Economy Is The

Since 1876 BUSINESS | CURRENT AFFAIRS | LEISURE September 2014 ECONOMY IS THE KEY Sparking a brand change $4.50 incl GST Publisher:MG Publications PO Box 20034, Christchurch 0457-APSTGeneri cPre - 1 2014-08-26T11:28:11+12:00 Sell it pack it, label it, sort it, scan it, dispatch it, fly it, freight it, truck it, courier it, track it, deliver it... love it IF YOUR BUSINESS SELLS IT ONLINE, WE’LL TAKE IT FROM THERE. Together, New Zealand Post and CourierPost offer end-to-end management of your eCommerce logistics and delivery process. Our domestic and global reach combined with smart online tools, customer targeting and direct marketing can help connect your products to more people in more places. It’s everything you need to keep your customers happy, so you can focus on selling it. See how we can help you. Visit nzpostecommerce.com or call 0800 501 503. PST0457_A 0457-APSTGeneri cPre - 1 2014-08-26T11:28:11+12:00 CONTENTS e dItor Warren Head Sell it pack it, label it, Tel (03) 357-0442 Fax (03) 357 0426 Mob: 021 340-650 [email protected] desIgn gail Williams david streeten cHrIstcHurcH sort it, scan it, dispatch it, Head offIce Tel (03) 358 3219 Fax (03) 357 0426 8 Sheffield Crescent P O Box 20034 Bishopdale Christchurch 8543 adVertIsIng auckland offIce fly it, freight it, truck it, Heather driver - advertising Manager Ira rawiri Tel (09) 360-1026 Fax (09) 360-1028 [email protected] 14 [email protected] 1/1 Curran Street, Herne Bay, P.O. Box 90953 Victoria Street West courier it, Auckland 1142. Mg PublIcatIons MG magazine is published 11 times a year by MG Publications PublIsHer Warren Head Cover: Prime Minister John Key faces the media mid-campaign. Photo: SNPA ManagIng dIrector track it, derek freear 2 Intray 16 Pro Perty Redevelopment Promise at Pakuranga Plaza subscrIPtIons 3 In VestMent Free Phone 0800 649 696 Trimmed Spark expects profit growth 18 I nfotecH Tel (03) 358-3219 Bridging a Funding Gap [email protected] 4 Pols ItIc Prtg In In Finances to be Kept in the Black 21 retaIl Wickliffe nZ ltd TV Shopping Making Progress love it 5 lg e IslatIon 22 M g legal Match-fixing to be addressed ahead of How does the Privacy Act apply to mobile tournaments deliver it... apps? 6 COr Ve STORY 26 M g otorIn It’s the economy that counts - Kia Sportage - Celebrating 21 Years Intellectual ProPerty (c) MG Publications 2014. All it always is 28 We In rights reserved. No part of this Ascension – Still on the Rise publication may be reproduced, 10 tHe ECONOMy IF YOUR BUSINESS SELLS IT ONLINE, WE’LL TAKE IT FROM THERE. stored in a retrieval system or Productivity boosts port returns transmitted in any form or by 30 ManageMent any means without the prior Pitfalls of Partnerships Together, New Zealand Post and CourierPost offer end-to-end management of your eCommerce permission of the copyright 12 b rands Spark of Youthful Enthusiasm logistics and delivery process. Our domestic and global reach combined with smart online tools, owner. Opinions expressed by 31 MI lestones customer targeting and direct marketing can help connect your products to more people in more contributing articles are those places. It’s everything you need to keep your customers happy, so you can focus on selling it. of the writers and not MG 14 e Vents Publications. ISSN: 2253-248X Ten Glittering Years for SKYCITY 32 Heartland See how we can help you. Visit nzpostecommerce.com or call 0800 501 503. Auckland Convention Centre MG | SEPTEMBER 2014 1 PST0457_A IN TRAY Fewer Jobs Advertised Job advertising fell 2.7 per cent in July (seasonally adjusted), unwinding much of June’s lift, said ANZ Bank senior economist Sharon Zollner. “Momentum has cooled in recent months,” she said. “Nationwide internet job advertising fell 1.9 per cent in July (sa), continuing the recent pattern of oscillations around zero. This contrasts unfavourably with the four months of solid rises that kicked off 2014. Newspaper job advertising fell 8.0 per cent in July, giving up most of its 8.8 per cent June rise. Total job advertising fell in all three main centres in July. Canterbury remains clearly the nation’s strongest labour market. The level of job advertising is consistent with continuing but more modest employment growth. We expect the unemployment rate to edge under 5.5 per cent by year’s end.” Margin Shift at Turners Turners Group has reported Fleet revenue exceeding Auctions revenue for the second six months in a row. This is a reflection of their strategic shift from auction sales to higher margin retail sales. The Fleet division, where vehicles are acquired and on-sold by Turners, benefitted from the growing popularity of Turners’ BuyNow and CashNow services, where customers can sell and buy cars for cash, rather than through auction. Auctions showed recovery from the loss of a major contract in 2013. “Market conditions are moving in favour of customers purchasing used vehicles with a strong New Zealand dollar, heavy discounting on new cars and an influx of imports from Japan leading to a surge in Immigration on a Roll supply,” said Turners. The increase in retail vs. wholesale With the flash of an air ticket and the hint “We don’t expect Australian job prospects customers and personalised retail sales of a hard-hat, arrivals of Australians are at to improve decisively before early next so this channels were the primary drivers behind multi-decade highs. Annual met immigration migration dynamic could continue for a while — the 41 per cent increase in revenues from has now crossed the 40,000 threshold, with we now expect net immigration to peak around the Finance division, with the loan book monthly net immigration accelerating in July 50,000 early next year. growing to $30.5 million as at 30 June to a new decade high of 4,450 (prior peak Along with recent falls in fixed mortgage rates 2014. 2003). Contrary to some politicking the major and a revival in low-equity lending, Westpac influx is not Asian. “The major factor driving expect this surge to support a temporary revival this migration cycle has been movements by in the housing market over the next year or both New Zealanders and Australians across the so — by next year they expect improving job Tasman,” says Westpac. prospects in Australia to reverse net migration. PwC Appointed Polarcold Joining Wiri Hub Liquidators Following a meeting held as part of the Polarcold Stores operation has secured Fonterra as a customer for a new cold store Voluntary Administration requirements for to be built in South Auckland. The Scales Corporation subsidiary has secured a long Retva Ltd (Administrators Appointed) (formerly term lease at Ports of Auckland’s intermodal freight hub in Wiri. The hub hosts an Postie Plus Group Ltd), the creditors voted to inland port and empty container depot and has rail links to the Auckland Port and appoint PwC Partners David Bridgman and the Central and Lower North Island, plus easy access to SH1 & SH20. Subject to final Colin McCloy as liquidators of the company. project assumptions meeting expectations, construction is set to begin in Q4 2014 This follows on from the completion of the with the new facility set to be operational in Q3 2015. sale of the company’s business to Roan Ltd Scales Corporation managing director Andy Borland says there is consistent and (since renamed Postie Plus Group Ltd) on 18 ongoing demand for domestic temperature controlled storage. “New Zealand’s July 2014. perishable food exports have increased by almost 65 per cent in volume terms since The liquidators will provide further reports to 1990 and our forecasts show this continuing into the future. creditors, 2 SEPTEMBER 2014 | MG neill birss on InvESTMEnT Trimmed Spark expects profit growth park New Zealand, formerly Telecom, has a chance to cent to $3.638 billion and net earnings fell 7.7 per cent to $323 grow in the surging market of smart phone and tablet million. users. Spark has trimmed staff, refocused and obtained the In the latest results available (for 2013) Vodafone NZ reported biggest block of wireless spectrum freed up by the closing revenue of $1.767 billion and after-tax profit of $55.9 million. Two S Degrees reported $263 million revenue and a $35.89 million loss. of pre-digital (anologue) television. Mobile spending averages near $30 per household and is rising Vodafone doesn’t break out its mobile revenue. Spark lists 2014 while revenue from fixed-line phones fall. Young people walking the mobile revenue as $976 million. streets, head down, tapping smart phones indicate the trend will Spark at June 30 had 669,000 broadband customers, up 3.1 per intensify. cent in the year, and 47 per cent of market connections. It has In the June 30 year, Spark’s dividend rose a cent to 17 cents, more than 10,000 fibre customers and more than 30,000 VDSL partly tax-imputed. Its share price as I write (on profit release date), customers. closed 5 cents down at $2.86. This gives a gross yield, tax credits and cash, of about 7.5 per cent. The managing director, Simon Moutter, hopes the company will pay 18 cents, fully imputed, in the present 2015 financial year. The share price has risen 28 per cent in 12 months. The company believes that from now profit can rise. However, cost cutting will be tougher. It will increasingly be through new technology rather than by staff reduction.

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