I have been advocating for share buyback instead of giving out dividends which aligns with Collin's view too. The same perspectives where SWM should be going all in with their internal development. SWM is leaning towards more tech-like Netflix but better. BVOD is their holy grail and they have quite a few good software developers that utlises AWS infrastructure which is scalable and secure.
This is also the reply from Collins Street Value Fund email:
"In short, the business is trading on 3X earnings yet has a dominant free to air position, is pivoting strongly into digital (which we believe is where earnings will be growing the most) and is facing into an advertising downturn which is more cyclical than structural in nature. One of the key areas to keep an eye on is the way in which the digital offering is rolled out (including the Phoenix Trading Platform which, using sophisticated AI, should see highly personalised and targeted advertising, something that advertisers pay up for). Alongside this, the way in which management / the board allocate capital will be very important - retiring debt and share buy-backs seem to be more attractive at the moment than paying out a dividend. Any further acquisitions (i.e. The recent ARN purchase funded via debt) will need to be carefully scrutinised."
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