Virgin customer base up 45pc

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Virgin Media increased its mobile customer base by 45 per cent in the first quarter of the year compared with the first quarter of 2009.

It now has 1,030,900 subscribers with 81,200 net contract additions in the quarter, up 29 per cent. ARPU during the period was up 4.3 per cent to £13.70, while revenue dipped by 2.5 per cent year-on-year to £131.9 million.

The decline in revenues reflected a reduction in prepay mobile subscribers and the lower mobile termination rates which was introduced in April.

Its net disconnections in the quarter for prepay was 196,100, which reflected its decision not to focus on prepay customers due to higher churn and lower overall lifetime value, it claimed.

Meanwhile, Virgin Media’s cable business also grew during the period with 41,700 new customers. ARPU also increased by 5.3 per cent to £45.01. Churn for its cable operations was at a record low of 1.1 per cent.

Virgin Media chief executive Neil Berkett said: “This quarter, we added cable customers at our fastest ever rate. A combination of higher gross additions, low churn and increased ARPU enabled us to deliver year-on-year cable revenue growth for the fourth consecutive quarter.

“We are developing our services to exploit our natural network advantage, both now and in the future. More customers than ever before are choosing faster broadband and every day millions of our customers are enjoying the benefits of the video-on-demand revolution we are leading.

“Finally, we have completed the last step of the refinancing of our debt, leaving us with a long term ‘fit for purpose’ capital structure that supports our ambitions to lead the market as the digital provider of choice.”

 

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