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To: Sunny Span who wrote (265)7/7/1997 7:37:00 PM
From: IKM   of 383
 
Not sure I understand your point, but I would like to comment on <<cable companies who rarely show any profits ever.>>

There has been a lot of money taken out of the cable TV industry. While CATV companies cry (as it suits their purposes) that they don't make any money, what they sell to the investment community is EDITDA, or cash flow. If there were an MSO that bid, built, and held its properties (there isn't), they'd have a very large net income. However, most cable properties have changed hands several times at premiums above what was previously invested. It's the amortization of all that goodwill that puts their earnings into the red. Every time a system changes hands, someone takes their chips off the table and walks away. The remaining players have that much more deficit beyond their capital investment and initial operating losses to make up. But it spins a lot of cash. It's just how much debt you've used to finance the goodwill you're amortizing.
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