Archive for the ‘investment’ Category

Myer department stores predict online profit next year

Wednesday, October 2nd, 2013

Upscale Australian department store Myer is predicting that it will turn a profit from online sales for the first time in 2014, as it simultaneously revealed that its annual net profit fell by 9%.

Myer chief executive Bernie Brookes¬†blamed generous penalty rates and wage costs under Labor’s Fair Work Act for a $10-$11 million negative impact on its $127.2 million profit.

He said he would consult the new coalition government about changing the act.

Photo credit; Matt Trostle on Flickr

Photo credit; Matt Trostle on Flickr

“We’re hoping that in dialogue with the government we’re given the opportunity to express that we think stopping increases coming in is important,” he told reporters.

Brookes also cited the ability of overseas online retailers to escape 10 per cent GST on products was also an unfair “free kick” damaging local retailers who were Australia’s biggest private employers.

“We’re certainly hoping that Mr Abbott and his team have a big set of ears to what very much needs to change,” he said.

After growing profit in the first half, Myer’s costs blew out in the second half with the cost of doing business increasing 3.1 per cent to $1.01 billion of the year to July 27.

Those costs are expected to increase another 4-5% this fiscal year, with money pumped into online initiatives, new stores and refurbishments.

However, Brookes conceded that is likely to mean profit falls again in the current first half.

But online sales revenue should hit $50 million this year, making the business profitable, Mr Brookes said, before profit grows again in 2014/15 as the benefits of the current spending emerge.

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Australian social mobile advertising site Moko set to tap into US colleges

Monday, September 16th, 2013

From its humble beginnings as a five-person operation above a Perth hairdresser just a few short years ago, Moko has come a long way.

Photo credit; Richard Patterson on Flickr

Photo credit; Richard Patterson on Flickr

And it is now set to try and crack the United States college market with its mobile social media advertising platform, plus a $US1 billion capitalisation on the world’s biggest technology stock exchange.

Next month, the Western Australia company will launch a service to connect advertisers with 5 million American college students, the ready-made audience that gave Facebook its start.

Although this means it will be competing with Google and Facebook for a portion of the $US7.65 billion ($A8.5 billion) US mobile advertising market, this is the first stage of a plan to list on Nasdaq, according to chief executive officer and founder Ian Rodwell.

Its first major deal with the American Collegiate Intramural Sports (AMIS) association gives it an initial audience of 5 million university students (out of 21.6 million) at 200 colleges across the country.

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Kickstarter expanding to Australia and New Zealand

Wednesday, September 4th, 2013

Online crowd sourcing site Kickstarter has announced that it will open up to Australian and New Zealand projects in the near future.

Kickstarter is hosting sessions in Sydney and Melbourne this month for people who have project ideas.

Founded in 2009, Kickstarter allows people to pitch their ideas to the general public to solicit funding for their ideas to get made. Movies, video games, gadgets and music has all been funded through the U.S.-based site.

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Wotif issues net profit downgrade

Wednesday, June 26th, 2013

Brisbane-based online travel accommodation provider Wotif issued a net profit after tax downgrade to between A$50.5 million and A$51.5 million for the 2013 financial year, some of which was attributed to its Asia Web Direct domain names being affected by recent Google ranking criteria changes.

Wotif was started in 2000 by Graeme Wood and has $1.161 billion in revenue.

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iSelect debuts, stumbles on ASX

Wednesday, June 26th, 2013

iSelect, an Australian online insurance comparison company, made the opposite of a splash when it listed on the Australian Securities Exchange recently. It started at A$1.85 per share but fell and closed at A$1.56 per share, losing 15.7 percent of its market capitalisation of A$479.3 million in the process.

Reasons given for iSelect’s poor performance were that its technology was “not groundbreaking” and it already has strong competition in its field with even more competition possible.

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iPledg grows business while helping others to do same

Saturday, June 22nd, 2013

Started in 2011 in Queensland and boasting $500,000 of revenue in 2012, iPledg founders Bryan Vadas and Andy Tompkins have continued to grow the online crowd funding platform while helping other businesses and community projects get off the ground by connecting the people with the ideas directly with potential backers.

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Internet boom 2.0 is here

Monday, May 23rd, 2011

Thomson Reuters Deals Intelligence data has revealed upwards of US $5 billion of venture capital investment has been injected into growing web companies in the first 4 months of this year.

This means 2011 is on course to be the busiest in dollars terms since way back in 2000, when the web was really starting to take off. More than US $55 billion was shared back then.

Valuations for Facebook (US $70 billion) and GroupOn (US $15 billion) are believed to be one of the reasons for the growing investments in web start ups.

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