this question is from the comments section, charles said it was a good question for the forums so im bringing it over since i agree.
"SyNiST3R says:
May 8, 2009 at 9:21 am
I have a question that has nothing to do with this article.
If siriusXm is now going to be 350mm ETIBDA how much more would this figure have to raise before they are truely cash flow positive for 2009? Is it possible that they could go cash flow positive this year at all?
I dont know how to figure this. Thanks"
title changing bastards.
Shooting from the hip I'll say 400 feet.
Well FCF(Free Cash Flow) is basically taking in more revenue than you are spending on expenses(The Budget)..We ended 1Q with a loss of (3.4mil) in FCF..with 108mil in EBITDA...With 23% reduction overall in expenses and 5% growth in Revenue,you can see we only need to stay on this path to become
FCF positive,but remember the expenses can only be cut so far,we need to grow Revenue too..it won't happen in 2Q definitely,but 3Q and 4Q need to be much better to be FCF positive for year..Hopefully we will hold sub loss to under 300k for 2Q,which would give us neg 700k loss for first half of 09.
Hence we would need to add at least 500k subs in 3Q and 4Q to rebound for 200k loss for year,this would be very positive in MHO..We need to get Churn back down to a manageable 1.9% from 2.2% for 1Q and it will all be better for sub growth..