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Speaker 1: This is what the Flux.

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Speaker 2: I'm Brett and I'm justin and it's Friday. At twenty

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Speaker 2: seventh of February, Juzzy.

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Speaker 1: Boy Domain has run a new first home buyer report

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Speaker 1: tracking the growth on the lower end of the market

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Speaker 1: over the past five years, and it aimed pretty oh no,

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Speaker 1: get this one. The price of houses at the lower

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Speaker 1: end of the market has grown nationally from four hundred

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Speaker 1: and eight thousand dollars to six hundred and eighty five

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Speaker 1: thousand dollars between twenty twenty five.

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Speaker 2: Huge.

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Speaker 1: That is sixty eight percent growth, which means it is

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Speaker 1: completely outpaced wages, which have only grown by about twenty

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Speaker 1: two percent in that time.

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Speaker 2: Not what you want to hear as a first home

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Speaker 2: biaby Man New Fox Am. We've got into the end

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Speaker 2: of the month and this is the perfect time to

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Speaker 2: be checking your credit score for what's changed in the

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Speaker 2: month of February.

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Speaker 1: Has your credit score gone up?

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Speaker 2: Has it gone down? Are you seeing what the banks

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Speaker 2: are seeing about you? So if you want to learn more,

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Speaker 2: make sure to download the Flux app and check out

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Speaker 2: the changes in your credit score this month.

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Speaker 1: Three quality stories today, Jusy Boy, let's do it for

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Speaker 1: our first Quantus has half year underlying profits hit one

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Speaker 1: and a half billion bucks as it plans to shake

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Speaker 1: up frequent fire program to keep those customers loyal.

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Speaker 2: The word starting with V and ending with urgent shall

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Speaker 2: not be spoken about this story. The man, so tell

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Speaker 2: me more so.

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Speaker 1: Quantus aka the Big Red Oru was founded in nineteen

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Speaker 1: twenty and is Australia's largest airline group across qwenty and

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Speaker 1: the jet Star brand.

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Speaker 2: Between these two brands, it has two thirds market share

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Speaker 2: in the Australian domestic market and now.

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Speaker 1: Quantus announced an underlying profit rise of seventy one million

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Speaker 1: bucks two one point four to six billion, But ay Man,

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Speaker 1: the big winner was Quey's loyalty division, which jumped twelve

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Speaker 1: percent to two hundred and eighty six million bucks for

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Speaker 1: the heart and at the same time, Quantus reveal changes

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Speaker 1: to its frequent fire program that'll get those points fienes

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Speaker 1: listening in YEP. The changes will make it easier for

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Speaker 1: passengers to earn status credits without flying.

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Speaker 2: But it will increase the points needed to retain the

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Speaker 2: higher tiers of status credit. And clearly this is a

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Speaker 2: play getting passengers to stick with the Big Q and

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Speaker 2: don't even consider the big V. So what is the

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Speaker 2: key learning here.

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Speaker 1: Well, many people see airline loyalty programs as a nice bonus.

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Speaker 1: They're often one of the most profitable parts of the

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Speaker 1: airline business. In fact, be Man Quantus currently has more

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Speaker 1: than eighteen million members of its Frequent Flyer program, and

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Speaker 1: that means the ability to generate non core revenue from

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Speaker 1: eighteen million members as well as banks.

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Speaker 2: Yeah, we know that airlines sell points in bulk to

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Speaker 2: banks and credit card providers. So when you the customer

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Speaker 2: earn points on your everyday spending, the bank has already

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Speaker 2: paid Quantas for those points up front. Yeah. For Quantas,

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Speaker 2: that means they receive immediate revenue and strong cash flow.

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Speaker 1: And in even better news for Quantus, not every point

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Speaker 1: gets redeemed, and.

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Speaker 2: When they are redeemed, airlines often fill seats that might

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Speaker 2: otherwise have flown empty. So the marginal cost of honoring

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Speaker 2: those points can be relatively low compared to the revenue

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Speaker 2: generated when the points are sold. And b Man Quantus

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Speaker 2: expects its loyalty divisions EBIT to rise to between eight

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Speaker 2: hundred million and one billion dollars by twenty thirty. Not

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Speaker 2: bad at all, and that is why quantus loyalty is

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Speaker 2: viewed by investors as a core profit pillar and not

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Speaker 2: just a marketing adder.

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Speaker 1: For our second story. Chemist Warehouses parent Sigma has posted

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Speaker 1: an eighteen point seven percent jump in earnings and clearly

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Speaker 1: it hasn't taken its foot off the pedal since going public.

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Speaker 2: Nothing like a few billion cold flu tablets to calm

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Speaker 2: the market's nerves, be.

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Speaker 1: Man, so tell me more so. Sigma is the company

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Speaker 1: behind Amcal, Guardian and whole shelf of other farmer brands.

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Speaker 2: Yep. They also have a pretty significant wholesale and distribution business.

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Speaker 1: Basically the warehouse that keeps Australian stocked with vitamins and

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Speaker 1: ventilin and everything in between.

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Speaker 2: And last year b Man Sigma merged with Chemists Warehouse

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Speaker 2: in an eight point eight billion dollar backdoor listing.

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Speaker 1: And when merged, they created a thirty four and a

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Speaker 1: half billion dollar ASX listed farmer powerhouse.

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Speaker 2: Yeah, and while it's called Sigma on the AX, this

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Speaker 2: company runs on chemist Warehouse.

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Speaker 1: Energy, yeap, bright yellow bags, jingles and all.

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Speaker 2: And in its first half year results one year after

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Speaker 2: the merger, Sigma's earnings jumped eighteen point seven percent to

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Speaker 2: nearly five hundred and eighty.

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Speaker 1: Two mil, and revenue was also up almost fifteen percent

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Speaker 1: to five and a half bill.

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Speaker 2: International sales rose nearly twenty five percent to over eight

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Speaker 2: hundred million two, although management admitted profitability overseas is not

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Speaker 2: the focus just yet. Even so b Man, there are

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Speaker 2: enough wins on the board for Sigma' share price to

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Speaker 2: jump seven percent on this update.

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Speaker 1: So what's the key learning here?

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Speaker 2: Investors are often willing to be patient with overseas expansion,

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Speaker 2: but only if the core business is humming.

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Speaker 1: In Sigma's case, the domestic engine is firing.

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Speaker 2: Yeah, Australian sales are up strongly, same store sales are

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Speaker 2: growing and earnings are rising.

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Speaker 1: So when they say international profitability is not the focus yet,

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Speaker 1: the market is more relaxed.

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Speaker 2: Yeah. Right now. The overseas business makes up around thirteen

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Speaker 2: percent of turnover. If it works great, if it takes time,

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Speaker 2: the core business is still delivering now. Contrasts out with Goodsmitigoms,

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Speaker 2: which we spoke about earlier. This way, when Goig expands

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Speaker 2: it into the US, it positioned America as central to

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Speaker 2: its growth story. Wasn't a side project.

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Speaker 1: It was a hole down burrito yep. And that's why

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Speaker 1: GOIG shares are down more than forty five percent over

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Speaker 1: the last twelve months. So b Man, Clearly, the markets

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Speaker 1: are far more forgiving when growth abroad is optional rather

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Speaker 1: than essential. For our third and final story, wise Tech

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Speaker 1: Global plans to slash two thousand jobs in an AI overhaul,

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Speaker 1: and investors have cheered this move.

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Speaker 2: Wow is it? It's the first real AI jobs bombed

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Speaker 2: hit the asex b Man, it just might be, so tell.

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Speaker 1: Me more so. Wyse Tech Global is the Australian logistics

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Speaker 1: software giant that helps manage freight, customs and global supply chains.

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Speaker 1: All that sexy stuff, huh. And since it's founding in

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Speaker 1: nineteen ninety four, Wistech's platforms have been used across one

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Speaker 1: hundred and ninety three countries now.

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Speaker 2: Over the past ten years, be man, wyse Tech has

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Speaker 2: made more than fifty five acquisitions to its core business

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Speaker 2: and jus boy, that means a lot of bolt on

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Speaker 2: products and people. Yep. So now, wy Tech plans to

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Speaker 2: cut around two thousand jobs over the next eighteen months,

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Speaker 2: or around twenty nine percent of its global workforce.

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Speaker 1: And some teams including product development and customer service could

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Speaker 1: see headcount cut by up to fifty percent.

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Speaker 2: Wow. And b Man, the wyseex CEO, didn't sugarcoat it either.

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Speaker 2: He said that the era of manually writing code is over.

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Speaker 2: So despite a thirty six percent fall in their statutory profit,

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Speaker 2: their share price jump more than eleven percent. So what

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Speaker 2: is the key learning here?

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Speaker 1: AI is no longer a side project or innovation lab experiment.

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Speaker 1: It's becoming a cost cutting lever at scale.

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Speaker 2: For years, we saw companies talk AI boosting productivity without

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Speaker 2: much to show for a.

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Speaker 1: Pretty PowerPoint here and Excel spreadsheet over there with some

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Speaker 1: big numbers. But now we're actually starting to see what

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Speaker 1: that really means with some mass job cuts and Judy

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Speaker 1: Boyd just earlier this week, Combank announced three hundred job

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Speaker 1: cuts alongside their ninety million dollar program to create a

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Speaker 1: quote AI ready workforce. So while this may be concerning

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Speaker 1: for white collar workers investors of rewarding companies that move

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Speaker 1: early to reset their cost structure, but.

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Speaker 2: The real test will be whether these financial gains actually

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Speaker 2: translate into long term profit growth. Blucksamm. Today is the

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Speaker 2: second last day of the month of February, meaning it's

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Speaker 2: second last day to check your credit score for this month.

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Speaker 2: You had to go up, did to go down? And

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Speaker 2: what has changed each month? If you want to see

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Speaker 2: what the bank's se about you and make sure to

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Speaker 2: download the blocks app and check out your credit score.

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Speaker 1: Thanks for listening, and we'll see you on Monday.