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VMed Q1 12 results: increased spending on customer equipment and advertising weighs - Venture Insights

Report Overview

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VMed Q1 12 results: increased spending on customer equipment and advertising weighs

PublisherEnders Analysis.
Publish Date April 25, 2012
Sector Fixed Line (Internet and Voice), Pay TV.
Company Virgin Media.

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VMed’s underlying financial performance in Q1 was hit by continuing high capex on customer equipment for TiVo and high speed broadband, and on marketing opex to retain customers Strong take-up of next generation TV, lower cable churn and continuing progress at the Mobile and Business divisions continue to give us confidence that the company’s strategy is working Despite early indications that most cable customers will accept the latest round of price increases, the outlook for underlying cash flow growth in 2012 appears limited.