Thread: Only 100 Customers/Day Leaving VM
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Old 05-03-2007, 15:30   #137
SMHarman
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Join Date: Jun 2003
Services: Cablevision
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Re: Only 100 Customers/Day Leaving VM
Quote:
Originally Posted by VirginMediaSucks View Post
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.
Nowdays cable in the UK and the US are fundamentally no different. The big issue originally was the cost to cable as cable was burried, rather than strung from poles (a la BT) which everyone in the US bidding on the UK networks appeared to miss.

---------- Post added at 11:30 ---------- Previous post was at 11:28 ----------

Quote:
Originally Posted by VirginMediaSucks View Post
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.
So Sky were asking for 400% of bottom line profits, and that is after also reducing top line revenue by 10m or so with the reduction in the amount they pay for carriage of VM channels. A potential transfer of about 30m from VMs bottom line to Skys
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