1. Flexigroup (ASX: FXL)
The profit reporting season begins in earnest this week. Flexigroup's interim result is due on Friday. I have written previously of its virtues as an investment, including ongoing conservative profit guidance, which is generally exceeded. This gives rise to a greater element of certainty with earnings than most companies. It should be noted that management is clear that they are focused on growth and dividends are a secondary consideration.
Flexigroup is a diversified financial services group that operates in Australia, New Zealand and Ireland within a diverse range of industries including home improvement, solar energy, fitness, IT, electrical appliance, navigation systems, trade equipment and point of sale systems.
2. REA Group (ASX: REA)
Reporting an interim profit report on Tuesday, REA Group's jewel in the crown is the real estate website realestate.com.au. The company is a real estate-focused digital advertising company, operating 13 websites in Australia, Europe and Hong Kong. It is 61% owned by News Corp (ASX: NWS). It has developed a strong brand courtesy of its first-mover advantage, and as a result, dominates its sector of the web.
Investors will be focused on the sustainability of this competitive advantage that has so far allowed it to enjoy solid earnings growth.
3. News Corp (ASX: NWS)
It's a transition year for News Corp as it beds down and incurs associated costs relating to the demerger of Twenty-First Century Fox (ASX: FOX). There are still pressures on the Australian newspapers, though they only account for just 21% of some broker's total valuation for the company. The main game is digital assets, which are largely comprised of both real estate and Pay TV.
Forecasting for Tuesday's interim profit release is made difficult as the new capital allocation strategy is still unclear.
