You are right about the dividend. The only way they can support a dividend with half year EBITDA of only $3-$4m is with using the sale proceed money.
Madman entertainment is different from the remaining business though. One is an Anime licensing and distribution, the other is a toy intellectual property owner and factory.
I am not too happy with the half year EBITDA being that low. It should be at least double that.
The argument the company is putting in saying that their full year EBITDA will be 5x the half year is that they started distributing their most popular product (Chillfactor) in the US market, which has 350 million people compared to Australia's 20 million.
FUN Price at posting:
12.0¢ Sentiment: None Disclosure: Held
