AdultShop update, page-34

I thought subscribers were supposed to be about 350,000 already forecast 550,000 by December.

If you do the maths 550,000 (churned twice a year) and retained for 6 months on average will generate approximately $235m revenues and EBITDA of $50m ($20 in first half of 03 growing to $30m in second half).

Next year they are paying tax so cash on b/s will be less than current growth. Should increase cash from $17.5m forecast end June 02 to $50m by June 03.

That means that as at June 03 the EV will be $70m of $50m of EBITDA.

Lets say it trades on 5x EBITDA then the market value will be over $1.00 by December this year. And if the market picks up and it reflects the growth and trades on 10x then the stock will be over $2.00