Optus suffers 7.5pc profit slump

User Comment: LEAD Technologies Inc. V1.01 Source: The Australian

AUSTRALIA'S second-biggest telco, Optus, has suffered a 7.5 per cent slump in net profit for the year to March 31.

But its earnings have risen three per cent for the three months to March 31 and one per cent for the year.

In what it described as "stable" financial results, Optus today said its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew to $700 million for the March quarter.

It recorded the result against a backdrop of what it described as "negative revenue growth in the Australian mobile industry".

Full year EBITDA grew to $2.38 billion despite a five per cent decline in revenue.

However, its net profit for the year dropped by 7.5 per cent to $728 million and by 6.9 per cent for the March quarter to $249 million.

Optus' underlying net profit, which excludes one-off items, fell by 4.5 per cent to $764 million for the year and by 3.6 per cent to $257 million for the March quarter.

The telco's chief country officer, Australia, Kevin Russell said Optus was focused on "driving sustainable, profitable growth and positioning itself to capitalise on mobile data revenue growth".

"We are committed to a sustainable business model and to rekindling the spirit of the Optus brand with a transformation program that fundamentally improves the services we deliver to our customers," he said. "Optus is building a strong, highly competitive mobile network through investments that are delivering enhanced 3G in-building coverage and 4G services in major population centres."

Optus continued to grow its postpaid mobile customer base with net additions of 28,000 for the quarter. Postpaid customers now comprise 57 per cent of the total base, up two percentage points from a year ago. Prepaid subscribers remained stable at 4.09 million.

Optus grew the number of 4G mobile handsets on its network to 785,000.

Optus is a wholly-owned division of Singapore Telecommunications. SingTel today announced a two per cent drop in fourth-quarter underlying net profit to $S1 billion ($810 million). Its full-year underlying net profit fell two per cent to $S3.61 billion while its underlying net profit for the quarter, when exceptional items were included, fell 33 per cent to $S868 million. That figure was due to a one-time loss of $S225 million from the divestment of telco Warid Pakistan.

Revenue for the group was down six per cent to $S4.48 billion but EBITDA was stable at $S1.43 billion.

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CBA lifts profit to $1.9bn

Source: AFP

COMMONWEALTH Bank says quarterly cash earnings jumped 8.6 per cent, but has warned that a competitive market is putting pressure on its loan deposit margins.

Australia's biggest bank today said cash earnings had risen to $1.9 billion in three months to March, up from $1.75 billion in the same period last year. Net profit for the period was $1.9 billion, up 12 per cent.

"Revenue growth continued to reflect a combination of conservative business settings and modest system credit growth,'' the bank said today.

Commonwealth Bank in February delighted investors after beating expectations with a "cracker'' first-half result.

The bank cash profit - a measure of its underlying performance - surged 6 per cent to $3.78 billion for the six months to December. Analysts said the latest quarterly result would again please shareholders.

"Commonwealth Bank continues to deliver earnings of increasing quality and strength,'' Morningstar head of financials David Ellis said. "Quarterly earnings are in line with our expectation, and our positive view is intact."

"Our 2013 cash profit forecast of $7.5 billion needs to be reassessed with an earnings upgrade likely."

"Importantly, future dividends look increasingly sustainable.''

The bank last week passed on in full the Reserve Bank's 25 basis point interest rate cut. Commonwealth Bank shares opened more than 1 per cent higher this morning at $72.85.

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Profit fall for Incitec Pivot

Incitec Pivot logo. Picture: Michael Potter Source: adelaidenow

EXPLOSIVES and fertiliser maker Incitec Pivot's first half profit has dropped 23 per cent with its fertiliser operations hit by the high Australian dollar.

Incitec Pivot made a net profit of $110.3 million in the six months to March 31, down from $139.8 million in the same period the previous year.

The fertiliser business suffered a 19 per cent fall in earnings due to the high Australian dollar and falling prices for the product around the world, chief executive James Fazzino said.

Earnings in the explosives business rose seven per cent, despite lower commodity prices reducing demand for explosives from miners.

"The result continues to support our strategy of investing in the explosives business, which will continue to be realised over the coming years as the Moranbah plant is fully commissioned and the Louisiana ammonia plant is constructed," Mr Fazzino said in a statement on Monday.

Incitec Pivot's $1 billion ammonium nitrate plant at Moranbah, in central Queensland, began production in 2012.

It also has plants in the United States, Canada, Indonesia, Mexico, South America and Papua New Guinea.

Incitec Pivot declared a partly-franked interim dividend if 3.4 cents per share, up from 3.3 cents per share at the same time last year.

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Westpac posts record $3.5bn profit

CEO of Westpac, Gail Kelly at a branch on Collins St in Melbourne. Picture: Aaron Francis Source: The Courier-Mail

WESTPAC bank boss Gail Kelly has dampened the prospect of an out-of-cycle interest rate cut blaming the higher cost of deposits for keeping the cost of funding high after posting an 10 per cent lift in its first-half cash profits to $3.52 billion.

Instead the strong balance sheet will be used to reward shareholders with a special 10c dividend payout.

Ms Kelly said she would like to pick-up some mortgage market share but admits that customer deposits are growing at a much faster rate and remain a more dominant part of the business with Westpac advertising the highest standard variable rate of the Big Four banks.

"Wholesale funding costs eased in the last six months but retail deposits continue to grow and are a bigger part of our funding mix,'' she said.

Despite concerns about weak business and consumer confidence levels, Ms Kelly is upbeat the about the economic outlook and expects a bounce back in the business sector in 2014. The bank's key cash earnings for the half were up 10 per cent to $3.52 billion on the same time last year as a result of disciplined management of the balance sheet. And Westpac's net interest margin - the difference between interest earned and paid out - was up two basis points to 2.19 per cent.

Morningstar banking analyst David Ellis said it is hard to fault the strong result which exceeded market expectations.

"Robust top line revenue growth and sharply lower bad debts boosted the first half cash profit and the earnings performance confirms our long held argument the major banks can deliver attractive profit and dividend growth despite only moderate loan growth,'' he said.

Westpac will pay its shareholders a fully-franked interim dividend of 86c per share, up four cents per share on the previous corresponding period. The bank has also agreed to pay its shareholders a special dividend of 10 cents per share.

Ms Kelly said the result showed the benefits of the bank's strategy to target high growth opportunities in the sector.

"The operating environment continues to be challenging, with subdued lending growth," she said. "However, in line with our strategy, we are actively targeting opportunities in higher growth areas where conditions are more favourable such as deposits, wealth, trade finance and natural resources."

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Macquarie shares soar on profit result

MACQUARIE Group's full year profit has risen 17 per cent as global market conditions improved and the financial firm kept costs in check.

Macquarie reported net profit of $851 million for the 12 months to March 31, 2013, up from $730 million in the prior year.

The full year profit was a little above market expectations.

Macquarie said it expected its financial result for fiscal 2014 to be "an improvement" on fiscal 2013 provided market conditions do not deteriorate.

Net operating income for fiscal 2013 fell four per cent to $6.7 billion.

Total operating expenses fell 10 per cent to $5.295 billion.

"Global market conditions generally improved during the year to 31 March 2013 which, together with strong cost control across the group, led to the improved result," Macquarie chief executive Nicholas Moore said today.

"Client activity remained subdued for Macquarie's capital markets facing businesses and affected the performance of some groups."

Of Macquarie's operating groups, Macquarie Securities (MSG) reported the weakest performance, suffering a full year net loss of $50 million.

The result was however an improvement from a net loss of $194 million in the prior year.

"MSG continued to experience subdued activity levels due to weak investor confidence but benefited from improved market volumes in the fourth quarter, together with reduced operating expenses and lower legacy costs," Macquarie said.

Macquarie Funds, Banking and Financial Services, Macquarie Capital and FICC reported improved net profit for fiscal 2013, while profit at Corporate and Asset Finance was broadly in line with the prior year, Macquarie said.

The company declared a final dividend of $1.25 per share, 40 per cent franked.

Meanwhile, Macquarie said director Catherine Livingstone, who joined the board in 2003, would not seek re-election when her term expired in July.

Also, Macquarie group head of banking and financial services Peter Maher will retire after 12 years in the role, with Greg Ward appointed as his replacement.

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Stocks bank on record profit

Spirits lifted in Europe and US markets higher on good economic data.

LOCAL stocks have closed higher as ANZ's $3 billion plus half-year profit took its shares to record highs and the local market along for the ride.

RBS Morgans Brisbane senior client adviser Bill Chatterton said ANZ's 11 per cent increase in its interim dividend was rewarded by investors as its shares soared a record $1.74, or 5.78 per cent, to $31.84.

"The market has been searching for yield for some time now, so for a core yield company like ANZ to come out and improve their dividend, it was really what the market wanted to listen to,'' he said.

ANZ's result also pushed up other financial stock.

National Australia Bank surged 92c to $34.00, Commonwealth Bank jumped $1.85 to $73.45, Westpac gained 68c to $33.80 and Macquarie Bank added $1.32 to $33.80.

Other high yielding stocks also performed well.

Telstra jumped 5c to $4.98 and Qantas also gained 5c to $1.90.

Even mining stocks had a positive day, after recent drops caused by falls in commodity prices.

BHP Billiton closed up 16c to $32.70 and Rio Tinto gained 44c to $55.80.

Origin Energy managed to close 3c higher to $12.32 despite extreme wet weather in Queensland contributing to a fall in quarterly revenue and production from its oil and gas fields.

However, Whitehaven Coal fell 1c to $1.95 after the miner said it was looking to find more cost savings as it battles weak coal prices and a high local currency.

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Facebook profit climbs 58pc on mobile ads

FACEBOOK'S profit in the first quarter of this year rose as it challenged Google and Apple for revenue from mobile ads and apps.

Mobile advertising helped Facebook boost its first-quarter profit by 58 per cent from a year ago to $US217 million ($212.08 million) and to lift revenues beyond market forecasts, in results released overnight.

Facebook said its monthly active users rose 23 per cent from a year ago to 1.11 billion, including 751 million who accessed the network on mobile devices.

Mobile ads accounted for 30 per cent of advertising revenue for the quarter. The profit was just below market forecasts but revenues were better than expected, rising 38 per cent from a year ago to $US1.46 billion.

"We've made a lot of progress in the first few months of the year," said Facebook chief executive Mark Zuckerberg. "We have seen strong growth and engagement across our community and launched several exciting products."

Company highlights included the launch of Facebook Home software, which puts the social network centre stage on Android-powered smartphones, and the launch of a set of new ad products.

Facebook's share of the overall US online advertising market is expected to rise to 6.5 per cent this year from 5.9 per cent in 2012, according to industry tracker eMarketer.

The overall US digital ad market meanwhile surged 14.8 per cent to $US9.64 billion in the first quarter of this year, it reported. Spending on advertising on mobile devices in the United States is expected to rise to $US7.29 billion this year, with Facebook's share growing to 13.2 per cent, eMarketer said.

A key question for Facebook is its Home software suite for mobile phones, which received a lukewarm response. The software weaves the social network into the homescreen of phones powered by the latest versions of Android to focus on "people and not apps".

As of today, Google's online Play shop indicated that Home had been downloaded fewer than 15,000 times and its overall rating was two stars on a five-star scale.

"Good start/idea but it needs more options and features," one Home user said in a review.

The software, which allows users to see Facebook's Cover Feed when they turn on their phones, became available for download in the US on April 12. It should be available in Europe in the coming months.

"This is just the first release," Mr Zuckerberg said. "Over the next few months we hope to push this out much more broadly."

Facebook aims to improve the quality and targeting of ads shown to members connecting from smartphones or tablets. The strategy includes using Facebook as a platform for the distribution of third-party apps from Apple's App Store or Google Play.

"Facebook should be a place you can come to spread your apps," Mr Zuckerberg said. "Think how big an opportunity mobile apps can be for Facebook."

Facebook last week revealed that it was buying Parse, a startup specialising in powering mobile applications, as part of its drive to make the social network friendlier to smartphones and tablet computers. Online reports valued the deal at $US85 million.

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eBay first quarter profit up 19%

eBay's revenue grew 14 per cent to $US3.75 billion: AP Source: AP

EBAY has reported a first quarter profit of $US677 million ($A654.64 million), a rise of 19 per cent from the same period a year earlier.

eBay's revenue grew 14 per cent to $US3.75 billion, slightly below Wall Street's expectations.

Analysts polled by FactSet were anticipating $US3.77 billion.

For the current quarter, eBay expects earnings of 46 cents to 48 cents per share and adjusted earnings of 61 cents to 63 cents per share. Analysts are predicting higher earnings of 66 cents per share.

The company's revenue forecast of $US3.8 billion to $US3.9 billion is also slightly below the $US3.95 billion analysts are expecting.

Benchmark analyst Daniel Kurnos believes eBay is confronted with tight retail inventories and potential pressure from credit card companies on PayPal's profit margins if they start charging fees for the payments service.

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Premier Investments profit soars 21pc

PREMIER Investments, the retailer behind brands including Just Jeans and Portmans, has brushed off the retail gloom and lifted its first half profit by 21 per cent.

The group, which has been rejuvenating its clothing brands, lifted its profit to $46.5 million while revenues rose 2.6 per cent to $460.3 million.

The rise in earnings was attributed to outstanding results from womenswear retailer chains Portmans and Dotti, as well as improved profits at Just Jeans and Jacqui E.

Cost cuts also helped.

Chief executive Mark McInnes did not give any guidance on the outlook for the retailer's full year earnings.

However, he said trading for the first six weeks of the second half of the group's fiscal year were in line with expectations.

"Despite the severe pressures facing all Australian retailers, Premier continues to be well positioned to take advantage of all its growth opportunities," he said.

Premier lifted its fully-franked interim dividend by one cent to 19 cents a share.

Chairman Solomon Lew said benefits from the retailer's six-point earnings improvement plan, which began 18 months ago, had helped lift profits. The group's costs had fallen 20 per cent, margins had improved and online sales were up by 51 per cent.

While Portmans and Dotti had shown great improvements, work was underway to improve the Jay Jays jeans chain.

Meanwhile, Premier plans to open more stores for its stationary brand Smiggle, which has been a huge hit in Singapore.

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TPG report lift in first half profit

INTERNET provider TPG has upgraded earnings guidance after adding 36,000 new broadband customers in the first half on the way to a hefty lift in first half net profit.

TPG reported net profit of $78.3 million for the six months to January 31, up 41 per cent from the prior corresponding period.

Revenue grew 10 per cent to $357 million, TPG said today.

TPG said it expected earnings for the full fiscal 2013 to be in a range between $285 million and $290 million.

This revised forecast was up from a previous range of $263 million to $273 million and well above earnings before interest, tax, depreciation and amortisation (EBITDA) of $261.4 million achieved in fiscal 2012.

TPG said it had 631,000 internet customers at January 31, up from 595,000 at July 31, 2012.

Mobile phone subscribers rose by 48,000 to 303,000, TPG said.

Patersons analyst Marcus Hamilton said TPG delivered a strong first half result driven by high levels of organic growth in mobile and internet subscribers.

Mr Hamilton said in a research note TPG also benefitted from a number of one-off benefits, such as rebates received after a favorable ruling from the competition regulator on wholesale DSL and internal interconnection cable charges imposed by Telstra.

The company declared an interim dividend of 3.5 cents per share, fully franked.

At 11.28am AEDT, TPG was up 16 cents, or 5.97 per cent, at $2.84.

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Myer profit beats expectations

Jennifer Hawkins on the runway at Myer's Autumn Winter 2013 show. Picture: Alex Coppel Source: HWT Image Library

MAJOR retailer Myer has delivered a better than expected profit for the first six months of the financial year.

Net profit at the department store rose 1 per cent to $88 million dollars, beating analysts’ expectations of a slide in profit to about $85 million.

Total sales were $1.73 billion, up two per cent from $1.7 billion in the previous corresponding period.

Myer Chief Executive Officer, Bernie Brookes said the business had delivered a solid first half result, including a strong second quarter which reflected a well planned and executed Christmas and stocktake trading period.

"We are pleased that the positive sales trend continued during the half, with the second quarter representing our third consecutive quarter of positive comparative store sales growth,'' he said.

"The exit and rationalisation of categories including whitegoods, gaming and consoles, CDs and DVDs, that we commenced in 2010 has been completed with the space reallocated to higher margin fashion categories.''

The retailer declared a fully franked interim dividend of 10 cents, the same as in the previous year. It will be paid on May 9 to shareholders on the company's register at March 28.

With AAP

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Sydney Airport returns to profit

SYDNEY Airport has swung back into profitability as retail and car parking revenue grew and airlines added more flights.

The airport made a net profit of $179.2 million in the 12 months to December 31, up from a $239.9 million loss in the prior corresponding period.

The calendar 2011 result was affected by a $361 million charge relating to the sale of company's stake in two European airports. Excluding the charge, net profit was up 47 per cent from the prior year.

Revenue in 2012 rose 1.3 per cent to $1.06 billion, Sydney Airport said today.

Retail revenue rose 5.3 per cent, property and car rental revenue was up 8.3 per cent and ground transport and commercial services revenue was 8.9 per cent higher.

"Successful implementation of the new car parking strategy, completed in September 2012, has expanded the product choice and enhanced the value proposition for customers," Sydney Airport said.

"Additional capacity, advanced technology, tailored products and new online booking systems all contributed to a strong second half and established the basis for ongoing business revenue growth."

International passengers rose 5.6 per cent in calendar 2012, with existing airlines boosting flight frequencies to Sydney and new carriers such as Air Asia X and Scoot starting services to the NSW capital.

Domestic passengers were up 2.7 per cent, as Tiger Airways opened a base at the airport with four aircraft and Jetstar added significant capacity.

Sydney Airport said earnings before interest, tax, depreciation and amortisation (EBITDA) rose 7.4 per cent to $848 million.

Chief executive Kerrie Mather said 2013 had started strongly, with international passenger numbers up 3.9 per cent so far.

"Management will continue to market Sydney Airport to our airline customers and work closely with our industry and government partners to drive tourism growth," Ms Mather said.

"When combined with new business initiatives and our prudent management of expenses and capital, we remain committed to delivering EBITDA and cash flow growth significantly above passenger growth."

Sydney Airport declared a full year distribution of 21 cents per stapled security.

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Virgin's profit falls by 56pc

Sir Rirchard Branson joins crew at the Virgin Australia launch. Picture: AFP Source: AFP

VIRGIN Australia's first half profit has slumped by 56 per cent but it expects to improve its underlying performance despite challenging economic conditions.

The airline made a net profit of $23 million in the six months to December 31, down from $51.8 million in the previous corresponding period.

The difference was mainly the result of Qantas' industrial dispute in the previous corresponding period, which benefited Virgin.

Virgin today also said the carbon tax had a $24.4 million impact on its profit in the six months to December.

The company's underlying profit before tax was $61 million in the six months to December, down from $96.1 million in the previous corresponding period.

Virgin maintained its forecast of a full year underlying profit before tax being higher than the previous year's $82.5 million.

No dividend will be paid to shareholders.

Virgin said revenue rose five per cent to $2.11 billion, with the airline group carrying more than 10 million passengers in a half for the first time.

The airline said yields - an industry measure of average airfares per passenger - fell one per cent in the half, which chief executive John Borghetti said "reflected the aggressive capacity and pricing environment".

Industry figures showed that the 10.8 per cent increase in domestic capacity in the first half was the highest increase in the local market in eight years, he said.

"The group has delivered a solid result in a difficult operating and economic environment, reflecting the significant progress we have made in diversifying our revenue base and improving cost control, while continuing to enhance the customer experience," he said.

Mr Borghetti said the airline found $25 million in "efficiency gains" in the first half, and was on track to deliver $60 million in savings by the end of 2012/13.

Virgin forecast 2012/13 second half domestic capacity growth would be between five and seven per cent up on the prior corresponding period. Qantas gave the same forecast at its half year results on February 21.

Virgin said it would offer twice daily flights from Brisbane to Perth using wide-bodied Airbus A330 aircraft from May. It also would begin flights on "current monopoly routes" Brisbane to Moranbah and Bundaberg, Virgin said.

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Crown profit falls to $181m

James Packer is planning to make blockbuster movies. Picture: Kym Smith Source: Supplied

JAMES Packer's casino operator Crown has posted a 34 per cent drop in first half profit, as weak consumer sentiment and refurbishment work affected its business.

Crown made a net profit of $180.8 million in the six months to December 31, down from $274.4 million in the previous corresponding period.

The result included a $74.3 million loss on Crown's investment in Sydney and Queensland casino operator Echo Entertainment.

Crown operates casinos in Perth and Melbourne, and holds an interest in Melco Crown in Macau.

Chief executive Rowen Craigie said the result for the first half of the 2012/13 financial year was reasonable.

"Revenue growth reflects the benefits of recent property refurbishments, particularly the expansion of the main gaming floor in Perth," he said today. "However, both properties were also impacted by disruption to patron activity arising from the capital works program and weak consumer sentiment, especially in Melbourne."

"Cost control continues to be a focus at both properties."

Crown said its result was also negatively impacted by its lower win rate in VIP play.

That came in Melbourne, where earnings were down nine per cent from the same period in the previous year to $271.6 million.

Perth's earnings rose by 2.5 per cent to $144.6 million.

Main floor gaming in Perth and Melbourne generated revenue growth of 5.9 per cent, compared to the previous corresponding period.

The company offered no specific update on its trading performance for the first weeks of the second half of the financial year, as the different timing of the Chinese New Year celebration in 2013 made it difficult to compared to the previous year.

"Trading at Crown Perth continues to benefit from the expansion of the main gaming floor while Crown Melbourne continues to be affected by refurbishment disruption," it said.

Crown declared an interim dividend of 18 cents, franked to 50 per cent.

No new details were provided on the company's plans for a hotel and casino in Sydney, for which government approval is still needed.

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Qantas more than doubles net profit

Qantas. Picture: File Source: news.com.au

QANTAS Airways shares have risen after the airline reported a hefty lift in first half net profit and an improved performance at its struggling international division.

However, Qantas's dominant domestic operations felt the full force of the excess capacity in the Australian market and reported a decline in underlying earnings.

Qantas said net profit for the six months to December 31 came in at $111 million, well over double the $42 million achieved in the prior corresponding period.

The result was a little below market expectations of $138 million net profit, according to a median of five analysts' forecasts gathered by AAP.

It also included a $125 million payment from Boeing as part of changes to Qantas' Boeing 787 Dreamliner orders announced in August 2012.

"The result demonstrates the progress of the Qantas group despite a challenging competitive environment," Qantas chief executive Alan Joyce said during the airline's results presentation today.

At 10.22am AEDT, Qantas was up 6.5 cents, or 4.02 per cent, at $1.68.

In percentage terms, Qantas was the best-performing stock on the S&P/ASX50.

Qantas said its international operations posted an underling earnings before interest and tax (EBIT) loss of $91 million in the half, an improvement from the $262 million loss in the prior corresponding period.

Mr Joyce said Qantas international was on track to break even by 2014/15, as the full benefits of a restructure plan - cutting loss-making routes, retirement of older aircraft and alliances with foreign carriers such as Emirates - were realised.

"We have taken significant costs permanently out of the business," Mr Joyce said.

The Emirates tie-up was awaiting a final decision from the competition regulator, due in March.

Meanwhile, underlying EBIT at Qantas domestic fell 34 per cent to $218 million, with yields - an industry measure of average airfares per passenger - hurt by the 10 per cent additional capacity in the Australian market.

"Clearly this reflects the elevated levels of capacity growth into the market as the competitor tries to claim market share from Qantas domestic," Mr Joyce said. "But Qantas has maintained its leading 84 per cent share of the corporate market."

The airline said it expected to increase capacity in the Australian domestic market by five to seven per cent during the second half of 2012/13 across both Qantas mainline - planes with the red tail and white kangaroo - and its low-cost unit Jetstar.

Qantas said underlying profit before tax - the airline's preferred measure of financial performance - was $223 million in the half, above consensus forecasts of $209 million and at the top end of company guidance of $180 million and $230 million.

The airline said conditions were too volatile and uncertain to offer profit guidance for the full 2012/13 year.

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Origin downgrades profit forecast

ENERGY producer and retailer Origin Energy fears its full year earnings will drop by up to 15 per cent after its interim profit fell by a third.

Origin today said its net profit dropped 34 per cent to $524 million in the half year to December 31, from $794 million in the previous corresponding period.

Revenue rose 14 per cent to $7.4 billion, from $6.5 billion.

Origin now expects its full year profit to fall by between 10 and 15 per cent, instead of its previously forecast drop of five to 10 per cent.

It blamed the profit downgrade on a combination of weather, demand and plant availability in January which resulted in an extended period of high wholesale electricity prices in Queensland.

"Origin now estimates that the cost of this event, including additional hedges to reduce exposure to such events in the second half, is approximately $30 to $35 million in underlying profit," the company said. "The consequence of this event cannot be absorbed in the guidance range issued in November 2012 and, therefore, based on prevailing market conditions, guidance for underlying profit for the 2013 financial year is now 10 to 15 per cent below the prior year."

Origin's underlying profit in 2011/12 was $893 million.

The company maintained its fully-franked interim dividend at 25 cents.

Origin managing director Grant King said it planned to cut another 350 jobs in 2013, taking the total number for the year to 850.

"This will result in more focused operations and a lower cost base in the 2014 financial year," he said. "We also continue to review our activities and close, discontinue or divest non-core assets, which will improve our available cash flow in the short to medium term."

Origin expects regulatory and market competitive pressures that affected its first half result for its energy markets division to continue for the remainder of the year. However it expects a strong increase in the contribution of its exploration and production business for the full year, driven by higher levels of plant availability and production in the second half.

Origin has been hit by weakening demand in electricity use at a time when regulators in some states are cracking down on rising prices. The company lost a Queensland Supreme Court battle last December over the state's electricity prize freeze.

Meanwhile, Origin expects its main driver for growth in the future will be its investment in the Australia Pacific LNG project, in which it is a 37.5 per cent stakeholder.

Origin today said it expected the project would be delivered on or ahead of schedule at a cost of $24.7 billion, with the company's investment expected to peak at $4.4 billion. Origin had initially expected to contribute $3.6 billion to the project, which was originally estimated to cost $23 billion.

Origin's shares were $1.00, or eight per cent, lower at $11.39 at 11.19am AEDT.

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Iluka to cut 200 cuts after profit slide

MINERAL sands miner Iluka will axe 200 jobs as it seeks to rein in costs after reporting a 33 per cent slide in full year profit.

Iluka's net profit fell to $363.2 million in 2012 from $541.8 million the previous year.

Revenues dropped to $1.2 billion from $1.6 billion.

Iluka slashed its fully-franked final dividend to 10 cents a share from 55 cents.

Managing director David Robb outlined a series of fresh measures to curtail production and cut costs in 2013, including the loss of 200 jobs.

"As part of the measures outlined, approximately 200 positions within Australian operations will be made redundant, with additional actions in train to reduce costs in corporate, support and contracting areas," he said today. "The actions to curtail production are being implemented as a consequence of the weak market conditions which prevailed in 2012 and resulted in Iluka production volumes exceeding sales for the year."

"While measures were taken to curtail production in 2012, prudent planning for a gradual recovery in demand through 2013 means that further actions to reduce production and lower costs are necessary."

Iluka announced in January plans to cut production and cut jobs after tough trading conditions led to a loss of nearly one-third in revenue during 2012.

At the time, its said its Eneabba operations in mid-west Western Australia will be idled from April, costing 65 jobs.

Other operations in WA, South Australia, Victoria and in the US were also to be idled or operated on reduced rosters.

Mr Robb said the further measures being taken included halving the combined production of zircon, rutile and synthetic rutile.

Total cash production costs would be cut to about $375 million from $583 million through idling operations, reducing employment levels and other actions.

About $50 million would be set aside for restructure and redundancy costs.

Capital expenditure will also fall in 2013 to about $100 million from $167 million.

Mr Robb said there has been some positive, early indications for improved demand in 2013 for Iluka's main products, suggesting a turning point in the current mineral sands business cycle may be near.

Iluka's shares were steady at $10.35 at 10.57am AEDT.

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Investor caution causes ASX profit fall

SHARE market operator ASX's first half profit has fallen by 2.5 per cent due to lower investor activity in the first three months of the 2012/13 financial year.

ASX made a net profit of $171.1 million in the six months to December 31, down from $175.6 million in the previous corresponding period.

It said revenue in the first three months of the half was down 8.8 per cent compared to the previous corresponding period, and was up by 2.8 per cent in the second three months.

The average value of market trades in the first seven weeks of the second half of the financial year are down 4.2 per cent on the same period in the previous year, but capital raised is up by 49 per cent, chief executive Elmer Funke Kupper said today.

"The recent economic and political news from the United States and Europe suggests that there is a greater level of stability, from which economic recovery becomes possible," he said. "In Australia, market volatility has been low and recent activity levels have been more stable."

"While this does not create an immediate higher growth environment for exchanges, it does support a gradual return of investor confidence."

ASX declared a fully franked interim dividend of 87.9 cents per share, down from 92.8 per cent for the previous corresponding period.

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Seek reports record net profit

ONLINE employment group Seek's first half profit has jumped 11.5 per cent, despite challenging conditions in the Australian labour market.

The company on Wednesday posted a record net profit of $67.5 million for the six months to December 31, up from $60.6 million in the previous corresponding period.

Seek also lifted its total revenue by 32 per cent to $275.3 million, from $208.1 million.

However, earnings from the company's Australia and New Zealand employment business remained relatively flat at $120.9 million.

"This was another record half year result that was achieved despite weak macro-conditions and a re-investment focus in our international businesses," chief executive Andrew Bassat said in a statement.

Revenue from Seek's employment business dropped two per cent compared to the same period in 2011/2012, reflecting the fewer number of job ads in the first half.

On the other hand, the company's education arm - which includes Seek Learning and Think - more than doubled its earnings before tax, interest, depreciation and amortisation (EBITDA) to $13.62 million from $5.46 million.

Seek on Wednesday also announced the finalisation of its transaction with Chinese employment website Zhaopin.

The deal, worth $US132.8 million ($A129.62 million), sees Seek increase its stake in the company from 55.5 per cent to 78.2 per cent.

"Zhaopin is a market leader in China and has very exciting growth prospects," Mr Bassat said.

"We expect Zhaopin to provide Seek's shareholders with strong earnings growth for many years."

The company expects net profit for the second half of the 2012/2013 financial year to be "moderately greater" than the first.

"Seek's portfolio of leading businesses are well-positioned for medium- to long-term earnings growth," Mr Bassat said.

Seek will pay shareholders a fully-franked final dividend of 10 cents per share, up 20 per cent from the previous corresponding period.

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Toll lifts first half profit by 20pc

TRANSPORT and logistics group Toll Holdings has lifted its first half profit by more than 20 per cent and expects stronger earnings for the rest of the year.

Toll's net profit rose to $192 million in the six months to December 31, from $158 million in the previous corresponding period.

Sales revenue rose 2.5 per cent to $4.5 billion from $4.4 billion.

Toll lifted its fully-franked interim dividend by one cent to 12.5 cents a share.

Managing director Brian Kruger said Toll would continue to focus on winning business and improving its operations as he did not expect the external economic environment would get any better in the short term.

"Overall, the company expects its results for the second half of the year to be better than for the same period last year," he said in a statement on Wednesday.

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