Jefferies Reports In-Line Headline Financials On Virgin Media

According to Jefferies, Virgin Media VMED headline financials were closely in-line. Jefferies said that KPIs weaker than expected (subs -36k) although higher churn appears mainly confined to lower-spending segments. “New capital return commitment includes up to £625m share buyback by end-2012 (c.£200m above consensus) Suggests mgmt confident on outlook despite steady OCF slowdown in last 5Q's (from +14.1% y/y in 1Q 2010 to 6.1% 2Q 2011) and tough backdrop (evidenced by Sky price freeze).” Virgin Media closed yesterday at $28.15.