Hello nonic,
Im just as confused about the financials as you are. I have just had a look at their end of year presentation and note that they fund the distributions from their cash flow, that is, revenues before income tax, depreciation and amortisation. I assume tax is not paid as after depreciation etc this translates into an overall paper loss. Their charts show that for the six months to 31Dec07 they received 57.5cents per share EBITA and from this were able to pay a distribution of 23c per share. My understanding is that MCG is different from a lot of the BIGMAC stable in that it can fund distributions from its revenue stream while the others actually borrow on the value of their assets to pay the distributions. Even Telstra borrows to pay its dividend. The drop in MCG sp is surprising to me but I guess its just caught up in the negativity around the place at the moment as reflected by BIGMACS depressed sp. One issue may be refinancing requirements. I dont know whether MCG has any significant refinancing due. I would think this should not be a problem given its healthy revenue stream.
MCG
macquarie communications infrastructure group
