Virgin Media Loses 70,300 Customers

LONDON, August 8: Virgin Media announced its second quarter
results today, revealing a loss of 70,300 subscribers in its cable segment,
with 40,000 of those having left because of the cable operator’s dispute with
BSkyB.

Virgin Media’s ongoing spat with the satellite platform has
resulted in its losing access to Sky’s popular basic channels, including Sky
One. As a result, revenues fell from £1,021.9 million in the first quarter to
£995 million. However, the platform did emerge from the first quarter operating
loss of £15.3 million to record a profit of £3 million. The company’s net loss
was £119 million, down from Q1’s £120.3 million and £195.8 million in the
second quarter of 2006.

In the cable segment, consumer revenue fell from the
previous quarter to £619.3 million. The platform had 4.7 million on-net
customers, with churn up from 1.6 percent to 1.8 percent. Total gross
disconnections of 262,200 were up 31,000 compared to the previous quarter due
mainly to the impact of Sky’s removal of its basic channels.

Net additions to the broadband subscriber base were 45,800,
down from the previous quarter’s 87,900. The company now has 3.2 million cable
broadband subscribers. Total Net TV additions were 2,200, down from 36,100 in
the first quarter. And telephony subscribers fell 56,900, versus the 63,400
customers lost in the first quarter.

In the mobile segment, revenues were up slightly on the
previous quarter to £146.3 million, with net customer additions of 52,800.
Content revenues (from Virgin Media Television and Sit-up) fell from £80.6
million in Q1 to £73.6 million.