Virgin Media Inc. (NASDAQ:VMED) (LON:VMED) posted its fourth quarter earnings report before opening bell on Wednesday, and the results were in-line with expectations. Trades on the company’s stock fell more than 1 percent before the markets in New York opened, but on Tuesday shares of Virgin Media Inc. (NASDAQ:VMED) skyrocketed 18 percent on the news that Liberty Global Inc. (NASDAQ:LBTYB), the holding company of Liberty Media Corp. (NASDAQ:LMCAD) (LON:VMED), could buy the company.
Virgin Media reported that it delivered “solid financial performance” with revenue up 2.7 percent to £4.101 million for the year. During the fourth quarter revenue rose 1.6 percent to £1.040 million, compared to Goldman Sachs Group, Inc. (NYSE:GS)’s estimate of £1.039 million. The company’s operating income was £699 million for the full year and £209 million for the quarter.
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Virgin Media Inc. (NASDAQ:VMED) (LON:VMED) reported net cash provided by operating activities to be £232 million for the quarter and £1.040 million for the year. Its operating cash flow was up 4.4 percent to £442 million (compared to the Goldman Sachs estimate of £439 million for the fourth quarter. Virgin Media Inc. (NASDAQ:VMED) (LON:VMED)’s free cash flow fell 1.4 percent to £138 million (compared to the Goldman Sachs estimate of £119 million) during the fourth quarter.
It also reported that cable revenues rose 3 percent for the year and 3.8 percent during the fourth quarter. The company had 42,700 net cable customer additions during the quarter and saw ongoing customer base mix improvement. It reported 187,300 TiVo customers, 59,900 paying TV customers and 419,400 superfast broadband customers.
The company also reported that its business division revenue fell 4.5 percent during the fourth quarter, although it was still up 5.2 percent for the year.
Analysts at Goldman Sachs Group, Inc. (NYSE:GS) issued a preview to today’s earning report on Tuesday. They said that they believe solid results from the company’s fourth quarter would be “unlikely to be a catalyst for further near-term growth upside.” At this point it does appear that the analysts are correct in their assumption.
Tuesday’s announcement that Virgin Media Inc. (NASDAQ:VMED) (LON:VMED) could be acquired by Liberty Global Inc. (NASDAQ:LBTYB) did far more for the stock than almost any earnings report ever could, especially one as in-line with expectations as this one is.