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Speaker 1: From Demon Fund's management, Greg Smith, morning to you, Morning you, Mike,

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Speaker 1: was spark a surprise at that level.

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Speaker 2: It was a surprise the market was expecting a poor

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Speaker 2: result that it was much poorer than expected. There wasn't

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Speaker 2: really any bright spots in a major way at all.

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Speaker 2: So it was seeing some earning disappoints over the year,

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Speaker 2: but this one was an absolute doozy on Friday, so

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Speaker 2: the share price fell nineteen percent. That's a huge move

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Speaker 2: for such a big company. So what a billion dollars

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Speaker 2: from the telco's market value? Net profit that fell seventy

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Speaker 2: eight percent and then reduced the full year outlook as well.

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Speaker 2: So look, we know things are tough, we know we're

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Speaker 2: in a recession, but this was their third profit downgrade.

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Speaker 3: In the year.

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Speaker 2: So normally it gets sort a bit of an advanced

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Speaker 2: warning of these things, and investors didn't, and that's what

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Speaker 2: they're rected to. So we know the government's coming back

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Speaker 2: on spending, so to a business's consumers also looking for

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Speaker 2: better deals than a competit mobile market, so this is

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Speaker 2: all taking its toll. So what's the telco doing. They're

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Speaker 2: trying to reduce costs. You see lots of businesses are

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Speaker 2: doing that against the backdrop of a recession. Well look

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Speaker 2: what one minder Brits Spot. I suppose you could say

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Speaker 2: it as data centers, but it's still a small part

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Speaker 2: of the business for now. And they did also reaffirm

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Speaker 2: their dividend guidance for the full year. But that's something

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Speaker 2: because they're selling the rest of their steak can sell

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Speaker 2: to our company CONNECTSUS. So the investors just focused on

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Speaker 2: the underlying result there, Mike, and you are pretty poor

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Speaker 2: on it there. It wasn't the only one in the days.

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Speaker 2: Sky Network TV they fell three percent as well. They're

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Speaker 2: half unings down twenty six percent, so we know the

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Speaker 2: problems I've had before satellite migration project. But also the

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Speaker 2: recession is binding. But they've been spending lots on programming.

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Speaker 2: Good for coverage of the Paris Olympics, but leaves a

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Speaker 2: bit of a bill so they're going to moderate that.

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Speaker 2: But good news for them as they have got that

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Speaker 2: six year deal on the home matches for black Caps

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Speaker 2: and White Ferns. But I suppose you have to say, Mike,

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Speaker 2: last week you look at the results in Spark Sky TV,

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Speaker 2: sky City Finture building.

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Speaker 3: They will really reflect how.

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Speaker 2: Tough our economy is at the moment, I suppose the

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Speaker 2: brightness on the horizon. We had that RB and zed

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Speaker 2: Raycat and there'll be more of those in the coming months,

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Speaker 2: so maybe a better second half.

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Speaker 3: Of the year.

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Speaker 1: And we also have from Tira.

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Speaker 2: That's right, and you talked obviously about the divestment plans there.

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Speaker 2: But yeah, Darius sector has been going well. Further reminded,

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Speaker 2: here's a fin Tierra. They've forecasts at full year twenty

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Speaker 2: five earnings will be in the upper half of their

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Speaker 2: previously announced range, and also forecasting a twenty four to

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Speaker 2: twenty five farm gate milk price midpoint of ten bucks

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Speaker 2: per kilogram of milk sids, so that would be a.

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Speaker 3: Record milk collections.

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Speaker 2: They are going well, favorable weather, so they are up

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Speaker 2: to one ten million kilograms milk solids and they said

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Speaker 2: there's going to be really strong in term difference. That's

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Speaker 2: all great news for dairy farmers. My frontier shoes themselves

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Speaker 2: are up almost five percent. And let's not forget there

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Speaker 2: was another big positive story for the sector last week

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Speaker 2: A two. They rose twenty percent on their results earlier

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Speaker 2: in the week, so they're doing well in China. Spite

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Speaker 2: declining birth rates and like a lot of exporters benefiting

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Speaker 2: from a weaker Kiwi dollar.

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Speaker 1: Now what do we make of Domain, which of course

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Speaker 1: is partly owned by Channel nine and this this American bird.

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Speaker 3: Yeah, it's really interesting.

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Speaker 2: So US real estate giant coast they came out launched

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Speaker 2: a bid which values Domain at two point six billion

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Speaker 2: Australian dollars.

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Speaker 3: So they just saw their years saw forty percent on.

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Speaker 2: Friday nine sixty percent of Domain, so their shares sowed

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Speaker 2: over twenty percent. They said the BID's not enough. They

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Speaker 2: see Domain strategically important. It has been a prize to

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Speaker 2: joy set for them. So yeah, it's really interesting. It's

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Speaker 2: not the first time Coastar has been inquisitive. It's attempted

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Speaker 2: to buy a US portal move for five billion look

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Speaker 2: to do that from News Corp a couple of years ago,

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Speaker 2: bought on the market in the UK a really bit

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Speaker 2: of a global landgraud. They bought three D mapping property

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Speaker 2: mapping service Metaport for two point five billion last year.

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Speaker 2: So I suppose you know what if they do do it,

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Speaker 2: what they can probably do look to do is invest

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Speaker 2: more in Domain. So at the moment, Domain is much

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Speaker 2: smaller than bigger competitor Aria Group, which has around sixty

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Speaker 2: percent of online listings versus domains thirty percent. And Area

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Speaker 2: has just got much more financial firepower. So they've ded

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Speaker 2: over thirty billion dollars that's ten times domain. The deal

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Speaker 2: could leave all the playing field and that's what Coastar

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Speaker 2: did when it bought home homes in dot com in

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Speaker 2: twenty twenty one. So they invested about a billion dollars

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Speaker 2: in sales of marketing and it took them from being

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Speaker 2: a lagging listing site to the one of the most

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Speaker 2: popular in the US.

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Speaker 3: So preeps stay tuned. And also it's a bit of

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Speaker 3: a signal here.

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Speaker 2: Mike the CEO OFRIA, he jumped ship last week, so

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Speaker 2: weirdly go to domain, so it could be a bit

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Speaker 2: of a change.

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Speaker 3: In the guard.

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Speaker 1: Interesting numbers please, Yeah.

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Speaker 2: So we had the dow down one point seven percent

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Speaker 2: on Friday and these some P five hundred he used.

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Speaker 2: Consumer sentiment fell ten percent. Is worries here about tariffs,

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Speaker 2: inflation and so on. We also had Home Sales and

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Speaker 2: Services P my week and expected nar'sack down.

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Speaker 3: Two point two percent.

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Speaker 2: Foot Sea was flat eight six five nine and Nick

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Speaker 2: caves up point three percent.

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Speaker 3: Hang Staying had a big day.

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Speaker 2: Tech stocks again on the charge, up four percent, a

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Speaker 2: SX two hundred down point three percent, ins X fifty. Obviously,

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Speaker 2: we were weighed down by Spark down one percent, twelve

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Speaker 2: seven five to two, Gold down three dollars two nine

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Speaker 2: three six and Ounce still around record levels. Oil down

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Speaker 2: couple of bucks seventy spot forty a barrel. Currency market's

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Speaker 2: keep we weaker against the US fifty seven point four.

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Speaker 2: We're up slightly against the adult ninety point three, British

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Speaker 2: pound forty five point five down slightly, Japanese year eighty

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Speaker 2: five point seven, down point six percent.

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Speaker 3: This week, Mike, we've got.

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Speaker 2: Plenty going on news, durable goods, GDP, USE, inflation results,

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Speaker 2: got Home Depot that's a big retail giants salesforce, AI

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Speaker 2: Darling and Video, and then Kervy retail sales card, spending

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Speaker 2: business consumer confidence, and we've got plenty of results, twenty

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Speaker 2: of them, including Meridian, Mercury and Somerset.

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Speaker 1: Very good piece in the Herald yesterday. How many words

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Speaker 1: is that, by the way.

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Speaker 3: I think it was about nine hundred something on that

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Speaker 3: Hope I hit hit the mark.

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Speaker 1: No, No, it did it hit the mark. It just

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Speaker 1: took me a bit of time.

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Speaker 3: That was all I go.

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Speaker 1: Well Grigg Smith at Devon Funds Management.

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Speaker 2: For more from the mic Asking Breakfast, listen live to

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Speaker 2: news talks there'd be from six am weekdays, or follow

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