Speaker 1: This is what the Flux I'm brand.
Speaker 2: Justin add It's Wednesday, the second of October.
Speaker 1: Flex Family.
Speaker 3: On my Big Return, I have some big public service announcements.
Speaker 3: First up, if you are submitting your tax returney yourself,
Speaker 3: not through a tax agent, you've got less than a
Speaker 3: month to submit, Otherwise you could cop a fifteen hundred
Speaker 3: dollar fine, So make sure you get Oh Nitch is coming.
Speaker 2: In hot, b Man, a big welcome back to you,
Speaker 2: and big public service announcement. Speaking of which, we have
Speaker 2: a heap of articles and videos and even a whole
Speaker 2: academy in the flex Out to help you submit your
Speaker 2: tax returns this year, fox them step by step back,
Speaker 2: dollar by dollar. So make sure to download the flex
Speaker 2: Out to check it all out and get some help.
Speaker 3: Three revolutionary stories today, Josy boy, let's do it for
Speaker 3: our first. Chemist Warehouse has seen its profit jump almost
Speaker 3: eighty percent as it gets closer and closer to finalizing
Speaker 3: its merger with Sigma Healthcare.
Speaker 2: More profits than adds on TV. I tell you, b Man,
Speaker 2: so tell me what's going on here?
Speaker 3: So, Josie Boy, we all know Chemist Warehouse for its
Speaker 3: bright yellow stores and.
Speaker 2: Don't forget its painful jingle which can never escape the
Speaker 2: back of your brain.
Speaker 3: Now and over the past twenty years or so, Chemists
Speaker 3: Warehouse has grown into an absolute bare hem moth.
Speaker 1: As they say in the UK.
Speaker 2: We're talking over six hundred and thirty stores, over twenty
Speaker 2: thousand employees across Australia, New Zealand even China.
Speaker 3: Now, Josey Boy, you'll remember in December last year that
Speaker 3: Chemist Warehouse announced it would merge with none other than
Speaker 3: Sigma Healthcare.
Speaker 2: I do. It was going to be an eight point
Speaker 2: eight billion dollar reverse takeover.
Speaker 3: But it's subject to approval from the Asiable Sea, which
Speaker 3: is hoped to be approved later this month.
Speaker 2: So be man. All investors had their eyes peeled for
Speaker 2: Chemists Warehouses potentially last financial results as a private company, and.
Speaker 1: Josep Boy, it did not disappoint.
Speaker 3: Chemists ware House announced a full year profit of over
Speaker 3: five hundred and thirty nine million dollary dues.
Speaker 2: And that's up from just three hundred and two million
Speaker 2: bucks the year before.
Speaker 3: Fair to say that's a lot more than the savings
Speaker 3: on your half price of vitamins.
Speaker 2: That's true, and be man. Sigma Healthcare also announced bigger
Speaker 2: results late last week.
Speaker 3: Yep, they're profits excluding costs for the merger were up
Speaker 3: over three hundred percent.
Speaker 2: And with both companies a role in cashion profits. The
Speaker 2: question is all these juicy numbers change the merger terms?
Speaker 3: Ooh, fascinating question, Jasi boy. So I'm wondering over here,
Speaker 3: what is the key learning on my big return?
Speaker 2: As time stretches on, it can often force a rethink
Speaker 2: of the terms of a pending merger.
Speaker 1: Oh, hit me where it hurts there.
Speaker 3: This is because the financial performance of the companies involved
Speaker 3: can change dramatically during the waiting period.
Speaker 2: We're talking almost eleven months until a decision will be
Speaker 2: made by the atriable c.
Speaker 3: Now, for Chemists Warehouse, its profit increased by more than
Speaker 3: seventy eight percent.
Speaker 2: And Sigmas jump more than three hundred percent.
Speaker 1: Now, Josy boy.
Speaker 3: As a quick refresher, the original terms of the deal
Speaker 3: would give Sigma shareholders fourteen percent of this combined company.
Speaker 2: So the man who knows if this long time they
Speaker 2: also change the terms of this mega farmer merger, the
Speaker 2: final prescription is still being written.
Speaker 3: For our second story, Australia's airline industry has a new
Speaker 3: player in town, and its name is Koala Airlines.
Speaker 2: No, surely after the downfall of Tiger they could have
Speaker 2: steered clear of the animal. What is the story here.
Speaker 3: Well, Jasi boy, we know that the Australian aviation industry
Speaker 3: for the longest time has had two major players.
Speaker 2: There's Quantas and it's budget carrier jet Star, and then
Speaker 2: there's Virgin and that's it.
Speaker 3: Now other players have come in and tried to capture
Speaker 3: some of the domestic market share, but none of them
Speaker 3: have really lasted.
Speaker 2: But be man, this history hasn't a turred the latest
Speaker 2: player to enter Australia's aviation market. We're talking Koala Airlines.
Speaker 3: Yeah, Koala used to be a charter business called does
Speaker 3: It Air Safaris and it took tourists through Australia and
Speaker 3: Africa and even Papua New Guinea.
Speaker 2: But Beman, public transport flights are a whole different game.
Speaker 3: And at the moment Kouala has no aircraft and it's
Speaker 3: also still waiting to get approval to operate public transport flights.
Speaker 2: So be man, It's fair to say Koala has a
Speaker 2: lot of work to do if it wants to compete
Speaker 2: with the big dogs of the uzzy sky.
Speaker 1: Especially when there is such a high barrier to entry.
Speaker 2: So true, So tell me what is the key learning
Speaker 2: on your return.
Speaker 3: Barriers to entry are the costs and challenges that make
Speaker 3: it tough for new businesses to enter an industry.
Speaker 2: You see, be Man. Some industries have almost no barriers
Speaker 2: to entry.
Speaker 3: Yeah, like becoming a content creator, just need my phone,
Speaker 3: internet connection and maybe a ring light.
Speaker 2: But other industries, like banking or aviation, they've got significant
Speaker 2: barriers like regulatory requirements and a heap of upfront capital.
Speaker 3: Now, for an airline like Koala to succeed, it needs
Speaker 3: to go through a lot of regulatory hurdles to get
Speaker 3: the approvals required to actually fly the plane.
Speaker 2: And then on top of that, it needs to be
Speaker 2: able to source planes and compete on prices with industry
Speaker 2: giants like Quantus and Virgin. Be man. If we look
Speaker 2: at history, there was Compass, Australia's first low cost airline,
Speaker 2: which launched in nineteen ninety but was gone by nineteen
Speaker 2: ninety one. Then of course there was Rex, We've had
Speaker 2: Tiger Air, don't forget old BONDSA, all of which came
Speaker 2: and went, and so be man. For Koala Airlines to
Speaker 2: compete with the big dogs. They'll need some deep pocket
Speaker 2: investors or some help through government support.
Speaker 1: For our third and final story.
Speaker 3: Open ai, the creator of chat gpt, has seen a
Speaker 3: number of executives quit after the company announced plans to
Speaker 3: become a fully for profit company.
Speaker 2: Someone's getting greedy in the open ailb Man, So tell
Speaker 2: me what's going on?
Speaker 3: Well it does, boy, Well no open ai for really
Speaker 3: getting AI out to the masses, to its chatbot chat GPT.
Speaker 2: But Bman. Open air was originally founded back in twenty
Speaker 2: fifteen as a non profit.
Speaker 3: Started with the goal to build AI that benefits all
Speaker 3: of humanity.
Speaker 2: But then in twenty nineteen it switched to a capped
Speaker 2: profit structure which basically limited the maximum financial turns to
Speaker 2: investors and to employee.
Speaker 1: And why why did they do that, Jossi?
Speaker 2: Boy, because they wanted to balance commerciality with the safety
Speaker 2: and sustainability of AI. But Beman. Now open AI's board
Speaker 2: has announced it's considering shifting to a fully for profit
Speaker 2: corporate structure. And since this announcement, open Ai CTO stepped down.
Speaker 2: Its chief research officer has also stepped.
Speaker 3: Down, and there are now concerns and open ai ain't
Speaker 3: about benefiting humanity anymore.
Speaker 2: And it's more focused on bringing in those Benjamin Franklins.
Speaker 2: So what is the Benjamin Franklin key learning here? When
Speaker 2: survival costs billions, mission statements often take a back seat
Speaker 2: to profits.
Speaker 3: Yep, you see, joy boy, AI supercomputers are super expensive
Speaker 3: to actually run.
Speaker 2: Yeah get this. Open ay is believed to be generating
Speaker 2: about three billion US dollars in annual sales.
Speaker 3: But it's spending seven billion US dollars to just run
Speaker 3: the business.
Speaker 2: So the challenge for open ai is that it needs
Speaker 2: to raise money in order to continue operating and growing.
Speaker 3: And open AI's investors come from the for profit world
Speaker 3: and are seeking a profitable investment here.
Speaker 2: Yeah, so open ai faces a challenge to balance its
Speaker 2: commercial outcomes for investors alongside its humanitarian goals. Blucks O,
Speaker 2: I'm just a little reminder, a big psa that if
Speaker 2: you are submitting at tax return yourself, you've got to
Speaker 2: do it before October thirty first. And we have a
Speaker 2: heap of articles and videos and even an academy in
Speaker 2: the flucks out to help you step by step. A man,
Speaker 2: it was huge. Shabby back can bring the energy.
Speaker 1: Thanks, Jusy boy thrilled and I mean damn thrilled to
Speaker 1: be back with you.
Speaker 2: Thanks for listening, and we'll see you on Friday.