Wednesday, October 09, 2013
One of the first tasks of public relations and investor relations is to speak honestly to potential and actual shareholders. That is why Twitter can be accused of poor PR. In its effort to show a profit, it has excluded items from its pre-EBITDA (Earnings before interest, tax, depreciation and amortization) earnings that should have been there, and it is making what some might call a lame excuse for the absence. It is interesting that it isn't getting away with the chicanery. The Fortune writer is scathing about the company's use of adjusted EBITDA. What management considers real earnings is nowhere near what the rest of the world would call an honest bottom-line number. So, the first victims of this IPO are facts -- a poor start in dealing with key stakeholders. It makes one wonder why he should invest, but perhaps Twitter knows more about shareholders than the rest of us.