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Reading Between The Lines Of Netflix' Ugly Earnings Report - An AOL Type Accounting Gimmick In The Making?
Yesterday Netflix reported a quarter which missed EPS, and provided a guidance that was essentially below the street. Yet for some reason the stock shot up 10% on what was perceived to be a dramatic pick up in subscribers and a very low Subscriber Acquisition Cost. We wonder if all those computers who bid up the stock with impunity, lifting all offers on the way up, were aware that in fact the subscriber metrics were a major disappointment. To wit from Bank of America: "without a dramatic lift in free subs as percent of total (from 2.8% in 2Q and 2.5% in 3Q09 to 6.3% in 4Q), Netflix would not have met Street expectations, and paying subscribers of 15.9mn (still up an impressive 46% y/y) missed our estimate by 275K." Yes, ladies and gents, it is the AOL scam all over again. Free subs are subs, the CEO will tell you, and it is all a matter of converting them. Ah yes. That worked out very well for the clusterfuck that is the dial up company. In other words, NFLX results were in reality a disaster across every vertical, and once Q4 is in the books and the inability to fool the vacuum tubes that free subs will become paying subs is realized, this overbloated bubble is in for a dramatic reacquaintance with gravity.
More from BofA:
1-month free trail causes SAC to appear much lower
This increase in free subscribers, due to an extension of the normal 2-week free trial period to a full month in most cases, also benefited subscriber acquisition cost (SAC) and churn. The company’s reported SAC of $19.81 was very impressive at down 26% y/y and 19% q/q, but it benefited from the inclusion of nearly 1.1mn free subscribers, or 26% of gross additions in the quarter. The company records the cost of free subscribers in its marketing line, but only the cost of servicing the subscription (approximately $4). Backing out the 605K more free subs than expected, SAC would have been around $22, still down 18% y/y but only in-line with consensus.
Without extension of free trial, NFLX would have missed churn
Churn benefits from the surge of free subs by adding a large number of subscribers to the denominator without adding new cancellations to the numerator of the churn equation. Backing out the 605K incremental free subscribers from the gross additions in the quarter would have made churn 3.91%, still down 45bps y/y but roughly flat q/q, and slightly worse than Street expectations of 3.8%.
Bulk of 4Q subscriber guidance increase likely due to free subs
Finally, management commentary that they plan to continue using this extended 1-month free trial program in 4Q and likely beyond is the bulk of the increase in subscribers in guidance. We are taking our 4Q ending subscriber estimate up from 18.4mn to 19.5mn, both near the top end of guidance which increased from 17.7-18.5mn to 19.0-19.7mn. Nearly 85% of our 1.2mn increase in 4Q subscriber estimates, however, comes from a 994K increase in free subscribers. Given that 4Q tends to be back-end loaded, more than a third of gross additions for the quarter could be free subs, suggesting that even our 1.6mn free subs (8% of total, up from 3.1% in our previous estimate and 3.1% in 4Q09) may still be low. It is conceivable that paying subscribers in 4Q could actually be lower than Street expectation prior to this increase in guidance.
And remember HFT robots: free means unpaid. There is a reason why this nearly $9 billion market cap company had just $7 million in free cash flow in the quarter (which in turn was a plunge from Q2 2010 and Q3 2009). Also, how this company can command a 25x multiple for BofA's $130 price target (based on 2012 earnings, also known as NM based on 2010) is beyond us... and also far below the closing price.
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dot com bust all over again.
no, Mildred, it is not different this time.
As long as the only hurdle you're clearing is the low bar set by an in-bed financial main stream media that never met a company press release it didn't immediately deep throat, these games could go on quite a bit longer.
Nice to see you slumming round The Hedge deadhead. :>)
thanks cd!
netflix reminds me of sooooo many dot bust companies..... history will repeat itself.
what is different this time is that these companies actually have meaningful revenue and cash flow. Not to say they are not overvalued.
Remember how much cash Amazon burned to get where they are?
Now this is a dot.com re-run waiting to happen: OPEN
Watch for some fjunky accounting and inorganic growth in their Nov 2nd earnings.
Isn't Amazon way over-priced as well?
yes, it is. especially with margin compression on the Kindle. if we have a 2nd recession the online retail will be weak too.
NFLX can go further than anyone expects, just like all bubbles. i expect it will hit $200+ before the eventual landslide.
POT and MOS did a 10x over their 2 year bubble. i suspect NFLX will do the same. at $200 i will start buying 2011 deep in the money puts.
doing a little trading while you're at grad school, eh?
ha! grad school is for the birds. i wouldn't last a day going back to school, though i'd spend much more time courting than studying if i could do it again.
POT is something like 70X since it went public 15 years ago. Not too shabby.
I dunno man. The streaming stuff is pretty slick. You can cancel your shit cable and have commercial free entertainment on demand plus some extra monthly $ in your pocket. But then again i undersestimate the stupidy of the mass population addicted to horrible programming on cable tv.
The "mass population" has no idea how to stream anything, nor do they have the ability to do it. Once the 20-40 age demographic is tapped you can yank the break on subscription growth. My parents cant even figure out how to turn up the volume on a reciever and they are 55 years old.
I hope you were adopted.
hah, live birth verified and loved. And you? Not so much?
Hey, I am near their age, and was early to Droid, so, whatevs... What do you think of GoogleTV?
I am thinking I want that logitech thingy...
Hey, I'm 62 and love the Netflix streaming movies. Got me one o' them big ass flat screens and some new gear to go with it. BluRay is great stuff. Hooked all of it up without a hitch. The deal was to stop going to the theater and paying more for popcorn than the movie. Wife and I watch new stuff, and she likes the biographies which she watches on her own. So, away with you and your oldster bashing!
I have no idea what it's stock should be worth, but there are few services I use that I'm more pleased with than Netflix. Easy, fast, does exactly what it says, for next to no money per month. With streaming, you don't even have to wait for it to come in the mail.
We use it constantly and so does everybody we know. Not sure why everyone has had the long knives out for Netflix for a few years now.
But again, I have no idea how much its stock should be worth.
No one has the long knives out for Netflix. The point is that it's an over-priced stock.
Oh, it's over priced. But there was a comparison to Red Box recently and netflix has it all over Red Box. Red Box is like the worst of Blockbuster in that you've got no selection. What, you don't want to see one of these 25 movies? You want to see an older movie, an obscure movie or a foreign movie?!?! Blockbuster was useless for any such tastes and so is Lame Box, er, Red Box.
The selection at Netflix is great.
Netflix + AppleTV = FTW
Or you can "Jail break" a Wii, get a 2TB HD and or RAID and download .avi movies of the internet for free.
Or you can buy a WD TV Live and problem solved.
Sheeple love Netflix, Apple, Google and Priceline because they're slick and easy to understand -- so they blindly buy. Same sheeple bought Yahoo, EBay, AtHome, Lycos, Excite, Infoseek and AOL.
Exodus was one of my favorites.
I don't buy 'em (stock) as you put it, but I sure use 'em.
Let that be your investing guide.
the movies that you can stream are usually movies you don't want to see. There may be 1 or 2 movies on that entire system that are worth watching. You still have to "rent" the dvd's for anything good.
Define "anything good". We watch documentaries, indies, biographies, and many others.
We get the 2 limit on DVDs and that's plenty rotation for the two of us.
Don't be a movie snob.
What is amazing is that the same hookers are chased over and over again.
Year in, year out.
It's always tech.
Never any other sector.
Same bubble keeps re-emerging again and again.
Well that is because Tech can be "valued" on a myriad of unicorns and pixie dust growth and rumored buyouts.
WorldCom and Lucent come to mind.
Who else has 31% revenue growth out there?
I am sure it is somewhere, but tech has the big sexy PR machine and retail investors (and lump headed hedgies) all know the products.
Note: 46% increase in paying subscribers but only 31% in revenue growth, hmmm.
Price compression already started (don't tell the FED)
http://thenextweb.com/us/2010/10/21/hulu-may-slash-the-price-of-its-plus...
Is it overvalued, probably. Is everyone from AAPL to Microsoft going to go after them? Yes.
Not to mention FCF fell to $7.8 B this Q from $34 B in Q2 and $28 B Q309
Netflix is a company that came out of nowhere, only pumped up by friendly journalists at Engadget and CNN. Typical bubble.
Netflix has been around for years, and while their stock may be over priced, they didn't come out of no where. They added easy streaming to the xbox and wii, and more people are using them more often now. I cancelled my cable, and now only use antenna, netflix, and the rest of the internet and will never look back. They are the only subscription service I pay for now besides regular bills, and Internet. I'm sure I'm not alone.
Why don't people just use torrents instead of giving money to netflix?
No brainer right there.
Not much old stuff available on torrents. Also, you don't always want to keep all that crap on your hard drive. It takes up a lot of space.
I'm lazy, dont' have cable, and it's an easy way to set up another TV with streamable videos. I have a computer on one TV, and my xbox on the other. While I could stream videos through my computer to the Xbox, again I'm lazy. I don't want to have to keep an uptodate library of videos in order to watch something new. Some day I'll set up torrents on an RSS feed, but until Netflix costs more than 10 bucks a month, I'll keep being lazy.
Quoting BofA? Gimme a break.
Tyler if you want to know about this NFLX fraud please contact me..........
Read this study it states "But Netflix alone accounts for nearly half of that between 8 and 10 p.m., and that usage comes from only 1.8 percent of the service’s subscribers."
I note 1.8% yet the company claims streaming subs are 70% of usage!
http://www.wired.com/epicenter/2010/10/netflix-instant-accounts-for-20-percent-of-peak-u-s-bandwith-use/comment-page-1/
this is what I'm most interested in - I considered doing what one commenter above suggested - dumping my cable and just using NFLX streaming, but my cable company caps my monthly bandwidth. I think the cap is 12GB or something, and despite being online all day every day, I never make a dent... but would movies eat a lot of that quickly?
and how would the cable companies react as they see subscribers dump subscription packages and dominate bandwidth with NFLX (and other) streaming downloads?
(I have no NFLX position)
One movie could easily consume 1 G (depending on resolution).
My Netflix downloads are using DSL and they work flawlessly.
No bandwidth issues there.
Once again, keep the illusion going and the money follows. Who cares about the company actually earning money. That is so 20th Century. </sarcasm>
Really good point, I'm personally short the stock. People think that it can go up forever, but there is actually a cap to their revenues as well. I am being very generous here, but if every household (approximately 115M households) in the US signed up for Netflix at $10/month, then the total maximum annual revenue in the US is only $13.8B (115M x $10 per month x 12 months). In other words, there is a cap to this company's revenue stream, yet it already has a market cap of close to $9B if you factor in the AH price. This valuation is complete lunacy.
Have fun with the coming flash smash, shortie!
But they just expanded to Canada! I wouldn't be surprised if announce a subscription services for black flies soon. Now that would make a killing.
Speaking of money flows cash flow form operations was down 50% yr over yr and 30% seq. Further it was down slightly last qrt as well and only up 14% the prior 2. The cash does not add up to 30% NT growth.
NFLX is future of cable. Get with it.
They pay for access, too, dontcha know.
Buy Comcast.
Huh? How is that AT&T Videophone 2500 working out for you. No worries if you bought one for 1499 you can still resell for 199 on Amazon
http://www.amazon.com/AT-T-2500-Videophone/dp/B000TK4638
And this is from a company who was caught and the VP of communcations denied using actors at a press event. Also conducts EPS calls by not reviewing financial data and taking live calls, but emial questions only.
This is biggest fraud since CUC International and lernout & hauspie.....
This is biggest fraud since
ODummer?
Netflix is a humorous stock at these valuations.
38 million net revenue. An 9 billion dollar market cap for a company and it would take them 15 years to make that market cap if they doubled their earnings from this point. All they are is a middle man for media and they will have to be more aggresive in their pricing as other competitors more well funded such as Apple, Amazon and Cable on Demand step into the arena in coming years.
Barrier to entry is non existent. If I ever survive my FAZ the next thing I am going to do is short NFLX. You can spin me a story for AMZN but not Netflix..AND I AM A SUBCRIBER OF NFLX.
The moment people can begin to collect a digital library of films on the easy interface scale the same level of Ipod destroyed the CD business 30% gap down. What is happening is here is an attempt to lure a bid in for this company from a sucker.
I also think they are way over valued, however they are VERY aggressive in marketing their product. They come pre installed on nearly every new Samsung & Sony Tvs, plus every console (PS3, XBOX, Wii) + Iphone/Ipad + Android (soon to appear) + Microsoft Phone (even if it the phone turns out to be a flop it still has a netflix app) + Google Tv box.
Anyway, i am a subscriber to their service and love it (great foreign movie selection), easy to use and vastly cheaper than the streaming options provided by competing Cable companies. Yes there is a low barrier to entry for streaming movies in general but there is a high barrier to entry into the living room (competitors services are NOT coming preinstalled/available on said devices listed above). They have serious momentum and if they can work out the licensing could spread their streaming service all over the world.
Also, unlike the CD business, NFLX in the equation is really what AAPL was to the music industry. Yes the Music industry lots billions but AAPL made billions by becoming the defacto distribution channel. To a lesser extent this is true for NFLX in the streaming movie arena. As someone who doesn't like to waste money i would much rather pay $10 a month to NFLX for unlimited streaming than to some cable company which charges $5 or more for a single movie!
<sarcasm on> I'm sure they make some money from advertising on the NetFlix website. <sarcasm off>
As I learned from (gulp) Cramer. It may be a good company but that does not make it a good stock. Hey, we can't all be traders...
I'm streaming Netflix on my new AppleTV and it is damn nice. Also, I can stream Netflix on my PS3 without a BluRay disk now.
Netflix stock, by virtue of being associated with Mr. Steve Jobs, is now a BUY.
And who provides your access?
Apple TV is pretty limited but it has an Apple on it so people will buy it. Neflix has been streaming for a while now. I don't have time to sit and watch movies so I don't use it.
There are a zillion new streaming devices hitting soon as well. Someday this will blow up but it could be quite a while.
Harry, and who provides the access?
http://www.google.com/appserve/fiberrfi/
Some of the cash was used for entry into Canada. But the company did not have a subscriber count to throw out on how many subs they plan to reel in. It would be nice to have some sort of subscriber count to quantify the return per share. I wonder why they are hiding that number?
It was free to subscribe. And WHO PROVIDES THE ACCESS?
Morons.
"WHO PROVIDES THE ACCESS?"
why do you keep saying this? it is obvious that the people who own the fiber backbones provide the access (Via your local ISP).
Mine is thru DSL. What was his problem?
It should run to 210 before it gets blown up
AND YET the website is still down all day for that matter........maybe people are actually trying the streaming and crash the whole dam site instead. Yeh 70% of subs are streaming my butt......
I have streaming Netflix and because I can hook it up to my XBOX and they have expanded their titles is the only reason I tried them again after a year. I will say this I love it.
I will also say that they have upgraded their selection substantially HOWEVER this costs an ample amount of money to attain these rights and numerous times they are limited to time frames that expire. I also know that If they want to expand their titles even further they are going to have to spend an insane amount of money. So is my $8.99 worth it? Sure it is. Is it worth is for shareholders? Not at these levels.
I am in the same boat as you 70% streaming is "true" but they are likely counting those who stream once monthly and not on the scale that I do. It is not worth streaming unless it is direct to your LCD.
agreed, streaming over the Internet has very little value for a subscriber. However streaming into the comfort of your living room on your 60" plasma/LED is down right awesome. I personally love NFLX and almost all of my friends are subscribers. True we could pirate all of this content for free but at the cost of $8.99 it is actually easier and more enjoyable to just pay for netflix. I stream it over my PS3 but i also have it streaming to another room in my house over an xbox360.
There are no barriers to "streaming content" as other users have said, but there is a significant barrier to entry in terms of media library (as you stated above NFLX employs many lawyers and hundreds of millions of dollars for the right to stream this content). Furthermore streaming content into the living room is also a large barrier to entry. Who cares about blockbusters streaming service, it is useless to me because none of the devices i own can stream it to my living room!
Don't knock AOL free subscriptions.......those four or five cd's a week in my mailbox made for great frisbees and coasters!
Haha I delivered newspapers when I was a kid, and I would get hundreds of extra AOL cd's. Great paintball targets.
Cash Flow Statment shows an even uglier picture. 80% increase in Accounts Payable (majority in Q3 2010) over the last 9 months versus 20% growth in current assets and 13% in total assets.
here is the fraud so far......
NFLX is no longer disclosing streaming customers after they have convinced you of the fact that most are streaming..why? Why did the site go down all day? Maybe in reality 1.8% of subs are streaming and some people decided to really try it and it collapsed the site? Why else do you hire actors and take email questions instead of live questions on EPS call? And why else sell 35% of insider stock then go and buy stock back in open market with a buy back when you have only $100M in cash and need to raise money? For the love of God see it with your own eyes. Does this all make sense?
Umm, hello?!
Streaming is nothing new. Neither is people's stupidity (See: CROX). You think Apple, Google, Microsoft, Verizon, Comcast, Cablevision, DirectTV are going to toss each othere's salads while Netflix streams shit over the internet?? Ever heard of a free site called Justin.tv? Netflix is an unnecessary middleman. Netflix is doomed to failure for the very reason it became a success, just like Palm and AOL -- other companies have the means and resources to do it better & cheaper. Netflix is tomorrow's Blockbuster. So hike up your skirt, grab you balls, and short this bitch.
+1
Could not have said it better myself. Only since technology is exponential so will the demise of NFLX.
It's true that they will likely get beaten out by someone else someday, but how many companies don't? They aren't going out of business any time soon. They have much higher resolution video streams than Justin.tv and they make it much easier to get content onto your TV. I won't make any calls on their stock and have no position in it, but as a company delivering value to its customers they have not yet peaked, that's for sure.
Justin.tv was the final answer for me getting rid of cable though. Being able to watch live sports is clutch.
A little more detail on nflx free cash flow, or lack thereof. As the company's cash flow performance has deteriorated, management has resorted to the age old trick of stretching payables to mask the decline. exclude the positive impact of working capital accounts and the company is actually cash flow negative for the ytd period after capex and content spending.
On per-subscriber operating performance, unlevered free cash flow per-subscriber (before SAC) declined to approximately 40 cents during the quarter and $1.2 for the LTM period. This figure was $2 just last year.
So think about the math. Churn approximating 4% means that half your subscriber disappear in 18 months, 75% are gone in 3 years, and 80% are gone in 4 years. Fourty cents per month of free cash flow per month with that type of decay rate, trading at near $600 per subscriber.
Insanity reigns.
Burkas, baby!
I was not aware that NFLX has backbone and thereafter ownership.
Thank you all for being morons.
Got BAC? It's cheap!
AOL was a dying, outdated product when they tried to juice their subs with freebees like that.
Netflix is a great service and probably an -at least- pretty good business model for a while. Once you get into it it's pretty sticky and it's the path of least resistance for a lot of people to watching content they want.
While we're on the subject - how perfect would Facebook/Myspace have been for AOL at one time? AOL's whole deal was the closed, controlable community/content thing and everyone thought that was going away forever....so 80's computernetworking.... But then these must-have closed community social networking sites come along and BAM!
Old Rimm Tactic. The higher it goes the more people short it. The more people that short it the higher it goes. Catch 22. The only reason that Rimm is down is that NO ONE WiLL SHORT IT ANY MORE. Netflix time will come at some point when Shorts give up and will never touch it again.
right o TMF!
In order for this company to continue to grow at its current rate, not only would it have to be in every single home in the US, but would have to expand internationally by 2012.
I don't think either is going to happen anytime soon.
I still wouldn't want to be short, till after all the hedge funds that are long a boat load start getting out. They can take this stock to ridiculous levels. We have all seen it before. Dot coms, Krocs, Krispy Kreme, Jones soda etc.
Don't step in front of this train till you see most of the shorts out, and some of the longs start coming out.
You know on ZH the BLS is rightly slammed for their bullshit numbers, and the banks for their bullshit numbers, but in this case the bullshit is coming from ZH. NFLX is not cheap to be sure. I'm not in it, long or short. You cannot pretend NFLX is a company that's doing poorly. This quote "NFLX results were in reality a disaster across every vertical" is really just bullshit. That's ZH spin, no better than BLS spin, JPM spin, Fed spin. We should try to be clear and rational. Obviously the stock price is high, and obviously it is a game-changing model and they have done remarkable things. Are they over-priced? Perhaps - but their results are not a disaster.
Additional cash flow commentary……..
Below shows you from NFLX cash flow statement that cash flows are DECREASING....
Cash Flow From Operations:
(Net Change yr over yr in $ millions)
% Growth
1Q10 $0 0
2Q10 ($15) (20)
3Q10 ($36) (46)
Now if you look at it another way and take the cash flows from operations this year and deduct the cash from Acq. Of DVD content purchases, cash flow net is declining as well.
CF/QRT DVD Acq. Costs Difference
1Q10 $75 $37 $38
2Q10 $60 $24 $36
3Q10 $42 $30 $12
(all figures are in millions)
So this shows that all this content spending isn’t lifting CF at all. So then I ask what is the point to grow subs by never growing cash flow? Like I said the accounting tricks on growing EPS is one thing but in the end you have to generate cash growth.
From my understanding. Netflix buys a DVD for $15 and can rent it out as many times it likes. It my be 10, 20 or 50. It depends well the disc holds up. The operating cost at this point is postage and distribution.
The reason I am guessing that their cash flow is dropping while they are getting more subscribers is because streaming has a different business model. The content provider gets a bigger cut when a movies is streamed or downloaded. They usually get a royalty payment per stream. I would say a newer movie probably costs Netflix $2 to $3 per stream. Older movies probably cost 50 cents to $1. I am basing this on what Apple TV charges for a new movie. For HD it is $4.99 and half of that $4.99 goes to the content owner.
Anyway.....streaming content costs more per movie than the cost of postage to send out a DVD.
Speaking of padding subscription numbers, in late September Comcast was sending me (an internet-only customer who watches hulu & netflix) offers to essentially PAY ME $5 per month to sign up for basic cable for one year.
The bottom line is there are too many things that can happen to make a 70 P/E stock not worth your money. For NFLX to justify the price here everything would have to go perfectly--scaling infrastructure, subscriber growth, etc. etc.
Mr. Market is miscalculating here. He is begging you to sell him your shares at any price, so I say you do it.
CASH FLOW DECLINE ANALYSIS
This exercise basically gives a quantitative depiction of the negative impact of competition on NFLX business via decreased cash flow growth.
Below I outline what I have always suspected that on annual cash basis the cash flow from operations started to slow in 2007 and has gone negative for the first 9 mths of 2010 declining 18% so far. If we adjust the cash flow from operations and deduct the acquisition of DVD content library (which was for some reason put below the operating cash flow line in Reuters which we call adjusted cash flow) we get a slightly different picture as in 2008 we saw nice growth, but growth slowed in 2009 and continued to slow in the first 9 mths of 2010. This broke a pattern that existed since 2003 when NFLX invested in content one yr reducing cash flow growth then in subsequent year saw growth resumed.
Thus, what has occurred since 2009 to cause for the first time since 2003 a nearly 2 year growth break in adjusted cash flow growth? Well it seems the entry of Coinstar into the DVD mix in 2009 impacting the DVD mail order biz and the ramp in streaming in 2010. In 2009 Coinstar had the impact of slowing cash flow growth to 2.5% in 2008 and 14.4% in 2009 while reducing adjusted cash flow growth in 2009 to only 9%. In 2010 that trend continued as cash flow growth went negative forcing NFLX into investing heavily in the streaming space. In 2Q & 3Q10 it has spent $116M & $232M respectively in various deals to fund content costs for streaming reducing adjusted cash flow growth to a meager 2.7% for the first 9 mths of 2010.
So the question is will it pick up after these investments have been made? Maybe, but both Coinstar and Amazon will be entering the subscription steaming space shortly with HULU possibly cutting prices and it seems content investments thus will not only be more costly via STARZ but pricing pressure on ARPU will ensue. Further the legacy cable operators such as VZ, COMCAST, DirectTV and Time Warner all have plans to ramp streaming media by 1Q11 and media companies like HBOGO are ramping as well.
One other thing I want to point out is that NFLX needs for streaming to work or cash flows would have continued to decline and at some point so would have slowed EPS growth as the timing of a slow down in cash growth would catch up with EPS growth. As a result I believe they over paid for EPIX and in my opinion have been misleading the street into believing that streaming usage is much higher than it actually is across its sub base. The gimmicks on counting free subs and the hired actors prove this intent while common sense states that transitions to new media take time and don’t occur over a 9 mth period like NFLX wants you to think. Further, to claim that BOTH growth in DVD & streaming at the same time is counter to what history dictates in other forms of media transition.
In the end we can’t quite know why this management deception is taking place. Maybe aid the cause selling insider holdings which have declined 40% in past 9 months while conducting a buyback program via a 4Q09 debt issuance to prop stock up? Time will tell.
Cash Flow from Operations Adjusted for Acquisition of Content Library
2003 2004 2005 2006 2007 2008 2009 9/09 9/10
CFOA 89.8 145.3 157.5 248.2 277.4 284.0 325.0 219.2 179.7
Growth 61% 8.2% 58% 10.9% 2.5% 14.4% (18%)
ACL 55.6 100.0 111.4 169.6 208.6 162.8 193.0 133.0 91.0
Diff: 34.2 45.3 46.1 78.3 68.8 121.2 132.0 86.2 88.7
Growth 32% 2% 70% (13%) 75% 8.9% 2.7%
CFOA is Cash Flow from Operations
AOL is Acquisition of Content Library
Source: Reuters Knowledge.