1 00:00:05,240 --> 00:00:07,880 Speaker 1: This is what the Flux. I'm Brett and I'm Justin 2 00:00:07,960 --> 00:00:10,040 Speaker 1: and it's Friday, the ninth of May. Dozzy boy. 3 00:00:10,080 --> 00:00:12,200 Speaker 2: Donald Trump is back on his tariff game, and this 4 00:00:12,280 --> 00:00:15,560 Speaker 2: time he's targeting foreign movies with a one hundred percent 5 00:00:15,680 --> 00:00:18,400 Speaker 2: tarot and this could really hurt the film production industry 6 00:00:18,480 --> 00:00:21,439 Speaker 2: here in Australia. So now Australia's ambassador to the US, 7 00:00:21,600 --> 00:00:24,800 Speaker 2: Kevin Right, Yes, mister Kevin O seven himself has started 8 00:00:24,840 --> 00:00:28,400 Speaker 2: calling it a bluey tax, really tugging at the heart strings. 9 00:00:28,680 --> 00:00:30,680 Speaker 2: And Joe boy, everyone knows you do not mess with 10 00:00:30,760 --> 00:00:33,320 Speaker 2: blue That is a cultural crime. 11 00:00:33,440 --> 00:00:36,000 Speaker 1: How dare they? Flux Adam, it is Friday, and you 12 00:00:36,040 --> 00:00:38,360 Speaker 1: know what we do on Fridays. We give away fifty 13 00:00:38,400 --> 00:00:41,320 Speaker 1: bucks to the smartest member of the Flux family. So 14 00:00:41,440 --> 00:00:43,080 Speaker 1: if you want to test your knowledge and win some 15 00:00:43,159 --> 00:00:45,040 Speaker 1: cash to kick off the weekend, make sure you download 16 00:00:45,040 --> 00:00:47,199 Speaker 1: the Flux app, have your notifications turned on, and be 17 00:00:47,200 --> 00:00:48,919 Speaker 1: the first to answer the quiz correctly. 18 00:00:49,080 --> 00:00:52,199 Speaker 2: Three slick stories today, Dozzy boy, Let's do it for 19 00:00:52,400 --> 00:00:55,640 Speaker 2: our first. JB High Fi has seen its sales growth slow, 20 00:00:55,800 --> 00:00:58,120 Speaker 2: but its tech hungry shoppers are still helping it grow 21 00:00:58,160 --> 00:00:58,960 Speaker 2: and grow and grow. 22 00:00:59,040 --> 00:01:01,440 Speaker 1: JB kIPS growing, grewing and grewing, so tell me we'll 23 00:01:01,480 --> 00:01:01,959 Speaker 1: be man well. 24 00:01:02,080 --> 00:01:04,760 Speaker 2: JB High Fi was founded in nineteen seventy four and 25 00:01:04,920 --> 00:01:07,200 Speaker 2: has become one of Australia's largest retailers. 26 00:01:07,200 --> 00:01:10,679 Speaker 1: Whitbydog in brightware houses and handridden price signs. 27 00:01:10,440 --> 00:01:13,119 Speaker 2: Not to forget walls of headphones you didn't know you needed. 28 00:01:13,160 --> 00:01:16,000 Speaker 1: But man, it ain't just JB anymore. The Jbhighfi group 29 00:01:16,040 --> 00:01:18,399 Speaker 1: has also got more retailers in its Motley group. 30 00:01:18,480 --> 00:01:21,479 Speaker 2: Of course, JB owns the Good Guys, the White goods retailer. 31 00:01:21,560 --> 00:01:24,560 Speaker 1: It also owns home appliance retailer E and S aka 32 00:01:24,680 --> 00:01:26,960 Speaker 1: the good guy's fancy cousin, and Jesse Boy. 33 00:01:27,120 --> 00:01:30,320 Speaker 2: JB provided its quarterly results in its latest market update, 34 00:01:30,400 --> 00:01:32,280 Speaker 2: and it performed aoka Yeah. 35 00:01:32,319 --> 00:01:34,759 Speaker 1: Sales at JB's Aussie stores grew six and a half 36 00:01:34,760 --> 00:01:35,840 Speaker 1: percent in the March. 37 00:01:35,640 --> 00:01:38,280 Speaker 2: Quarter, which is a pretty solid result given many consumers 38 00:01:38,319 --> 00:01:41,399 Speaker 2: are tightening their belts and shutting down their wallets. 39 00:01:41,400 --> 00:01:44,000 Speaker 1: But b man, it's still a smid lower than it's 40 00:01:44,040 --> 00:01:46,720 Speaker 1: seven point one percent growth it achieved in January on 41 00:01:46,760 --> 00:01:47,320 Speaker 1: the same store. 42 00:01:47,360 --> 00:01:49,120 Speaker 2: But the Good Guys at E and S didn't quite 43 00:01:49,120 --> 00:01:49,920 Speaker 2: perform as strongly. 44 00:01:50,080 --> 00:01:52,880 Speaker 1: So what is JB's secret sauce While the other retailers 45 00:01:52,880 --> 00:01:53,840 Speaker 1: are struggling. 46 00:01:53,440 --> 00:01:58,000 Speaker 2: Well, consumers are still spending on mobile phones and computers. 47 00:01:57,320 --> 00:01:59,880 Speaker 1: So it's yes to tech and no tatoasters. 48 00:02:00,080 --> 00:02:03,160 Speaker 2: But JAZZI wait, that's the beauty of their diversified portfolio 49 00:02:03,280 --> 00:02:04,120 Speaker 2: of retailers. 50 00:02:04,400 --> 00:02:05,720 Speaker 1: So what is the key learning here? 51 00:02:05,800 --> 00:02:09,400 Speaker 2: Diversification is not just for your investment portfolio, it's also 52 00:02:09,440 --> 00:02:10,960 Speaker 2: a core strategy for businesses. 53 00:02:11,240 --> 00:02:14,840 Speaker 1: JB high Fi has spread its risk across different segments. 54 00:02:14,360 --> 00:02:16,320 Speaker 2: Like the Good Guys for white goods and NS for 55 00:02:16,440 --> 00:02:17,799 Speaker 2: premium appliances, but. 56 00:02:17,800 --> 00:02:21,120 Speaker 1: It's also spread its risk across different market like New Zealand. Yeah, 57 00:02:21,120 --> 00:02:23,800 Speaker 1: for example, wen it JB Highfi saw faster growth in 58 00:02:23,800 --> 00:02:26,040 Speaker 1: New Zealand, with its same stores up seven and a 59 00:02:26,040 --> 00:02:26,880 Speaker 1: half percent. 60 00:02:26,600 --> 00:02:29,880 Speaker 2: Compared to just six and a half percent in Australia. 61 00:02:29,440 --> 00:02:31,560 Speaker 1: And even less at the Good Guys in NF. 62 00:02:31,560 --> 00:02:34,600 Speaker 2: So by operating in multiple segments, JB is trying to 63 00:02:34,720 --> 00:02:38,160 Speaker 2: ensure it's not overly exposed to any one trend or 64 00:02:38,280 --> 00:02:41,240 Speaker 2: any one consumer moods. We and we know that retail 65 00:02:41,280 --> 00:02:43,120 Speaker 2: categories tend to move in waves. 66 00:02:43,040 --> 00:02:45,239 Speaker 1: So all the good Guys maybe faring now, it's only 67 00:02:45,280 --> 00:02:47,639 Speaker 1: a matter of time for the others lift again, and that. 68 00:02:47,680 --> 00:02:50,160 Speaker 2: Is why investors still love the good guys and gals 69 00:02:50,240 --> 00:02:50,720 Speaker 2: at JB. 70 00:02:51,360 --> 00:02:54,200 Speaker 1: For our second story, Tab corpus seen at share price 71 00:02:54,240 --> 00:02:57,000 Speaker 1: downs ten percent as it makes a big bet on 72 00:02:57,200 --> 00:02:59,000 Speaker 1: live in place sports betting. 73 00:02:59,040 --> 00:03:02,000 Speaker 2: You mean those dingy TAB venues are its new MVP? 74 00:03:02,360 --> 00:03:03,359 Speaker 2: What is going on here? 75 00:03:03,360 --> 00:03:06,040 Speaker 1: Okay? So TAB was originally founded back in Victoria and 76 00:03:06,120 --> 00:03:07,920 Speaker 1: New South Wales in the sixties and it was the 77 00:03:07,960 --> 00:03:09,760 Speaker 1: og bookie in Australia. 78 00:03:09,360 --> 00:03:11,400 Speaker 2: But it became the tab coop we know today back 79 00:03:11,440 --> 00:03:13,640 Speaker 2: in nineteen ninety four when it listed on the ASX. 80 00:03:13,840 --> 00:03:16,480 Speaker 1: It's the largest wagering company in Australia. In fact, they 81 00:03:16,480 --> 00:03:19,840 Speaker 1: man it operates in over thirty seven hundred venues across Australia. 82 00:03:19,880 --> 00:03:23,519 Speaker 2: But juzzy boy TAB has been absolutely smoked over the 83 00:03:23,560 --> 00:03:24,360 Speaker 2: past decade. 84 00:03:24,400 --> 00:03:26,760 Speaker 1: That's because the likes of sports Bet and Ladbrokes and 85 00:03:26,840 --> 00:03:29,600 Speaker 1: better Bet, three six, five NEDS and many many more 86 00:03:29,600 --> 00:03:33,000 Speaker 1: online betting agencies have soldn a huge chunk of Tab's 87 00:03:33,040 --> 00:03:33,560 Speaker 1: market share. 88 00:03:33,639 --> 00:03:37,600 Speaker 2: And now Tabcorp's new CEO, Gilan McLachlin, the former REFL boss, 89 00:03:37,640 --> 00:03:40,320 Speaker 2: just launched a new betting product in the Tab app. 90 00:03:40,360 --> 00:03:43,360 Speaker 1: It allows punters to bet live via the Tab app, 91 00:03:43,400 --> 00:03:45,080 Speaker 1: which is illegal in Australia. 92 00:03:45,200 --> 00:03:47,760 Speaker 2: But Tab has a little loophole which has got the 93 00:03:47,840 --> 00:03:49,640 Speaker 2: tick from regulators. 94 00:03:49,040 --> 00:03:51,600 Speaker 1: And clearly investors loved it because the share price jump 95 00:03:51,680 --> 00:03:53,640 Speaker 1: nearly ten percent on this news. Wow. 96 00:03:53,720 --> 00:03:54,920 Speaker 2: So what is the key learning here? 97 00:03:55,000 --> 00:03:57,840 Speaker 1: Well, regulation can often slow down companies. It can also 98 00:03:57,880 --> 00:03:59,960 Speaker 1: protect your turf if you use it wisely. 99 00:04:00,040 --> 00:04:02,920 Speaker 2: In the betting world, live in play bets is where 100 00:04:02,960 --> 00:04:03,960 Speaker 2: the real money rolls in. 101 00:04:03,960 --> 00:04:06,720 Speaker 1: In fact, b Man roughly fifty four percent of gambling 102 00:04:06,720 --> 00:04:09,600 Speaker 1: turnover in the US is from this live in play betting. 103 00:04:09,680 --> 00:04:12,240 Speaker 1: But in Australia, regulators have limited the ways that a 104 00:04:12,280 --> 00:04:15,240 Speaker 1: punter can bet on live sports. No mobile apps, no 105 00:04:15,320 --> 00:04:17,720 Speaker 1: websites can be used for live betting at all. 106 00:04:17,800 --> 00:04:20,600 Speaker 2: Punters can only bet live through a call center or 107 00:04:20,600 --> 00:04:23,240 Speaker 2: in person or on physical terminals and that's to limit 108 00:04:23,320 --> 00:04:27,039 Speaker 2: impulsive gambling. And given Australians are the world's biggest gambling 109 00:04:27,240 --> 00:04:29,479 Speaker 2: losers per capita, it does make sense. 110 00:04:29,560 --> 00:04:32,400 Speaker 1: Yeah, but b Man Tabcorp Has physical venues and physical 111 00:04:32,480 --> 00:04:34,440 Speaker 1: terminals where it's legal to bet, and. 112 00:04:34,360 --> 00:04:37,000 Speaker 2: This new feature allows customers to bet on their phone 113 00:04:37,120 --> 00:04:40,160 Speaker 2: and tap their phone against the terminal, and then it's 114 00:04:40,200 --> 00:04:46,160 Speaker 2: technically supposedly regulatorially legal. So Juzy Boy tabcop just turned 115 00:04:46,200 --> 00:04:50,640 Speaker 2: its rundown venues and chunky old terminals into potentially a competitive. 116 00:04:50,200 --> 00:04:51,840 Speaker 1: Edge and investors are loving it. 117 00:04:51,920 --> 00:04:55,279 Speaker 2: For our third and final story, Google has seen its 118 00:04:55,320 --> 00:04:57,840 Speaker 2: market value fall by more than one hundred and seventy 119 00:04:58,040 --> 00:05:03,160 Speaker 2: billion US dollars after it's exclusivity as Safari's search engine 120 00:05:03,320 --> 00:05:04,320 Speaker 2: is under threats. 121 00:05:04,480 --> 00:05:08,200 Speaker 1: AI and now Apple swallowing up Google Search and spitting 122 00:05:08,240 --> 00:05:09,760 Speaker 1: it out. So tell me more'll we man? 123 00:05:09,800 --> 00:05:11,680 Speaker 2: Well, we know that Google and Apple have always had 124 00:05:11,720 --> 00:05:14,120 Speaker 2: a love hate thing going on. 125 00:05:14,320 --> 00:05:15,360 Speaker 1: Mostly yep. 126 00:05:15,440 --> 00:05:17,719 Speaker 2: They also happened to be two of the biggest technology 127 00:05:17,839 --> 00:05:18,960 Speaker 2: rivals of our generation. 128 00:05:19,080 --> 00:05:19,760 Speaker 1: Apple makes an. 129 00:05:19,720 --> 00:05:22,800 Speaker 2: iPhone, so Google buys an Android operating system, and Apple 130 00:05:22,839 --> 00:05:25,480 Speaker 2: makes Apple TV, so Google makes Google Chrome car. 131 00:05:25,560 --> 00:05:27,039 Speaker 1: And the list goes on and on and on. 132 00:05:27,279 --> 00:05:29,560 Speaker 2: But one part of their businesses where they actually collaborate 133 00:05:29,680 --> 00:05:30,280 Speaker 2: is search. 134 00:05:30,560 --> 00:05:34,200 Speaker 1: Google reportedly pays Apple twenty billion usls per year to 135 00:05:34,200 --> 00:05:37,760 Speaker 1: be the default search engine whenever you use a Safari browser, and. 136 00:05:37,760 --> 00:05:40,560 Speaker 2: Does you boy As part of Google's ongoing monopoly lawsuit, 137 00:05:40,720 --> 00:05:43,760 Speaker 2: an Apple executive had to testify, and he shared some 138 00:05:43,960 --> 00:05:44,720 Speaker 2: serious tea. 139 00:05:44,800 --> 00:05:47,600 Speaker 1: First, he said that Apple is actively exploring ways to 140 00:05:47,720 --> 00:05:51,680 Speaker 1: reshape Safari, which would replace Google as the default search engine. 141 00:05:51,680 --> 00:05:54,320 Speaker 2: And then he warned that Google search traffic declined on 142 00:05:54,400 --> 00:05:57,480 Speaker 2: Apple devices for the first time in twenty two years. 143 00:05:57,520 --> 00:06:00,400 Speaker 1: Wow. So next minute, Google's parent company, Alphabet so at 144 00:06:00,400 --> 00:06:02,440 Speaker 1: share price full more than six percent. 145 00:06:02,720 --> 00:06:04,240 Speaker 2: So what is the key learning here? 146 00:06:04,440 --> 00:06:07,440 Speaker 1: In tech? Being the default isn't just a convenience, it's 147 00:06:07,480 --> 00:06:09,120 Speaker 1: a huge competitive advantage. 148 00:06:09,160 --> 00:06:12,720 Speaker 2: Most users stick with whatever option comes pre selected. 149 00:06:12,360 --> 00:06:15,000 Speaker 1: And that's why Google shows out billions to Apple each 150 00:06:15,040 --> 00:06:17,280 Speaker 1: and every year. Let me remind you, b man. Google 151 00:06:17,320 --> 00:06:21,000 Speaker 1: currently controls about ninety percent of the global search. 152 00:06:20,720 --> 00:06:22,640 Speaker 2: Market, and a healthy chunk of that comes from its 153 00:06:22,680 --> 00:06:24,640 Speaker 2: agreements with Apple and Samsung. 154 00:06:24,680 --> 00:06:27,560 Speaker 1: So this could mean that Google's default advantage could start 155 00:06:27,600 --> 00:06:28,200 Speaker 1: to crumble. 156 00:06:28,200 --> 00:06:30,239 Speaker 2: And when your business makes over two hundred and sixty 157 00:06:30,240 --> 00:06:32,840 Speaker 2: billion US dollars a year from ads, keeping that default 158 00:06:32,880 --> 00:06:34,440 Speaker 2: status is not a nice to. 159 00:06:34,440 --> 00:06:38,080 Speaker 1: Have, Nope, it is an existential must have. Yep, flex, am, 160 00:06:38,160 --> 00:06:40,599 Speaker 1: you've been listening all week. You are well equipped to 161 00:06:40,600 --> 00:06:43,159 Speaker 1: do the Plux quick Stick quiz in the Flux app. 162 00:06:43,200 --> 00:06:44,839 Speaker 1: So if you want to win fifty bucks, make sure 163 00:06:44,880 --> 00:06:47,039 Speaker 1: you've got your notifications turned on and you're the first 164 00:06:47,040 --> 00:06:48,800 Speaker 1: to answer all three questions correctly. 165 00:06:48,880 --> 00:06:52,520 Speaker 2: Thanks for listening, and we'll see you on Monday.