Virgin Beats Expectations3/02/2007 7:00 PM Eastern
UBS Securities analyst Aryeh Bourkoff maintained his “Buy 2” rating on Virgin Media after the U.K.-based cable operator reported fourth quarter financial results ahead of expectations.
Virgin, which changed its name from NTL at the beginning of the year after the cable company’s merger with Virgin Entertainment, reported revenue of $2.12 billion and cash flow of $614.5 million in the quarter, ahead of Bourkoff’s estimates of $2.08 billion in revenue and $600 million in cash flow.
Virgin lost 37,000 basic subscribers in the period, although average monthly churn was better at 1.7% versus his estimate of 1.8%. Virgin also added 84,000 digital customers and 78,000 data customers in the quarter. Virgin also lost 64,000 telephone customers in the period, almost double Bourkoff’s estimate.