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. |
All That is correct if you choose to pick the bad points
Customers Lost in Quarter 37,000
Revenue Generating Units (Customers Services Purchased)
TV 38,500 Increase
BB 78,100 Increase ( against a backdrop of everyone else giving it away with a can of coke!)
Telephone
Phone 64,500 Down
The movement in lost customer is in the phone line element primarily and probably made up of a lot of people shifting phone lines back to BT or using Skype
The issue in this case is TV subscriber so make your point relevant