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Virgin Media Reports Q4 2019 Results

Financial results News - Published on Wed, 19 Feb 2020

Image Source: Virgin Media
Leading cable operator in the UK and Ireland Virgin Media Inc delivered 14.6 million broadband, video and fixed-line telephony services to 6.0 million cable customers and mobile services to 3.3 million subscribers at December 31, 2019.

Financial highlights:

Revenue of GBP 1,331.7 million in Q4 was up 1.3% YoY on a rebased basis

Rebased residential cable revenue growth of 1.4% in Q4 was due to a YoY increase in cable ARPU partially offset a decline in cable RGUs and a decrease in non-subscription revenue

Rebased Q4 residential mobile revenue increased 3.4% due to the take-up of higher value postpaid data bundles and a revenue benefit arising from the sale of future commission payments on customer handset insurance arrangements

Rebased B2B revenue declined 0.9% in Q4 driven by a 2.2% decrease in non-subscription revenue, partially offset by a 10.2% increase in subscription revenue due to growth in SOHO RGUs
The decline in B2B non-subscription revenue reflects the net effect of a reduction in revenue from data services, equipment sales and installations and an increase in revenue from dark fibre wholesale contract wins in the quarter

Operating income decreased YoY to GBP 35.2 million in Q4 due to the net effect of (i) a reduction in Segment OCF2, as described below, (ii) lower share-based compensation expense, (iii) increased related-party fees and allocations, net, (iv) lower depreciation and amortisation and (v) higher impairment, restructuring and other operating items, net

Rebased Segment OCF declined 1.4% in Q4, reflecting the aforementioned revenue performance which was more than offset by a net increase in our cost base due to (i) a £9.8 million net increase in network taxes, (ii) a reduction in B2B cost of sales, (iii) higher mobile data costs, (iv) higher marketing spend and (v) an increase in programming costs

Property and equipment additions decreased by 9.2% YoY to BP 348.5 million in Q4 primarily due to lower spend on customer premises equipment and increased efficiency of our Lightning build

Rebased operating free cash flow increased 11.8% in Q4 driven by a reduction in capital intensity to 26.2%, compared to 29.1% in Q4 2018

Source :

Posted By : TelecomGuru on Wed, 19 Feb 2020
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