Virgin Media Losses

[bywater]

http://www.itpro.co.uk/610002/virgin...ts-show-losses

"Virgin Media said that existing users were increasingly upping the nature of their commitment, changing from a low 2Mbps connection for example, up to a 10Mbps"

Upping nature of commitment from 2Mbs to 10Mbs what an example. Are they having a laugh are they not doing this for free. Can't see how that will improve the balance sheet. Anyway what do you think all these losses mean for customers ?

[jungleguy]

i think the expression is clutching at straws.

[Pierre]

The losses are mainly due to a write down of the value of its shopping channels.

It's customer base still grew, in very challenging times. So there is still a lot to be positive.

It's very easy to take any results and report them in whatever way you want.

Nowadays negative news sells.

Headlines for the story could quite easily have read "cable company still gains customers during economic downturn" but that wouldn't sell papers or get people to read their article online would it?

[Ignitionnet]

The general response from the financial people to the results was positive. It should be remembered that it's highly likely Virgin will be sold at some point soon, selling the TV production side will not only give cash for repayment of debt but will also slim down the company ready for such an acquisition.

Hope Liberty or one of the big US companies acquire it.

EDIT: By the way a quick look at how cable companies can be run is in order, it's actually not in Virgin's interest to be making net profit at the moment, they have significant tax losses to claim at some point which are helped through fast write downs.

[Horizon]

Originally Posted by bywater

Are they having a laugh are they not doing this for free.

Well it's "free", up until they raise prices probably around May/June across the board.