THE NEWS WRAP: Apple reports jump in net profit, seven-for-one stock split and share buyback

Apple has reported a 7% jump in net profit, along with a seven-for-one stock split and a share buyback during the March quarter.

The iPhone maker beat analysts’ forecasts by reporting quarterly revenues of $US45.6 billion, up from $US43.6 billion year-on-year, while net income grew to $US10.22 billion from $US9.55 billion for the March quarter last year.

The company also announced it sold 43.7 million iPhones, beating analysts’ predictions of 38.2 million units.

Along with the strong results, the company announced a seven-for-one stock split in June, an increase in its share buyback scheme from $60 billion to $US90 billion, and an increase in its capital return program from $US100 billion to $US130 billion.

Facebook’s quarterly net income nearly triples

Facebook has released its first quarter results, announcing its net income has tripled year-on-year to $US642 million.

The social media giant’s quarterly revenues hit $US2.5 billion, up 72% from the same quarter last year, with advertising revenue contributing $2.27 billion, with 59% of ad revenue coming from mobile users.

Its total subscriber base grew to 1.28 billion monthly active users, up 15% from a year earlier, while mobile monthly active users grew by 34% to 1.01 billion.

Hockey foreshadows pension cuts, tax cuts

Treasurer Joe Hockey used a speech in Sydney to reveal the May budget will increase the number of means tested payments, introduce co-payments for medical benefits and slash government spending, while also providing tax cuts.

Hockey defended providing tax cuts while slashing benefits to pensioners, saying bracket creep would “have a serious impact on Australia’s economic growth prospects” without tax cuts.

The Treasurer also foreshadowed co-payments for GP visits, a means-test for Medicare and the Pharmaceutical Benefits Scheme, tighter eligibility rules for family tax benefits and the age pension, as well as a welfare crackdown.

Overnight

The Dow Jones Industrial Average is down to 16501.6. The Aussie dollar is down to US92.89 cents.