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Speaker 1: This is what the flux I'm brand and Justin and

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Speaker 1: a Friday the twenty first of March. It's been a.

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Speaker 2: Good year for airlines, Juzzy boy, but even better for airports.

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Speaker 2: Get this one. Sydney, Melbourne, Brisbane and Perth Airports made

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Speaker 2: a combined one billion dollars in operating profit last financial year.

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Speaker 2: That one is up seventy five percent on the year before.

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Speaker 1: Gold plated drinking fountains. Something can be man, I hope,

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Speaker 1: So fox am fifty bucks in your pocket? You know

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Speaker 1: the drill. It's our weekly quiz quick Sticks where you

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Speaker 1: can win fifty bucks just by answering three business or

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Speaker 1: finance questions correctly. To make sure to download the app

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Speaker 1: turn your notifications on if you want to whip that money.

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Speaker 2: Three truly enlightening stories today, Judsey Boy for our first.

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Speaker 2: Maya has seen its net profit tank by forty percent

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Speaker 2: in its most recent half as the new CEO focuses

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Speaker 2: on resetting the business.

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Speaker 1: The easiest way to justify poor results be man, We'll

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Speaker 1: go through a football style rebuild. So what is the

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Speaker 1: story here?

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Speaker 2: Okay? So, Maya has been a mainstay in this strain

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Speaker 2: in fashion and retail market ever since its first door

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Speaker 2: opened in nineteen hundred. There's the Mya Ambassadors, the Meya

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Speaker 2: Christmas windows, and of course the my clothing yep. But

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Speaker 2: somewhere along the way, Maya's brand and business fell by

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Speaker 2: the wayside.

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Speaker 1: In fact, the Man in early twenty twenty, MEA's market

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Speaker 1: cap had fallen from a high of two point two

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Speaker 1: billion dollars when it first listed, and.

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Speaker 2: Had fallen all the way down to two hundred and

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Speaker 2: thirty seven mil in December twenty twenty.

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Speaker 1: But the Man Maya hired and U CEO back in

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Speaker 1: June twenty twenty four, and she's been planning a big,

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Speaker 1: big turnaround.

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Speaker 2: Unfortunately for Maya, though these things might take a bit

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Speaker 2: of time.

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Speaker 1: Yeah My warned that its net profit was down by

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Speaker 1: nearly forty percent in the most recent half.

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Speaker 2: But it's even worse than that because when you take

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Speaker 2: out the accounting compairments, the profit was down one hundred

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Speaker 2: and ninety five percent.

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Speaker 1: All good, though, investors don't worry about these results because

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Speaker 1: we're part of a reset period.

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Speaker 2: The fact is, juzyboy, the investors do, in fact care

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Speaker 2: because Maya's share price dropped by more than five percent.

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Speaker 1: The good news though by Man, the Maya one loyalty

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Speaker 1: program is supposedly firing, So what's the key learning Hereally,

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Speaker 1: programs are powerful tools for driving repeat business, but they

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Speaker 1: aren't exactly a silver bullet now, Jazzy Boy.

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Speaker 2: At face value, Maya's loyalty program looks strong. Seventy nine

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Speaker 2: percent of sales now come from its Maya one members,

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Speaker 2: of which.

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Speaker 1: There are four point six million members across Australia.

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Speaker 2: Sounds pretty down good. But there is a butt coming,

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Speaker 2: isn't there?

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Speaker 1: But Meyers generating most of their revenue from loyal customers

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Speaker 1: and still seeing flat sales and declining profits.

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Speaker 2: So Jazzi Boy, Meyer's problem isn't loyalty, it's member spending.

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Speaker 1: In other words, being Man, Meyer's members are sticking around,

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Speaker 1: but they aren't spending enough.

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Speaker 2: And this is a major red flag because it looks

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Speaker 2: like the loyalty program is kind of working.

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Speaker 1: But it's not actually driving a jumping transaction value or

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Speaker 1: purchase frequency. It's actually needed to boost their profits.

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Speaker 2: And investors clearly voting with their feet because Meyer's share

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Speaker 2: price is down forty one percent since January. Just this year.

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Speaker 1: Hikes for our second story, Google has announced its largest

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Speaker 1: acquisition in history, acquiring cybersecurity startup Whiz for thirty two

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Speaker 1: billion year U s dollars.

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Speaker 2: Holy smoker, ronis not bad for a four year old company,

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Speaker 2: Jazzy boy, What is going on here?

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Speaker 1: Okay? So, Whizz was founded back in twenty twenty and

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Speaker 1: he's one of the fastest growing startups of all time.

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Speaker 2: Is an Israeli company that's New York based and sells

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Speaker 2: security tools that protect information stored in data centers.

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Speaker 1: And we know the data centers are the second hottest

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Speaker 1: word right now behind AI.

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Speaker 2: So juz wait. Google has now announced its acquisition of

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Speaker 2: Whiz for thirty two billion US dollars.

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Speaker 1: And this is Google's largest acquisition by a country mile.

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Speaker 2: The next biggest is Motoroller Mobility in twenty eleven for

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Speaker 2: twelve and a half billion US dollars, which it no

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Speaker 2: longer owns the man. Wiz currently works with others like

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Speaker 2: Amazon and Microsoft in the cloud market too, but it's

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Speaker 2: possible that Google will make the tech exclusive for Google

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Speaker 2: customers in the future. And interestingly, this isn't Google's first

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Speaker 2: interaction with Wiz.

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Speaker 1: Nope. Last year, Google tried to acquire Wiz for twenty

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Speaker 1: three billion US dollars, but they rejected the offer.

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Speaker 2: So now Google's having a second bite of their cherry

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Speaker 2: and this time it's been successful, but paying forty percent

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Speaker 2: more than its original offer and thirty times Whizz's four

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Speaker 2: future revenue.

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Speaker 1: So what is the key leny here?

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Speaker 2: When big companies by smaller ones, they often assess value

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Speaker 2: using a multiple of revenue or a multiple of earnings.

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Speaker 1: For example, when Microsoft acquired LinkedIn, it was for eight

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Speaker 1: point seven times their revenue.

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Speaker 2: And into it acquired Mailchimp for about a fifteen times

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Speaker 2: multiple on their revenue.

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Speaker 1: But in this case, the man alphabet is paying thirty

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Speaker 1: times Whiz is forecast at future revenue of one billion dollars,

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Speaker 1: or roughly sixty times their existing revenue.

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Speaker 2: Because Whiz is growing like wildfire.

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Speaker 1: Yep, It's one of the fastest growing startups of all

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Speaker 1: time according to the Wall Street Journal.

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Speaker 2: Top of that, cybersecurity tools are in very high demand

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Speaker 2: right now.

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Speaker 1: So be man. Sometimes buyers will pay a premium when

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Speaker 1: they say strategic value.

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Speaker 2: Like Google securing a partner that also works with its

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Speaker 2: two biggest cloud rivals.

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Speaker 1: Remember when Meta acquired WhatsApp for nineteen billion US dollars

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Speaker 1: in twenty fourteen.

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Speaker 2: Yep. At the time, WhatsApp was believed to be earning

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Speaker 2: about thirty million bucks in annual revenue.

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Speaker 1: It was a huge risk, but eventually a huge payoff,

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Speaker 1: because WhatsApp generated one point three billion revenue in twenty

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Speaker 1: twenty three.

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Speaker 2: Google's hoping Whiz will follow.

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Speaker 1: A similar part For our third and final story, KFC

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Speaker 1: and Pizza Hut's parent company, Young Brands is teaming up

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Speaker 1: with Nvidia to implement AI ordering in the drive through lanes.

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Speaker 2: Ordering fast food is about to get even faster. Juzzy boy,

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Speaker 2: tell me more.

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Speaker 1: Okay, So, Young Brands is one of the largest fast

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Speaker 1: food companies in the world. We have sixty one thousand

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Speaker 1: stores in over one hundred and fifty countries.

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Speaker 2: That's a whole lot of frieda, chicken and pizza. Yep.

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Speaker 1: And now be Man. Young Brands is teaming up with

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Speaker 1: Nvidia to all that it's fancy AI in drive through.

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Speaker 2: This was not on anyone's Bingo card, to be honest,

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Speaker 2: but we're all here for it.

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Speaker 1: Basically, be Man. The focus will be on order taking,

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Speaker 1: but rather than a high pitched sixteen year old taking

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Speaker 1: your order, it will be an AI bot taking your food.

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Speaker 2: They'll also be using AI to count the number of

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Speaker 2: cars in the drive through, and that will help employees.

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Speaker 1: Manage the queue more efficiently.

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Speaker 2: But AI won't be taking over Australian drive throughs just yet.

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Speaker 2: They've only begun piloting this new tech in some US restaurants.

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Speaker 1: So what is the key learning here?

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Speaker 2: AI and technology are the hottest new recipes on the

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Speaker 2: hospital retality menu. We know that the restaurant industry has

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Speaker 2: super tight profit margins. For example, the net profit margin

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Speaker 2: for a casual dining restaurant generally sits around five to

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Speaker 2: seven percent when things are good.

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Speaker 1: And fast food chains do a little bit better, with

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Speaker 1: their profit margins sitting between six and ten percent roughly.

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Speaker 2: So it makes sense that the hospitality industry is always

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Speaker 2: on the lookout for ways to optimize their services and

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Speaker 2: cut costs where they can. The pandemic supercharge the use

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Speaker 2: of QR codes in restaurants.

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Speaker 1: Now b man AIS entered the chat and it will

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Speaker 1: be interesting to see how restaurant profit margins will change

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Speaker 1: by automating all the really repetitive tasks and potentially removing

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Speaker 1: some of the staff costs flux ammy. If you want

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Speaker 1: to keep up the weekend with fifty bucks to spend

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Speaker 1: on yourself, maybe on your partner, or on your friends.

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Speaker 1: There is only one place to win it. It's in

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Speaker 1: the Flux app. Every Friday, at a random time, we'll

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Speaker 1: send a notification. If you're the first person to answer

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Speaker 1: that three business or finance questions correctly, you'll win the

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Speaker 1: fifty bucks to make sure to download the Flex app

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Speaker 1: and check it out.

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Speaker 2: Thanks for listening and we'll see you on Monday.