RE:RE:RE:RE:RE:5 times revenue It cranks out 24.7B revenue (This is good)
it consumes 14.2B operating costs (This is the problem)
it pays 2.5B in taxes and interest (this is acceptable)
it pays 3.7B in divvies (this is really good)
now they have 4.3 B left over
other expenses chew up .5B
So 3.8B left now
and boom here it comes capital investments (this is the money spent this year that will be depreciated over the next decade or two...
4.5B in investments in fiber and 5G
ok so this is where the bank comes in they need to borrow to buy.
your point is if they didn't pay out divvies then they wouldn't have to borrow to buy
My point is if they increase operational efficiencies and reduce spend on software that is chewing through cash then they will have a smaller opex drag.
opex drag 14.2 B vs 3.6B in divvies.
thats a 5x multiple to chase after
if they improve efficiencies there will be lots of money.
the problem is they get slammed by media and politicians when they do things like sell off unprofitable radio stations or release payroll with layoffs.
what I like is they are swallowing that medicine now and trimming the opex heavy processes.
he mentioned trimming the svp/vp roster by 40% and 9% of a bloated workforce that's a good start need to trim away more to get things in leaner shape, selling the northern telco, the radio stations, reworking the bleeding source retail channel, allowing the content to be bought by Roger's instead, These are all good steps in the right direction.