Netflix hunting down password sharing

April 20, 2023

Good Morning,

The NZ Government is planning to make it easier for renewable energy projects to get resource consent, Star casino will lay off ~500 full-time workers, the RBA is set for major change, Fox News has settled Dominion's defamation case for $787.5m (USD), Netflix will crack down on password sharing as soon as July & Russia is allegedly sabotaging wind farms and communications cables in the North Sea.

Let's jump in.

Before The Bell

Markets

  • The NZX finished up 0.3% after another late surge, the market is looking ahead to the March CPI index (GR)

  • The ASX finished up 0.1% despite a 7.4% slump in Star Entertainment. The materials sector performed best up 1.1% (AFR)

  • The US markets closed pretty much flat as investors digest major earnings

  • The pan-European Stoxx 600 hit a fourteen-month high after it rose 0.4%

  • The MSCI World index hit its highest level since early February as it rose 0.2%

  • Listed property companies on the NZX are down 28% since their peak in September 2021 (Stuff)

Earnings and Data

  • Bank of America beat Q1 EPS and revenue estimates on hefty interest payments from customers and decade-high bond trading results on the back of high rates; CEO Moynihan sees a relatively mild recession (CNBC)

  • Craigs profits nearly halved from last year to $25.4m (NZD) as brokerage revenue fell by $23m (NBR)

  • Goldman Sachs beat Q1 EPS estimates but missed on revenue on underwhelming fixed income trading and losses on the sale of some assets in its Marcus consumer business; Goldman earnings were the sole disappointment among major peers yet (CNBC)

  • Western Alliance Bancorp beat Q1 EPS and revenue estimates on a 36% YoY gain in interest income while affirming its FY deposit growth forecast of ~15% despite the recent turmoil; their stock surged 13% AH (RT)

  • Netflix beat Q1 EPS estimates but missed on revenue on disappointing subscriber growth driven by its password-sharing crackdown; the firm also revealed worse-than-expected Q2 projections (YH)

  • Johnson & Johnson beat Q1 EPS and revenue estimates on growth in all three business segments and raised its FY sales guidance but lowered pharmaceuticals projections amid FX headwinds (CNBC)

News Summary

  • The NZ Government is planning to make it easier for renewable energy projects to get resource consent (Stuff) 

  • The NZ housing market downturn could be coming to end (Stuff)

  • Fonterra will pull out of Hamilton CBD by 2026 (Stuff)

  • The run of record bank profits in New Zealand might be over, according to a KPMG report (NBR)

  • The Reserve Bank of Australia is set for major change, with interest rate control potentially being given to a panel of experts (9 News)

  • Data outages in South Australian health system have caused chaos (9 News)

  • The Queensland government have backtracked on a major housing announcement (9 News)

  • Star casino will lay off ~500 full-time workers (9 News)

  • Scentre Group have issued at least 8 formal lease breech notices to David Jones (AFR)

  • Fox News has settled Dominion's defamation case for $787.5m (USD) (BBC)

  • Supermarkets in the UK have said food prices should reduce shortly (BBC)

  • Netflix will crack down on password sharing as soon as July (BBC)

  • Apple opened its first store in India (BBC)

  • Russia is allegedly sabotaging wind farms and communications cables in the North Sea (BBC)

Deal Flow

Investments / M&A

  • Smarshares value is on part with the $310m (NZD) paid for Kiwi Wealth, according to the NZX as they discuss the potential of a float (NBR)

  • Veolia Environment is planning the sale of its French water-pipe installation business. The unit could be worth €300m (BBG)

  • Wesfarmers has put in a $3.15 (AUD) per share ($169m AUD) bid via a scheme for Silk Laser Clinics. This is a 30.2% premium to the last close. It has already secured due diligence and backing from major shareholder Wilson Asset Management (AFR)

  • Michael Hill Jewellers has purchased Melbourne's Bevilles Jewellers in a $45m (AUD) all-cash deal (AFR)

  • Sun Cable's final bids have been delayed by three weeks (AFR)

VC & Fundraising

  • Quadrant pitched a new private equity fund and is looking for $300m (AUD) (AFR)

  • Cortical Labs, the creators of Dishbrain, a biological computer that fuses living brain cells onto computing devices, has banked $10m (USD) (AFR)

  • Novalith, a Sydney startup, has raised $23m (AUD) to build a processing plant that uses soda water to extract battery-grade lithium from ores (AFR)

Equity Raises

  • Galena Minning is raring $18m (AUD) via a placement (AFR)

Debt

  • AGL is trying to spark interest in a debt deal. It pitched with BofA and Commonwealth Bank operatives in tow (AFR)

  • Canadian Pension Plan Investment Fund has launched a five year-Kangaroo bond (AFR)

Daily Picks

  • Learn more about the Australian Rugby bid to find a suitor via this AFR article

Job Board

New Zealand

  • ASB rural banking graduate - Apply here

  • Waterman Capital investment analyst - Apply here

Australia

  • Citadel Securities graduate and intern roles - Apply here

  • Goldman Sachs Investment Banking Intern - Apply here

  • IMC graduate and intern roles - Apply here

  • Jarden

    • Graduate role - Apply here

    • Summer internships - Apply here

  • Macquarie graduate roles - Apply here

  • Optiver

    • Graduate role - Apply here

    • Internships - Apply here

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