The issue I have with this article is that it plays too much into the self-fulfilling cycle that the share price correction is horrible, so there must be horrible results coming.
I'm not an accounting expert but as the article quite rightly points out there are $346 million of intangibles in the name of TV licensing that can be written down vs market value of $17om. The other fault in the article is that it rightly discusses the dilemma of the guarantor fees, however, fails to realise that excluding those Net Debt is actually $53m from August 2016 and has been reduced some $77m over the course of the 2016 year....
But the obvious negative is TEN’s
' television earnings before interest, tax, depreciation and amortisation (“EBITDA”) for the
half year are expected to be $10 million to $15 million lower than the $10.1 million EBITDA
profit reported for the previous corresponding period, resulting in an EBITDA loss of up to
$5 million..... will result in an EBITDA loss for the full year of between $20 million and $30 million'
However, that does not recognise that TV revenue increased 1.9% in Q1 and likely to increase 1.2% overall first half. The other thing is the widespread reports that online advertising has suffered recently and that the networks have seen an uplift. Other things I want to see is the continued growth in TV audience and market share, from the likes of the BBL and other wins TEN has had. Whilst TBL was quite the fail also..
I just can't see how all these millionaire owners and the big players like Foxtel and News Corp are suddenly going to let this go belly up. But I guess if it were to be taken private, then how low do they want it back for?
@Jimmy_C Saw your quality work mate on another media player. Probably doesn't fit your MO investment wise, but care to add any comments accounting wise and in relation to the article
