Expenses vs Dividends Dividends in a Quarter: 910M
Operating Costs in a Quarter: 3,446M (reducing this by 10% is the same as cutting the dividend by 37%). The shut down of half of the source stores, the selling of the radio stations and northwest tel is a good start, need to go a bit deeper and look at cutting middle management, contractors and software licenses.
Tax + Interest in a Q: 582M
= 4,938M
On a 6,011M Revenue
That leaves just over a Billion a Quarter for other expenses, leases and capital expenditure.
I keep hearing that the 910M is in danger of being cut but I don't see that required. The real opportunity is reducing capital expenditure and operating costs.