Ann: Successful debt refinancing with CBA & trading update, page-2

That’s not a flash trading update
fixed agreements with radio stations will result in a significant increase in net debt over the next few months - 10-15 m at least. Based on the April result being indicative of the next 3-5 months and we can wave goodbye to dividend and will see a weakening of the balance sheet . They operate in UK , Australia , Brazil . All are shut to varying degrees and uK and Brazil are virus epicentres.
I will be exiting next week, but I still think medium term traffic issues will be a bigger issue than previously, so there will be a time to renter, but unclear how much damage will be done and whether they try and raise funds which would be very dilutive. I think there are two issues, one is the cash outflow over the next 1-2 quarters , but also beyond that how quickly will they get back to profit based on the fixed cost base that reflects the past reality .With a high cost base, and the big drop in revenue , it could be a very bad 1-2 years for the balance sheet. Not the first time a company has raised at the worst possible time. I also don’t like the fact that unlike others there is no pay cuts announcement with the cost reduction strategy. They need it more than most