Virgin Media in recovery as it returns to profit

Virgin Media's prospects for a secondary listing on the London Stock Exchange improved as it turned a year on year loss into a profit for its second quarter as average revenue per user grew nearly 4%.

Virgin Media's prospects for a secondary listing on the London Stock Exchange improved as it turned a year on year loss into a profit for its second quarter as average revenue per user grew nearly 4%.

Total sales were down slightly on the same quarter the year before, from £940m to £936m, level with the previous quarter. Operating income rose from a loss of £328m the year before, to £15m. Net cash flow from operations was down on the year before, from £274m to £236m.

Customer churn was steady at 1.3% and customers were buying more from the firm. Some 95,700 more were buying their residential broadband, TV, telephony and contract mobile services from Virgin Media, and almost 60% were on triple-play deals.

The firm said 86% of broadband customers were now on 10Mbps or faster service. The roll-out of a 50Mbps service was complete and the firm was pilot-testing a 200Mbps service.

TV customers rose 20,400 to 3.67 million. Fifty five percent used the video on demand service to push downloads to a record average of 62 million a month.

The number of mobile phone customers rose 60% year on year to 784,600.

CEO Neil Berkett said prospects for the second half of the year remained strong. He said the completion of its next generation network was a landmark.

"More than 12 million homes now have access to 50Mbps broadband, the fastest commercially available product in the UK, and we continue to innovate with our customer pilot of 200Mbps," he said.

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