The Southern Cross Media Group Ltd (ASX: SXL) share price is seeking direction today, initially posting a 1.8% gain and currently down 0.4%.

The All Ordinaries Index (ASX: XAO) is also in the red today, down 0.9% at this same time.

Shares in the ASX listed media provider closed on Friday trading at $1.17 and are now at $1.16. This comes as investors pore over the company's full-year results for the 12 months ending 30 June (FY22).

Southern Cross Media share price wobbles despite dividend boost

• Revenue of $519.7 million, down 1.8% from FY21
• Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $87.9 million, up 2.8% year on year
• Underlying net profit after tax (NPAT) of $27.4 million, up 38.4% from the prior year
• Full-year dividends of 9.25 cents per share (cps), fully franked, up from 5.0 cps paid in FY21

(* Note, underlying expenses and underlying EBITDA exclude government grants received in FY21 and FY22, impairment charges of $179.4 million and $4.0 million of other significant items in FY22.)

What else happened during the year?

The Southern Cross Media share price should be getting some extra lift from the 4.75 cents fully franked final dividend the board declared. That represents 85% of NPAT (excluding significant items), coming in at the top of the company's policy of paying dividends of 65% to 85% of NPAT.

As at 30 June, Southern Cross had net debt of $78.5 million, down from $52.6 million at the end of FY21. The media company reported leverage of 0.95 times EBITDA, noting that's "well below" its covenant of 3.50 times.

FY22 saw a continuing recovery in all of its audio segments, with audio revenue of $392.9 million increasing 9.2% year on year.

Southern Cross Media also saw improved margins from its television segment in the wake of its affiliation switch from Nine to Network 10. Television's underlying EBITDA margin rose from 17.6% to 23.7%.

A strategic review has now concluded shareholder value will be maximised by continuing to hold its television assets.

What did management say?

Commenting on the results, Southern Cross Media CEO, Grant Blackley said:

With a robust balance sheet and strong cashflow, we are continuing to invest for the future while returning funds to shareholders through fully franked dividends and our on-market share buy-back.

Commercial radio audiences in metro markets reached record levels in recent surveys. The total audience of 12 million recorded in GfK Survey 4 was the highest ever and a 7.6% jump over the prior year. SCA's Hit and Triple M stations have led this rise as audiences return to entertainment and music formats.

With a nod to some headwinds over the year, Blackley added, "Local advertisers were directly affected by floods and supply chain issues resulting in lower levels of growth in local advertising."

What's next?

Looking ahead, Blackley said:

SCA has completed a five-year program to install digital operating infrastructure across all offices and every asset. This allows SCA to distribute our premium content from any location to audiences at a time and on a device on their choice…

Our investment in a fully owned and operated digital audio ecosystem, LiSTNR, also positions SCA to take a leading share of the rapidly expanding Australian digital audio market.

Southern Cross Media share price snapshot

The Southern Cross Media share price has struggled this year, down 40% since the opening bell of 4 January. By comparison, the All Ordinaries has lost 8% year-to-date.

The post Southern Cross Media share price wobbles despite 85% FY22 dividend boost appeared first on The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) is having a very choppy day so far in Thursday's trading. At the time of writing, the All Ords is up, but only just, having clocked a 0.02% gain so far. That comes after the index spent most of the morning in red territory. But one All Ords share doesn't seem to have got the memo. That would be the Southern Cross Media Group Ltd (ASX: SXL) share price.

Southern Cross shares are currently up an impressive 8%, going for $1.76 at the time of writing. That comes after the media company closed at $1.62 a share yesterday and opened at $1.70 this morning.

So why are Southern Cross shares having such a strong day today? It could be the result of the announcement the company made this morning.

Before market open, Southern Cross released a market update to investors. This contained two new pieces of news. The first was an announcement that revealed the company has "received unsolicited approaches from several parties indicating potential interest in acquiring SCA's regional television assets".

Southern Cross stressed that these offers were non-binding and incomplete, and did not include "details of timing, price or conditions".

The company is assessing its options and engaging with these interested parties, and told investors that it will "continue to update shareholders as appropriate".

Southern Cross share price gains amid new share buyback announcement

The other piece of news that was revealed was a new on-market share buyback program worth up to $40 million. Here's some of what the company had to say on this matter:

With modest gearing and consistent free cash flow generation expected to continue, the Board has approved the buyback to enhance shareholder returns. SCA will fund the buyback from existing cash reserves and debt facilities, while continuing to invest in SCA's digital audio strategy to grow audiences and revenue opportunities.

It could be one or both of these announcements that are fuelling investor interest in Southern Cross today. Interest in buying a company's assets from multiple parties usually bodes well for a company and its market valuation.

Additionally, share buybacks have a direct benefit for existing shareholders. When a company purchases and retires its own shares on the open market, it reduces the company's total share count, boosting existing earnings per share (EPS). It also usually comes with share price gains, since the supply of the shares is being constricted.

So it's this announcement that is likely providing the boost to the Southern Cross shares that we are currently seeing.

At the current Southern Cross Media share price, this ASX All Ords share has a market capitalisation of $430.7 million, with a dividend yield of 5.11%.

The post Buyback bonanza! Why the Southern Cross Media (ASX:SXL) share price is up 8% today appeared first on The Motley Fool Australia.

The Southern Cross Media Group Ltd (ASX: SXL) share price is crashing today following the release of the company's half-year financial results.

The company reported a large decrease in profit and declared an interim dividend to be paid in April.

At the time of writing, the Southern Cross Media share price is down 10.99% at $1.81. For context, the All Ordinaries Index (ASX: XAO) is also having a shocking day, currently down 2.8%.

Let's read on…

Southern Cross Media share price tanks on results

For the six months ending 31 December 2021 (H1 FY22), the Australian media company highlighted the following:

• Revenue up 0.2% to $259.8 million against the prior corresponding period (pcp)
• Total earnings before interest, taxes, depreciation and amortisation (EBITDA) down 36% against pcp to $48.2 million
• Net profit after tax (NPAT) down 48.3% on pcp to $16.8 million
• Group operating expenses down 2.7% to $213.3 million
• Net debt down 1.9% to $67.7 million.

Despite the drop in earnings, Southern Cross Media said its balance sheet "remains strong". As such, its EBITDA amount (excluding JobKeeper payments and its Public Interest News Gathering grant [PING]) was up 16.3% to $46.5 million.

The company will also pay a fully franked dividend of 4.5 cents per share on 7 April. This is the first time it has paid an interim dividend since 2019.

What else happened in the half?

Looking more closely at its operations, Southern Cross Media's LiSTNR app saw 500,000 new users in the last 12 months. It also had more advertisers taking advantage of its "addressable audiences".

Against its pcp of H1 FY22, audio revenue increased by 11.5% to $193.8 million, and broadcast revenue was up 10.3% to $183.3 million.

Television revenue was down by 22.3% to $65.8m. However, television EBITDA (excluding JobKeeper payments and PING) increased by 27.3% to $17.5 million. This was a double whammy effort, due to the media company's "sales performance" and the changeover of its "television affiliation to Network 10" from 1 July last year.

On the move, CEO Grant Blackley said:

Our open and effective operating relationship with Network 10 delivered above-market returns for both parties.

From 1 April, SCA will take over national sales representation for Network 10 programming in northern NSW and Tasmania which will simplify buying off Network 10 for national advertisers in regional Australia.

Expenses were reduced by $6 million, a portion due to "lower television affiliation fees payable to Network 10".

What did management say?

Commenting further on the results impacting the Southern Cross Media share price today, Blackley said:

The recovery in advertising markets continues to strengthen but is uneven, with Omicron related disruptions tempering the strong momentum from November to December.

Advertising markets in Q4 are expected to benefit from a normalising market, improving consumer and business demand and the upcoming Federal Election.

Southern Cross Media share price snapshot

Over the last 12 months, the Southern Cross Media share price has dropped by 25%. It is also down by more than 5% this year to date.

The company has a market capitalisation of $536.35 million.

The post Southern Cross Media (ASX:SXL) share price drops 11% on profit fall appeared first on The Motley Fool Australia.

Key points

• Traditional ASX media shares could be among the winners this reporting season, according to UBS
• The broker identified four tailwinds that could bolster earnings in the sector
• All traditional ASX media shares under UBS' coverage are rated as "buy"

The reporting season is about to kick off and a leading broker reckons that traditional ASX media shares could fare well this month.

This is because the sector is enjoying four tailwinds, according to UBS. These factors could boost their earnings when they hand in their results in a few weeks.

ASX media shares that are rated "buy"

The broker's bullish view is reflected in its "buy" recommendation for all the traditional ASX media shares under its coverage.

These include the HT&E Ltd (ASX: HT1) share price, Nine Entertainment Co Holdings Ltd (ASX: NEC) share price, News Corporation (ASX: NWS) share price, Seven West Media Ltd (ASX: SWM) share price and Southern Cross Media Group Ltd (ASX: SXL) share price.

"In traditional media, our focus will be on the 2H outlook, which may provide evidence on the sustainability of the post-COVID rebound in FTA ad spend," said UBS.

"[Although] in radio we believe any potential trajectory towards pre-COVID levels may continue to be delayed given its advertisers appear to be more impacted by COVID-19 (e.g. local direct advertising, retail)."

Earnings tailwinds

The strength in the combined TV ad market, particularly in the first half, is one of the tailwinds that UBS has identified.

Another is the deal that traditional Australian media companies have struck with Facebook, now Meta Platforms Inc (NASDAQ: FB), as well as Google, which is owned by Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG).

The deal will see these online giants pay content creators for their news stories. Nine Entertainment stands to get around $30 million to $40 million added to its earnings before interest, tax, depreciation and amortisation (EBITDA).

Other growth drivers for ASX media shares

Revenue growth in the digital assets of these ASX shares is the third driver highlighted by UBS.

The broker also points to the balance sheet repair that was undertaken by the sector through asset sales and capital raises. This will allow the sector to resume paying dividends, undertake capital returns and make acquisitions.

The only negative trend that could weigh on the sector is rising costs due to cyclical factors and the loss of the government's COVID-19 support payments.

The other good news is that rising interest rates and inflation are less likely to negatively impact the group compared to their online peers, such as Carsales.Com Ltd (ASX: CAR) and SEEK Limited (ASX: SEK).

The post 4 reasons to buy these ASX media shares this month: UBS appeared first on The Motley Fool Australia.

The Southern Cross Media Group Ltd (ASX: SXL) share price is jumping 6% after releasing its full-year results for FY21.

At the time of writing, shares in the media company are trading for $1.95 – up 6.27%. For context, the All Ordinaries Index (ASX: XAO) is 0.07% higher.

Let's take a closer look at today's news.

Southern Cross share price jumps on 91.6% rise in profits

• Net profits after tax (NPAT) of $48.1 million – up 91.6% on the prior corresponding period (pcp)
• Revenue declined 2.2% on the pcp to $529 million but expenses also fell 6.8% to $403 million
• This equates to earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $126 million, which is 16.4% higher
• While revenue was down overall, second half revenue increased 16% on the prior year. The company says this reflects "the recovery in the media market".
• The company will pay a final dividend of 5 cents per share – representing 85% of second-half NPAT. At the current Southern Cross share price, this represents a yield of 2.59%.

What happened in FY21 for Southern Cross?

The biggest story affecting the Southern Cross share price, and the entire media industry and share market in general, is COVID-19. The pandemic decimated advertising revenues across mediums as companies pulled advertising. Victoria was in the midst of its brutal second lockdown at the beginning of the period, and New South Wales entered its second lockdown at the end of the period.

Nine Entertainment Co Holdings Ltd (ASX: NEC) pulled its regional affiliation with the broadcasting company in March. The Southern Cross share price plummeted 14% on the day this was announced.

Finally, Southern Cross was kicked out of the S&P/ASX 200 Index (ASX: XJO) during the financial year.

What did management say?

Southern Cross Austereo CEO Grant Blackley said:

Our Australia-wide network of 99 AM, FM and DAB+ radio stations remains the creative core of SCA, but with a new digital-first mindset. With audiences increasingly choosing to listen via digital means, our teams are finding ways to make it easy to enjoy our radio shows, podcasts, music playlists, news and other local updates on LiSTNR and other platforms.

He added:

SCA's Television business performed well, delivering EBITDA of $38.1M, up 59.7% compared to the prior year. While this result benefited from government support in the first half of the year, it also reflected the relatively quicker recovery of television advertising markets and SCA's market-leading sales performance.

What's next for Southern Cross?

From this financial year, Southern Cross has a new affiliation agreement with CBS Corporation Common Stock's (NASDAQ: VIAC) Australian business, Network 10. Blackley says this deal should be earnings neutral.

Finally, Blackley confirmed Southern Cross has signed an agreement with Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) to join Google News Showcase. He says the deal will not have a material impact on earnings.

Southern Cross share price snapshot

Over the last 12 months, the Southern Cross share price is up 14%. Year to date, however, it is down 13%.

Southern Cross has a market capitalisation of approximately $485 million.

The post Southern Cross (ASX:SXL) share price booms 6% as profits nearly double appeared first on The Motley Fool Australia.

The Southern Cross Media Group Ltd (ASX: SXL) share price is up 5.53% today to $2.12 after the company announced an agreement with Network 10.

Southern Cross Media share price higher on broadcast agreement

Southern Cross Media announced a new regional television affiliation agreement to broadcast channels 10, 10 Bold, 10 Peach and 10 Shake into its regional Queensland, Southern NSW and regional Victoria markets.

The new agreement will begin 1 July 2021 for a term of two years.

The arrangement will broadcast Network 10's highly successful television programs including MasterChef Australia, Australian Survivor, The Bachelor Australia, The Masked Singer, The Project, live ALeague, Westfield W-League, as well as Socceroos, Matildas and FFA Cup matches.

Southern Cross Media says its sales team have a track record of converting ratings to revenue and look forward to generating strong commercial returns for both parties.

Television revenue update

Southern Cross Media advises that its television revenue booked to date for Q122 is in line with its internal forecasts and ahead of its prior year performance.

An improvement in year-on-year television revenue has been led by a recovery in the national advertising market and improving local investment across all regions.

Southern Cross Media said that this agreement will enable it to optimise the strategic and commercial position of its television business in the evolving free-to-air television market.

The company said it expects television earnings under the Network 10 affiliation to be neutral, compared to the current Nine affiliation, which is expected to expire on 30 June 2021.

Southern Cross Media share price in 2021

It's been a choppy year for the Southern Media share price.

A key catalyst for its underperformance was on 12 March, when Nine Entertainment Co Holdings Ltd (ASX: NEC) said it would not extend its regional affiliation agreement. The company's shares tanked ~10.4% on the day from $2.21 to $1.98.

The 6% rally today to $2.11 in intraday trade has helped push the Southern Cross Media share price to a 4-month high, but it is still down about 2.30% year-to-date.

The post Why the Southern Cross Media (ASX: SXL) share price is up 5% today appeared first on The Motley Fool Australia.

The Prime Media Group Limited (ASX: PRT) share price was not trading today despite news that the Australian media regulator has approved Australian Community Media (ACM) obtaining a 20% stake in the company.

At yesterday's market close, shares in the rural and regional broadcaster were trading at 21 cents each.

Let's take a closer look at today's news and what it might mean for the Prime Media share price.

ACM buys Prime assets

The Australian Communications and Media Authority (ACMA), approved ACMs purchase from Bruce Gordon, owner of WIN Network and third-largest owner of Nine Entertainment Co Holdings Ltd (ASX: NEC).

The purchase increased ACM's stake in the company to 19.99% from its previous 14.67%. Under the Broadcasting Services Act (1992) any party which seeks to control 15% or more of a media company must first obtain the approval of ACMA.

ACM made the purchase one month previously.

The purchase has made ACM the largest shareholder in Prime Media, overtaking Seven West Media Ltd (ASX: SWM) major owner Kerry Stokes.

In a note to ACM staff, as reported by The Australian, part-owner Antony Catalano said:

The Prime Media Group is in a strong financial position, it is well-managed, and we believe it has an important role to play in the evolving regional media landscape.

ACM and Prime audiences have similar interests, aspirations and goals. We hope to explore ways in which we can work more closely to ensure we continue to deliver the highest-quality journalism for regional Australians.

As part of the deal, ACM will need to sell its regional newspapers in Bendigo and Wagga Wagga. This is to comply with Australian legislation.

Prime Media share price snapshot

Despite today's dearth of price movement, the Prime Media share price has been very successful over the past 12 months. In the past year, Prime Media's value has increased by 112.12%. Media companies suffered heavily from the COVID-induced market crash of last year.

Prime Media has a market capitalisation of $75.2 million.

The post Prime Media (ASX:PRT) share price unmoved as ACM tightens grip appeared first on The Motley Fool Australia.

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here's why top brokers think investors ought to sell these shares next week:

Afterpay Ltd (ASX: APT)

According to a note out of UBS, its analysts have retained their sell rating and $36.00 price target on this payments company's shares. The broker notes that Commonwealth Bank of Australia (ASX: CBA) will soon be entering the buy now pay later market with its own offering. While the service is largely the same for consumers, it has a few key differences for merchants. One of those is that CBA won't be charging any additional fees (outside standard merchant fees), whereas Afterpay takes a small cut from of each transaction. Furthermore, the bank will allow merchants to put a surcharge to cover the costs, but Afterpay does not allow this. UBS fears regulators could eventually remove the no surcharge rule. Outside this, UBS believes its shares are vastly overvalued. The Afterpay share price ended the week at $108.30.

Flight Centre Travel Group Ltd (ASX: FLT)

A note out of Morgan Stanley reveals that its analysts have downgraded this travel company's shares to an underweight rating with a $17.50 price target. The broker made the move on valuation grounds after a strong run for its shares. And while it believes its earnings will improve materially once the pandemic passes, it isn't enough for a more positive rating. Especially given how its shares are now trading at a higher level than before COVID, when adjusting for its capital raising. The Flight Centre share price was fetching $19.35 at Friday's close.

Southern Cross Media Group Ltd (ASX: SXL)

Analysts at Morgan Stanley also have an underweight rating and $1.40 price target on this media company's shares. According to the note, the broker suspects that its negotiations with Channel Ten over a new deal will not be as favourable and could put pressure on its earnings. In light of this, it appears to believe investors should stay away from the company until a deal is announced and understood. The Southern Cross Media share price ended the week at $1.99.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

Here are some of the highlights from the ASX today:

Nine Entertainment Co Holdings Ltd (ASX: NEC)

The Nine share price fell 1% after announcing that the ASX 200 media business has signed a deal with WIN Corporation for a new regional television affiliation agreement.

This minimum 7-year agreement will result in WIN broadcasting Nine's metropolitan free to air television content from various 9 channels into markets including Tasmania, regional Western Australia, Victoria, Queensland and Southern New South Wales. Nine said this will provide seamless access to Nine's television content across all of metropolitan and regional Australia.

Under the new agreement, which commences on 1 July 2021, WIN will pay an affiliation fee of around 50% of its regional advertising revenue to Nine and provide airtime to Nine to allow promotion of Nine's assets across WIN's television and radio network. As part of the arrangements between Nine and WIN, WIN will also provide a sales representation service for Nine in Northern NSW and Darwin for a period of time.

Nine CEO High Marks said:

While our relationship with Southern Cross Media Group Ltd (ASX: SXL) has been strong over the last five years, the opportunities presented by the WIN Network to both extend the reach of Nine's premium content into more regional markets under one agreement, and to work co-operatively with them on a national and local news operation, means that this is the right time for us to return to WIN. The terms of this new affiliation agreement should be positive to Nine's earnings before interest, tax, depreciation and amortisation (EBITDA) from FY22 through the broader reach of Nine's channels and by enabling incremental efficiencies across both sales and news.

Westpac Banking Corp (ASX: WBC)

Today, big four ASX 200 bank Westpac noted that the Australian Prudential Regulation Authority (APRA) has today announced that it has closed its investigation into matters related to the AUSTRAC proceedings. This follows the conclusion of the Australian Securities and Investments Commission's (ASIC) AUSTRAC-related investigation in December 2020.

The $1 billion operational risk capital add-on, which reflects the bank's heightened operational risk profile, will remain in place until Westpac completes its remediation under the court enforceable undertaking (CEU).

APRA deputy chair John Lonsdale said:

Although the investigation has not found evidence of breaches of the banking act or the Banking Executive Accountability Regime (BEAR), APRA remains determined to ensure Westpac rectifies its risk governance weaknesses effectively and sustainably.

Under the enforceable undertaking, Westpac has clearly defined executive and board accountabilities for the implementation of its integrated risk governance remediation plan. APRA will be holding Westpac to account for the delivery of the required improvements.

The Westpac share price ended the day lower by 0.3%. 

Speedcast International Limited (ASX: SDA)

Speedcast announced today that it has completed the restructuring and it's going to emerge under new ownership, which sets into motion the winding up of Speedcast International Limited.

The new parent company will be called Speedcast Holdings III. The Speedcast business will continue to serve customers under Centerbridge Partners' new ownership.

Speedcast International Limited has no remaining material assets or liabilities having transferred its assets in exchange for the cancellation of its secured debt. Speedcast said that was done at a significant shortfall to the secured lenders. It will shortly initiate a voluntary liquidation process.

The post ASX 200 climbs, Westpac in the clear, Nine reveals a WIN-ning deal appeared first on The Motley Fool Australia.

In afternoon trade on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a strong gain. At the time of writing, the benchmark index is up 0.75% to 6,764.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are sinking:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 4% to $18.64. This appears to have been driven by profit taking after a strong gain on Thursday following the Government's announcement of a $1.2 billion stimulus package for the tourism industry. In addition, analysts at Citi have responded to the news by retaining their sell rating and $16.80 price target on the company's shares.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price has fallen 3% to $9.46. Investors appear to be selling safe haven assets like gold miners on Friday and buying risk on assets such as tech shares. This follows a very positive night of trade on Wall Street, which saw the Nasdaq index rise 2.5%.

Southern Cross Media Group Ltd (ASX: SXL)

The Southern Cross Media share price has plunged 9.5% to $2.00. The media company's shares have come under pressure today after Channel Nine advised that it will not be extending its regional affiliation with Southern Cross Media after it expires in June. Nine Entertainment Co. Holdings Ltd (ASX: NEC) has instead signed a deal with WIN.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down over 3% to $11.11. This decline means that the wine company's shares have now given back almost all their gains from earlier this week. A mixed response to its plans in the Americas has been behind the volatility. Yesterday Citi retained its sell rating and $9.30 price target on the company's shares.

The post Why Flight Centre, Northern Star, Southern Cross Media, & Treasury Wine are sinking appeared first on The Motley Fool Australia.

Southern Cross Media Group Ltd (ASX: SXL) shares are plummeting this morning after news broke that the company's agreement with Nine Entertainment Co. Holdings Ltd (ASX: NEC) will not be continued. At the time of writing, the company's shares have tumbled 13.57% to $1.91.

Let's take a closer look at what was announced.

What happened?

The Southern Cross share price is taking a dive today after the company (also known as Southern Cross Austereo) stated it has been advised Nine will not be extending its regional affiliation with the broadcasting company after it expires in June.

This morning Nine confirmed it's discontinuing its affiliation with Southern Cross Media and has instead signed an agreement with WIN Corporation. While losing its affiliation with Nine is a devastating blow for Southern Cross, it still has supply agreements with Seven West Media Ltd (ASX: SWM) and Network Ten.

Southern Cross stated that its ongoing agreements currently contribute around 20% of its television revenue.

The company will continue to broadcast Nine programming in the Spencer Gulf, where it also broadcasts Seven and Ten. Further, it broadcast's Seven programming in Tasmania, Darwin and central regions in an agreement that expires in 2022.

Broadcasting of Nine programming in regional Queensland, southern New South Wales and regional Victoria by Southern Cross Media will cease on 30 July 2021.

About Southern Cross

Southern Cross Media boasts a reach of 95% of the Australian population, a number that will likely soon fall following today's news.

The company owns 99 radio stations under the Triple M and Hit network brands.

Southern Cross also provides Australian sales representation for SoundCloud and Sonos Radio, as well as operating LiSTNR, a free audio platform.

Southern Cross Media share price snapshot

Over the past 12 months, the Southern Cross Media share price has fallen by more than 60%. The company's shares have, however, increased by around 27% over the last six months.

Based on the current Southern Cross share price, the company has a market capitalisation of around $584 million with approximately 264 million shares outstanding.

The post Why the Southern Cross Media (ASX:SXL) share price is tumbling 14% appeared first on The Motley Fool Australia.

The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price was relatively unmoved today after speculation emerged the company may purchase the WIN Corporation.

After edging slightly higher throughout the day, the Nine share price closed flat at $3.00 per share. In contrast, the S&P/ASX 200 Index finished the day down 0.84%.

Let's take a closer look.

Nine wants a WIN

The Australian is reporting Nine Entertainment is in talks with WIN chair Bruce Gordon about absorbing his business into Australia's largest publicly listed media company. WIN Corporation owns the WIN regional television network, Crawford publications, and several local radio stations.

It is reported Gordon sold his shares in Prime Media Group Limited (ASX: PRT) to the owners of Rural Press Ltd. That move coming, allegedly, as Gordon looks to focus his attention on a potential deal with Nine. The Australian also reported that Rural Press is looking to take over Prime Media.

The article claims Gordon will be paid in scrips (i.e. a promissory note for shares in Nine). The paper speculates the deal could be worth anywhere between $50 million to $100 million.

Gordon, through company Birketu Pty Ltd, already has a 15% stake in Nine Entertainment. The Australian claims any deal will likely see Gordon own enough shares to be elevated to the board. If this were the case, it would be yet another change to the revolving door of the Nine board.

If Nine were to purchase WIN, it would likely end its affiliation deal with Southern Cross Media Group Ltd (ASX: SXL).

Other news

As previously reported, Nine is in the process of replacing long-time CEO Hugh Marks. Marks, whose tenure ends at the end of the month, is being replaced by Mike Sneesby. Sneesby is the soon-to-be-former head of Stan Australia.

Nine has been delivering results to its investors. Channel Nine show Married at First Sight is currently the highest-rated program on Australian TV. On top of this, a Nielsen report from January, as reported by Mediaweek, listed nine.com.au, the Sydney Morning Herald, and The Age as the number 2, 5, and 8 most viewed news websites in Australia, respectively.

Nine Entertainment share price snapshot

Since its merger with Fairfax Holdings, the Nine company has been in its strongest position yet. The share price has increased 114.5% on this time last year. Just last week, the media conglomerate broke its 52-week share price record, twice!

Given its current valuation, Nine Entertainment has a market capitalisation of $5.1 billion.

The post Is Nine Entertainment (ASX:NEC) eyeing up regional broadcaster WIN? appeared first on The Motley Fool Australia.

Southern Cross Media Group Ltd (ASX: SXL) shares have fluctuated in morning trade on the back of the group's half-year results, which include an astonishing 59.3% rise in net profit.

After opening the day up by more than 2%, the Southern Cross share price is now down 2.47% to $2.37 as investors digest the group's latest numbers.

What did Southern Cross Media report?

The media group declared a net profit after tax (NPAT) of $32.5 million, almost 60% higher than the $20.4 million profit declared for the prior corresponding period (pcp). The company attributed this growth to a leaner operating model and historically low debt levels.

While revenues were down 15.9% on the pcp, this was offset by a 23.6% expense reduction.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 11.5% on the pcp – to $75.3 million.

The group also advised that, subject to no adverse changes in advertising markets, it intends to pay a final dividend for the 2021 financial year. The decision on final dividend will be announced when Southern Cross reports its full-year results in August.

Who is Southern Cross Media?

Southern Cross Media broadcasts programmed content on free-to-air commercial radio, television, and online media platforms across Australia.

The company has 100 radio stations and 105 TV signals in both regional and metropolitan markets. It generates about 70% of its advertising revenue from radio and 30% from television.

Words from the CEO

Southern Cross CEO Grant Blackley gave the following comments on the announcement:

Advertising markets are continuing to improve towards pre-COVID levels as the economy recovers and government restrictions stabilise and ease. Our Q3 revenue is forecast to be between 6% and 8% below the pcp while costs for the full year will reflect the benefits of work done over the past few years to restructure our business.

Blackley added:

We have revitalised our key Breakfast radio shows, led by The Morning Crew with Hughesy, Ed, and Erin on 2DAY FM in Sydney, The Marty Sheargold Show on Triple M Melbourne, and Basil, Xav, and Jenna on our new Triple M station in Perth. This investment is critical to unlocking higher audiences, revenues and earnings.

The poisoned chalice of Sydney breakfast radio

When ratings super magnets Kyle and Jackie O left 2Day FM in 2013 for new venture KIIS 1065, 2Day FM plummeted from the top of the Sydney ratings to near the very bottom. At one point the station reached a low of 2.8% audience share for the time slot.

A cavalcade of hosts over the years came and went as Southern Cross searched for that winning formula again. At first the station went to well-known names Jules Lund, Mel B, and Merrick Watts – before later replacing Mel B with Sophie Monk.

The ill-fated Dan and Maz show later replaced them, only to be themselves succeeded in 2015 by Rove McManus and Sam Frost.

In 2017 Southern Cross Media replaced Rove and Sam with comedians Harley Breen and Em Rusciano. The media company abandoned breakfast programming altogether in favour of music-focused programming in 2019.

The group will no doubt be hoping the new formula of Dave Hughes, Ed Kavalee, and Erin Molan can find success in the fiercely competitive and valuable Sydney breakfast radio market.

Southern Cross share price snapshot

After reaching a low of 11 cents per share in April 2020 – at the height of COVID-19 pandemic – Southern Cross Media shares rocketed in November 2020 from 16 cents to a high of $2.65 by the end of the month. That's an eye-watering 1,656% increase!

The Southern Cross share price opened today at $2.43 and has since dropped to $2.37 at the time of writing.

The post Southern Cross Media (ASX:SXL) share price falters despite increased profits appeared first on The Motley Fool Australia.

The Iluka Resources Limited (ASX: ILU) share price crashed by nearly half on Friday, but investors shouldn't panic.

The ILU share price fell over 47% to its lowest point in five years of $5.23 during lunch time trade. This makes the mineral sands miner the worst performer on the S&P/ASX 200 Index (Index:^AXJO) by a country mile!

The loss is far worse than the 4% to 5% drop in the Southern Cross Media Group Ltd (ASX: SXL) share price and Regis Resources Limited (ASX: RRL), which are the second and third worst ASX 200 performers today.

Iluka share price fall doesn't worry investors

But shareholders of Iluka aren't worried. The reason behind the sharp drop is linked to the spin-off of its royalties business.

The Deterra Royalties (ASX:DRR) share price started trading on the ASX today with Iluka's shareholders receiving one DDR share for every one ILU share they hold.

The DDR share price is currently trading at $4.77 and if you combined the value of both stocks, shareholders are actually sitting on a small gain.

When down is really up for the ILU share price

That's a good outcome given that mining stocks are mostly trading lower. The BHP Group Ltd (ASX: BHP) share price shed 1.4% to $35.96 and the Newcrest Mining Limited (ASX: NCM) share price tumbled 2.6% to $30.77 at the time of writing.

The divestment is creating value for the Iluka share price as Deterra is worth more as a stand alone.

Deterra is the largest mining royalty company. It will receive royalty payments from BHP's South Flank iron ore operations in Western Australia, reported Reuters.

Deterra plans to pay out all of its net profit as dividend to shareholders. But it isn't ruling out acquiring other royalties generating assets – particularly outside of iron ore for diversification purposes.

What's next for the Deterra share price

"Although we won't be limiting our geographic scope, we will be more likely to be focused on opportunities in Australia than offshore," Reuters quoted Deterra's chief executive Julian Andrews as saying.

"We will have a fairly broad mandate so we won't be restricting the types of commodities that we look at," he said.

More often than not, streaming companies have tended to focus on precious metals.

Should you buy shares in Deterra?

Iluka received a royalty payment of $85 million from BHP in 2019. This is expected to increase substantially, thanks to the high iron ore price and BHP's planned expansion of the project. Deterra's royalties are based on a percentage of the ore produced.

The Deterra spin-off couldn't come at a better time for ASX investors. Record low interest rates and the COVID‐19 pandemic have made it harder to find stocks with attractive and sustainable yields.

I think the 2021 outlook for the Iluka share price and Deterra share price is positive.

The post Why the Iluka (ASX:ILU) share price nearly halved today appeared first on The Motley Fool Australia.

The OZ Minerals Limited (ASX: OZL) share price defied the market gloom to surge to its highest in a decade this morning.

The OZL share price jumped 3% to $15.62, making it the third best performing stock on the S&P/ASX 200 Index (Index:^AXJO).

The outperformance of the copper miner is only bettered by the Healius Ltd (ASX: HLS) share price and Southern Cross Media Group Ltd (ASX: SXL) share price at the time of writing.

OZ Minerals share price turning gold

OZ Minerals quarterly production report is the key reason why the stock is rallying when the ASX 200 is crashing 1.1%.

The miner upgraded its gold production guidance for 2020 thanks to a strong showing at its flagship Prominent Hill project.

Surprising production upgrade

OZ minerals expects to deliver between 242,000 and 259,000 ounces of the precious metal this year. That's up from its earlier estimate of 227,000 to 249,000 ounces.

The timing of the production increase couldn't be sweeter as the gold price is hovering close to record highs and is now fetching over US$1,900 an ounce.

Little wonder why the OZ Minerals share price is reacting so positively!

What the gold output upgrade essentially means is a drop in operating costs for the group. Management believes that C1 cash cost for 2020 will range between zero and US15 cents a pound of copper. This compares to its earlier projections of US10 cents to US25 cents a pound.

OZ Mineral could be mining for free?

That's a pretty incredible outcome as profit from the sale of gold may totally offset the cost of mining the industrial metal.

Gold is seen as a by-product for OZ Minerals, which sells the yellow metal to bring down the cost of its copper operations. The C1 cost refers to the operating expenses and doesn't include capex to find new copper deposits to replace what is being mined.

The all-in sustaining costs, which is a more holistic reflection of real expenses, is also expected to be lower than originally forecasted. This will come in between US60 and US75 cents a pound versus the US70 to US85 cents earlier estimate for 2020.

Management made no changes to its copper production guidance. This is tipped to be 88,000 to 105,000 tonnes for the year.

Rise in copper adds to OZ Minerals share price rise

The pleasing production report may not be the only driver for the stock today. The copper price jumped 1.6% to around US$3.19 a pound due to supply disruption from Chile, the world's largest copper exporter.

This also explains why the Sandfire Resources Ltd (ASX: SFR) share price is also outperforming the market today.

The gold price is also faring well with the precious metal gaining 0.7% to US$1,923 an ounce.

The outlook for both commodities is bright despite economic impact from COVID‐19. The OZ Minerals share price is likely to be well supported going forward. There's a lot of profit margin for the miner to make at current prices.

The post Why the OZ Minerals (ASX:OZL) share price hit a 10-year high today appeared first on The Motley Fool Australia.

Following reporting season, you should have a much clearer picture of how your ASX shares are tracking along and whether it's time to re-adjust your portfolio. Reading and understanding a company's reports will reveal its financial health and future growth profile.

As some ASX shares have performed better than others, it's important to understand which companies present value and which could be riskier to put your hard-earned cash towards. On that note, below I have picked which ASX shares I would avoid buying during this economic crisis.

4 ASX shares I would avoid buying this year

Myer Holdings Ltd (ASX: MYR)

The Myer share price has been gaining back some ground since its fall to 8.3 cents in March. Today, the Myer share price can be picked up for 26.5 cents per share, up over 200% from its March low. However, looking at the last 12 months, this ASX share has fallen from 61.5 cents, a drop of almost 57%.

Last month, Myer released its latest update advising it had secured an amended debt facility of $340 million to see it through the pandemic. No covenants will be tested before FY20, given the significant impact on Myer's operations during 2H20. Covenants for future periods will be tested quarterly, with the $340 million bank facility to be repaid by August 2022

Furthermore, Myer said that COVID-19 had severely impacted trading during the second half of FY20. The company has initiated cost control measures as well as rent relief and deferrals.

Myer is expected to report its FY20 results this Thursday 10 September.

QBE Insurance Group Ltd (ASX: QBE)

QBE has had a turbulent year, to say the least. The company reported its FY20 results in August which saw a monstrous net loss of US$712 million. This was followed in September by the shock exit of QBE's CEO from an external investigation concerning workplace communications.

Investors have been quick to hit sell on this ASX share which has seen the QBE share price tumble from $15.19 in February to $9.82 today. That's a decline of 35%, and over 8% in the last week from the board's announcement of the new leadership change.

The insurance group warned its outlook remains uncertain as government actions continue to significantly impact revenue drivers. COVID-19 is expected to have a total cost of around US$600 million to QBE, including US$265 million of potential further net claims in the next 12-18 months.

The company's decision to support customers through offering premium refunds, premium deferrals, extending credit and counselling services will likely further effect future earnings.

Southern Cross Media Group Ltd (ASX: SXL)

One of Australia's largest media companies, Southern Cross reported a staggering decline of underlying net profit of $35.8 million in its FY20 results, down 51.6% on the prior year.

The company has experienced fierce headwinds from COVID-19 with revenue down 18.2% in both audio and television segments. Southern Cross suspended all dividend payments for FY21, and forecasts to resume paying dividends in FY22.

Shareholders have largely sold off their positions in this ASX share over the past 12 months. This time last year, the Southern Cross share price was fetching for $1.24 compared to just 15.5 cents now. This represents a freefall of 88%.

The media company is looking to recover its underlying earnings and reduce expenses to see it through the challenging climate. Southern Cross completed a recent capital raising of $169 million.

Scentre Group (ASX: SCG)

Scentre has been another poor performer on the ASX this year. The shopping centre operator's HY20 results disappointed investors with a deep first-half statutory loss of $3.61 billion, down from a profit of $740 million in the prior corresponding period. COVID-19 restrictions prevented many shoppers from visiting its malls and weighed on valuations of retail property assets of the ASX share.

The leading retail property group indicated that the pandemic risks stretched into its balance sheet, despite $4.4 billion of liquidity available.

The company has accelerated customer engagement platforms and other programs to support revenue growth.

The Scentre share price is trading at $2.18, a drop of 47% from its 52-week high of $4.08.

The post 4 ASX shares I would avoid for 2020 appeared first on The Motley Fool Australia.

A number of shares could be on the move on Friday after S&P Dow Jones Indices announced its September 2020 quarterly rebalance of the S&P/ASX Indices.

Below is a summary of the changes that have been made, effective at the open of trading on 21 September.

S&P/ASX 20 index changes.

There have been two changes to the S&P/ASX 20 index this quarter. Supermarket giant Coles Group Ltd (ASX: COL) and iron ore producer Fortescue Metals Group Limited (ASX: FMG) have joined this exclusive index. They have joined at the expense of shopping centre operator Scentre Group (ASX: SCG) and insurance giant Suncorp Group Ltd (ASX: SUN), which have both struggled during the pandemic.

S&P/ASX 100 index changes.

There has also been two changes to the S&P/ASX 100 index for this quarter. Out goes contractor Cimic Group Ltd (ASX: CIM) and UK bank Virgin Money UK (ASX: VUK). They will be replaced by artificial intelligence services company Appen Ltd (ASX: APX) and medical device company Fisher & Paykel Healthcare Corp Ltd (ASX: FPH).

S&P/ASX 200 index changes.

The benchmark S&P/ASX 200 will see five changes later this month. The most notable being the inclusion of buy now pay later provider Zip Co Ltd (ASX: Z1P) at long last. It will be joined by Auckland International Airport Limited (ASX: AIA), AUB Group Ltd (ASX: AUB), Ramelius Resources Limited (ASX: RMS), and Westgold Resources Ltd (ASX: WGX).

Leaving the ASX 200 are salary packing company McMillan Shakespeare Limited (ASX: MMS), coal miner New Hope Corporation Limited (ASX: NHC), outdoor advertiser oOh!Media Ltd (ASX: OML), lithium miner Orocobre Limited (ASX: ORE), and media company Southern Cross Media Group Ltd (ASX: SXL).

What now?

When a company is added to an index it can lead to an increase in demand for its shares from exchange traded funds that are designed to track an index and from fund managers that may have investment mandates which permit them to only buy shares on certain indices.

Conversely, when a share is removed it can lead to increased selling pressure as exchange traded funds dump them and fund managers are forced to sell them.

Though, given the (bleak) outlook for today's trade, it seems unlikely that this will have much impact on their relative performances.

The post Quarterly rebalance: Coles and Fortescue added to ASX 20, Zip joins the ASX 200 appeared first on The Motley Fool Australia.

The Southern Cross Media Group Limited Ltd (ASX: SXL) share price has fallen lower in today's trade following release of the company's FY20 results. The Southern Cross share price bounced higher at the opening bell to 18 cents but has since retreated to 16 cents at the time of writing. This is 5.88% lower than yesterday's closing price of 17 cents. 

Having declined more than 80% from its 52-week high of 93 cents in September last year, the Southern Cross share price has faced a rocky period in FY20 to say the least.

So how did the company perform in the past financial year, and how is it shaping up moving forward?

What does Southern Cross Media do?

Southern Cross provides content for Australians through its radio, television and digital assets. It is the parent company for Southern Cross Austero, which claims to be "Australia's biggest entertainment company with the ability to reach more than 95% of the Australian population" via its various channels.

Key brands include 2Day FM, Triple M and the Hit Network, and the company also engages with the Nine Network, Seven Network, and Network Ten in programming.

FY20 results

Despite the profoundly challenging economic environment, Southern Cross managed to report a profit of $25.1 million for FY20. In addition to remaining profitable, it recorded earnings before interest, taxes, depreciation and amortisation (EBITDA) of $108.2 million for the year, translating to a positive margin of 20%. Equally notable was that all four quarters of FY20 were EBITDA positive, unlike many other members of the S&P/ASX200 Index (ASX:XJO) which have reported this month.

Southern Cross' revenues dipped by 18% for both Audio and Television assets, and the company explicitly stated it does not expect to pay a dividend in FY21, with restoration of dividends likely postponed until FY22.

Removing dividends from the equation will certainly bolster the company balance sheet, which the announcement referred to as 'robust' due to the recent equity raising and historically low net debt of $131 million.

A particularly bright spot for Southern Cross was the performance of PodcastOne Australia, which turned cash flow positive and grew revenue by 96% to $4.6 million in FY20. The formidable growth of podcast consumption is absolutely a tailwind for the company, albeit just one facet of the holistic business operations. The media release also indicated the company expects advertising revenues from podcasting to continue to rise in FY21, having seen the revenue of PodcastOne grow by 112% over the past 12 months.

Is the Southern Cross share price too cheap to ignore?

Considering how high the Southern Cross share price once was, it would be tempting to buy into the company now and sit on it for the next couple of years. I expect podcasting, and its associated advertising revenue to continue growing at a strong pace. It's also likely that Southerm Cross' radio stations will continue to maintain loyal followings.

To capitalise on these followings, the company highlighted that in FY21 it "will continue to grow our digital auto ecosystem with premium content, platforms and products attractive to our listeners and advertisers."

On the flipside, it is the case that revenues from free-to-air television continues to decline, particularly as consumers have shifted to paid subscription services like those offered by Stan and Netflix Inc (NASDAQ: NFLX). Coupled with this, Southern Cross explicitly speculated it will likely not quality for the JobKeeper extension beyond 27 September, and this may lead to liquidity issues or cash flow shortages in the coming months.

Foolish takeaway

In balancing potential risk to reward, the current Southern Cross share price remains only a watchlist item for me at this point. I think the podcasting model has the potential to continue to grow in profitability, but these gains could be offset by free-to-air television continuing to shrink in the future.

The fact that Southern Cross maintained its profitability for FY20 is a big tick nonetheless, so for prospective investors with a greater risk appetite, I think there could be considerable upside to today's Southern Cross share price. 

The post Southern Cross share price drops 6% on FY20 earnings appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) has snapped its 2-week losing streak and recorded a solid 1.3% rise last week, once again pushing back over the 6,000-point threshold. Whilst ASX investors would have been cheering at the 1.3% gain, the ASX 200 is still very much stuck in the rut it has been trading in for the past 2 months. Although it has seen its fair share of ups and downs, the ASX 200 has actually been essentially flat since early June. That was when the index touched the 6,000 point level for the first time since the coronavirus-induced market crash struck back in March. But with the ASX 200 closing at 6,004.8 points on Friday afternoon, it's obvious we haven't really seen any sustained, breakout moves since. In other words, the ASX 200 is stuck in the mud, it seems.

But getting back to last week's market moves, it was once again commodities that were the major forces behind the week's gains. Both iron and gold were on fire last week, both pushing ever higher.

Gold and iron miners lead gains

Iron ore is still commanding over US$117 per tonne, albeit after a late-week fall on Friday. This saw iron miners like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) surge in value over the week as investors fought to get their hands on mining shares. BHP was up nearly 7% to $39.30, while Rio was up 0.44% to $102.45, despite going ex-dividend on Thursday. Fortescue was also up more than 4% for the week after hitting a new all-time high of $18.64 on Tuesday.

Gold, however, continued to surge last week and printed several new all-time highs after first breaking its 2011 record of US$1,921 per ounce in the prior week. Last Friday, we saw a new high watermark of US$2,075.47 per ounce, meaning gold is up an incredible 36.6% for the year so far. As you would expect, gold ETFs and miners alike saw substantial gains during the week, although far more muted than the big iron miners. The ASX's largest gold miner, Newcrest Mining Limited (ASX: NCM), was up 2.56% for the week, but smaller miners like Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) saw slightly larger jumps.

In other news, the Reserve Bank of Australia (RBA) left interest rates on hold (at the record low of 0.25%) in their monthly meeting on Tuesday. That was what most investors were expecting, judging by the lack of any significant ASX or Aussie dollar market moves following the decision.

How did the markets end the week?

The ASX 200 banked a 1.3% gain for the week after starting out at 5,927.8 points and finishing up at 6,004.8 points on Friday. Monday saw a relatively flat start to the week, but investors stepped on the gas on Tuesday with a 1.9% gain. Wednesday saw a muted 0.6% sell off, while Thursday saw this more-or-less reversed with a 0.7% gain. Friday saw another soft 0.6% loss, but it wasn't enough to erase the gains achieved earlier in the week and the ASX 200 still finished well in the green.

Meanwhile, the All Ordinaries (INDEXASX: XAO) also had a strong week, starting at 6,058.3 points on Monday and finishing up at 6,114.9 points on Friday for a 1.4% gain for the week overall.

Which ASX 200 shares were the biggest winners and losers?

It's time to take a look at our Foolish version of the gossip pages and investigate last week's winners and losers. So while we put the kettle on, let's start with the losers:

Taking out last week's wooden spoon was sleeping aid company ResMed with a steep 11.4% decline. Investors evidently weren't too impressed with the company's quarterly and full-year update, which also came with a less-than-optimistic outlook for FY21, despite a 32% lift in net income for the year.

Contractor company NRW Holdings was also in the firing line last week after significant gains in the previous week. Investors were probably just taking some profits off the table with this one.

It's a similar story with Credit Corp after the debt collector released a positive set of full-year results on 28 July.

Meanwhile, advertising-based Southern Cross Media shares continue to be unloved. The company's shares are down more than 73% year to date after last week's sell off.

With the bad news out of the way, let's now check out last week's winners:

Medical company Mesoblast came out on top last week, despite no major news from the company. Perhaps investors are still just trying to jump on this bandwagon, given that Mesoblast shares have more than doubled in value over the year so far.

Chemicals manufacturer, Incitec Pivot, was also in demand last week. It seems investors are seeing this company as undervalued, given the shares are still down more than 33% in 2020.

Wesfarmers Ltd's (ASX: WES) old flame Lynas was also a hot stock last week. This lithium producer told the markets that one of its Malaysian deposit facilities has received government approval for construction.

Finally, Rupert Murdoch's News Corp was also bid higher last week after the company released its full-year results. Despite the company reporting a net loss of $1.55 billion, investors were clearly expecting a lot worse.

What is this week looking like for the ASX 200?

As per usual these days, all eyes will be on the coronavirus cases in Australia (as well as globally) as we start the new week. Victoria is tragically still struggling immensely with its outbreak, with continuing lockdowns a certainty for at least the next several weeks. New South Wales is also on high alert. If this situation deteriorates, we can at least expect to see some market volatility in my view. Our fingers are crossed this doesn't eventuate.

In other news, we will finally get a look at Commonwealth Bank of Australia's (ASX: CBA) books on Wednesday when it releases its full-year results. The one metric that investors will be looking for is, of course, CommBank's final dividend for 2020. Predictions are ranging from $1 per share to zero. CommBank is the last of the big four banks to report since the coronavirus crisis began, so it ill be interesting (and popcorn-worthy) viewing, to say the least.

Dividend investors will also be watching Telstra Corporation Ltd (ASX: TLS) this week, as it is also due to give its results and dividend announcement. Unlike with Commonwealth Bank, investors are hopeful Telstra will be able to keep its annual dividends at 16 cents per share. We'll have to wait until Thursday to see if this hope translates into reality.

Before we go, here is a look at how the major ASX 200 blue chip shares are looking as we prepare to enter the breach once more:

And finally, here is the lay of the land for some leading market indicators:

•     S&P/ASX 200 (XJO) at 6,004.8 points
•     All Ordinaries (XAO) at 6,144.9 points
•     Dow Jones Industrial Average at 27,433.48 points after rising 0.17% on Friday night (our time)
•     Gold (Spot) swapping hands for US$2,035.99 per troy ounce
•     Iron ore asking US$117.85 per tonne
•     Crude oil (Brent) trading at US$44.69 per barrel
•     Crude oil (WTI) going for US$41.60 per barrel
•     Australian dollar buying 71.57 US cents
•    10-year Australian Government bonds yielding 0.82% per annum

Foolish takeaway

It remains an interesting time to be alive on the ASX, that's for sure. Investors are clearly hedging their bets both ways by sending both the US share markets (risk-on assets) and the gold price (a risk-off asset) to all-time highs. If anyone else has a sense of sailing in uncharted waters, you're not alone! So invest cautiously Fools, have some cash ready and be prepared for anything is my advice for this week. As always, stay safe out there, stay rational and stay Foolish!

The post ASX 200 Weekly Wrap: Surging commodity prices snap ASX 200's losing streak appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) returned to form last week and charged notably higher. The benchmark index recorded a 1.3% gain to finish the period at 6,004.8 points.

Not all shares were able to follow the index higher last week. Here's why these were the worst performing ASX 200 shares over the period:

ResMed Inc. (ASX: RMD)

The ResMed share price was the worst performer on the ASX 200 last week with an 11.4% decline. Investors were selling the sleep treatment focused medical device company's shares after the release of its fourth quarter and full year update. Although ResMed delivered a very strong year of sales and profit growth, investors appear concerned by softer than expected mask sales during the pandemic. Management's guidance for FY 2021 was also reasonably cautious.

NRW Holdings Limited (ASX: NWH)

The NRW share price was out of form and tumbled 7.9% lower last week. This means the contract services provider's shares have given back the gains they made a week earlier following a positive announcement. That announcement revealed that the Southwest Connex Alliance has been named as the preferred proponent for the Bunbury Outer Ring Road project. NRW is a 40% partner in the alliance. The project is fully funded for $852 million and is expected to have a duration of three and a half years.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price was a poor performer and recorded a decline of 6.1% over the five days. This appears to have been driven by profit taking after the debt collector's shares surged higher a week earlier following its full year results release. Excluding one-off adjustments, Credit Corp's net profit after tax would have been up 13% to $79.6 million in FY 2020.

Southern Cross Media Group Ltd (ASX: SXL)

The Southern Cross Media share price wasn't far behind with a decline of just under 6.1% last week. This media company's shares have come under significant selling pressure this year due to the negative impact of the pandemic on its operations and its highly dilutive capital raising. The company's shares are now down a disappointing 74% since the start of the year.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.