Only plausible explanations I can think of for Sky's incredibly...

Only plausible explanations I can think of for Sky's incredibly low MC (relative to Earning Power) is either:

1. Mr Market is basing his valuation on GAAP earnings (in which case, the MC is totally rational at a 7.5 multiple for a business going through a transition and facing head winds). Unfortunately GAAP earnings are up to 50% lower than real Earning Power for Sky, so if mr Market can't get his head around this then it does not bode well for us.
2. Mr Market knows full well what Sky's real Earning Power is but he just doesn't give a damn. Mostly because he does not believe it is sustainable and will require a lot more evidence of stabilisation and, dare I say it, growth...

Actually there could be a third option...which is a hybrid of 1 and 2.