Report Overview


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VMed Q4 2010 results: strong financial performance; prospects more modest in 2011


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VMed’s Q4 results were strong financially, although this was partly due to an exceptionally sharp drop in capex; cable volume growth continued to weaken in the face of strong competition from BT Retail and BSkyB
VMed’s results for the past seven quarters have benefited heavily from price increases, which are unlikely to have as great an impact in 2011
Management is developing a range of strong initiatives, including TiVo, 30 and 100 Mbit/s broadband, and fixed-mobile service convergence, but the financial benefits are likely to be felt in 2012 and beyond rather than in 2011. A revamped Virgin Media Business should have a more immediate impact, but we expect group performance in 2011 to be more modest