TiVo boosts Virgin results
February 8, 2012
Virgin Media has posted fourth quarter results ahead of forecasts and generated strong cash flows as customers bought into to its new TiVo service and fast broadband offerings.
Like BSkyB, Virgin has focused on upselling to existing customers in recent quarters. The number of customers taking its new smart TiVo TV service more than doubled in the fourth quarter with 273,000 net additions. It also saw strong demand for superfast broadband.
Overall, the group attracted 15,000 new net cable customers in the three months to the end of December, helping it to post strong financial results. Revenue for the quarter was up 2 per cent to £1 billion, while operational cash flow and free cash flow were both up strongly and ahead of expectations.
“In a fast-changing industry and an uncertain economic environment, our 2011 results demonstrate the underlying resilience of Virgin Media’s business model, with modest revenue growth driving robust operating cash flow and record free cash flow,” Chief Executive Neil Berkett said.