Quote:
Originally Posted by VirginMediaSucks
VM lost 37,000+ customers in Q4 2006 (source: http://news.bbc.co.uk/1/hi/business/6405549.stm). That's 406 customers per day.
To say that the loss rate is down to 100 per day now after the Sky basics fiasco frankly doesn't seem to make sense.
In Q4 2006, VM made just £9.2m on revenues of £1018.6m (source http://library.corporate-ir.net/libr...ssRelease.pdf). That's a profit margin of 0.9% which is extremely poor. Virgin will save just £30m annually on the loss of Sky basics, but you can see how fragile their bottom line is.
Despite this, Virgin Media's share price is holding up fairly well (see http://finance.google.com/finance?q=VMED). However, they are listed in New York and I do wonder just how well their investors know the UK market.
Keep an eye on that share price. I have a feeling that it's going to make a sharp turn downwards quite soon. |
Knowing the history of NTL, turning a profit now is good news for Virgin, how long have they spent losing money. They've spent money before losing lots. Making a small profit for them isn't fragile at all.