Retail News CRM

Author: Mei Ling Tan

  • Baidu adopts Qlik Sense for self-service analytics

    Baidu adopts Qlik Sense for self-service analytics

    Baidu is Qlik Sense to improve its cloud services platform and provide an enhanced data analytics experience to its customers.

    Qlik Sense will be integrated into Baidu Palo to enable self-service visualization analytics on the Palo OLAP engine, giving Chinese enterprises the ability to achieve greater agility in aggregating data from various sources to make data driven business intelligence decisions.

    By incorporating Qlik into the Palo OLAP engine, Baidu aims to provide start-ups in China, especially those enterprises on Baidu Cloud, with greater support in driving data analytics among cloud or filed sources.

    “We are very excited to implement Qlik Sense into Palo OLAP to provide users in China with innovative self-service visual analytics,” said Yang Liu, General Manager, Baidu Open Cloud.

    “Qlik Sense has an open API and powerful features, and is suitable for enterprise level applications. The close cooperation and technical integration of the two companies has led to more powerful and flexible business intelligence solutions, which will greatly enhance the user experience.”

    “With the popularity of big data, cloud computing in BI, social networks, and mobile applications in China these past few years, integrating a powerful visual analytics solution into China’s largest search engine company will only lead to greater value for businesses,” said Toni Adams, senior vice president Partners and Alliances, Qlik.

    “Businesses of all sizes using Baidu’s Palo OLAP will now have the ability to take their analysis to a deeper level, leading to a better understanding of their business, as well as their customers.

  • Cisco to cut up to 5,500 jobs

    Cisco to cut up to 5,500 jobs

    Cisco has revealed plans to cut up to 5,500 jobs after reporting flat revenue for its full financial year a 2% decline in revenue for the fourth quarter.

    The networking vendor said it will restructure to cut costs in lower growth areas, and allow it to focus its investment on priority areas including IoT, next generation data centers and the cloud.

    The restructuring will eliminate up to 5,500 positions, or around 7% of Cisco’s total global workforce. It will commence this quarter.

    Cisco made the announcement as it revealed that revenue for FY16 was flat at $49.2 billion. Excluding the contribution of Cisco’s service provider video CPE equipment, which Cisco sold to Technicolor for $600 million last year, revenue would have grown 2%.

    Likewise, Cisco’s Q2 revenue declined 2% year-on-year to $12.6 billion, but grew 2% excluding video CPE revenues.

    Net income grew 20% for the full year to $10.7 billion, and 21% in the fourth quarter to $2.8 billion.

    “We continue to execute well in a challenging macro environment. Despite slowing in our service provider business and emerging markets after three consecutive quarters of growth, the balance of the business was healthy with 5% order growth,” Cisco CEO Chuck Robbins said.

    “This growth and balance demonstrates the strength of our diverse portfolio. Our product deferred revenue from software and subscriptions grew 33% showing the continued momentum of our business model transformation.”

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  • AsiaSat reports flat profit and revenue for 1H16

    AsiaSat reports flat profit and revenue for 1H16

    Hong Kong based AsiaSat has reported largely flat profit and revenue for the first six months of 2016 amid challenging market conditions.

    The satellite operator reported revenue for the half-year period of HK$640 million ($82.5 million) and profit attributable to owners of HK$249 million. Contracts on hand also remained stable at HK$3.54 billion.

    During the period the company acquired a growing number of customers, including new customers of its new AsiaSat 6 and AsiaSat 8 satellites in mainland China, Bangladesh and Thailand.

    Construction of the operator’s newest satellite – AsiaSat 9, which is due to replace AsiaSat 4 – is meanwhile on schedule for completion early next year.

    AsiaSat’s chairman Ju Wei Min commented that the company expects business to remain flat for the remainder of the year.

    “We do not anticipate any significant changes in market conditions and believe that they will continue to pose a challenge not only for AsiaSat but the industry as a whole,” he said.

    He noted that AsiaSat expects not to have to deal with the increased competition from terrestrial providers that is affecting satellite operators in other parts of the world due to the lack of quality terrestrial networks in many parts of APAC.

    But he added that “the new contracts signed in the first half will only partially compensate for the expiry of short-term revenue from a to-be retired satellite and the termination of a number of contracts which will occur in the second half due to changes in regulations.”

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  • China Mobile awards contracts for 100G OTN

    China Mobile awards contracts for 100G OTN

    China Mobile has issued contracts to build a 100G optical backbone network to support the rollout of 4G services and help meet its Broadband China strategy ambitions.

    Nokia revealed it has been awarded a more than 30% share of the project. Under the contract, Nokia will deploy a 100G OTN and DWDM backbone for China’s largest mobile operator by subscribers.

    China Mobile plans to use the optical platform to deploy services more rapidly, meet rising mobile data demands and be able to provide scalable capacity for a range of cloud-based 4G services.

    “This is a crucial win with our longstanding partner,” commented Mike Wang, head of the joint management team of Nokia Networks China and Alcatel-Lucent Shanghai Bell. Nokia and China Mobile have had a working relationship since 1994.

    “With our innovative 100G OTN solution, we are able to help China Mobile meet the higher requirements for large-scale 4G construction,” Wang added.

    “We are committed to delivering the latest optical transmission innovations to enable China Mobile to optimize their networks and open up new opportunities for their subscribers.”

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  • Naughty Cat Vietnam makes Saigon debut

    Naughty Cat Vietnam makes Saigon debut

    Leading Korean accessories chain Naughty Cat has opened its first Vietnam store on Nguyen Hue St in the city centre.

    Naughty Cat Vietnam is located at 47 Nguyen Hue street, D1. The store hopes to cash in on the crowded ‘walking street’ as well as the growing influence of the Hallyu wave in Vietnam.

    To mark the launch, the brand invited Vietnamese models and actresses to the store to demonstrate how fashionable girls will be when wearing these accessories.

    naughty cat

    Customers might be overwhelmed by thousands of items from headbands, hair clips, wigs, gloves and socks to earrings, necklaces, bracelets and even cell phone plugs. Naughty Cat – or N.Cat for short – has collections for men as well.

    After 23 years in the industry, N.Cat knows how to vary its collections to serve different fashion styles, and maintain quality and affordable prices. Globally, it introduces more than 5000 items every month to maintain customer interest and encourage repeat store visits.

    Founded in 1991, N. Cat Accessories had 110 franchised stores in Korea, Europe, America and Asia at the end of 2015.

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  • Chopard Singapore fails to notice missing millions

    Chopard Singapore fails to notice missing millions

    Geneva-based luxury goods company Chopard Singapore failed to notice it was missing S$11.2 million until a government investigator started looking into the embezzlement after a tip-off.

    Now the former accounting manager of the luxury goods company, known for its watches and jewellery, has been sentenced to 15 years’ jail for siphoning the money from her employer over nearly seven years.

    Chew Siew Lang, 53, misappropriated most of the money using erasable ink to write on cheques made out to Chopard suppliers for bogus transactions. After gaining the required two signatures on the cheques – Chew herself was an authorised signatory – she replaced the payee’s names with her own.

    The offences took place between January 2006 and August 2012, and Chew spent at least $2.1 million on lottery bets – she wrote 76 cheques of between $20,000 and $68,000 to a Singapore Pools retailer.

    In December, she pleaded guilty in the High Court to 56 charges – six counts of criminal breach of trust, 30 counts of falsification of accounts and 20 counts of using the benefits of her criminal conduct. A further 187 similar charges were taken into consideration.

    The prosecution had sought 18 to 20 years’ jail, but the defence argued that Chew has an impulse control disorder that turns her into a pathological gambler. The case was adjourned after Justice Woo Bih Li asked if there was a causal link between her mental disorder and her offences.

    In her latest appearance, Chew’s lawyer, Daniel Chia, told the court his client was not pursuing the point about her disorder after the prosecution submitted two psychiatric reports. He sought a jail term of 12 years.

    In sentencing, Justice Woo noted it was good Chew has the support of her family. “However, I also have to take into account that you misappropriate a very huge sum for which only a small portion has been recovered.”

    Chopard found out about the embezzlement only after the Commercial Affairs Department started investigating Chew. The company sacked her in August 2012, and two months later filed a civil suit against her. It has managed to recover only $197,000.

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  • Retail sales up 0.9% on-year in June, boosted by vehicle sales

    Retail sales up 0.9% on-year in June, boosted by vehicle sales

    Retail sales in Singapore rose 0.9 per cent in June compared with the previous year, mainly due to a jump in sales of motor vehicles, the Department of Statistics (SingStat) said on Monday (Aug 15).

    However, excluding motor vehicles, retail sales dipped 3.0 per cent compared with the same period a year ago.

    On a month-on-month basis, retail sales were down 1.5 per cent in June. Excluding motor vehicles, retail sales dropped 3.7 per cent.

    The total retail sales value in Juune was estimated at S$3.6 billion, similar to a year ago.

    Retailers of motor vehicles recorded a sales increase of 17.1 per cent compared to the previous year, the highest increase of all sectors. The next best performing sector was furniture and household equipment, which saw a 5.8 per cent increase. The medical goods and toiletries sector also recorded an increase of 3.0 per cent.

    Other than the mini-marts and convenience stores section, which was unchanged, all other sectors were in the red.

    According to SingStat, the telecommunications apparatus and computers sector fell the most at 25.1 per cent, compared with the previous year. This was followed by petrol service stations, which fell 14.1 per cent, and recreational goods, which saw a 11.8 per cent dip.

    Sales of food and beverage services rose 0.4 per cent from the previous year. The total sales value of food and beverage services in June was estimated at S$649 million, higher than the S$646 million in June 2015.

    The Retail Sales Index and the Food and Beverage Services Index measure the short-term performance of retail and F&B service industries based on their sales records. The sales figures exclude taxes such as GST and COE.

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  • Pacsafe opens first global flagship store in the Philippines

    Pacsafe opens first global flagship store in the Philippines

    Keeping in mind the growing demand for safer travel, globally recognized travel gear brand Pacsafe has opened its first flagship store in the Philippines. The boutique, the company’s first in the world, is located at G/F Glorietta 5, Makati City. It was officially launched through United Limsun International Trading Corp., the brand’s exclusive distributor in the country. At least 10 more retail locations are expected to open in three years.

    The new boutique will carry the company’s full range of products (adventure backpacks, urban and leisure bags, women’s bags, photography bags, luggage and travel accessories such as straps, cables and locks).

    Pacsafe has extended its company’s global marine turtle conservation advocacy by providing a kick-off fund donation of P235,000 to the Bantay Pawikan Conservation Center in Morong, Bataan, through the Bataan Tourism Council. Present to accept the donations were Vicky Garcia and Isabel Garcia, chairs of the Bataan Tourism Council.

    Built on the aspirations of Australian founders Rob Schlipper, CEO, and Magnus McGlashan, president and cofounder, Pacsafe has become synonymous with smart and safe travel. As the pioneer of the travel security category since 1998, Pacsafe is known all over the globe as the world’s most secure antitheft travel gear. It has steadily gained solid industry leadership throughout the years, thanks to trademark innovations like the eXomesh, RFIDsafe and other technologies.

     

  • Huawei tests Samsung-Shinsegae ties

    Huawei tests Samsung-Shinsegae ties

    Huawei, China’s top-tier handset and networking infrastructure business operator, is basking in the limelight for its partnership with Shinsegae, a former Samsung Group affiliate and the nation’s second-largest retailer.

    The partnership is also eye-catching as Huawei has icy relations with its rival Samsung Electronics following a series of lawsuits between the two.

    Shinsegae, which separated from Samsung Group in 1991, had been a decades-long retail services operator of Samsung. Shinsegae Group Chairman Lee Myung-hee is the younger sister of Samsung Group Chairman Lee Kun-hee.

    The partnership was announced last week when Huawei officially named Shinsegae I&C, the IT-based platform service affiliated with the retail giant, as its sole distributor in Korea, to speed up penetration into the market here.

    Given that Samsung and Huawei are engaging in legal battles, critics said the partnership is quite “unexpected.”

    In May, Huawei filed a patent lawsuit against Samsung Electronics in the U.S. District Court for the Northern District of California, claiming that the Korean electronics firm infringed on Huawei’s wireless patents without licensing.

    In response, Samsung Electronics countersued Huawei and a department store in Beijing last month, claiming some $24.14 million in damages.

    Amid the chilly relationship, Huawei held a press conference last week to launch the sales of its two-in-one portable PC, MateBook, in Korea. The company also announced its partnership with Shinsegae I&C whose retail clients include renowned global information and communication technology (ICT) companies such as Google, Hewlett-Packard and JBL.

    “Huawei joined hands with Shinsegae I&C, as the Chinese company appreciates our capability in managing global ICT firms,” said a Shinsegae manager. “We have nothing to comment on why Huawei chose the former Samsung affiliate despite its current estranged relationship with Samsung Electronics.”

    He said the partnership came as Shinsegae has a nationwide foothold to distribute devices by using its e-mart discount chains.

    Huawei established its Korean branch in 2007, but has so far failed to attract huge attention with its consumer electronics products — including smartphones and laptops. Expectations are that the Chinese handset giant aimed to stop the decade-long weak profile here by signing a partnership with the strong retail giant, regardless of its relationship with Samsung.

    There are only a few “hit” Huawei products here — including its budget handset Y6 introduced earlier this year. But the phone failed to gain wider interest, as the country’s smallest mobile carrier LG Uplus was the exclusive distributor for the smartphone.

    Huawei Korea officials were unavailable for comment over the specific reasons for the partnership.

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  • Fall of 5-10% in Hong Kong property prices ‘not abnormal’ — Wheelock

    Fall of 5-10% in Hong Kong property prices ‘not abnormal’ — Wheelock

    Hong Kong’s property market has yet to stabilize and could fall by 5-10% in the second half of the year, according to leading developer Wheelock.

    “Given the global uncertainties arising from Brexit and volatility in the currency market and oil prices, a 5-10% fluctuation in [home] prices in Hong Kong is not something abnormal,” said Chairman and Managing Director Douglas Woo Chun-kuen in an earnings briefing on Monday.

    In his late thirties, Woo, an architecture graduate from Princeton University, has become a third-generation owner to take the helm of the Hong Kong-listed property conglomerate after a stint at UBS. He assumed the chairmanship from his father Peter Woo Kwong-ching in 2014.

    Woo’s cautious outlook came after his group reported a 29% plunge in net profit to 5.66 billion Hong Kong dollars ($730 million) in the six months ended June. Underlying profit, excluding the impact of property revaluation, fell 19% to HK$5.13 billion on the year, despite a surge in property sales amid a housing downturn in previous months.

    Contracted sales reached HK$11.8 billion as of mid-August this year, primarily driven by the sale of three residential projects and the en-bloc sale of OneHabourGate East office tower and shops for HK$4.5 billion. The four projects already accounted for nearly 91% of its full-year sales target last year but the group would not say if it had plans to raise its target.

    Wheelock attributed the weaker bottom line to the high base of last year’s earnings, which was boosted by a significant contribution from the sale of One HarbourGate West office tower and shops to the overseas unit of China Life Insurance for HK$5.9 billion.

    The developer’s earnings are affected by the performance of Wharf Holdings, which accounts for a fifth of its core profits. Wharf, a landlord 60%-owned by Wheelock, saw a 7% increase in rental income from its malls despite a retail slump in Hong Kong, caused primarily by a dwindling number of wealthy mainland Chinese tourists to the territory.

    Analysts at Macquarie Securities maintain an “outperform” rating for Wheelock, citing its healthy residential and office sales. Thanks to strong demand and low average vacancy for Grade A-offices in Hong Kong’s central business districts, “we think this is a solid support for Wheelock’s sales due to keen expansion interest from mainland [Chinese] financial institutions,” according to a Macquarie note.

    Asked about competition from mainland Chinese developers on land acquisitions, Woo said Wheelock would “do its own math” and be “selective” in making acquisitions particularly in commercial land sites launched by the government.

    The developer has a land bank of 8.3 million sq ft and of that, 95% is in urban areas. This is however dwarfed by its rivals’ — Sun Hung Kai Properties has 50.8 million sq ft and Henderson Land Development has 24.4 million sq ft.

    Wheelock’s stock closed 0.35% higher at HK$43.3, before its earnings were announced. Its shares have advanced 32.62% since the start of this year, against the Hang Seng Index’s 4.65% gain. It declared a first interim dividend of HK$0.45, up 6% from a year earlier.

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  • Lifestyle plans third SOGO store

    Lifestyle plans third SOGO store

    Lifestyle International (1212) non- executive chairman Thomas Lau Luen- hung said the company is looking to open a third SOGO department store in Hong Kong and expects the investment to be no less than HK$5 billion.

    There are so far two SOGO branches in Hong Kong, one in Causeway Bay and one in Tsim Sha Tsui, Lau said.

    While the Tsim Sha Tsui branch focuses on selling cosmetics, Lau believes there is a market demand in Kowloon for a department store similar to the one in Causeway Bay.

    Lau said the company is still looking for a suitable location for the new store and that they would be more interested in opening and developing it through bidding for commercial sites rather than renting space from other companies.

    Lau said they have bid for commercial sites in the past without success but will continue to be involved as the government launches more commercial sites. He also did not rule out the possibility of partnering with other companies to develop the new store.

    He said the company is holding more than HK$6 billion in cash and has an investment portfolio of more than HK$4 billion which he said can be cashed in within 48 hours as the portfolio is comprised of mostly investments of high liquidity such as blue-chip stocks.

    Lifestyle International recorded a decline in net profit of 49.9 percent for the six months ended June 30 to HK$587 million compared to the same period last year, which the company said was attributable to the significant decline in investment income.

    Taking out the effect of net investment loss, the drop in net profit would be narrowed to 9.1 percent.

    The company proposed an interim dividend of 28.9 HK cents per share.

    Lifestyle’s landmark department store SOGO Causeway Bay’s same- store sales recorded a negative growth of 9.5 percent in the first half of this year compared to the same period last year as a result of weak local consumption, increased outbound travel and lower inbound tourists.

    Meanwhile, its Tsim Sha Tsui store recorded a 11.3 percent growth in same- store sales.

    Lau said the retail market was the worst in January and February and the decline bottomed out and remained flat during May and June.

    He does not expect there will be a rebound in retail market in the short term and retail sales will mostly likely remain flat in July and August.

    Lau said the fourth quarter will be an important indicator of the performance this year.

    Meanwhile, spinoff Lifestyle China (2136) recorded a decline in net profit of 6 percent to HK$157.4 million in the six months ended June 30.

    Lifestyle Properties Development (2183) recorded a drop in net profit of 67.9 percent to HK$148.6 million.

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  • China Jo-Jo Drugstores Reports Fiscal 2017 First Quarter Results

    China Jo-Jo Drugstores Reports Fiscal 2017 First Quarter Results

    China Jo-Jo Drugstores, Inc. (CJJD) yesterday announced financial results for its first fiscal quarter ended June 30, 2016.

    FY 2017 First Quarter Highlights:

    • Revenue was $20.9 million compared to $21.3 million a year ago
    • Gross profit increased 2.4% year-over-year to $4.5 million
    • Gross margin increased 90bps year-over-year to 21.4%, retail pharmacy gross margin increased 280 bps to 28.5% from a year ago
    • GAAP net income was $131,153 or $0.01 per diluted share compared to net income of $110,611 or $0.01 per diluted share a year ago
    • Adjusted net income was $754,000 or $0.04 per diluted share compared to adjusted net income of $277,481 or $0.02 per diluted share a year ago

    China Jo-Jo’s Chairman and CEO, Mr. Liu Lei commented, “Our results in the first quarter were temporarily impacted by lower pharmacy traffic due to preparation for the G20 summit in Hangzhou, and the unexpected disruption in the Yikatong referral business. We are proactively seeking referral arrangement with alternative providers of Pharmacy Benefit Management. We remain focused on increasing our gross margin and expanding the online and offline integration of our wellness offerings.”

    Net revenues for the quarter were $20.9 million compared to $21.3 million in the same quarter a year ago, a decrease of $375, 377 or 1.8%. Retail drugstores sales were $12.7 million and increased 4.4% compared to the prior year period. The Company continues to launch in-pharmacy virtual doctor clinics, provide access to mobile payment and implement other operational strategies to promote same store growth. The pharmacy store count increased to 61 as of June 30, 2016, compared to 59 stores a year ago.

    Online pharmacy sales for the quarter were $5.1 million compared to $6.0 million in the same quarter a year ago, a decrease of $894,689 or 15.0%. The decrease was mainly due to the decline in referral transactions from Yikatong on the Company’s own online pharmacy website. Excluding the RMB depreciation, sales via e-commerce platforms increased by 6.0% year over year. The Company is proactively seeking referral arrangements with alternative providers of Pharmacy Benefit Management.

    Net income was $131,153 or $0.01 per diluted share compared to last year’s first quarter net income of $110,611 or $0.01 per diluted share.

    Adjusted net income was $754,000 or $0.04 per diluted share compared to last year’s first quarter adjusted net income of $277,481 million or $0.02 per diluted share.

  • New Zealand’s Ministry of Health approves MS cloud services

    New Zealand’s Ministry of Health approves MS cloud services

    New Zealand’s Ministry of Health has officially approved the use of cloud services for advancing the country’s electronic health service capabilities.

    Specifically, Microsoft’s core cloud services Azure, Office 365 and Dynamics CRM Online have been deemed to meet the ministry’s requirements for storage of personal health information.

    Barrie Sheers, Managing Director for Microsoft New Zealand, said the government’s decision to use Microsoft’s Trusted Public Cloud services will be transformative for the eHealth agenda in New Zealand.

    “New Zealand’s health tech industry is today worth $1.3 billion to the local economy, and our country significantly punches above its weight on the international stage with health tech innovation,” he said.

    “With leading exporters like Orion Health and more than a hundred other smaller independent software vendors, the health tech sector in New Zealand is one that continues to grow and provide a burgeoning opportunity for export to the fast growing global health market.”

    With the advent of personalized medicine, genomics, intelligent sensors, advanced diagnostics and laboratory tests, data usage by health organizations will also increase as the sector builds ever more advanced models of the human body, according to Gabe Rijpma, senior director of health and social services Asia at Microsoft.

    “Being able to process all this data, store it, analyze it and make intelligent predictions on the results will usher in a new era of healthcare that will radically transform the way care is both diagnosed and delivered,” he said.

    Rijpma who is based at Microsoft NZ’s Christchurch office, said the local health tech sector has already been rapidly adopting the public cloud to develop futuristic solutions, but they have not been able to sell those solutions in international markets until now.

    “Now the local health tech sector will be able to use New Zealand as a fertile ground for new innovation and also deliver their world firsts here, too,” he added.

  • Alibaba revenue grows 59% in June quarter

    Alibaba revenue grows 59% in June quarter

    The Alibaba Group reported a 59% revenue growth (reaching $4.84 billion) for the quarter ended June 30.

    Revenue from its China retail marketplaces ($3.51 million), including Taobao and TMall, also rose 49% from a year earlier.

    It is, however, in the area of mobile that the e-commerce giant had made huge strides.

    Alibaba Group’s Chief Financial Officer Maggie Wu reported that mobile monetization – the commission the group charges for each transaction –  reached 2.80% this quarter, surpassing the non-mobile monetization rate for the first time since the company commenced mobile monetization in the fourth quarter of 2013.

    Mobile monthly active users (MAUs) on the China retail marketplaces also grew to 427 million in the month ended June 30, compared to 410 million in the month ended March 31. This represents a net addition of 17 million MAUs in the quarter and a 39% increase from 307 million a year earlier.

    The company attributes its strong growth in mobile users to the increased adoption of mobile devices by consumers as the primary method of accessing its platforms. Daily and monthly active users ratio of the Taobao App, for example, was 40% in June 2016.

    Joe Tsai, co-founder and vice chairman of Alibaba Group, said during the earnings conference call, that the company overall growth was unprecedented since Alibaba became a public company.

    He noted the tremendous value proposition of the e-commerce platform with 434 million highly engaged customers in China that even its China retail marketplaces have done well against the backdrop of economic headwinds and reduced expectations from the industry.

    He said features that focus on community, sharing,  originality, immediacy, and data-driven customization are capturing the imagination of today’s generation of young consumers. Around 75% of users on the Taobao app, for example, are below 35 years of age.

    “Taobao has fully evolved from a transactional platform to a social commerce platform driven by China millennials,” said Daniel Zhang, Chief Executive Officer of Alibaba Group. “Mobile Taobao enjoyed daily active users (DAU) versus MAU ratio of 40% in June, which points to a high degree of stickiness among our mobile user base.”

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  • Spark New Zealand opposes Vodafone-Sky merger

    Spark New Zealand opposes Vodafone-Sky merger

    Spark New Zealand has revealed it is formally opposing rival Vodafone New Zealand’s planned merger with Sky Network Television.

    The operator announced it has made a submission to competition regulator the Commerce Commission opposing the proposed merger on the grounds that Spark feels it is not in the best interest of consumers.

    Spark GM for regulation John Wesley-Smith said based on Sky’s current wholesale market arrangements for premium sports content, the company has told the Commerce Commission that the merger should not go ahead in its current form.

    “Sky has a monopoly on rights for premium ‘national sports’ in New Zealand. Given Kiwis’ love of these sports, they are ‘must have’ rights for media content providers,” he said.

    “Sky’s business model seems increasingly focused around sports, which underlines how effective their monopoly is in this space. The proposed merger with Vodafone is likely to entrench that monopoly, and that’s something all New Zealanders should be concerned about.”

    He said Spark has previously abandoned an earlier reselling deal with Sky three years ago because it was not financially viable, and it relied on an outdated distribution model involving reselling Sky boxes for pay TV services that no longer works for the operator’s customers.

    “We believe if the Commerce Commission blocked the proposed merger, Sky would be forced by commercial realities to make all of its sports content available online and on-demand – and via wholesale arrangements with lots of parties that help distribute this content to New Zealand consumers,” he said.

    Sky and Vodafone announced a proposed NZ$3.44 billion ($2.5 billion) reverse takeover deal in June involving Sky Network TV buying the operator in exchange for a 51% stake in the combined company.

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