its pretty obvious most people dont understand the billing cycle lag.
+ then you dont see it in a 4C for up to another ~4 months.
eg. If Digicel pays a lump sum of prior period income to BUD 1 April it wont show until the 30 July 4C.
overall it will avg about ~6-7 months from an initial installation to the 1st month's revenue showing in a 4C
thats why DM was always banging the table on how BUD would recognise every cost as soon as its incurred - but only recognise income when it was in the bank - which is going to make it look like costs are high and income low during first 12-18 months
not that i see that as anything other than common sense - assuming sales of a new product would be absurd.
But nonetheless companies are allowed to use accounting treatments that match unit costs with assumed sales or recognise the income earlier than cash in the bank (ie for eg at start of a billing month)
BUD Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
