This is what the Flux I'm Brett and I'm justin added Friday to sixteenth of all.
With Dzzy boy.
Australian wages increased at their slowest pace in a year in the June quarter. I'm talking it went up by zero point eight percent in the three months to June.
According to the ABS.
Now that is good news for the RBA who did not want to see wages pumping up this economy.
Slewed down Wages boxapp. If you're looking for a boost to your cash then there is one simple way. It is our weekly quiz quick Stick where if you're the first person to adds that three business or finance questions correctly in the Flux app, you win fifty bucks of cold hard cash. The perfect way to start your weekend. To make sure you download the Blocks app and have your notifications turned on today three.
Truly revolutionary stories today, Dozzy boy Oo, let's do it for our first combank has announced a whopping and I'm talking whopping, nine point eight billion dollar cash profit for the last twelve months after growing its customer base even further.
Not a small amount of cash profit, be mads, tell me what is going on here?
Well, Juzzy Boy.
As you know, Combank is the big yellow bank with the biggest of big customer bases.
Yeah, we're talking more than fifty point nine million customers in Australia.
And it's no surprise that investors were eagerly awaiting Big Yellow's results.
And now b Man Combank's announced it's whopping a nine point eight billion dollar annual cash profit for the last financial year.
And Big Yellow had a fair few things to get excited about.
Yeah, the number of odsies that use Combank as their main financial institution jumped by nearly one percent.
That means more than one in three Australians use Combank for things like their salary payments and their bank accounts.
And b Man Big Yellow also dominated the business banking space, with more than twenty five percent of businesses with Kombak.
But Juzzi Boy CBA's profits actually fell in the second half of the year in comparison to the first.
Clearly it didn't seem to bother their rusted on investors, who now value Kombank at two hundred and twenty seven billion baccarinis.
Yeah, and many other investors are still a bit unclear why Combank is valued. It's such a different valuation to its friends and its foes.
ADS, your West packs, your an Z's.
That is a right. So what is the key learning here?
Not all price to earning or PE ratios are created equally.
Yep, Companies in the same industry can have wildly different valuations based on their unique strengths and their growth potential.
Get this, theman Combank is valued at twenty three times its earnings.
Its earnings were nine point eight billion, its market value is two hundred and twenty seven billion.
That's twenty three times.
But on the other hand, banks like ANZ are only valued at thirteen times earnings.
NAB is valued at let me just heat turned the page sixteen times earning.
And west PACs also sixteen times earnings.
So how can different companies in the same industry have different multiples?
Juzzy boy.
How a company like Combank might have a high earnings ratio because of its dominance in market share.
Or perhaps its customer loyalty, all the fact.
That investors just rate their execution.
But ultimately, juzzyboy, it comes down to the level of guoth that investors believe will come from this company compared to its competitors.
So it's better say there is a lot of pressure on Combank to keep performing if it wants to maintain its valuation.
For our second story, the Telstra has seen its annual net profit take a double digit drop after its mobile price rises just were not enough, juzzy boy, to offset some major expenses.
The BT really fully as many leavers as humanly possible to get back on track.
So what is going on here, well, juzzy boy.
Telstra is the biggest of the telco networks in Australia.
It was previously in by the government, but was first started on its privatization journey in nineteen ninety seven when it listed on the ASEX, back.
When the Adelaide Crows were premiers of VFL. How about that, juzzy boy.
But over the past few years, the BIGT has been struggling with a whole heap.
Of costs and competitors eating into its market share, I might add.
Yeah, So now Telstra is announced a thirteen percent slide in an annual net profit to just under one point eight billion bucks.
It's all bad news with you today, juzzy boy. Surely some good news for me.
Well, it's earnings from its mobile division jump more than nine percent, but there.
Were a whole heap of costs in the business as well. If I can just get negative for a second, talk me through a negative man. Well, we're talking two hundred and forty seven million dollars in redundancy costs, as well as right.
Down's left and right and center to its enterprise business.
A division of the company that struggled more than Joe Biden would in a one hundred meters sprint in the Olympics.
Also right down to its retail energy business retails on its business leases.
But despite this huge drop and profit it's share price it's still somehow miraculously it went.
Up, mainly because these write downs are helping Telstra get back on track.
Oh that's a big call for me, juzy boy. So right now I'm wondering what is the key learning here?
Write downs It may look like a red flag on a company's profit and lost statement, but in reality they're not always as bad.
As they see, Yeah, juzzy boy.
A write down occurs when a company reduces the value of an asset that it owns, and that's often.
Because it's overvalued compared to its current market value.
Now In Telstra's case, it wrote down the value of its enterprise business by three hundred and eleven million buckaroonies.
But but man, that doesn't mean three hundred and eleven million dollars in cash is leaving the Telstra business.
Now.
It's an accounting thang which lowest Telstra's reported profits.
And ultimately the amount of tax the Telstra needs to pay.
The taxes. It's always about the taxes, juzzy boy.
And that's why some companies strategically use right downs to manage their financial statements and tax obligations as well.
And it's a key part of the reason why Teltra share price did not take a hit.
For our third and final story, Universal Music Group and Meta are expanding their music licensing deal, which will make Universal songs available on all of Metas platforms.
Take that TikTok, talk about rubbing salt into the wound, Josey Way, What is the story right here?
All right? Well? Universal Music Group is one of the biggest record labels worldwide.
It's the name behind major artists like Taylor Swift, Billie Eilish, The Weekend, Kendrick Lamar, don't.
Forget Cissa and now be Man. Universal's just announced that it's expanding it's a multi year music license with Meta.
Big news for Scissor Juzzy Boy.
That means Universal songs will we made available across all of metas platforms and Jose Boy.
This deal is off the back of a fallout between Universal and TikTok that happened earlier this year.
That was huge.
Yeah, Universal took its music and left TikTok after the two companies were unable to agree on a royalty rate.
But Universal reckons that its new deal with Meta expands financial opportunities for Universal.
And protects the royalties of its artist.
Oh the win win, hoping for the best of both worlds.
So what is the key learning here?
Music labels are currently walking a tightrope between short term success and long term financial growth.
On the one hand, music labels need social media for their artist's music to be discovered.
In fact, fifty percent of people age eighteen to twenty four use social to discover new music.
And this helps artists catapult their careers in ways they didn't even know possible.
Think Doja Cat and now Charlie XCX, whose careers popped off after their music went viral.
On social But.
On the other hand, these artists also need to be compensated for their work.
Which was apparently a challenge for old TikTok.
So it looks like Universal was trying to find the middle ground with its new metadis fortam. If you think you've got the best knowledge on business and finance over the past week, and there's one way to prove it. It's through quick stix three business questions and if you're a first to answer correctly, you win fifty bakarunies. Make sure to download the Flux app and have your noted pasions turned on.
Thanks for listening and we'll see you on Monday.