market reaction?

can any body understand why austar share price has not reacted in a positive
way since todays announcement??




Austar’s belt tightening paying off

August 1, 2002

Regional pay television operator Austar United Communications (AUN) said on
Wednesday that as at June 30, 2002 it had cash in hand of more than $44.9
million. The company’s quarterly statement also revealed it had significantly
improved its cash outflows.

Net operating cash outflow fell from $20.7 million in the March quarter to $6.9
million in the June quarter. The biggest contribution to this came from the
reduction in interest payments from the company’s debt restructure, falling
from $16.6 million to $5.3 million.



However, there is still some way for the company to go
yet. If cash payments for investing activities are included,
then the cash outflow was $13.7 million in the quarter. In
March this was $31.4 million.

Austar emphasised that it also had more up its sleeve
besides the $44.9 million on its accounts.

“In addition to this there was over $30.35 million held in the
'United Contingent Cash Account', provided by parent
company UnitedGlobalCom as part of the agreement to
refinance Austar's debt facility,” Austar said in its
statement to the ASX.

Austar is 81%-owned by the US-based UnitedGlobalCom.

At the close of trading yesterday, Austar United Communications shares
were 0.5c higher at 18c.