Virgin Media Business records small drop in sales

Virgin Media Business has reported a small drop in business revenue for its second quarter.

Virgin Media Business has reported a small drop in business revenue for its second quarter, down 1% to £151.2m after a rise in retail data revenues of 9% proved insufficient to offset a slowdown in sales of voice and data wholesale products

Group-wide sales were up 2.2% to £986m year on year, while net income of £98.2m was up from a loss of £59.9m in the same period last year, but Virgin also revealed it had lost 18,000 broadband customers since this time last year.

"We're continuing to see strong growth in the public sector as we remain at the heart of the PSN initiative," said Mark Heraghty, managing director of Virgin Media Business.

"A mixture of cloud, big data, overloaded mobile networks and the increasing use of video is driving the demand for fast, secure and robust connectivity. As we continue to use our unique network asset as a platform for innovation, we're able to deliver game-changing technologies that address these challenges and much more.

"The commercial opportunities that are out there all represent pillars for significant growth both during the remainder of this year and into 2012," he added.

Virgin Media Business talked up recent successes in winning contracts with Cambridgeshire County Council and Westminster City Council, potentially worth over £200m, and its position as one of the chosen suppliers for Public Services Network (PSN) deals through a Cabinet Office framework agreement.

Virgin plans to roll out 100Mbps broadband across its entire network by mid-2012, with the service already available to six million homes, and yesterday said a growing proportion of users were signing up to speeds of over 30Mbps or above. It claims to have seen monthly data downloads grow 25% so far this year.

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