Tidal wave of red predicted from AMP

By PAUL PANCKHURST

Funds manager and life insurer AMP will this week add a big splash of red to the results rushing in for company reporting season.

On Wednesday, AMP is expected to post a net loss of A$2.3 billion ($2.56 billion) for the six months to June 30.

The company made a net profit of A$303 million in last year's first half.

AMP will report amid speculation from analysts that it may have to raise more money to put into the troubled British life insurance business that it plans to spin off.

A Dow Jones survey of analysts predicted that, stripping out A$2.6 billion of writedowns in Britain, AMP's net profit would be A$275.5 million.

A widely quoted report from Citigroup's Smith Barney focused on the state of the company's life funds in Britain and said analysts were not convinced they had seen the last of the capital-raisings by AMP.

Also on Wednesday, Sky Network Television will reveal its result for the year to June 30.

Three months ago, chief executive John Fellet flagged that it would be better than previously expected.

Instead of a net loss of $8.5 million to $11 million, Fellet predicted it would fall between $2.5 million in the red and break-even.

Sky put the improved outlook down to factors including "better programming arrangements, primarily with movie suppliers" and improved returns from wholesale customers.

Air New Zealand and Qantas will this week present their arguments for an alliance to the Commerce Commission, this time in person in Wellington.

Qantas wants to take a 22.5 per cent stake in Air New Zealand and integrate services operating to, from or within New Zealand.

The commission, which has already provisionally rejected the airlines' plan, will today hear presentations from Air NZ chief executive Ralph Norris and Qantas chief executive Geoff Dixon (the latter by video link).

Later in the week, alliance opponents, including Virgin Blue, Infratil and the Consumers Institute, will make presentations aimed at convincing the commission that the detriments outweigh any possible advantages.

Opponents will not have a chance to cross-examine Air NZ and Qantas, but members of the commission's panel of four (which includes acting chairwoman Paula Rebstock) will question them.

Four sessions of the conference will be behind closed doors, after Qantas and Air NZ requested confidentiality.