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Stockwire.com: Virgin Media Inc. (Nasdaq:VMED) just released some important news.
[February 25, 2009]

Stockwire.com: Virgin Media Inc. (Nasdaq:VMED) just released some important news.


(M2 PressWIRE Via Acquire Media NewsEdge) RDATE:25022009 Virgin Media Inc. (Nasdaq:VMED), just announced Virgin Media Reports Fourth Quarter 2008 Results.

A dedicated Chat Room for Virgin Media, has been created at STOCKWIRE.com to discuss this news event.

Visit the following link to begin chatting with your fellow shareholders: http://www.stockwire.com/chat ---------------------------------------------------------- LONDON -- Virgin Media Inc. (Nasdaq:VMED) announces results for the quarter ended December 31, 2008.



Quarterly Highlights Financial -- Total revenue of GBP 1,033m (Q4-07: GBP 1,051m) -- On-net Consumer revenue up sequentially for second successive quarter -- OCF(1) of GBP 320m (Q4-07: GBP 321m) -- Operating loss of GBP 50m (Q4-07: GBP 18m loss) -- Free Cash Flow(2) of GBP 61m (Q4-07: GBP 63m) -- Net cash provided by operating activities of GBP 167m (Q4-07: GBP 273m) -- Early cash repayment of GBP 300m following successful bank amendment -- Initiation of restructuring plan to drive further operational improvements and efficiencies Operational -- Revenue Generating Unit (RGU)(3) net increase of 185,500 (Q4-07: 272,100) to 12.41m (Q4-07: 11.69m) -- On-net(4) cable ARPU increased for second successive quarter to GBP 42.30 (Q4-07: GBP 42.24) -- On-net churn reduced to 1.2% (Q4-07: 1.4%) -- Record triple-play penetration of 55.9% (Q4-07: 49.5%) Broadband -- On-net broadband customer net increase of 57,100 (Q4-07: 106,200) to a record 3.68m (Q4-07: 3.41m) -- Improving tier mix with 1.2m next generation (10Mb and above) customers (Q4-07: 0.8m) -- Launch of 50Mb broadband -- Upgrading 2Mb customers to 10Mb, commencing May 2009 Television -- TV customer net increase of 44,500 (Q4-07: 61,100) to a record 3.62m (Q4-07: 3.48m) -- Video-on-demand (VOD) usage rises to 52% of digital customers (Q4-07: 47%) -- Highest ever average VOD views of 53m per month (Q4-07: 33m) Mobile -- Contract mobile customers net increase of 70,800 (Q4-07: 47,500) to a record 649,400 (Q4-07: 376,300) -- Launch of 3Gb mobile broadband (1) OCF: operating income before depreciation, amortization, goodwill and intangible asset impairments and restructuring and other charges.

OCF is a non-GAAP financial measure. Please see Appendix F for a reconciliation of non-GAAP financial measures to their nearest GAAP equivalents.


(2) Free Cash Flow or FCF: operating income before depreciation, amortization, goodwill and intangible asset impairments and restructuring and other charges (OCF) reduced by purchase of fixed and intangible assets, as reported in our statements of cash flows, and net interest expense, as reported in our statements of operations. FCF is a non-GAAP financial measure.

Please see Appendix F for a reconciliation of non-GAAP financial measures to their nearest GAAP equivalents.

(3) RGU: a contract for residential broadband, TV, telephony or contract mobile services. A triple-play customer is one household taking broadband, TV and telephony, which equals three RGUs.

(4) On-net: where services are provided by the Company's fiber optic cable network, as opposed to non-cable areas, referred to as off-net.

Neil Berkett, Chief Executive Officer of Virgin Media, said: "We finished 2008 with another quarter of sound operational and financial performance. We have achieved further growth in ARPU and improvement in churn, whilst generating strong Free Cash Flow for the year.

"During the quarter, we built upon the foundations we put in place to deliver a differentiated and highly competitive consumer proposition in 2009. Record numbers of customers are now using Virgin Media's services, despite the current economic environment. We are successfully giving people more reasons to choose us and they are buying more products from us than ever before, with 56% of our customers now buying three services or more.

"Since its launch in December the consumer response to our next generation 50Mb broadband service has been encouraging and helped reinforce our position as the UK's leading residential broadband provider. We have also extended our lead in the video-on-demand and catch-up TV markets, which we believe to be valuable services in retaining customers and attracting prospects to Virgin Media. Over the course of 2008 we received more than half a billion views as on-demand TV came of age.

"A GBP 300m repayment of our debt in the quarter, along with the amendment of our senior credit facility in November 2008, and our operational improvements mean Virgin Media today is a strong business with a stable foundation. In 2009, we intend to continue working to build stockholder value by maintaining a relentless focus on operational efficiency and delivering a range of superior services." Conference call details There will be a webcast and conference call for analysts and investors today at 8am ET / 1pm UK time.

The presentation can be accessed live via webcast on the Company's website, www.virginmedia.com/investors.

Analysts and investors can dial in to the presentation by calling +1 866 966 5335 in the United States or +44 (0) 20 3023 4472 for international access, passcode "Virgin Media Inc." for all participants.

The teleconference replay will be available for one week beginning approximately two hours after the end of the call until Wednesday, March 4, 2009. The dial-in replay number for the U.S. is: +1 866 583 1035 and the international dial-in replay number is: +44 (0) 20 8196 1998, passcode: 499513#.

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