Virgin Media Business managing director Mark Heraghty is talking up the strength of the public sector's appetite for cost effective solutions after first quarter unit sales rose 13.7% to £159m.
"There are a lot of organisations out there that need what we have - the UK's only nationwide fibre-optic network. There continues to be a massive opportunity for us and over the coming months, we'll be looking at how we take the power of the network into other sectors," said Heraghty.
Retail data revenue rose 18.8% to £65.4m, reflecting Virgin's move to concentrate on higher margin data revenues. Wholesale data revenue also rose 34.2% to £42m, while retail voice revenue dropped 6.2% to £38.9m. LAN solutions rose 48.4% to £9.2m.
Virgin Media's consumer business also saw improvements in its customer base, with more customers signing up to its fast broadband packages, while premium and HD TV and mobile contract subscribers were also up.
Total group sales were £982m, up 5.7% and operating income grew just under 60% to £111m.
Virgin Media CEO Neil Berkett hailed a "solid quarter where we have maintained strong levels of revenue growth and generated substantial free cash flow".