Biggest threats to PRT

You only need to look at the latest balance sheet from PRT to realise that it is currently sitting on a p/e ratio of less than 4. So, my question is, what do other posters see as the main concerns investors have about investing in this company and for that matter other Free to Air Networks?

My main ones are as follows:

1. Decrease in revenue, ie loss of advertising revenue to digital platforms.

2. Changes to the Anti-siphoning legislation.

3. No changes to the current Media legislation, ie the Media Reform Bill doesn't get passed and things will continue along the same path as they are currently.

My counter arguments for the above would be;

1. As far as PRT is concerned, revenue can drop by 50% to 13.5 million and they will still be sitting on a p/e ratio of 8. I accept that revenue is under pressure but the drop is forecasted to be in single percentage figures. That means in about 7 years you would have made most if not all your purchase price back in dividends (a lot less if the payout ratio was increased back to 50% or even higher). An almost no risk investment at todays prices!

2. Australians don't want and shouldn't have to pay to watch major sporting events. For this reason the anti-siphoning laws were put in place and are not part of the current Media Reform Bill. Even if they tried to make changes it would still have to pass the Senate and we all know how they operate and how long it would take.

3. As painful as the waiting is, I believe that we will 'eventually' see some form of Media Reform Bill passed through the Senate. Eventually, if things are left as they are, more advertising revenue will be lost to digital platforms and this means billions of dollars going off shore to the likes of Google and Facebook with very little or no tax on these billions being paid here in Australia.

It will also mean that regional producers such as PRT will eventually have to cut back on spending for local content, news and current affairs. I am quite sure that when it comes to the crunch the elites in Canberra will be forced to make the changes required. If they don't, who will they get to broadcast all their government bravado commercials come the next election?