Publications

Format: Jun 2018
sort descending Sector(s) Date
Virgin Media Q1 2017 results: Roll-out and competitive pressures

Virgin Media has run into network roll-out difficulties, having to revise down its previously stated homes passed figures and not committing to a full year 2017 target, with the current build run rate well below that required to hit its medium-term targets

Operating results were a little mixed, with ARPU showing signs of continued discounting and market-wide competitive pressures, and churn was higher than the previous year, but net adds were strong, RGUs stronger, and UK consumer cable revenue growth is still over 4%

Slower Project Lightning roll-out and weaker ARPU growth points to slower revenue growth during 2017 than might otherwise have been expected, but Virgin Media still has relatively strong prospects in a toughening market 

  • Liberty Global
  • Virgin Media
Fixed Line, Media, Mobile, Telecoms 19 May 2017
Virgin Media Q1 2018 results: Good, but beware headlines

The highlight of Virgin Media’s Q1 results was the return to growth for its UK cable ARPU (+1.3%), although the improvement in trend should be interpreted with caution due to accounting changes

Headline group revenue growth of 5.2% was boosted by profit-neutral handset sales, with underlying growth of around 3.2% – still strong in the sector context

Virgin Media continues to do relatively well in the increasingly challenging UK broadband market, but with evidence of limited pricing power, sluggish roll-out and subscriber growth, revenue trends look set to slow

  • Liberty Global
  • Virgin Media
Fixed Line, Media, Mobile 14 May 2018
Virgin Media Q2 2007 results: cash flow down; outlook for top line growth remains dubious

The loss of Sky basic channels, strong competition and a maturing broadband market have combined to weaken Virgin Media’s top line results sufficiently to cause cash flow to decline

  • Virgin Media
  • Sky
Fixed Line, Telecoms 7 August 2007
Virgin Media Q2 2008 results: continuing improvement but not yet firing on all cylinders

VMed’s Q2 results represent a further step in the recovery of the business, with fixed line churn continuing to fall and operating cash flow (OCF) continuing to grow, helped by a dramatic improvement in OCF at Virgin Mobile

  • Virgin Media
TV, Media, Telecoms, Fixed Line 9 August 2008
Virgin Media Q2 2009 results: positive impact from price increases

VMed’s Q2 results were again mixed but, on balance, encouraging, with the impact of the May price increases feeding through into revenue growth

Cable volume performance was poor but, with the exception of broadband, no worse than expected, and is not expected to deteriorate further relative to the market

We remain optimistic that management will succeed in combining revenue growth with reductions in operating costs to generate sustained growth in cash flow from autumn 2009

  • Virgin Media
TV, Media, Telecoms, Fixed Line 5 August 2009
Virgin Media Q2 2010 results: real top line strength

Virgin Media’s Q2 results showed real strength in the top line, with continuing growth in cable revenue due to increases in both price and volume compounded by long-awaited growth in revenue from mobile and B2B, although overall performance was compromised to an extent by higher costs

The sale of VMtv to Sky cements a de facto pay TV duopoly by clarifying the distinctive wholesale and retail roles of the two leading players, against which others will find it hard to compete

The outlook continues to look encouraging despite the economic environment and this is reflected in management’s plan to return £700 million of capital, a historic milestone in the history of UK cable

  • Sky
  • Virgin Media
Media, TV, Telecoms, Fixed Line 28 July 2010
Virgin Media Q2 2011 results: resilient but with limits

VMed’s Q2 results were respectable, but quirky, with resilient underlying revenue and strong cash flow, but exceptionally weak cable volumes

Virgin Mobile is performing better than ever, but steam continues to seep from the cable cash flow boiler

A TiVo push and further progress at Virgin Media Business are still to come, but we expect a trend of gradual decline in fundamental cash flow growth

  • Virgin Media
Fixed Line, Mobile, Telecoms, Internet, TV, Media 27 July 2011
Virgin Media Q2 2013 results: Steady under new management

Virgin Media’s subscriber figures were slightly soft in Q2, even accounting for seasonality, with transaction distractions and reduced marketing spend likely contributing

RGU ARPU growth however remains strong at well over 2%, and increased marketing activity around high speed broadband by competitors will give the company the ongoing capability to keep pricing firm

The company management has had a number of changes, but Liberty Global’s overall strategy – profitable growth, not subscriber chasing – would indicate that any changes in approach will not be radical

Telecoms, Fixed Line, TV, Mobile, Media 6 August 2013
Virgin Media Q2 2014 results: Strong revenue, stronger profits

Virgin Media’s consumer cable business has moved back to accelerating volume and (underlying) ARPU growth, with the new ‘big bundle’ packages looking like a success

Growth at the business and mobile divisions improved sharply, pushing group revenue growth back into firmly positive territory, and profitability growth even higher

Given the broadband speeds it offers, Virgin Media is still good value, and gets better value as speed demands increase, allowing continued price increases to back up future growth

  • Virgin Media
Fixed Line, Telecoms 10 August 2014
Virgin Media Q2 2015 results: Bouncing back

Virgin Media’s subscriber figures bounced back in Q2 after a weak Q1, and consumer revenue growth also improved to a respectable 3% despite continued headwinds from VAT changes

The UK broadband market remains tough, and BT Sport Europe’s launch in Q3 will not make it any easier, but Virgin Media’s access to this and all other sports channels means that it should be able to remain above the fray

The network extension program is likely to give further growth impetus from 2016, and the company is laying the groundwork for network speed upgrades which will maintain its speed advantage for at least the medium term

  • Virgin Media
Telecoms 11 August 2015
Virgin Media Q2 2017 results: Mixed quarter, but still the fastest

Virgin Media’s subscriber figures in Q2 were a little mixed, with total homes and broadband figures weaker than a year earlier, but pay TV much stronger. ARPU growth fell though, largely due to price increase timing effects, leading to a modest dip in revenue growth

Project Lightning premises passed during the quarter rose to 127k, making at least some progress towards upping its run-rate after changing its roll-out management team and approach, the company declined to give indications of how this will evolve

The broader market context is still one of slowing broadband volume growth, and Virgin Media continues to take market share, being the fastest growing of the ‘big 4’ in both subscriber and RGU volumes

  • Liberty Global
  • Virgin Media
Fixed Line, Media, Mobile, Telecoms, UK Media 15 August 2017
Virgin Media Q3 2007 results: some better news but sustained improvement in cash flow growth remains distant

Telecoms subscriber growth has improved sharply but this has been achieved at the expense of ARPU growth; revenue continues to decline

Apparent weaknesses in its Q3 2007 results notwithstanding, Premiere has a good chance of meeting its FY 2007 guidance targets of €1 billion in revenues and €80-100 million in EBITDA after recovering marketing rights to live televised domestic football

Uncertainties over football rights from September 2009 remain and doubts persist about long-term growth in a market where 95% of homes receive 30+ free-to-air (FTA) domestic TV channels. Even with News Corporation’s extra know-how, climbing from 3.53 million (end of Q3 2007) to 4 million direct subscribers will take some push, while 5 million looks a distant dream

  • Virgin Media
Telecoms, Media 9 November 2007
Virgin Media Q3 2008 results: significant improvement, but economic environment continuing to present challenges

Virgin Media’s Q3 results represent a significant step in the recovery of the business, with ARPU and consumer cable revenue stable for the first time in 18 months. Group OCF growth was hit by one-off opex reductions in the prior quarter but continues to grow on an underlying basis

  • Virgin Media
TV, Media, Telecoms, Fixed Line 7 November 2008
Virgin Media Q3 2009 results: steaming ahead

VMed’s Q3 results were strong, with the impact of the May price increases feeding through almost directly into growth in revenue and cash flow. Cable volume performance was solid, given difficult market conditions and the focus on higher value customers

VMed’s plans for HD are becoming increasingly important. In this regard, the outcome of Ofcom’s pay-TV investigation could prove crucial

The cost reduction programme is delivering ahead of expectations, and we remain optimistic that revenue growth will continue, in combination with reductions in operating costs, to generate further significant growth in cash flow

  • Virgin Media
TV, Media, Telecoms, Fixed Line 30 October 2009
Virgin Media Q3 2010 results: resilience under pressure

VMed’s Q3 results showed continuing strength in the face of heavy marketing by BT Retail and BSkyB, although cable churn increased significantly

There are plenty of further challenges on the horizon, including a downturn in consumer confidence and later, the launch of YouView and wider deployment by BT of next generation access

The broad based nature of the company’s growth and its plans for further product development in TV and broadband continue to give us confidence in the potential for further growth in cash flow, albeit at a more modest pace

  • BT
  • Sky
  • TalkTalk
  • Virgin Media
Media, TV, Internet, Technology, Telecoms, Mobile, Fixed Line 27 October 2010
Virgin Media Q3 2011 results: mixed not nixed

Q3 results were contradictory, with accelerating demand for enhanced services and resilient revenue, but high churn and weak growth in fundamental cash flow

Cost increases struck us as justifiable in the longer term and were in some cases temporary. We share management’s confidence that there is better news to come, particularly at Virgin Media Business

Nonetheless, we remain of the view that future cash flow growth is likely to be significantly lower than that seen over the past two years, particularly given the deteriorating economic outlook

  • Virgin Media
Fixed Line, Mobile, Telecoms, TV, Media 27 October 2011
Virgin Media Q3 2013 results: Resilient to new challenges

Virgin Media had a very solid quarter, with cable households returning to growth, cable revenue up 4%, underlying group revenue up 2%, and underlying OCF up 3% despite extra content costs weighing

Subscriber net adds were not as strong as last year, when DSL competitors were weakened by supply constraints, but there is little sign of a substantial impact from BT Sport or TalkTalk and BT’s YouView-based TV offerings

BT’s foray into sport has however had an effect on profitability, as it has with BT itself and Sky, with Virgin Media’s premium content costs rising from both BT and Sky

  • Virgin Media
Fixed Line, Mobile, Telecoms, TV, Media 7 November 2013
Virgin Media Q3 2014 results: Subscriber growth accelerates

Virgin Media had its best subscriber net adds for years in Q3, despite slowing market growth and intense competition from the DSL operators

Underlying cable revenue growth also remained solid at around 4.5%, business and mobile continued to perform well, and underlying OCF growth was stable at 6%

As the market moves to high speed broadband, Virgin Media is benefitting above all others, and this long gradual shift is still in its early stages

 

  • Virgin Media
Fixed Line, Telecoms 10 November 2014
Virgin Media Q3 2016 results: Continued acceleration

Virgin Media continued to accelerate in Q3, with subscriber numbers accelerating despite the broader market slowdown, driven by its network extension starting to have a material impact and an enhanced TV offering reversing its pay TV decline

The only weak area was mobile, with revenue and subscriber growth slowing, and convergence stalling. The company hopes that its 4G launch will reinvigorate this; we believe that consumer demand for fixed/mobile convergence remains limited

The early price rise implemented in November will likely help ARPU but harm churn during the rest of the year; for 2017 and beyond the accelerating network extension will increasingly drive volume and revenue growth

  • Virgin Media
Fixed Line, Mobile, Telecoms, UK Media 10 November 2016
Virgin Media Q3 2017 results: Building acceleration

Virgin Media’s subscriber figures were flat on the prior year quarter, a robust performance in a slowing and increasingly competitive market, with ARPU growth still weak but at least not worsening

Project Lightning had another successful quarter, accelerating strongly and passing an additional 147k premises, which bodes well for subscriber acceleration into 2018

A recently implemented price increase should boost ARPU growth next quarter, on the basis that it successfully limits the retention discounting that characterised last year’s price increase, but such a boost will be limited by wider market pricing pressures

  • Liberty Global
  • Virgin Media
Fixed Line, Media, Telecoms 20 November 2017

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