Virgin Media Q3 2007 results: some better news but sustained improvement in cash flow growth remains distant


20 July 2010

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

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