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Virgin Media – Third Quarter 2010 Results

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stocktrader001   Wednesday, 10/27/10 06:51:26 AM
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Virgin Media – Third Quarter 2010 Results
Virgin Media Inc. (MM) (NASDAQ:VMED)
Intraday Stock Chart
Heute : Wednesday 27 October 2010


Virgin Media Inc. (NASDAQ: VMED; LSE: VMED) announces results for the quarter ended September 30, 20101.

Revenue growth in all segments drives strong financial performance

Total revenue up 6.4% to £978m
Revenue growth in all areas, including strong growth in both Mobile and Business
Fourth successive quarter of double-digit percentage OCF2 growth, up 11.0% to £387m
Operating income doubled to £102m from £51m
Free cash flow3 up 8.6% to £119m; last 12 months FCF up 18.2% versus previous 12 months
Operational performance driven by continued ARPU and customer increases

Cable ARPU up 3.7% to a record £46.38
Cable customers up 1.9% with 14,100 net new cable customers in Q3, up from 8,100 a year ago
Cable gross additions of 236,000 up 10.4%
Triple-play penetration increased to 62.7% and quad-play penetration increased to 11.5%, reflecting focus on bundling
Pre-registration for UK’s fastest widely available broadband opens today; 100Mb broadband service further extends Virgin Media’s speed advantage
Continued improvement of Company’s capital structure

Accelerated Stock Buyback programme of £125m completed; Board authority remains for £250m of further buybacks
Effective increase of Convertible strike price from $19.22 to $35
Execution of conversion hedges against 90% of convertible notes
Would reduce future dilution by 21m shares, assuming $35 stock price in 2016
Existing convertible noteholders unaffected
Neil Berkett, Chief Executive Officer of Virgin Media, said: “Our continued focus on exploiting our strategic advantages with the resulting multiple opportunities for revenue growth, as well as robust financial discipline has delivered another strong financial performance this quarter. We are extending our lead in broadband even further with the imminent availability of 100Mb as consumer demand for consistently faster broadband grows.

“Our confidence in our long term ability to maximize our advantages to deliver strong free cash flow means we have been able to begin to execute on our plans to return capital to stockholders. We have completed an initial buyback of £125m of stock and retain the authority for a further £250m in the coming months. Today, we have also announced, the execution of conversion hedges which should further benefit stockholders by effectively increasing the strike price of our convertible notes to $35.”

1 Comparisons of financial and operating statistics are to the third quarter of 2009, unless otherwise stated.

2 OCF is operating income before depreciation, amortization, goodwill and intangible asset impairments and restructuring and other charges and the most directly comparable GAAP measure is operating income. OCF is a non-GAAP financial measure. Please see Appendix F for a reconciliation of non-GAAP financial measures to their nearest GAAP equivalents.

3 Free Cash Flow is OCF reduced by purchase of fixed and intangible assets, as reported in our statements of cash flows, and net interest expense, as reported in our statements of operations, and the most directly comparable GAAP measure is net cash provided by operating activities. FCF is a non-GAAP financial measure. Please see Appendix F for a reconciliation of non-GAAP financial measures to their nearest GAAP equivalents.

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