Speaker 1: This is what the Flux. I'm Brett and justin ads.
Speaker 2: Wednesday, the fourth of December, does it boy, some big
Speaker 2: news here. Net Wealth, the Wealth Tech platform and our
Speaker 2: new wonderful overlords here at Flux has seen its funds
Speaker 2: under administration crack over one hundred billion dollars this week.
Speaker 2: Now I'm not saying it was the big Flux acquisition
Speaker 2: that did it, but net Wealth didn't have one hundred
Speaker 2: billion before we got here, and now we do.
Speaker 1: You raise a good point for there, Flux am. As
Speaker 1: we kick off December, there is absolutely no better time
Speaker 1: to start looking at that budget for the end of
Speaker 1: the year. Summer is an expensive time and we have
Speaker 1: it all covered in the Flux app. Takes us than
Speaker 1: thirty seconds to connect your accounts and see where you're spending,
Speaker 1: where you can say, and all your subscriptions in one place.
Speaker 1: So if you want to kick off December on a high,
Speaker 1: make sure to download the Flux app and check out
Speaker 1: the budgeting feature.
Speaker 2: Three inspirational stories today Dozy Boy for our first, Telstra
Speaker 2: will acquire boost Mobile for just under one hundred and
Speaker 2: forty million dollars as it looks to get its hands
Speaker 2: on one million new customers. Hey, they alert for Boost
Speaker 2: founders be man, so tell me more juzziboit. Boost Mobile
Speaker 2: is a telco brand that was founded back in the
Speaker 2: year two thousand. Back we didn't sink was dancing away
Speaker 2: to Bye Bye Bye and Jazi Wait, did you notice
Speaker 2: I called them a telco brand idea? That is because
Speaker 2: they don't actually own their own telco network.
Speaker 1: That's all right. When at first launch it sold prepaid
Speaker 1: phone plans on the Optis network.
Speaker 2: And then in twenty thirteen it started selling its prepaid
Speaker 2: phone plans on the Telstra network.
Speaker 1: And since it launched, it's going to over one million
Speaker 1: prepaid customers.
Speaker 2: And Josie wait. Telstra will now acquire boost Mobile for
Speaker 2: just under one hundred and forty million bucks, making.
Speaker 1: Its founders, including former Prime Minister Paul Keating, a bundle
Speaker 1: of cab.
Speaker 2: Doesn't Telstra already have a cheaper telco service with your
Speaker 2: mates at Belong? Correct?
Speaker 1: They do, but unlike Boost, Belong has post paid.
Speaker 2: Plans and Telstra wants a slice of Boosts brand their
Speaker 2: customers and upfront cashiola from prepaid plans.
Speaker 1: Seeing so what is the key learning here?
Speaker 2: Cost effective prepaid plans are dominating the telco game, and
Speaker 2: if you're not on board, you're being left without phone reception.
Speaker 1: You see, a man. Consumers like prepaid plans because they
Speaker 1: offer more certainty about how much money you're spending every month.
Speaker 2: If you blow your data budget, you lose access as.
Speaker 1: Opposed to a chunky chunky bill shock. At the end
Speaker 1: of the morth.
Speaker 2: Boost mobile success proves the point. They've got nearly one
Speaker 2: million prepaid services in.
Speaker 1: Operation, which is much more than belongs five hundred and
Speaker 1: sixty nine thousand postpaid customers as of June this year.
Speaker 2: And does a boid the prepaid trend is growing. In fact,
Speaker 2: prepaid services grew to nearly thirty nine percent of total
Speaker 2: plans at the end of June this year, and.
Speaker 1: That's up from around thirty four percent six months prior.
Speaker 2: And while prepaid plans don't lock in customers for the
Speaker 2: long hold, they do offer something equally enticing for the provider,
Speaker 2: and that's upfront cash.
Speaker 1: So be man. This ecquisition isn't just about Boost brands
Speaker 1: or its customers. It's Telstra's first major leap into the
Speaker 1: booming prepaid market, and with rising cost of pressures, this
Speaker 1: trend could be here to stay for our second story. Nissen,
Speaker 1: the global car manufacturer, is on the brink of collapse,
Speaker 1: with just twelve months to survive unless it gets new
Speaker 1: sources of funding.
Speaker 2: Not the cash Guy, I've become a relic of the past.
Speaker 2: What a disaster tell me more?
Speaker 1: Okay, so be Man.
Speaker 2: This in is the Japanese car manufacturer founded back in
Speaker 2: nineteen thirty three. We'd be talking the makers of the
Speaker 2: X Trail, the Leaf, the Pathfinder, and the Cashi cash
Speaker 2: guy and be Man. Back in nineteen ninety nine, Nissen
Speaker 2: was in a whole lot of strife, but Reno came
Speaker 2: in and saved Nissan from bankruptcy. They took a forty
Speaker 2: three percent steak in Nissan and formed a new special partnership.
Speaker 2: But over the last few years Nissen has copped a
Speaker 2: bit of a bet. In twenty eighteen, its former CEO
Speaker 2: was arrested for misusing company assets, and over the past
Speaker 2: twelve months, it's global sales has declined by three point
Speaker 2: eight percent, including a fourteen percent decline in the Chinese market.
Speaker 2: Because it just can't compete on evs.
Speaker 1: So be man. Last month, this then announced plans to
Speaker 1: cut nine thousand jobs as well as cutting its global
Speaker 1: production capacity by twenty percent.
Speaker 2: But does it boy? Even these cuts may not be
Speaker 2: enough to help NIS and compete with its rivals, because.
Speaker 1: It's believed that Reno is now planning to sell at
Speaker 1: steak in Nissan.
Speaker 2: So now Nissin is on the brink of collapse if
Speaker 2: it doesn't find a new investor or partner to fund
Speaker 2: its loss making business.
Speaker 1: And be man.
Speaker 2: And it's looking for a new collab with Honda and
Speaker 2: Mitsubishi to work on electric vehicle technologies together and to keep.
Speaker 1: It afloat Wow, does it boy? So what is the
Speaker 1: key learning here? Partnerships in a business can be a
Speaker 1: very double edged sword. While they can provide stability and growth,
Speaker 1: over reliance on a single partner can leave a company vulnerable.
Speaker 1: Reno's exit from this and means they have a sudden
Speaker 1: gap in ownership stability and.
Speaker 2: Also financial support.
Speaker 1: But the man. Although Nissin has been burnt by Reno,
Speaker 1: it is looking for a new and improved.
Speaker 2: Partnership By pulling their expertise in electric vehicle technology with
Speaker 2: the likes of a Honda or Mitsubishi, they could create
Speaker 2: a new alliance.
Speaker 1: And new alliance to share resources and fight against the
Speaker 1: eb competitors like Tesla and bad And this is.
Speaker 2: A bit like the old PayPal and eBay story when
Speaker 2: they were the best of friends.
Speaker 1: But by twenty fifteen, b Man PayPal contributed roughly forty percent.
Speaker 2: Of eBay's revenue, and when PayPal was spun off into
Speaker 2: a separate business, PayPal really thrived, but it left eBay
Speaker 2: pretty vulnerable, and it seems like eBay still hasn't really recovered.
Speaker 2: For our third and final story, the largest operator of
Speaker 2: KFC stores in Australia has seen its net profit plummet
Speaker 2: over the past six months. Not easy to make juicy
Speaker 2: profits off eight dollar burgers anymore, juzzy boy, so tell
Speaker 2: me more, all right, so be man.
Speaker 1: Colin's food is an ACEX listed company that operates KFC
Speaker 1: and Taco Bell restaurants across Australia, across Germany and the
Speaker 1: Netherlands as well.
Speaker 2: In fact, jazy Boy Collins Foods operated nearly forty percent
Speaker 2: of all KFC stores in Australia.
Speaker 1: That is a whole lot of Zingaberger yummy.
Speaker 2: But Juzzy Boy Collins Foods has warned that its net
Speaker 2: profit has tumbled by fifty two percent over the last six.
Speaker 1: Months, and be Man Well sales in Australia has dropped
Speaker 1: ever so slightly, they copped an absolute.
Speaker 2: Beating in Europe YEP. Same store sales in Europe were
Speaker 2: down three point eight percent across KFC and Taco Bell
Speaker 2: stores and be Man.
Speaker 1: With rising wages and energy costs, KFC can't really afford
Speaker 1: for its sales to slide anymore.
Speaker 2: Is that correct, Juzzy boy, Well, what is the key
Speaker 2: learning here?
Speaker 1: As costs of living pressure builds, fast food outlets basically
Speaker 1: very tricky balance.
Speaker 2: On the one hand, fast food outlets want to keep
Speaker 2: their prices low to continue attracting customers in time of
Speaker 2: rising costs, but on.
Speaker 1: The other hand, they also need to keep up with
Speaker 1: their own rising costs.
Speaker 2: More expensive wages, energy, raw material av a man.
Speaker 1: Traditionally, Colin's food strategy has been to increase menu prices
Speaker 1: by less than the inflation rate.
Speaker 2: But last year Colin's Foods increased the price of some
Speaker 2: of its meals by more than twenty percent.
Speaker 1: And even with that increase, they're still seeing these wopen
Speaker 1: profit drafts.
Speaker 2: So Jazi boy, that's part of the reason its share
Speaker 2: price has fallen more than thirty percent.
Speaker 1: It can't quite strike the balance between price and margin.
Speaker 1: Block Sam with Black Friday, Cyber Monday well and truly
Speaker 1: behind us. Now, it is now time to look at
Speaker 1: what the damage was to your bank account. Make sure
Speaker 1: you check out the Flux Budgeting tool to see how
Speaker 1: much is expected to come out of your subscriptions this
Speaker 1: month and get on top of it before a big,
Speaker 1: big summer. Download the Flux out to check it out
Speaker 1: and win at money.
Speaker 2: Thanks for listening and we'll see you on for Friday