Virgin Media Releases Q1 Results

LONDON, May 8: Virgin Media’s first-quarter revenues were stable as compared to the year-ago period, dipping just 2 percent to £1 billion, while net loss fell from £120.3 million to £104.4 million.

“Our first-quarter results represent another solid operational performance,” said the company’s CEO, Neil Berkett. “In particular, churn continued to decline, reflecting the emphasis that we have placed on this area. Our results demonstrate that our customers are continuing to respond positively to our compelling consumer propositions. We remain focused on leading in next generation broadband and redefining the TV experience through on-demand. With our focus on customer value, reducing churn and stabilizing ARPU, we are well positioned for growth.”

Cable revenues for the quarter were down 3 percent to £778.9 million, while mobile revenues were stable at ?139.5 million and content revenues gained slightly to £83.4 million. Operating loss, meanwhile, was narrowed from £15.3 million to £4.6 million.

On-net cable RGUs increased by 154,200 in the quarter and average monthly churn fell to 1.2 percent. Cable ARPU declined slightly during the quarter to £41.91. Broadband net additions were 88,400, with the platform ending the period with 3.5 million cable broadband subs. Total TV net additions were 36,800 in the quarter, considerably lower than the 61,100 added in the prior quarter (Q4 2007. Telephony net additions also slowed to 29,000.

—By Mansha Daswani