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Virgin Media Q2 revenues grow 4.2% to £1.03bn

Kathleen Hall

Virgin Media posted a steady increase in sales for its second quarter of 2012, with total revenue up 4.2% to £1.03bn and business revenue up 9.8% to £166m, compared to the same period in 2011.

Neil Berkett, CEO of Virgin Media, said Q2 2012 saw improved revenue growth compared with the first three months of the year, which saw 2.4% growth. 

“We are well placed to benefit from the fast-growing demand for superfast broadband and TiVo positions us well to lead the evolving TV market,” Berkett said. 

“Together with our growing Business division and great value mobile offerings, we have maintained steady financial progress across the company which is translating into strong free cash flow as well as continued shareholder returns."

In its report Virgin Media said its corporate division, Virgin Media Business (VMB), would continue its strategy to drive the division’s growth through broadband-related services.

Retail data revenue (direct sales to businesses) rose 8.3% to £74.4m, while wholesale data revenue (sales to other operators) was up 33% at £42.7m, due to revenue from new contracts. 

However, retail voice revenue was down 6.6% to £35.3m, reflecting the continued structural decline in voice telephony, said the report. Wholesale voice revenue rose £1.8m to £5.2m.

Local Area Network Solutions and other revenue was relatively flat at £8.5m, it said.

New contracts included the deployment of Wi-Fi to the London Underground across 120 stations, using the company’s existing infrastructure. 

“This is already proving popular with over 240,000 registered users. We are also in negotiation with a number of third parties to wholesale the service later in the year to ensure that as many people as possible are able to use the service,” Virgin Media's sales report said.

Virgin Media flagged its place on the new Public Services Network (PSN) services framework in the report.

 


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