CABLE television is set to announce its first profitable year in the UK after almost 30 years of operation which have swallowed up investments of £13bn.
Virgin Media, the nation’s main cable operator, is expected to report its first annual net profit on Wednesday, compared to a loss of £141.4m last year and £357.8m the year before.
While some analysts have pegged the profits in the high £80 millions, the figure is thought more likely to be nearer the £72m mark, as predicted by BNP Paribas.
On the lower end of the scale, JP Morgan has put forward an estimation of £60m.
This will be the first positive net income on Virgin Media’s record. However, the Branson-branded cable company has for some time reported a positive operating cash flow and free cash flow, at £1.51bn and £412.3m respectively in 2010.
Wednesday’s results will coincide with the fifth anniversary of Virgin Media, which was launched in 2007 as a merger between Virgin Mobile and debt-ridden cable companies NTL and Telewest, promising rich rewards at last for cable investors.
Virgin is now the only national cable network in the UK, covering half the country and reaching 13m homes.
Smallworld provides a cable television network for Western Scotland and North West England, while WightCable connects the Isle of Wight.
As a result of an administration error which saw upgrade emails sent to unqualifying customers, Virgin Media last month announced it would double the broadband speed of all its customers.
It has since unveiled plans to raise its broadband prices by up to £1.50, although the company has said this is part of a standard price review.
