Woolworths full-year sales up, ByteCard contract terms deemed unfair in court action: Midday Roundup
Tuesday, July 30, 2013/
Supermarket giant Woolworths has recorded strong full-year results, with total sales from continuing operations up 6.8%.
Sales for the year to June 30 stood at $58.516 billion, up from the company’s previous $54.777 billion.
Total group sales also grew 4.3% to $59.158 billion.
The strong results were buoyed by the strength of the company’s food and liquor businesses, with food and liquor sales totalling $40.031 billion, up 6.6% year-on-year.
Woolworths chief executive Grant O’Brien said in a statement its efforts to transform the business had resulted in increased sales.
“The result demonstrates the benefits that have been gained from a sharpened focus on our core businesses and results from the implementation of our strategic priorities,” he says.
Despite the strong results, Woolworths shares are lower this morning, down 1.95% to $33.10.
ByteCard contract terms deemed unfair in court action
The Federal Court has declared a number of clauses in internet service provider ByteCard’s standard form consumer contracts are unfair, and therefore void.
The court action against ByteCard (also known as NetSpeed Internet Communications), follows investigations by the Australian Competition and Consumer Commission and is the first time the watchdog has commenced legal proceedings based solely on unfair contract terms.
The court declared a number of terms, including ones which allowed ByteCard to unilaterally terminate contracts and change the price of existing contracts, were unfair.
The court’s ruling means the contracts have now been voided and ByteCard was ordered to pay the ACCC’s costs.
Shares lower on open
Aussie shares have dropped on open, as overseas markets fell ahead of major economic news expected from the US later this week.
The S&P/ASX200 benchmark was down 18.8 points to 5027.5 points, just before midday.
Overnight the Dow Jones fell 36.86 points to close 0.24% down at 15,521.97 points.