Ann: Half Yearly Report and Accounts, page-18

D&A far exceeding Capex.
EBITDA minus lease costs of ~$40m leaves you with ~$140m. $55m capex = $85m FCF before tax.

Contrast that to ~$38m-45m NPAT (~$50m PBT, lower end).

As you can see, there's a wide gap between FCF and reported earnings. This is why @MarsC is very right when he says reported earnings are not very relevant for SKT.



The other thing to keep in mind - the company is now roughly net cash, with another $50m coming in once Outside Broadcasting assets are sold to NEP. Market cap $280m (16c/share), net cash $50m (minimum) - EV $230m.

If we assumed FCF = PBT (that is, D&A normalised to match Capex), then FCF after tax = $85m * 72% (28% corporate tax rate) = $61.2m
EV/FCF = 230/62
3.7times.... inverted, that's about a 27% yield on your investment.



There's disucssions of a 'value trap' and rightly so. Subscriber numbers may continue to fall. But I find it extremely unlikely this occurs in 4 years...