News Review 18 Feb: Facebook bans news sharing in Australia

Facebook pushes back on news sharing in Australia

Social media giant Facebook (US:FB) has banned news sharing on its website in Australia, in a dramatic pushback against the country’s efforts to make America’s tech giants cough up.

“In response to Australia’s proposed new Media Bargaining law, Facebook will restrict publishers and people in Australia from sharing or viewing Australian and international news content”, an update from the tech company’s Australia and New Zealand managing director William Easton said on 17 February.

Easton added that “the proposed law fundamentally misunderstands the relationship between our platform and publishers who use it to share news content”. 

This “has left us facing a stark choice”, Easton said: “attempt to comply with a law that ignores the realities of this relationship, or stop allowing news content on our services in Australia. With a heavy heart, we are choosing the latter.” HC

News Corp seals deal with Google

The move from Facebook comes as Google parent Alphabet (US:GOOGL) agreed to make ‘significant payments’ to display News Corp (US:NWSA) content in its News Showcase platform, a move that may pave the way for other publishers to negotiate contracts with

social media giants. It is unclear whether Google will be able to escape regulatory intervention by striking deals with publishers independently. The three-year contract applies to some of News Corp’s titles outside of Australia, including The Times and The Sun in the UK, and The Wall Street Journal in the US. LA

Smith & Nephew flags first-half disruption

Smith & Nephew (SN) expects to face further pandemic disruption in the first half of 2021, it said on Thursday, as it posted a 6 per cent drop in quarterly revenues.

The FTSE 100 medical technology group was dealt a further blow in the run-up to Christmas by new virus restrictions, which postponed the elective surgeries for which it normally supplies equipment. Sales for the three months to 31 December dipped 5.8 per cent on a reported basis and 7.1 per cent underlying to $1.3bn.

However, Smith & Nephew noted that the fourth quarter slowdown was less serious than the contraction it endured in the second quarter last year because healthcare systems had adjusted over time to deal with Covid-19 patients as well as some non-essential procedures.

Overall, 12-month revenues fell more than a tenth to $4.6bn and operating profits dropped almost two-thirds to $295m. Including lease liabilities, the group’s net debt stood at $1.9bn as of New Year’s Eve – up from $1.8bn a year earlier.

Shares in Smith & Nephew were down 7 per cent in morning trading. HC

Nestlé tops expectations

Nestlé (SWX:NES) was buoyed last year by strong sales of pet food, dairy and health products, lifting organic sales 3.6 per cent to CHF84.3bn, the Swiss consumer goods giant said on Thursday – just ahead of consensus estimates.

While Purina Petcare was the largest contributor to growth, reflecting broader trends in rising pet ownership and time spent at home during the coronavirus pandemic, the company attributed a rise in dairy sales to higher demand for home-baking goods.

Nestlé also pointed to double-digit growth in vegetarian and plant-based food products. At the same time, sales for its health science business were bolstered by the popularity of products supporting the immune system. Small wonder, perhaps, against the backdrop of an ongoing global health crisis.

The group’s e-commerce sales rose almost a half to represent just over a tenth of total group revenue. HC

Net fees drop a quarter at Hays

Shareholders in Hays (HAS) would have been understandably apprehensive as we moved into 2021. With economies artificially…