BANKING
Commonwealth CEO retiring
Commonwealth Bank of Australia CEO Ian Narev is to retire by the end of the 2018 financial year as the nation’s largest lender seeks to mitigate fallout from a money-laundering scandal. Chairman Catherine Livingstone said in a statement the board was detailing its succession plan to “provide certainty for the business.” The exact timing of Narev’s departure will depend on the search for a successor, with the board looking at both internal and external candidates. Pressure is building on Commonwealth Bank amid allegations by the nation’s financial crimes agency that drug syndicates used its network of deposit machines to launder cash, despite warnings from police.
ENTERTAINMENT
Rovio eyes September IPO
Rovio Entertainment Oy is planning an initial public offering (IPO) as early as next month that could value the maker of the Angry Birds mobile games and movie at about US$2 billion, people familiar with the matter said. Rovio could raise about US$400 million from a local market listing, the people said. No final decisions have been made and the company could also choose to stay private for longer, they said. Rovio, based in Espoo, Finland, reported revenue growth of 34 percent for last year to 190.3 million euros (US$225 million) and earnings before interests and taxes of about 17.5 million euros compared with a loss in the previous year.
LOGISTICS
DX, Menzies drop plan
British mail delivery firm DX Group yesterday said talks for a potential merger with John Menzies PLC’s distribution unit had been terminated due to unsuitable terms. The company was preparing to buy Menzies’ distribution arm in a deal aimed at bolstering DX after a profit warning in February that cited a challenging courier market and margin pressure in its freight business. DX last month said it would split its business into DX Express and DX Freight, and the reorganization would give it greater flexibility in managing costs. DX is one of several big operators in the crowded parcels market, where DHL-owner Deutsche Post has bulked up by buying UK Mail, and Amazon has started its own deliveries.
GAMES
Nexon shares post new high
Shares of Nexon Co, the Tokyo-based maker of PC and mobile games, climbed to a record high after software updates to older games pushed its earnings above forecasts. Operating income in the June quarter rose 22 percent from a year ago to ¥16.3 billion (US$149 million), topping its projection for as much as ¥14 billion. Net income more than doubled to ¥19.4 billion, aided by a ¥6.3 billion gain from a weakening Korean won. The stock jumped as much as 12 percent to ¥2,480.
LUXURY GOODS
Euro’s rise a risk to sales
The euro’s strong run since the start of the year may dent a recovery in the European luxury industry, which has been led by a rebound in Chinese consumer spending, analysts at RBC Capital Markets and HSBC Holdings PLC said. The euro has gained about 12 percent versus the US dollar this year, a shift that brings uncertainty over tourist flows to Europe in coming quarters, the analysts said. The BI Europe Luxury Goods Top Peers Index has climbed about 40 percent in the past 12 months, paring multiyear declines as China’s crackdown on corruption hurt demand for high-end items. LVMH, Hermes International, Kering SA and other firms reported a rebound in luxury sales this year as Asian shoppers returned.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI
Qualcomm Inc, the world’s biggest seller of smartphone processors, gave an upbeat forecast for sales and profit in the current period, suggesting demand for handsets is increasing after a two-year slump. Revenue in the three months ended in June will be US$8.8 billion to US$9.6 billion, the company said in a statement Wednesday. Excluding certain items, earnings will be US$2.15 to US$2.35 a share. Analysts had projected sales of US$9.08 billion and earnings of US$2.16 a share. The outlook signals that the smartphone market has begun to bounce back, tracking with Qualcomm’s forecast that demand would gradually recover this year. The San