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Disney Logo
  • commented 1 hours ago
  • tags: DIS
  • Walt Disney [ less... ]
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    What's Fueling Crude Oil Production Growth For EOG Resources?
  • by , 1 hours ago
  • tags: EOG-BY-COMPANY EOG COP APC
  • EOG Resources’ (NYSE:EOG) net crude oil production has grown sharply from just around 55,000 barrels per day in 2009 to over 220 million barrels per day (MBD) last year, implying a CAGR of more than 41%. Almost all of this growth in the company’s crude oil production has come from its operations in the Eagle Ford and Bakken shale plays in the U.S. This year, EOG Resources plans to grow its net crude oil production by another 29% over last year. In this article, we take a closer look at what’s fueling this extraordinary growth in the company’s crude oil production. EOG Resources is an independent oil and gas exploration and production company that explores, develops, produces and markets crude oil, natural gas liquids and dry natural gas from major producing basins in the U.S., Trinidad, Canada and the U.K. A vast majority (around 94%) of the company’s total net proved reserves are located in the U.S., while the remaining are spread across other international markets including Trinidad, U.K., Canada, Argentina and China. We recently launched coverage of EOG Resources with a $105/share price estimate, which values it at almost 18.3x our 2014 adjusted diluted EPS estimate of $5.75 for the company. See Our Complete Analysis For EOG Resources Eagle Ford EOG Resources derives more than 96% of its total crude oil production from the U.S., where the recent growth in tight oil production has been phenomenal to say the least. From almost nothing in 2005, the country’s crude oil production from horizontal drilling of relatively impervious rocks has grown to around 3 million barrels per day currently. A large proportion of this growth (almost 40%) has come from increased horizontal drilling in the Eagle Ford shale formation, where EOG Resources holds a very lucrative acreage. The Eagle Ford shale formation in South Texas runs from the U.S.-Mexico border north of Laredo in a narrow band extending northeast for several hundred miles to just north of Houston. It is currently the largest tight oil play in the U.S. by EIA estimates. Its proved crude oil reserves of 3.4 billion barrels are greater than those of the Bakken Formation of North Dakota. EOG Resources is the leading oil producer and acreage holder in the Eagle Ford shale. The company holds 632,000 net acres in the play, a majority of which, around 564,000 net acres fall in the crude oil window of the formation. EOG Resources derives more than 55% of its total crude oil production from the Eagle Ford shale. At the end of the first quarter of this year, the company’s average daily net crude oil production from the Eagle Ford shale stood at 207,000 barrels, compared to just over 30,000 barrels in 2011. During the most recently reported quarter, EOG Resources’ net crude oil production from the formation grew by over 45% year-on-year. Despite the recent run-up, there is still a significant growth opportunity for EOG Resources in the Eagle Ford shale. At the end of last year, the company’s net proved reserves in the play stood at 765 million barrels of oil equivalent. This means that if the proportion of crude oil in its total oil equivalent production and the average daily hydrocarbon production rate from the play remain constant at 2013 levels, the company can continue to tap the play for at least 13 more years. It should also be noted that proved reserves represent only a small fraction of the company’s total reserve potential in the Eagle Ford shale, which is around 3.2 billion barrels of oil equivalent or almost 4.2x its net proved reserves in the play at the end of last year. EOG Resources has currently identified 7,200 drilling locations in the Eagle Ford shale. This year, the company plans to drill around 520 wells in the area employing as many as 26 rigs. Permian EOG Resources also holds some very lucrative acreage in the Permian Basin. The Permian region in western Texas and extending into southeastern New Mexico, has been one of North America’s major oil and natural gas producing regions for nearly a century. It accounts for about two-thirds of crude oil production in Texas and nearly 15% of EOG Resources’ entire U.S. acreage in both the Delaware and Midland basins in the Permian region. In the Delaware basin, the company holds 207,000 net acres spread over Leonard and Wolfcamp shale. In the Leonard shale, EOG Resources holds 73,000 net acres that hold net proved hydrocarbon reserves of around 63 million barrels of oil equivalent. The company has identified around 1,600 drilling locations in its acreage in the Leonard shale. This year, it plans to employ two rigs to drill around 40 net wells in the area with average after-tax rate of return (ATROR) of more than 100%. Bakken In addition to the Eagle Ford and Permian, EOG Resources is also ramping up its operations in the Bakken shale play located in Eastern Montana and Western North Dakota, as well as parts of Saskatchewan and Manitoba in the Williston Basin. Oil was initially discovered in the Bakken play in 1951, but was not commercial on a large scale until the past 10 years. The advent of modern horizontal drilling and hydraulic fracturing helped make Bakken oil production economic. According to latest EIA estimates, the Bakken tight oil play holds 3.2 billion barrels of technically and economically recoverable crude oil. EOG Resources holds 110,000 net acres in the play. At the end of last year, the company held net proved hydrocarbon reserves of 221 million barrels of oil equivalent in the play. This year, EOG Resources plans to drill around 86 wells in the area employing 6-7 rigs in total. International Outside the U.S., EOG Resources plans to bring a new project online in the U.K., which would further boost its crude oil production in the coming years. The company is the operator of the Conwy field situated on Block 110/12 in the East Irish Sea. It is expected to come online by the end of this year and have a net peak production rate of around 20,000 barrels of oil per day. See More at Trefis |  View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology
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    Rio Tinto To Cut Jobs At Australian Coal Mine To Reduce Costs In Subdued Coal Pricing Environment
  • by , 1 hours ago
  • tags: RIO VALE MT CLF
  • Rio Tinto (NYSE:RIO) has decided to cut up to a hundred jobs from its Kestrel coal mine in Queensland, Australia. Rio had only recently announced the opening of the Kestrel mine extension in October last year. However, continuing adverse market conditions for coal have shifted the focus towards controlling costs. This move is the latest in a series of efforts by Rio to cut costs and restructure its coal portfolio, in order to maintain the competitiveness of its coal business in an environment of subdued prices. See our complete analysis for Rio Tinto here Coal Prices The prevailing coal pricing environment is characterized by subdued prices of both metallurgical and thermal coal. Metallurgical coal is a major input in steelmaking. Thus, demand for metallurgical coal is indirectly influenced by the demand for steel. China is the largest consumer of metallurgical coal in the world. There has been weak demand for the commodity by the Chinese steelmaking industry, along with subdued demand from other major consumers such as Japan and the EU. Flagging demand for metallurgical coal from China in the wake of an economic slowdown earlier on in the year, put downward pressure on coal prices. According to data from China’s National Bureau of Statistics, growth in investment, factory output and retail sales slowed to multi-year lows in the first two months of the year. A Chinese government crackdown on polluting steel plants has forced many of them to shut down. In addition, the tightening of credit by Chinese banks to steel mills that are not performing well has negatively impacted their prospects. Furthermore, the Chinese leadership has proposed structural reforms of the economy, shifting the emphasis from investment and export driven growth to services and consumption led growth. Such a transformation of the Chinese economy may negatively impact Chinese demand for steel in the long term. Chinese steel demand growth is expected to slow to 3% and 2.7% in 2014 and 2015 respectively, from 6.1% in 2013. Weak demand for steel has indirectly resulted in weak demand for metallurgical coal. Weak demand coupled with an oversupply situation due to expansion in production by major coal mining companies has resulted in plummeting coal prices. Prevailing metallurgical coal stand at around $120 per ton. These are way off their 2011 peak levels of $330 per ton. Thermal coal is primarily used in the generation of electricity. Weak demand from major consumers of thermal coal, China and India, has put downward pressure on thermal coal prices. In addition, Chinese efforts to shift towards natural gas for energy generation may also affect demand going forward. A supply glut due to an increase in production by major coal mining companies has kept prices subdued. Restructuring of the Coal Portfolio In view of the prevailing pricing environment for coal, the company has made efforts to restructure its coal portfolio. The company recently announced the sale of some of its Mozambique coal assets. Earlier in the year, the company announced the completion of the sale of its 50.1% interest in the Clermont Mine for $1.015 billion. In addition, the company has invested capital in projects that would generate long term value. For example, along with the announcement to divest its stake in the Clermont mine, Rio Tinto also announced the opening of the $2 billion Kestrel Mine extension project in 2013. This extension  added 20 years to the life of the Kestrel coal mine. However, with coal prices expected to remain subdued in the near term, the company has decided to cut jobs at the Kestrel mine. The restructuring of its coal portfolio is a part of Rio’s disciplined approach to capital allocation. As a part of its Q2 2014 earnings release, the company lowered its capital expenditure guidance for 2014 by $2 billion to $9 billion. The company intends to maintain capital expenditure at $8 billion for the medium term starting in 2015. This approach to disciplined capital allocation will help Rio Tinto operate competitively in a subdued commodity pricing environment. See More at Trefis |  View Interactive Institutional Research (Powered by Trefis) | Get Trefis Technology
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    Solar Weekly Recap: Earnings Misses, New Deals
  • by , 3 hours ago
  • tags: YGE FSLR TSL SPWR
  • The solar industry had a mixed week, with tier-1 Chinese manufacturers such as Trina Solar (NYSE:TSL) and Yingli Green Energy (NYSE:YGE) missed expectations on their Q2 earnings, while U.S. based players such as First Solar (NASDAQ:FSLR) and SunPower (NASDAQ:SPWR) reported new deals and progress in international markets. Here’s a quick roundup of the news that mattered for the solar companies that we cover. Yingli Green Energy:  Earnings Miss and Shipment Guidance Cuts Yingli Green Energy, China’s largest solar panel manufacturer,  reported a weak set of Q2 2014 earnings on August 2014, missing consensus estimates on revenues and posting a larger than expected loss, owing to lower prices and higher marketing costs. The company also cut its shipments guidance for 2014 to between 3.6 GW and 3.8 GW, which marks a 400 MW decline from its previous guidance. The shipment cuts are largely because the company intends to scale down on the use of costly third-party OEMs for panel   manufacturing. This is because a larger portion of the demand for the back half of this year is expected to come from China, where ASPs are meaningfully lower than the global average and the company does not expect to realize attractive markups on the OEM sourced products. The move to curtail OEM supply should help improve the company’s margins at the expense of volumes. On the manufacturing cost front, the company was able to  reduce per-watt silicon and non-silicon costs by around $0.03 to around $0.49. Interestingly, the company was also able to bring down the polysilicon component of costs by roughly $0.01, which is quite surprising, since broader industry trends and reports from other Chinese players indicate that polysilicon prices have actually been rising. Trefis has a  $3.50 price estimate for Yingli, translating into a $635 million market cap. This is slightly ahead of the current market price of around $3.33. We estimate the company’s FY 2014 loss per share at around $0.42, compared to a consensus of about $0.49 according to Reuters. Trina Solar:  Plans to Build Manufacturing Capacity Overseas To Circumvent Tariffs Trina Solar reported its Q2 2014 earnings on August 26. The company’s quarterly revenues grew by around 16.7% sequentially to $519 million driven by significantly higher panel shipments, although net income fell by around 60% sequentially to $10.7 million due to slightly higher polysilicon costs and a higher shipment mix to China. In July, the United States closed a loophole that allowed Chinese solar companies to circumvent previously imposed duties on their solar panels by moving cell manufacturing to Taiwan. Trina Solar now faces duties of around 23% on its products in the U.S., which is lower than the industry average of over 30%.  Given that the U.S is one of its largest markets (accounting for about 38% of shipments for Q2), Trina has been looking for ways to work around the duties and improve its cost competitiveness. For instance, the company noted that it is looking for new locations for manufacturing overseas so that it can support growth in the U.S. market. Trefis has a $14.50 price estimate for Trina Solar, translating into a $1.20 billion market cap. The current market price stands at around $12.50. We estimate the company’s FY 2014 EPS at around $0.83, compared to a consensus estimate of around $0.95 according to Reuters. First Solar:  Japanese Projects First Solar, the largest U.S. solar company, says that it is currently developing as much as 250 MW of solar projects in Japan.  According to Bloomberg, the company intends to develop projects, make investments in utility-scale solar projects, and also carry out operation and management of its projects over the long term. Japan became a booming solar market following the Fukushima nuclear disaster, which moved the government to reassess its reliance on nuclear energy and brought about greater investment in renewable energy capacity.  First Solar has been making steady progress in the Japanese market. Last year, the company announced plans to invest about $100 million in developing mega scale power projects in Japan and the company also recently signed a deal XSOL – a distributor and integrator of solar systems –  which should enable it to extend its footprint to more small scale projects. However, there has been an air of uncertainty in the Japanese solar market of late, as the Ministry of Economy, Trade and Industry (METI) has cut tariffs for solar power by about 20% over the last two years, in addition to imposing some time limits on installations, which could curtail solar development going forward. Trefis has a $68 price estimate for First Solar, translating into a market cap of about $6.8 billion. Our price estimate is almost in line with the current market price. We estimate the company’s FY 2014 EPS at around $3.08, compared to a consensus estimate of around $2.60 according to Reuters.   SunPower: Deal With  Verizon Earlier this week, high-end solar manufacturer SunPower announced that it would design and install solar power systems for Verizon, the largest U.S. wireless carrier. While the terms of the deal were not disclosed, SunPower will install 10.2 MW of solar power at eight Verizon locations in New York, California, Maryland, Massachusetts and New Jersey.  SunPower has emerged as one of the go-to players for commercial installations across the United States of late. Although commercial projects are not as large as utility scale projects, they provide more scope for growth. The commercial solar sector is expected to grow at around 41% this year, while utility scale installations are  expected to rise at just about 32%. Trefis has a $35 price estimate for SunPower, translating into a market cap of about $4.6 billion. Our price estimate represents a 8% discount from the current market price We estimate the company’s FY 2014 EPS at around $1.35, compared to a consensus estimate of around $1.31 according to Reuters. See More at Trefis |  View Interactive Institutional Research (Powered by Trefis) |  Get Trefis Technology
    The Biggest Threat to the Internet of Things
  • by , 4 hours ago
  • tags: XLK HPQ
  • Submitted by Wall St. Daily as part of our contributors program The Biggest Threat to the Internet of Things By Louis Basenese, Equity Analyst   What deeply personal information are you willing to sacrifice for the sake of convenience? Would you publicly share your social security number? Perhaps your credit card information? How about private conversations with your spouse? Probably none of the above, right? But consider this: You may have already placed this valuable information in harm’s way with just a single purchase. Getting Connected in All the Wrong Ways As we can all attest, we live in an increasingly connected world. One of the latest – and most promising – pushes to get connected involves embedding sensors, actuators, and systems on chips (SoCs) into everyday physical objects, thus connecting them to the internet and allowing them to share information. I’m talking about things like thermostats, fridges, ovens, washing machines, air conditioners, lights, power outlets, music players, baby monitors, TVs, webcams, sprinklers, door locks, home alarms, scales, and garage door openers. This is the mega-growth trend known affectionately as the Internet of Things (IoT). By 2020, tech research firm, Gartner, predicts the IoT will include a staggering 26 billion devices. Other estimates peg the size of the market as high as 75 billion devices, which would be roughly five times the size of the mobile phone market. Now, all these IoT products coming to market bear the “smart” label because they can readily share information over the internet and then leverage it to improve efficiency and automate seemingly mundane aspects of everyday life. It turns out, though, that these devices might end up sharing much more than we bargained for . . . Hacker’s Delight A new study from Hewlett-Packard ( HPQ ) found that “70% of the most commonly used IoT devices contain vulnerabilities.” Or, simply put, they can be hacked! The study found that 80% of devices leaked private information such as the user’s name, email, home address, date of birth, or credit card information. HP’s findings aren’t an anomaly, either. Consider: Computer scientists at the University of Michigan hacked into “smart” traffic lights with nothing more than a laptop and basic radio broadcast equipment. In August, hackers at the Black Hat security conference compromised a Nest thermostat in front of a live audience. BBC recently assembled a team of seven computer security experts and let them loose in a home full of “smart” devices. In short order, they cracked the security on every last one of them. “The one that people really get concerned about is the microphone on a smart TV,” said one expert. “We were able to bug a living room through it.” James Lyne, Head of Security Research at Sophos, says, “With most [smart devices], if you can connect to it, you can own it.” All of this adds up to a massive security disaster waiting to happen, especially since most consumers are unaware that these devices can be hacked or that their data is vulnerable to cyber criminals. The issue becomes even more problematic when you consider the diversity of connected devices. The IoT encompasses everything from small consumer electronics all the way up to smart industrial equipment, so there’s no single security patch that can be created to protect every device. Meanwhile, since IoT devices communicate with each other (and also with multiple devices simultaneously), the security concerns multiply exponentially as the number of IoT devices increases. In fact, a common issue found by HP, known as a “cross site scripting” vulnerability, could enable a single compromised device to infect all other devices on the network. Or as Mike Armistead of Hewlett-Packard’s security unit, Fortify, said, “[IoT] presents a significant challenge in fending off the adversary given the expanded attack surface.” Bottom line: All super growth trends hit roadblocks along the way. For IoT, it promises to be security. Connect (and invest) responsibly. Ahead of the tape, Louis Basenese The post The Biggest Threat to the Internet of Things appeared first on Wall Street Daily . By Louis Basenese
    Feel Like You Are Missing Out?
  • by , 4 hours ago
  • Submitted by Profit Confidential as part of our   contributors program Feel Like You Are Missing Out? If you follow the financial news, it feels like the stock market is moving higher and higher . . .  a situation in which investors often feel they are missing out. But the reality of the situation is very different. So far this year, almost eight full months in, the Dow Jones Industrial Average is up only three percent. Would you buy stocks with the Dow Jones trading at 17,100, near a record-high price-to-earnings (P/E) multiple and a record-low dividend yield? I wouldn’t. Hence, the question changes from “Am I missing out?” to “Is it worth the risk?” On Monday, the chief market strategist at BMO Capital Markets said, “Longer term we are in the camp that believes U.S. equities are the place to be. They are the most stable asset in the world.” (Source: “Bull market will charge higher for 15 more years says strategist,” Yahoo! Finance, August 18, 2014.) The belief that “stocks are the place to be” has gone mainstream now. And that’s very dangerous. The reality of the situation: (1) stocks are trading at very high historical levels when measured by the P/E multiple and dividend yield; (2) the Fed is stopping its money printing program; (3) investors are pulling money out of the stock market; (4) consumer spending is tumbling; (5) stock advisors have remained too bullish for too long; and (6) the chances of a 20% stock market correction are very high. According to the Investment Company Institute (ICI), between April and June, mutual funds that invest in U.S. stock markets witnessed net withdrawals of $19.1 billion. While July’s monthly figures are not updated just yet, looking at the weekly data, it appears July was another month when investors sold more than $18.0 billion worth of U.S. stock market mutual funds. Investors have been pulling money out of stocks for three months now. (Source: Investment Company Institute, August 20, 2014.) The optimism and complacency towards the stock market is extreme. Those who remember 2007 know this very well; stock advisors were calling for continuation of the stock market rally back then, too. Instead, we got a crash.     The post Feel Like You Are Missing Out? appeared first on Stock Market Advice | Investment Newsletters – Profit Confidential .
    The Boring Stock That Pays, Pays, and Pays
  • by , 4 hours ago
  • Submitted by Profit Confidential as part of our   contributors program The Boring Stock That Pays, Pays, and Pays Top wealth creators don’t have to be the fastest-growing companies. In an environment where institutional investors are buying earnings safety and dividend income, consistency and reliability are top financial attributes. And there actually aren’t a lot of companies able to provide consistency in business growth, especially among mature enterprises that throw off excess cash in the form of dividends. One company that has proven to do so is Airgas, Inc. (ARG) out of Radnor, Pennsylvania. This business is what I consider to be investment grade. The company sells industrial and medical gases, refrigerants, and ammonia products. It’s one of the leading producers of atmospheric gases in North America with more than 1,100 locations. In its most recent quarter (ended June 30, 2014), the company’s sales grew three percent to $1.31 billion compared to the same quarter last year. Diluted earnings per share grew four percent comparatively. Management noted that sales to energy-related customers produced organic sales growth, but sectors such as mining and heavy manufacturing are slow. The  company even referred to its most recent quarter as “sluggish.” This stock has been trading range-bound over the last year, but produced very good capital gains over the last 10 years. As is the case with most equities securities, the stock trades on future business conditions and growth expectations for its next fiscal year are solid. The company forecasts its sales will grow at a rate in the low single-digits in the current quarter and that diluted earnings per share will be between $1.27 and $1.32, representing a gain of zero to four percent comparatively. In its most recent quarter, the company paid out $41.0 million, or $0.55 per share, in dividends. This is a big improvement from the same prior-year quarter, when dividends were $35.0 million, or $0.48 per share. So Airgas is not the fastest-growing enterprise in the land; it’s still a good business with good consistency in demand and higher-than-normal barriers to entry from competition. With a two-percent dividend yield, this large-cap is attractive on share price weakness and could make for a good long-term holding. Often, esoteric businesses, the kind that don’t make the headlines and could even be deemed boring, make for good long-term investments. (See “ Three Steady Stocks to Balance High-Flyers & Boost Your Returns .”)         The post The Boring Stock That Pays, Pays, and Pays appeared first on Stock Market Advice | Investment Newsletters – Profit Confidential .
    Scale and Efficiency could make Facebook the next big winner
  • by , 4 hours ago
  • tags: FB SOCL
  • Submitted by Amigobulls Mediatech as part of our contributors program . Scale and Efficiency could make Facebook the next big winner The one year post IPO saw Facebook price tumble close to 50% as the company struggled to monetize its rapidly growing mobile user base. However, With 5 quarters of solid growth in mobile monetization and a user base in excess of 1 billion; Facebook seems to be well on the road to financial success. After what had turned out to be a disaster of an IPO, the current financial performance of the world’s biggest social network could have opened up a solid opportunity for investors to benefit from its growth. Facebook has a pipeline strategy to have a number of apps which have a scale that is difficult to replicate and impossible to ignore. This has led to the unbundling of its core “Facebook” product into separate apps for Chat and Facebook mobile. Also the company’s recent acquisitions are supporting this overall multiple app strategy. Facebook has scooped up products like Instagram and WhatsApp, which have gained a huge traction in today’s connected world. We now take a look at the various Facebook owned apps, each of which has a user base totaling hundreds of millions (Instagram, messenger & WhatsApp). These apps hold a huge future potential for earnings growth at the firm. Mobile App MAU’s (in millions) Facebook 1070 Messenger 200 Whatsapp 500 Instagram 200   This is apart from the fact that the core Facebook platform has reached a scale which is leagues away from its competitors.   Platform MAU’s (in millions) Facebook 1320 Twitter 271 LinkedIn 186 However, due to the huge active user base of the social network, it is only natural that the trends in user base growth are beginning to slow down. The financial potential of a billion plus active user base remains huge and Facebook’s effective monetization strategy has driven solid growth in topline as well as earnings for the firm. The current monetization strategy has led to significant improvements in the monetization levels on the core “Facebook” property which is currently driving Facebook’s revenue and earnings growth. The monetization level on Facebook is measured by the Ad revenue per user trends. Ad revenue per user over last few quarters The combination of Facebook’s scale and the solid growth in monetization has led to significant growth in revenue and earnings over the last few quarters. Facebook revenue growth and EPS over the last few quarters With the recent launch of auto play video ads and acquisition of LiveRail, Facebook monetization levels will continue to improve over the coming quarters. LiveRail is a leading publisher monetization platform for video, helping online publishers efficiently monetize their video ads inventory. Facebook current valuations The chart below displays the one year movement in Facebook’s LTM PE ratio. Facebook PE ratio has consistently dropped over the last one year as the earnings growth at the firm has outpaced the price gains in the same time period. In conclusion, as has been demonstrated over the last few quarters, further improvements in Facebook’s monetization levels coupled with the Social Networks huge scale will drive topline growth while the cost controls displayed over the last few quarters will continue to lead to exponential earnings growth. We compared Facebook fundamentals with its peers like LinkedIn and Twitter and found it to be most attractive of the lot. We believe Facebook presents investors with the best risk/return profile among the social network stocks.
  • commented 4 days ago
  • tags: UTX
  • Why You Can't Ignore Mobile as Part of Your Marketing [Infographic]

    In 2013 Facebook, the company that brought more than 1.2 billion people together through social networking, made the majority of their ad revenue from mobile users. This breach of the 50% line marks an important milestone in the path from technological equality to mobile domination. In the fourth quarter of 2010, smartphones sales in the U.S surpassed PC sales and have been ahead since. It is officially more important to have a smartphone than to have a home computer.

    IDC estimates that by 2017, 87% of connected device sales worldwide will be smartphones and tablets surpassing both home and laptop computers.

    Mobile usage is growing at an exponential rate, with some estimates placing worldwide mobile connected devices at 10 million units by 2017. The domination of advertising, customer outreach, and utilization by the mobile market is unmistakable. It's expected that in 2014 the United States will cross the $100 billion mark in mobile data services revenue, all of which is being used to tweet, share, search for deals, and ultimately improve both the social and customer experience, and in many cases both simultaneously.

    According to a Comscore white paper from 2012, 1 in 5 smartphone users scan product barcodes, and nearly 1 in 8 will compare prices while right there in the store.

    The implications of this statistic are numerous:

    Smartphones have not only enhanced the retail game, but are changing it. Your prices have to be break-neck competitive. We now live in a world where a car shopper can check the true value of a vehicle right there in the lot.

    Price matching is no longer just among brick-and-mortar competitors. Many large conglomerates like Target offering services like Amazon price matching as well.

    As mobile devices continue to become a daily part of the process from discovery to sale, quick adaption must be implemented and quality mobile experiences must be offered to current as well as potential new customers. Great mobile experiences, whether it be an app or a website, are sure to please a customer and serve as an extension of the brand experience.

    Just as bad customer service can repel a customer, nowadays a negative mobile experience can have the same effect. Modern consumers want efficiency, quality, but most of all simplicity. In app purchased, use of QR codes, location based advertising, all are possible enhancements for the customer experience either after leaving the store or before arriving to it.

    There are some who are taking the mobile domination and using it to actually lower their costs. Apple for instance has customers use their smartphones for in-store purchases. Less staff are required on the sales floor and the fact that everyone has their smartphones out becomes a positive thing instead of a potential detriment. Healthy investment in mobile accounts and mobile marketing are essential and will only become more unavoidable as mobile use increases.

    Take a look at this infographic for an impressive breakdown of just how mobile the market has become and all the myriad ways in which mobile utility has become an integral part of the consumer lifestyle. The potential for generating revenue from mobile marketing investment is only going up; so make sure you're taking full advantage of the tools at your disposal. Start by reading "Mobile Market Domination."

    [ less... ]
    Why You Can't Ignore Mobile as Part of Your Marketing [Infographic] In 2013 Facebook, the company that brought more than 1.2 billion people together through social networking, made the majority of their ad revenue from mobile users. This breach of the 50% line marks an important milestone in the path from technological equality to mobile domination. In the fourth quarter of 2010, smartphones sales in the U.S surpassed PC sales and have been ahead since. It is officially more important to have a smartphone than to have a home computer. IDC estimates that by 2017, 87% of connected device sales worldwide will be smartphones and tablets surpassing both home and laptop computers. Mobile usage is growing at an exponential rate, with some estimates placing worldwide mobile connected devices at 10 million units by 2017. The domination of advertising, customer outreach, and utilization by the mobile market is unmistakable. It's expected that in 2014 the United States will cross the $100 billion mark in mobile data services revenue, all of which is being used to tweet, share, search for deals, and ultimately improve both the social and customer experience, and in many cases both simultaneously. According to a Comscore white paper from 2012, 1 in 5 smartphone users scan product barcodes, and nearly 1 in 8 will compare prices while right there in the store. The implications of this statistic are numerous: Smartphones have not only enhanced the retail game, but are changing it. Your prices have to be break-neck competitive. We now live in a world where a car shopper can check the true value of a vehicle right there in the lot. Price matching is no longer just among brick-and-mortar competitors. Many large conglomerates like Target offering services like Amazon price matching as well. As mobile devices continue to become a daily part of the process from discovery to sale, quick adaption must be implemented and quality mobile experiences must be offered to current as well as potential new customers. Great mobile experiences, whether it be an app or a website, are sure to please a customer and serve as an extension of the brand experience. Just as bad customer service can repel a customer, nowadays a negative mobile experience can have the same effect. Modern consumers want efficiency, quality, but most of all simplicity. In app purchased, use of QR codes, location based advertising, all are possible enhancements for the customer experience either after leaving the store or before arriving to it. There are some who are taking the mobile domination and using it to actually lower their costs. Apple for instance has customers use their smartphones for in-store purchases. Less staff are required on the sales floor and the fact that everyone has their smartphones out becomes a positive thing instead of a potential detriment. Healthy investment in mobile accounts and mobile marketing are essential and will only become more unavoidable as mobile use increases. Take a look at this infographic for an impressive breakdown of just how mobile the market has become and all the myriad ways in which mobile utility has become an integral part of the consumer lifestyle. The potential for generating revenue from mobile marketing investment is only going up; so make sure you're taking full advantage of the tools at your disposal. Start by reading "Mobile Market Domination." [img width="800" height="4427"]https://s3.amazonaws.com/TFFInfographics/TFF-M2-MobileMarketDomination.jpg[/img]



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    Lower Advertising Income Weighs Over News Corp's Quarterly Results
  • by , 4 days ago
  • tags: NWS NYT
  • News Corporation (NASDAQ:NWSA) witnessed a 3% drop in its Q4 fiscal 2014 revenues (fiscal year ends with June). News and information services revenues declined by 6% amid lower advertising income. The company reported adjusted earnings of $0.01 per share as compared to $0.12 in the prior year period. While the company continues to see growth at HarperCollins and REA, print advertising remains a concern. The company recently completed the acquisition of Harlequin Enterprises from Torstar Corporation for $420 million. Harlequin Enterprises is a Canadian based company that publishes broad range of fiction including romance, relationship, psychological thrillers and women’s fiction. News Corp is aggressively eyeing online real estate advertising operations and it recently announced the purchase of a minority stake in iProperty for $100 million. iProperty is an online property and advertising operator in Southeast Asia. Overall, the company reported mixed results with double-digit growth in book publishing and digital real estate, while news and information service as well as cable networks faced some headwinds due to lower advertising income and currency fluctuations See our complete analysis for News Corporation Lower Advertising Income Weighs Over News And Information Services News and information services revenues declined 6% to $1.56 billion as compared to $1.66 billion in the prior year quarter. Segment EBITDA also plunged 38% to $131 million. This can be attributed to a 9% drop in advertising revenues and a 4% decline in circulation revenues. The decline in advertising was wide with a 16% drop in Australia and 1% in the U.K.  A decline in EBITDA can be attributed to the costs related to relocation of the company’s London operations for dual rent and higher expenses related to specific marketing initiatives in the U.K. It must be noted that the news and information services accounts for more than 40% of the company’s value, according to our estimates. The environment for print industry in particular is challenging. As Internet penetration continues to expand, users increasingly get access to free and abundant information online. We believe that the continuing trend could keep putting a downward pressure on circulation prices and advertising income. The company in its recent earnings call stated that revenue from non-advertising sources will increase significantly over the next five years. This will provide stable growth outlook in the long run given the uneven trends in the advertising marketplace. We estimate advertising income will decline in the near term and forecast advertising revenues for news and information services will be around $3.7 billion by the end of our forecast period. Book Publishing And Digital Real Estate See Strong Growth Book publishing revenues increased 10% to $361 million while EBITDA jumped 50% to $33 million. The increase in revenues was primarily due to higher print and digital book sales, principally resulting from the continued success of the Divergent series by Veronica Roth. Higher EBITDA reflects the impact of operational efficiencies and higher contributions to profits from e-books. The revenues from e-book sales rose 23% and accounted for 22% of overall consumer revenues for the quarter. It must be noted that digital books have lower production and distribution costs than print books. We believe HarperCollins will continue to grow strongly as e-book sales pick up. Accordingly, we estimate the book publishing revenue to grow at an average annual rate of 5% and be north of $2 billion by the end of our forecast period. Digital real estate operations contribute close to 25% to News Corporation’s value, according to our estimates. It includes REA, which owns and operates Australia’s largest residential as well as commercial property websites. The segment’s revenues increased 24% to $113 million and EBITDA grew 35% to $62 million, primarily due to higher pricing and growth in premium products. Digital real estate operations offer high margins to News Corp (45% in 2013). A double-digit growth in this segment will be fruitful for the company in the near term. We expect continued growth in this segment throughout the forecast period. It will be primarily driven by the growth in Australia’s population, which is being reflected on the housing market. Moreover, the company is aggressively eyeing more assets in this space. Apart from iProperty, the company plans to add $50 million to its investment in SEEK Asia, which is into employment listings business. See More at Trefis |  View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology

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