Jetstar Asia is being shut down after 20 years of trying to break into the Asia market…and failing
Cochlear, the ASX-listed medical device company, has seen its shares take a hit but it’s hoping its bionic ear will save the day
Cettire, the online luxury fashion retailer, has seen its shares nosedive 30% after a slowdown in sales, profit and US luxury purchases
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
This is what the Flux. I'm Brett and I'm Justin
and it's Friday, the thirteenth of June.
Speaker 2 (00:09):
Bookie, Juzzy Boy, Another day, another embryo bungle by monash IVF.
They've admitted to a second embryo transfer issue this year alone.
Next minute, share price falls another twenty percent. The following minute,
CEO steps down. Bad news after bad news for this lot.
Speaker 1 (00:24):
Jesuits not looking good, b manu app. This is our
last episode until July ninth. But if you still want
to get your Flux fix, we have a heap of
new content and courses and videos rolled out in the
Flux app each and every day. We're talking tax time
tips to eachf courses. The Flux app is updated each
day with the things that you need to know about money.
To make sure it's down with the Flux app to
check it out and get your Flux fix.
Speaker 2 (00:46):
Three inspiring stories today Juzzy Boy for our first. Jetstar
Asia is being shut down after twenty years of trying
to break into the Asian market and failing.
Speaker 1 (00:57):
Geez in for a rough landing, it seems, b Man,
so tell me more well.
Speaker 2 (01:00):
Jetstar Airways is the resident budget Airline of Australia.
Speaker 1 (01:03):
You want some flight entertainment, that'll cost you.
Speaker 2 (01:05):
You want some nibbles? Oh you bet that'll cost you.
Speaker 1 (01:08):
You want to choose your seat cough in.
Speaker 2 (01:10):
It was created by Quantus in two thousand and three
to step into the budget airline space to compete with
Virgin Blue.
Speaker 1 (01:15):
And in two thousand and four Quantas also launched Jetstar Asia,
which is based in Singapore and flies all around Southeast
Asia and Jazzyboy.
Speaker 2 (01:22):
Up until now they've been competing with other budget airlines
in Asia.
Speaker 1 (01:25):
Your scoots, my favorite, your air Asias and do not
ever forget viet Jet as well.
Speaker 2 (01:29):
No, but in the post COVID world, Jetstar Asi's costs
have spiked nearly two hundred percent and.
Speaker 1 (01:34):
At the same time, intense competition in Asia keeps driving
flight prices down.
Speaker 2 (01:39):
In fact, Jazzy Boy, in twenty years they've only turned
a profit six times wow.
Speaker 1 (01:43):
And this financial year alone, Jetstar Asia is reported to
lose another thirty five million dollars yaikarinis.
Speaker 2 (01:49):
That can't be good for shareholder's confidence.
Speaker 1 (01:51):
Nope, not at all, And that's why Quantus a CEO,
is finally making the call to shut down Jetstar Asia for.
Speaker 2 (01:57):
Good Quantus reckons this will unlock five hundred million dollar
in capital that can be reinvested in the local business.
Speaker 1 (02:03):
So what is the key learning here?
Speaker 2 (02:04):
Just like in sport, businesses usually have a home ground
advantage when they operate in their domestic market, so be man.
Speaker 1 (02:10):
While it's tempting for ossie companies to expand into international orders,
it's not always an easy market to crack.
Speaker 2 (02:16):
Jetstar Asia was a foreign company operating against budget airlines
that were operating on their very own.
Speaker 1 (02:22):
Turf, which means Scoot and Air Asia had the upper
hand in terms of understanding the culture and the regulations
in Asia.
Speaker 2 (02:28):
Having higher brand loyalty and lower labor costs as well,
which made it possible to operate their services on razor
thin margins.
Speaker 1 (02:34):
But be man, they say. The first time that an
oussie business has gone knocking on Asia's door.
Speaker 2 (02:39):
Back in twenty sixteen, and Z announced a major celldown
of its retail banks in Asia.
Speaker 1 (02:43):
Yep, and they had some pretty big expectations when they
came in, but the CEO all the time admitted the
returns didn't quite match their expectation. Now that Jetstar's back
to focusing on domestic flights. Maybe those home field advantages
will give them a little extra competitive edge. For our
second story, Cochlear, the ASEX listed medical device company as
senor shares take a hit, but it's hoping that it's
(03:04):
bionic ear will save the day.
Speaker 2 (03:06):
Implants help people tune in, but right now investors are
tuning out, So tell me more.
Speaker 1 (03:11):
Okay. So Cocklear is the ASEX listed medical device company
to make some of the world's leading hearing implant.
Speaker 2 (03:17):
In fact, Cockley has sold over seven hundred and fifty
thousand hearing implants worldwide in more than one hundred and
eighty countries.
Speaker 1 (03:23):
Man, you may remember that Cochlear was originally spun out
of the CSIRO and it listed on the ASEX in
nineteen ninety five, and since then it has boomed YEP.
Speaker 2 (03:31):
Its market cap was under two hundred million bucks back
then and now it's more than seventeen bill But.
Speaker 1 (03:37):
Be Man, Cocklear's FI twenty five profit guidance is making
a lot less noise than expected.
Speaker 2 (03:42):
YEP. It has downgraded profit expectations from up to four
hundred and thirty million dollars down to a max of
four hundred mil and that.
Speaker 1 (03:49):
Means they're barely a whisper above last year's three hundred
and eighty seven million dollars in revenue.
Speaker 2 (03:54):
Growth, so small you'd need a hearing aid to pick
it up. And why the slow growth use boy, Well,
it's been losing a bit market share to competitors, and
it's also been facing a shift towards lower margin products
in emerging markets. But there is hope for twenty six
b man because Cochlear is planning to launch a world
first hearing implant which can stream mobile calls directly to
(04:14):
the implant devices.
Speaker 1 (04:16):
And it also has automatic firmware updates like an iPhone
in your ear.
Speaker 2 (04:19):
High margin product alert.
Speaker 1 (04:22):
And while Cochlear is promising this will be big, investors
were still selling off Cochlear shares in the meantime.
Speaker 2 (04:27):
So what is the key learning here?
Speaker 1 (04:28):
Sales volume is vanity? Well, profit is sanity?
Speaker 2 (04:31):
Does it way? Cochlear is growing implant volumes by about
ten percent, but a lot of that growth is coming
from emerging market.
Speaker 1 (04:37):
Which typically offer lower prices per.
Speaker 2 (04:39):
Unit, and that creates some margin pressure.
Speaker 1 (04:41):
In other words, the cost of making a product doesn't
change much, but the price you can charge it goes down.
Speaker 2 (04:46):
A company might grow sales overall, but end up making
less money if the mix tilts towards lower margin region.
Speaker 1 (04:52):
That's why Cochlear's next move is all about the premium plate.
Speaker 2 (04:55):
They're hoping that its fancy new product might shift the
product mix back towards premium product.
Speaker 1 (05:00):
But for now, investors and turning the volume down.
Speaker 2 (05:02):
For our third and final story, Satire, the online luxury
fashion retailer, has seen its chairs news dive thirty percent
after a slowdown in sales, profit, and US luxury purchases.
Speaker 1 (05:14):
The US is too busy watching Trump and Musco head
to head. Vhan no time to buy luxury bags.
Speaker 2 (05:19):
Tell me what well. Satire is the ASX listed luxury
marketplace selling all the big fashion houses.
Speaker 1 (05:24):
We've been talking Gucci, Montclair, Dalmain, Fendy, Voluntin, o Versachi,
and a whole lot more.
Speaker 2 (05:28):
It runs on a drop shipping model, meaning it doesn't
actually stock any of its items.
Speaker 1 (05:32):
And be Man. While their market cap rocketed to over
one point eight bill during COVID, it's fair to say
it's now on the clearance rout.
Speaker 2 (05:38):
We're talking a value of less than one hundred and
thirty mili.
Speaker 1 (05:41):
But ben Man things got messy out because Setaire's revenue
rose just one point seven percent in the last eleven
months to the thirty first of May.
Speaker 2 (05:47):
But most concerning was that it made a six point
nine million dollar loss in March and April this year.
Speaker 1 (05:52):
Through on top of that a decline in their active
customers since March, and investors are very worried.
Speaker 2 (05:57):
So what is the key learning here?
Speaker 1 (05:58):
In e commerce? Retailers can pull a few key levers
to drive revenue, but every lever has a trader.
Speaker 2 (06:03):
You can cut prices to get more sales and bring
in new customers, but if you do it.
Speaker 1 (06:07):
Too often, your profits will vanish faster than a deal
bag at a sample sale.
Speaker 2 (06:11):
Or you can hold prices steady and protect your margins,
but you.
Speaker 1 (06:14):
Risk watching your customers disappear to cheaper pastures aka the czaras.
Speaker 2 (06:19):
So in Seti's case, they've been pulling on all the
levers all at once and still not seeing results.
Speaker 1 (06:24):
Yeah, it's been discounting heavily, but active users still fell
three and a half percent since March. So be man.
With poor performance and no Burkan sized miracle insight, it's
no surprise that Seti's share price has fallen by eighty
five percent since the start of this year alone. But Sam,
just a reminder. We'll be back on July ninth, after
a bit of a break of the pod, but there
is absolutely no break in the Flux app. We've got
(06:45):
a heap of new content and courses and videos rolled
out each and every day. To make sure to download
the app to check it out and stay on top
of your money.
Speaker 2 (06:52):
Thanks for listening, and we'll see you on July than nine.
This is what the Flux. I'm Brett and I'm Justin
and it's Friday, the thirteenth of June.
Speaker 2 (00:09):
Bookie, Juzzy Boy, Another day, another embryo bungle by monash IVF.
They've admitted to a second embryo transfer issue this year alone.
Next minute, share price falls another twenty percent. The following minute,
CEO steps down. Bad news after bad news for this lot.
Speaker 1 (00:24):
Jesuits not looking good, b manu app. This is our
last episode until July ninth. But if you still want
to get your Flux fix, we have a heap of
new content and courses and videos rolled out in the
Flux app each and every day. We're talking tax time
tips to eachf courses. The Flux app is updated each
day with the things that you need to know about money.
To make sure it's down with the Flux app to
check it out and get your Flux fix.
Speaker 2 (00:46):
Three inspiring stories today Juzzy Boy for our first. Jetstar
Asia is being shut down after twenty years of trying
to break into the Asian market and failing.
Speaker 1 (00:57):
Geez in for a rough landing, it seems, b Man,
so tell me more well.
Speaker 2 (01:00):
Jetstar Airways is the resident budget Airline of Australia.
Speaker 1 (01:03):
You want some flight entertainment, that'll cost you.
Speaker 2 (01:05):
You want some nibbles? Oh you bet that'll cost you.
Speaker 1 (01:08):
You want to choose your seat cough in.
Speaker 2 (01:10):
It was created by Quantus in two thousand and three
to step into the budget airline space to compete with
Virgin Blue.
Speaker 1 (01:15):
And in two thousand and four Quantas also launched Jetstar Asia,
which is based in Singapore and flies all around Southeast
Asia and Jazzyboy.
Speaker 2 (01:22):
Up until now they've been competing with other budget airlines
in Asia.
Speaker 1 (01:25):
Your scoots, my favorite, your air Asias and do not
ever forget viet Jet as well.
Speaker 2 (01:29):
No, but in the post COVID world, Jetstar Asi's costs
have spiked nearly two hundred percent and.
Speaker 1 (01:34):
At the same time, intense competition in Asia keeps driving
flight prices down.
Speaker 2 (01:39):
In fact, Jazzy Boy, in twenty years they've only turned
a profit six times wow.
Speaker 1 (01:43):
And this financial year alone, Jetstar Asia is reported to
lose another thirty five million dollars yaikarinis.
Speaker 2 (01:49):
That can't be good for shareholder's confidence.
Speaker 1 (01:51):
Nope, not at all, And that's why Quantus a CEO,
is finally making the call to shut down Jetstar Asia for.
Speaker 2 (01:57):
Good Quantus reckons this will unlock five hundred million dollar
in capital that can be reinvested in the local business.
Speaker 1 (02:03):
So what is the key learning here?
Speaker 2 (02:04):
Just like in sport, businesses usually have a home ground
advantage when they operate in their domestic market, so be man.
Speaker 1 (02:10):
While it's tempting for ossie companies to expand into international orders,
it's not always an easy market to crack.
Speaker 2 (02:16):
Jetstar Asia was a foreign company operating against budget airlines
that were operating on their very own.
Speaker 1 (02:22):
Turf, which means Scoot and Air Asia had the upper
hand in terms of understanding the culture and the regulations
in Asia.
Speaker 2 (02:28):
Having higher brand loyalty and lower labor costs as well,
which made it possible to operate their services on razor
thin margins.
Speaker 1 (02:34):
But be man, they say. The first time that an
oussie business has gone knocking on Asia's door.
Speaker 2 (02:39):
Back in twenty sixteen, and Z announced a major celldown
of its retail banks in Asia.
Speaker 1 (02:43):
Yep, and they had some pretty big expectations when they
came in, but the CEO all the time admitted the
returns didn't quite match their expectation. Now that Jetstar's back
to focusing on domestic flights. Maybe those home field advantages
will give them a little extra competitive edge. For our
second story, Cochlear, the ASEX listed medical device company as
senor shares take a hit, but it's hoping that it's
(03:04):
bionic ear will save the day.
Speaker 2 (03:06):
Implants help people tune in, but right now investors are
tuning out, So tell me more.
Speaker 1 (03:11):
Okay. So Cocklear is the ASEX listed medical device company
to make some of the world's leading hearing implant.
Speaker 2 (03:17):
In fact, Cockley has sold over seven hundred and fifty
thousand hearing implants worldwide in more than one hundred and
eighty countries.
Speaker 1 (03:23):
Man, you may remember that Cochlear was originally spun out
of the CSIRO and it listed on the ASEX in
nineteen ninety five, and since then it has boomed YEP.
Speaker 2 (03:31):
Its market cap was under two hundred million bucks back
then and now it's more than seventeen bill But.
Speaker 1 (03:37):
Be Man, Cocklear's FI twenty five profit guidance is making
a lot less noise than expected.
Speaker 2 (03:42):
YEP. It has downgraded profit expectations from up to four
hundred and thirty million dollars down to a max of
four hundred mil and that.
Speaker 1 (03:49):
Means they're barely a whisper above last year's three hundred
and eighty seven million dollars in revenue.
Speaker 2 (03:54):
Growth, so small you'd need a hearing aid to pick
it up. And why the slow growth use boy, Well,
it's been losing a bit market share to competitors, and
it's also been facing a shift towards lower margin products
in emerging markets. But there is hope for twenty six
b man because Cochlear is planning to launch a world
first hearing implant which can stream mobile calls directly to
(04:14):
the implant devices.
Speaker 1 (04:16):
And it also has automatic firmware updates like an iPhone
in your ear.
Speaker 2 (04:19):
High margin product alert.
Speaker 1 (04:22):
And while Cochlear is promising this will be big, investors
were still selling off Cochlear shares in the meantime.
Speaker 2 (04:27):
So what is the key learning here?
Speaker 1 (04:28):
Sales volume is vanity? Well, profit is sanity?
Speaker 2 (04:31):
Does it way? Cochlear is growing implant volumes by about
ten percent, but a lot of that growth is coming
from emerging market.
Speaker 1 (04:37):
Which typically offer lower prices per.
Speaker 2 (04:39):
Unit, and that creates some margin pressure.
Speaker 1 (04:41):
In other words, the cost of making a product doesn't
change much, but the price you can charge it goes down.
Speaker 2 (04:46):
A company might grow sales overall, but end up making
less money if the mix tilts towards lower margin region.
Speaker 1 (04:52):
That's why Cochlear's next move is all about the premium plate.
Speaker 2 (04:55):
They're hoping that its fancy new product might shift the
product mix back towards premium product.
Speaker 1 (05:00):
But for now, investors and turning the volume down.
Speaker 2 (05:02):
For our third and final story, Satire, the online luxury
fashion retailer, has seen its chairs news dive thirty percent
after a slowdown in sales, profit, and US luxury purchases.
Speaker 1 (05:14):
The US is too busy watching Trump and Musco head
to head. Vhan no time to buy luxury bags.
Speaker 2 (05:19):
Tell me what well. Satire is the ASX listed luxury
marketplace selling all the big fashion houses.
Speaker 1 (05:24):
We've been talking Gucci, Montclair, Dalmain, Fendy, Voluntin, o Versachi,
and a whole lot more.
Speaker 2 (05:28):
It runs on a drop shipping model, meaning it doesn't
actually stock any of its items.
Speaker 1 (05:32):
And be Man. While their market cap rocketed to over
one point eight bill during COVID, it's fair to say
it's now on the clearance rout.
Speaker 2 (05:38):
We're talking a value of less than one hundred and
thirty mili.
Speaker 1 (05:41):
But ben Man things got messy out because Setaire's revenue
rose just one point seven percent in the last eleven
months to the thirty first of May.
Speaker 2 (05:47):
But most concerning was that it made a six point
nine million dollar loss in March and April this year.
Speaker 1 (05:52):
Through on top of that a decline in their active
customers since March, and investors are very worried.
Speaker 2 (05:57):
So what is the key learning here?
Speaker 1 (05:58):
In e commerce? Retailers can pull a few key levers
to drive revenue, but every lever has a trader.
Speaker 2 (06:03):
You can cut prices to get more sales and bring
in new customers, but if you do it.
Speaker 1 (06:07):
Too often, your profits will vanish faster than a deal
bag at a sample sale.
Speaker 2 (06:11):
Or you can hold prices steady and protect your margins,
but you.
Speaker 1 (06:14):
Risk watching your customers disappear to cheaper pastures aka the czaras.
Speaker 2 (06:19):
So in Seti's case, they've been pulling on all the
levers all at once and still not seeing results.
Speaker 1 (06:24):
Yeah, it's been discounting heavily, but active users still fell
three and a half percent since March. So be man.
With poor performance and no Burkan sized miracle insight, it's
no surprise that Seti's share price has fallen by eighty
five percent since the start of this year alone. But Sam,
just a reminder. We'll be back on July ninth, after
a bit of a break of the pod, but there
is absolutely no break in the Flux app. We've got
(06:45):
a heap of new content and courses and videos rolled
out each and every day. To make sure to download
the app to check it out and stay on top
of your money.
Speaker 2 (06:52):
Thanks for listening, and we'll see you on July than nine.
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