Profitability And Cash VolatilityHistorical swings between profitability and losses reduce earnings visibility and strain strategic planning. Persistent volatility can impair long-term contracting, increase working capital buffers, and raise financing costs, making consistent cash generation less reliable over the medium term.
Weak Free Cash Flow ConversionVery low FCF conversion means reported earnings translate poorly into discretionary cash. This structurally limits capacity to fund dividends, reduce debt, or invest without external financing, and magnifies risk if revenue or margins weaken.
Event-Driven Revenue CyclicalityBusiness reliance on live events and large-scale client engagements exposes revenue to seasonal and macro cycles. Structural sensitivity to event calendars and corporate/consumer spending can produce durable demand swings, requiring diversification to stabilize long-term cash flows.