Virgin lifts revenues despite loss of customers
Thursday 28 July 2011
Virgin Media shrugged off the exodus of thousands of customers to post a slight rise in revenues as ongoing subscribers paid for more or improved services.
The cable group announced the net loss of 36,000 customers in the second quarter, compared with a gain of 4,000 a year earlier.
Yet the company's revenues grew 2.2 per cent to £986m in the three months to the end of June. Its chief executive, Neil Berkett, said people were increasingly "becoming dependent on next-generation digital technology and are prepared to pay for quality services".
Tim Boddy, an analyst at Goldman Sachs, said: "Virgin Media's focus on customer value over volume appears to be working." The average revenue per user each month grew 3.2 per cent to £47.35.
Mr Berkett said that households' and businesses' demand for data had risen a quarter in the first half. "This trend is rapidly transforming the profile of our subscriber base," he said, adding half of new broadband customers were paying extra to receive speeds of 30Mb or more.
Citi analysts said the revenues were slightly below forecast because of the weak performance in its business division and mobile operations.
The UK's largest mobile network operator, Everything Everywhere, reported a fall in revenues in the second quarter from £1.7bn to £1.6bn following regulatory changes. The parent of T-Mobile and Orange also lost more than 300,000 customers during the period. Yesterday marked Tom Alexander's last results announcement as chief executive. He resigned this month for "personal reasons". Olaf Swantee will take over on 1 September.
- 1 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 2 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 3 Oil tanker with $100 million cargo goes missing off Texas coast
- 4 George Galloway attacked on Notting Hill street by man 'shouting about the holocaust'
- 5 Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway attacked on Notting Hill street by man 'shouting about the holocaust'
Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- < Previous
- Next >
iJobs Money & Business
£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...