Wynyard Group lifted 0.4 percent to $2.87. The intelligence software company listed July last year and has more than doubled from its listing price of $1.10.Wynyard today beat its own annual sales forecast while burning through more cash than expected.

Retirement village operator Summerset Group Holdings rose 0.9 percent to $3.33, Heartland New Zealand, the bank formed from the merger of the Canterbury and Southern Cross building societies and Marac Finance slipped 1.1 percent to 90 cents. Guinness Peat Group, which owns industrial thread maker Coats, was unchanged at 67 cents. All three companies report earnings tomorrow.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news