Chemist Warehouse profit up 78% | Koala Airlines flies into the airline industry | OpenAI's for-profit transition

This is what the Flux I'm brand.

Justin add It's Wednesday, the second of October.

Flex Family.

On my Big Return, I have some big public service announcements. First up, if you are submitting your tax returney yourself, not through a tax agent, you've got less than a month to submit, Otherwise you could cop a fifteen hundred dollar fine, So make sure you get Oh Nitch is coming.

In hot, b Man, a big welcome back to you, and big public service announcement. Speaking of which, we have a heap of articles and videos and even a whole academy in the flex Out to help you submit your tax returns this year, fox them step by step back, dollar by dollar. So make sure to download the flex Out to check it all out and get some help.

Three revolutionary stories today, Josy boy, let's do it for our first. Chemist Warehouse has seen its profit jump almost eighty percent as it gets closer and closer to finalizing its merger with Sigma Healthcare.

More profits than adds on TV. I tell you, b Man, so tell me what's going on here?

So, Josie Boy, we all know Chemist Warehouse for its bright yellow stores and.

Don't forget its painful jingle which can never escape the back of your brain.

Now and over the past twenty years or so, Chemists Warehouse has grown into an absolute bare hem moth.

As they say in the UK.

We're talking over six hundred and thirty stores, over twenty thousand employees across Australia, New Zealand even China.

Now, Josey Boy, you'll remember in December last year that Chemist Warehouse announced it would merge with none other than Sigma Healthcare.

I do. It was going to be an eight point eight billion dollar reverse takeover.

But it's subject to approval from the Asiable Sea, which is hoped to be approved later this month.

So be man. All investors had their eyes peeled for Chemists Warehouses potentially last financial results as a private company, and.

Josep Boy, it did not disappoint.

Chemists ware House announced a full year profit of over five hundred and thirty nine million dollary dues.

And that's up from just three hundred and two million bucks the year before.

Fair to say that's a lot more than the savings on your half price of vitamins.

That's true, and be man. Sigma Healthcare also announced bigger results late last week.

Yep, they're profits excluding costs for the merger were up over three hundred percent.

And with both companies a role in cashion profits. The question is all these juicy numbers change the merger terms?

Ooh, fascinating question, Jasi boy. So I'm wondering over here, what is the key learning on my big return?

As time stretches on, it can often force a rethink of the terms of a pending merger.

Oh, hit me where it hurts there.

This is because the financial performance of the companies involved can change dramatically during the waiting period.

We're talking almost eleven months until a decision will be made by the atriable c.

Now, for Chemists Warehouse, its profit increased by more than seventy eight percent.

And Sigmas jump more than three hundred percent.

Now, Josy boy.

As a quick refresher, the original terms of the deal would give Sigma shareholders fourteen percent of this combined company.

So the man who knows if this long time they also change the terms of this mega farmer merger, the final prescription is still being written.

For our second story, Australia's airline industry has a new player in town, and its name is Koala Airlines.

No, surely after the downfall of Tiger they could have steered clear of the animal. What is the story here.

Well, Jasi boy, we know that the Australian aviation industry for the longest time has had two major players.

There's Quantas and it's budget carrier jet Star, and then there's Virgin and that's it.

Now other players have come in and tried to capture some of the domestic market share, but none of them have really lasted.

But be man, this history hasn't a turred the latest player to enter Australia's aviation market. We're talking Koala Airlines.

Yeah, Koala used to be a charter business called does It Air Safaris and it took tourists through Australia and Africa and even Papua New Guinea.

But Beman, public transport flights are a whole different game.

And at the moment Kouala has no aircraft and it's also still waiting to get approval to operate public transport flights.

So be man, It's fair to say Koala has a lot of work to do if it wants to compete with the big dogs of the uzzy sky.

Especially when there is such a high barrier to entry.

So true, So tell me what is the key learning on your return.

Barriers to entry are the costs and challenges that make it tough for new businesses to enter an industry.

You see, be Man. Some industries have almost no barriers to entry.

Yeah, like becoming a content creator, just need my phone, internet connection and maybe a ring light.

But other industries, like banking or aviation, they've got significant barriers like regulatory requirements and a heap of upfront capital.

Now, for an airline like Koala to succeed, it needs to go through a lot of regulatory hurdles to get the approvals required to actually fly the plane.

And then on top of that, it needs to be able to source planes and compete on prices with industry giants like Quantus and Virgin. Be man. If we look at history, there was Compass, Australia's first low cost airline, which launched in nineteen ninety but was gone by nineteen ninety one. Then of course there was Rex, We've had Tiger Air, don't forget old BONDSA, all of which came and went, and so be man. For Koala Airlines to

For our third and final story.

Open ai, the creator of chat gpt, has seen a number of executives quit after the company announced plans to become a fully for profit company.

Someone's getting greedy in the open ailb Man, So tell me what's going on?

Well it does, boy, Well no open ai for really getting AI out to the masses, to its chatbot chat GPT.

But Bman. Open air was originally founded back in twenty fifteen as a non profit.

Started with the goal to build AI that benefits all of humanity.

But then in twenty nineteen it switched to a capped profit structure which basically limited the maximum financial turns to investors and to employee.

And why why did they do that, Jossi?

Boy, because they wanted to balance commerciality with the safety and sustainability of AI. But Beman. Now open AI's board has announced it's considering shifting to a fully for profit corporate structure. And since this announcement, open Ai CTO stepped down. Its chief research officer has also stepped.

Down, and there are now concerns and open ai ain't about benefiting humanity anymore.

And it's more focused on bringing in those Benjamin Franklins. So what is the Benjamin Franklin key learning here? When survival costs billions, mission statements often take a back seat to profits.

Yep, you see, joy boy, AI supercomputers are super expensive to actually run.

Yeah get this. Open ay is believed to be generating about three billion US dollars in annual sales.

But it's spending seven billion US dollars to just run the business.

So the challenge for open ai is that it needs to raise money in order to continue operating and growing.

And open AI's investors come from the for profit world and are seeking a profitable investment here.

Yeah, so open ai faces a challenge to balance its commercial outcomes for investors alongside its humanitarian goals. Blucks O, I'm just a little reminder, a big psa that if you are submitting at tax return yourself, you've got to do it before October thirty first. And we have a heap of articles and videos and even an academy in the flucks out to help you step by step. A man, it was huge. Shabby back can bring the energy.

Thanks, Jusy boy thrilled and I mean damn thrilled to be back with you.

Thanks for listening, and we'll see you on Friday.