1 00:00:05,240 --> 00:00:06,720 Speaker 1: This is what them flights. 2 00:00:06,800 --> 00:00:09,520 Speaker 2: I'm Brett and Justin and it's Friday, the twenty third 3 00:00:09,520 --> 00:00:09,920 Speaker 2: of August. 4 00:00:10,000 --> 00:00:13,040 Speaker 1: Dozzy boy, we are facing a tale of two siblings. 5 00:00:13,039 --> 00:00:15,600 Speaker 1: On the one hand, Quantus recorded its best on time 6 00:00:15,640 --> 00:00:18,440 Speaker 1: performance in three years. That was in July. We're talking 7 00:00:18,480 --> 00:00:21,040 Speaker 1: more than seventy four percent of flights departed on time. 8 00:00:21,239 --> 00:00:24,599 Speaker 1: On the other hand, it's cheaper sibling, Jetstar, only saw 9 00:00:24,680 --> 00:00:26,799 Speaker 1: sixty five percent of its flight slave on time and 10 00:00:26,880 --> 00:00:29,160 Speaker 1: nearly four percent of flights were canceled. 11 00:00:29,320 --> 00:00:31,400 Speaker 2: Not the best rep for Jetstar at the moment. Man 12 00:00:31,520 --> 00:00:34,320 Speaker 2: new aw Flex Mam. If you knew that Combank reported 13 00:00:34,360 --> 00:00:36,640 Speaker 2: a nine point eight billion dollar and your cash profit 14 00:00:36,720 --> 00:00:38,519 Speaker 2: last week, then you would have been on your way 15 00:00:38,560 --> 00:00:41,040 Speaker 2: to winning fifty bucks in our weekly quiz Quick Sticks. 16 00:00:41,080 --> 00:00:42,239 Speaker 2: And if you want to be in a chance to 17 00:00:42,240 --> 00:00:44,239 Speaker 2: win fifty bucks this week, all you've got to do 18 00:00:44,440 --> 00:00:46,760 Speaker 2: is download the Flux app and have your notifications turned 19 00:00:46,800 --> 00:00:48,519 Speaker 2: on the chance to be the first to win the 20 00:00:48,600 --> 00:00:52,000 Speaker 2: quick six this week. Three rapid fire stories today, Juzzy boy, 21 00:00:52,120 --> 00:00:54,760 Speaker 2: let's do it for our first. Medibank has seen its 22 00:00:54,800 --> 00:00:57,640 Speaker 2: share price fall after missing It's a big fat target 23 00:00:57,760 --> 00:01:00,800 Speaker 2: for member growth. Never good to set a target and 24 00:01:00,800 --> 00:01:02,640 Speaker 2: missed that one, b man, So tell me more. 25 00:01:02,480 --> 00:01:05,000 Speaker 1: All right, Well, Medibank was founded all the way back 26 00:01:05,040 --> 00:01:07,400 Speaker 1: in nineteen seventy six, when. 27 00:01:07,440 --> 00:01:09,920 Speaker 2: More more more it was in the airways. 28 00:01:09,959 --> 00:01:12,399 Speaker 1: It was actually created by the Australian government as a 29 00:01:12,520 --> 00:01:15,000 Speaker 1: not for profit private health insurer. 30 00:01:14,640 --> 00:01:17,080 Speaker 2: And after turning into a for profit entity in two 31 00:01:17,120 --> 00:01:20,040 Speaker 2: thousand and nine, it listed on the ASX in twenty fourteen. 32 00:01:20,120 --> 00:01:22,160 Speaker 1: Now, Donzie boy, twenty twenty two was a year to 33 00:01:22,240 --> 00:01:23,520 Speaker 1: forget for Medibank. 34 00:01:23,560 --> 00:01:26,440 Speaker 2: Who could forget the cyber hack that compromised the data 35 00:01:26,480 --> 00:01:28,200 Speaker 2: of nine point eight million of. 36 00:01:28,160 --> 00:01:31,520 Speaker 1: Its customers, And last year Medibank vowed to recover from 37 00:01:31,560 --> 00:01:35,399 Speaker 1: this debarcle by growing its resident policy growth by one 38 00:01:35,400 --> 00:01:37,119 Speaker 1: point two to one point five percent. 39 00:01:37,160 --> 00:01:39,520 Speaker 2: But b man, here's the problem. Medibanks now come out 40 00:01:39,560 --> 00:01:42,640 Speaker 2: and they've said their net resident policy holder growth was 41 00:01:42,680 --> 00:01:45,080 Speaker 2: just zero point seven percent. But the good news is 42 00:01:45,160 --> 00:01:48,680 Speaker 2: it's non resident policy growth jumped more than twenty five percent. 43 00:01:48,800 --> 00:01:50,840 Speaker 1: Did you say non resident policy growth. 44 00:01:50,840 --> 00:01:53,840 Speaker 2: I did. That's because more foreign students took up its 45 00:01:53,880 --> 00:01:54,680 Speaker 2: private health cover. 46 00:01:54,760 --> 00:01:56,640 Speaker 1: Fascinating stuff, does it? Way? So what is the key 47 00:01:56,680 --> 00:01:57,080 Speaker 1: learning here? 48 00:01:57,120 --> 00:01:59,600 Speaker 2: Not all policy holders are valued the same way for 49 00:01:59,640 --> 00:02:00,760 Speaker 2: private health insurers. 50 00:02:00,800 --> 00:02:04,640 Speaker 1: Many private health insurers in Australia distinguished between resident policy 51 00:02:04,640 --> 00:02:08,080 Speaker 1: holders and non resident policy holders in their reports, and. 52 00:02:07,960 --> 00:02:10,960 Speaker 2: This is because these groups generate different levels of revenue 53 00:02:11,000 --> 00:02:12,440 Speaker 2: and stability for the companies. 54 00:02:12,560 --> 00:02:15,040 Speaker 1: Now, resident policy holders are considered to be a more 55 00:02:15,080 --> 00:02:17,240 Speaker 1: stable and sustainable customer base. 56 00:02:17,320 --> 00:02:19,720 Speaker 2: For example, they're more likely to stay with the insurer 57 00:02:19,760 --> 00:02:22,720 Speaker 2: for longer periods and provide steady revenue over time. 58 00:02:22,800 --> 00:02:25,280 Speaker 1: In fact, Jasiboyite Medibank Private has a retention rate of 59 00:02:25,360 --> 00:02:28,160 Speaker 1: around seventy five percent of their policy holders a year 60 00:02:28,240 --> 00:02:28,760 Speaker 1: one year, but. 61 00:02:28,840 --> 00:02:32,639 Speaker 2: Non resident policy holders, like international students or temporary workers, 62 00:02:32,720 --> 00:02:35,519 Speaker 2: they generally only hold policies for short periods. 63 00:02:35,240 --> 00:02:38,120 Speaker 1: Of time, meaning they're less reliable for long term growth 64 00:02:38,200 --> 00:02:40,919 Speaker 1: due to their visa situation. So while non resident policy 65 00:02:40,919 --> 00:02:43,520 Speaker 1: holders growth of twenty five percent is good, investors are 66 00:02:43,560 --> 00:02:47,600 Speaker 1: more focused on sustainability provided by resident policy holders, which 67 00:02:47,720 --> 00:02:50,000 Speaker 1: is crucial for Medibank's long term success. 68 00:02:50,080 --> 00:02:52,400 Speaker 2: For our second story, the owner of the seven to 69 00:02:52,400 --> 00:02:55,640 Speaker 2: eleven chain globally has been approached in a forty billion 70 00:02:55,720 --> 00:02:58,720 Speaker 2: US dollar takeover from a Canadian convenience store. 71 00:02:59,040 --> 00:03:01,160 Speaker 1: Just when you thought grab a slurpy was the best 72 00:03:01,160 --> 00:03:03,280 Speaker 1: thing to happen at seven to eleven. Here comes a 73 00:03:03,360 --> 00:03:05,880 Speaker 1: forty billion dollar takeover bid. Juzzy Boy, tell me what's 74 00:03:05,919 --> 00:03:06,359 Speaker 1: going on here? 75 00:03:06,360 --> 00:03:08,880 Speaker 2: Okay? So seven eleven is a pretty iconic business. It 76 00:03:08,960 --> 00:03:11,120 Speaker 2: was first set up in Dallas, Texas, back in nineteen 77 00:03:11,160 --> 00:03:13,760 Speaker 2: twenty eight, and back then he was called Totem Stores. 78 00:03:13,919 --> 00:03:16,840 Speaker 1: But by nineteen forty six, the convenience store was open 79 00:03:16,960 --> 00:03:20,200 Speaker 1: seven days per week from seven am to eleven pm. 80 00:03:20,240 --> 00:03:21,600 Speaker 1: Where is this going, Juzzy boy. 81 00:03:21,440 --> 00:03:23,720 Speaker 2: Hence the new name seven eleven. 82 00:03:23,840 --> 00:03:26,760 Speaker 1: Now fast forward a few decades and the Japanese conglomerate 83 00:03:26,840 --> 00:03:29,680 Speaker 1: named seven and I Holdings. They gobbled up seven eleven 84 00:03:29,800 --> 00:03:32,519 Speaker 1: in the US and spread its convenience store empire across 85 00:03:32,560 --> 00:03:33,919 Speaker 1: fifteen countries. 86 00:03:33,600 --> 00:03:36,800 Speaker 2: Including Australia, which seven and I acquired seven eleven stores 87 00:03:36,800 --> 00:03:38,920 Speaker 2: for one point seven billion dollars last year. 88 00:03:38,960 --> 00:03:41,240 Speaker 1: Now get this one, Josey Boy. In total, this company 89 00:03:41,240 --> 00:03:45,840 Speaker 1: operates and franchises nearly eighty five thousand stores across nineteen countries. 90 00:03:45,880 --> 00:03:48,680 Speaker 2: But now be Man, a Canadian convenience store giant with 91 00:03:48,720 --> 00:03:50,880 Speaker 2: a name that is a serious tongue twister, has made 92 00:03:50,920 --> 00:03:53,040 Speaker 2: a take of a bid for seven and I. Their 93 00:03:53,120 --> 00:03:57,840 Speaker 2: name is Alimentation Cuchet Hard the owners of convenience stores 94 00:03:57,920 --> 00:04:00,640 Speaker 2: Circle K, which is a little bit easier pronounce. And 95 00:04:00,720 --> 00:04:02,760 Speaker 2: then Man. If this takeover goes ahead, it would be 96 00:04:02,760 --> 00:04:06,160 Speaker 2: the biggest ever foreign buyout of a Japanese company. 97 00:04:05,840 --> 00:04:08,680 Speaker 1: And it would be a major test for Japan's brands 98 00:04:08,680 --> 00:04:11,640 Speaker 1: banking new takeover rules yep, So what is the key 99 00:04:11,720 --> 00:04:14,680 Speaker 1: learning here? One small step for seven to eleven, one 100 00:04:14,840 --> 00:04:16,680 Speaker 1: giant leap for Japanese takeovers. 101 00:04:16,680 --> 00:04:19,000 Speaker 2: You see the man. In the past, Japanese companies were 102 00:04:19,040 --> 00:04:23,480 Speaker 2: known for prioritizing stability of a company over maximizing shareholder value. 103 00:04:23,520 --> 00:04:26,800 Speaker 2: This meant that management teams could swat away takeover bids 104 00:04:26,839 --> 00:04:30,560 Speaker 2: like in irritating Mosquito in your left ear, without ever 105 00:04:30,600 --> 00:04:33,039 Speaker 2: going to the board or their shareholders does wait. 106 00:04:33,160 --> 00:04:36,359 Speaker 1: Last year, the Japanese government rewrote its guidelines for foreign 107 00:04:36,400 --> 00:04:37,719 Speaker 1: takeover proposal. 108 00:04:37,360 --> 00:04:39,479 Speaker 2: With the hope that it could improve the chance of 109 00:04:39,560 --> 00:04:41,960 Speaker 2: deals going through and stimulating their economy. 110 00:04:42,040 --> 00:04:44,320 Speaker 1: And as a result of these new guidelines, it's harder 111 00:04:44,360 --> 00:04:47,600 Speaker 1: for Japanese companies to ignore takeover offers without at least 112 00:04:47,600 --> 00:04:52,520 Speaker 1: considering the benefit to shareholders. For our third and final story, Brevel, 113 00:04:52,720 --> 00:04:56,440 Speaker 1: the home appliances company, has brewed up record high sales 114 00:04:56,480 --> 00:04:59,120 Speaker 1: and it's got its coffee machines to say thank you for. 115 00:04:59,200 --> 00:05:00,800 Speaker 2: It would not have ex did Brevel to be the 116 00:05:00,839 --> 00:05:02,840 Speaker 2: high flyer in's economy. B Man, So what is going 117 00:05:02,920 --> 00:05:03,320 Speaker 2: on here? 118 00:05:03,360 --> 00:05:06,120 Speaker 1: Well, Brevel Juzzy Boy is the Aussie company that's been 119 00:05:06,160 --> 00:05:08,920 Speaker 1: around since nineteen thirty two, almost a century. 120 00:05:08,960 --> 00:05:12,960 Speaker 2: We're talking manufacturing a bunch of kitchen items like toasters, kettles, grills, 121 00:05:13,000 --> 00:05:14,760 Speaker 2: and of course the coffee machine. 122 00:05:14,800 --> 00:05:17,800 Speaker 1: Now Brevell has announced record sales of one point five 123 00:05:17,800 --> 00:05:19,320 Speaker 1: to three billion dollars. 124 00:05:19,080 --> 00:05:20,800 Speaker 2: And a seven and a half percent jump in its 125 00:05:20,800 --> 00:05:21,320 Speaker 2: net profit. 126 00:05:21,440 --> 00:05:24,360 Speaker 1: Now, this juicy news sent Brevel's share price up over 127 00:05:24,440 --> 00:05:24,920 Speaker 1: eight percent. 128 00:05:24,920 --> 00:05:27,039 Speaker 2: If you don't mind and be man, the hero behind 129 00:05:27,040 --> 00:05:30,000 Speaker 2: this caffeinated success story, Well, that'd have to be Brevel's 130 00:05:30,000 --> 00:05:34,000 Speaker 2: coffee machines, which hit double digit revenue growth, particularly. 131 00:05:33,400 --> 00:05:35,200 Speaker 1: In the US YEP. And this one was off the 132 00:05:35,200 --> 00:05:39,000 Speaker 1: back of Brevel acquiring Italian coffee machine supplier Lelite in 133 00:05:39,080 --> 00:05:40,320 Speaker 1: twenty twenty two and. 134 00:05:40,320 --> 00:05:43,920 Speaker 2: Introducing its premium coffee machines into US target. 135 00:05:44,040 --> 00:05:48,000 Speaker 1: Looks like America's finally waking up and smelling the espresso. 136 00:05:48,000 --> 00:05:49,479 Speaker 2: So what is the key learning here? 137 00:05:49,560 --> 00:05:52,840 Speaker 1: Premiumization is when a large chunk of a market moves 138 00:05:52,880 --> 00:05:55,679 Speaker 1: towards more expensive premium versions of a product. 139 00:05:55,720 --> 00:05:58,279 Speaker 2: You see a man. As a market matures, consumers become 140 00:05:58,320 --> 00:06:02,120 Speaker 2: more knowledgeable and familiar with the product and its intimate features, 141 00:06:02,160 --> 00:06:04,839 Speaker 2: and they start to demand more features or higher quality 142 00:06:05,080 --> 00:06:08,279 Speaker 2: or both aka higher end versions of the product. 143 00:06:08,360 --> 00:06:11,360 Speaker 1: Now, an amateur coffee enthusiast would probably up for a 144 00:06:11,400 --> 00:06:14,280 Speaker 1: simple machine like a Mocker pot or a pod machine. 145 00:06:14,360 --> 00:06:16,560 Speaker 2: Don't forget trust the old Nest Cafe Blend forty. 146 00:06:16,320 --> 00:06:18,840 Speaker 1: Three, absolutely, Johnzy Boy, I'd be happy with Nest Cafe 147 00:06:19,000 --> 00:06:20,440 Speaker 1: Blend forty two at this rate. 148 00:06:20,520 --> 00:06:23,760 Speaker 2: But as they evolve into coffee pros, consumers are starting 149 00:06:23,839 --> 00:06:26,800 Speaker 2: and more keen to invest in more premium machine. 150 00:06:26,480 --> 00:06:29,480 Speaker 1: Which is where Brevel is capitalizing, especially in the US. 151 00:06:29,600 --> 00:06:31,960 Speaker 1: In fact, the US coffee machine industry is expected to 152 00:06:32,000 --> 00:06:34,279 Speaker 1: reach three point seven billion bucks by the end of 153 00:06:34,320 --> 00:06:35,000 Speaker 1: this year. 154 00:06:34,800 --> 00:06:37,160 Speaker 2: Which will be the largest in the world and grow 155 00:06:37,200 --> 00:06:39,760 Speaker 2: at two point three five percent until twenty twenty eight. 156 00:06:40,000 --> 00:06:42,120 Speaker 2: Cop out Starbucks, what's sam If you want to check 157 00:06:42,160 --> 00:06:44,039 Speaker 2: up the weekend on a high with fifty bucks in 158 00:06:44,080 --> 00:06:46,880 Speaker 2: your front left pocket? There is only one simple way. 159 00:06:47,000 --> 00:06:49,200 Speaker 2: It's being the fastest and the smartest in our weekly 160 00:06:49,279 --> 00:06:51,479 Speaker 2: quiz Quick Sticks, so they sure to download the Flux 161 00:06:51,480 --> 00:06:53,240 Speaker 2: app and have your notifications turned on. 162 00:06:53,400 --> 00:06:56,240 Speaker 1: Thanks for listening and we'll see you on Monday.