CTV (ASX) Q2 onwards

Originally posted by Ghp1: ↑

Yes a couple of good questions,
Not 100% sure myself but these are my assumptions below.

If you look at the core business it has $521,188 expenses for April that’s the 13/5/2019 Ann that’s very close to $375,000 US ( cash based operating expenses) metioned previously in announcements and reducing.

The AdCel expenses are separate as well as is their income/revenue.

But then it becomes joined as consolidated mentioned 1.440,000 combined.

The 45% margin appears for the combined entities and who is doing larger percentages it’s not clear etc, as last time for AdCel it was around 33.3%.

But with all that extra revenue starting to flow it is difficult to say.

You could still separate them but is difficult from here with limited numbers as AdCel needs $1,866 a day to break even, no one knows how much of the month was towards the $5,800 figure as it was increasing all month from a base of 1.4k.

All I know is at a 45% margin combined is doing extremely well.

As almost everyday the numbers are changing. That explains all those % changes in the announcements of late as they are constantly changing to keep pace with everything.

And that’s only half the equation they need to outlay more to get more revenue, the margins can easily accommodate an interest expense for the debt facility and with a large factoring in place now and all the future profit can also be ploughed back in to make more again. To juggle all 3 areas together to obtain maximum traction for your dollar, is the key.

Not investment advice, do your own research, and consult a licensed adviser

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I agree G

this is not a traditional business. Myself, I just like to simply the figues in terms of rec at 40 to 45% rev basis. Add in fixed overhead minus deployed capital and equate that to ebitda.

you are definately correct when you state costs for factoring and revolving debt facility which is needed to keep the whole cog turning. It is extremely difficult to make assumption against these expenses as they will always be variable.

I still believe however that circa mid 50k daily rev on average is required to be profitable but happy to hear in future Ann that I have overshot that assumption. I also think that a yearly rev figure of 30m would provide at least a few mil Npat

Good to hear eachothers take on things all the same. Just what this forum is meant for.
Good luck all. Dyor of course but keep up the healthy disussion until it all beomes clear as mud.