Increase in mobile revenues for Virgin with customer base now standing at over 1.15 million
Virgin Mobile’s revenue has increased by seven per cent in Q3 2010 with the company adding 57,500 contract customers in the period also.
In results for the three months ended September 30, 2010, mobile revenue for the period was £143.5 million from £134.1 million a year ago, which Virgin said reflected ARPU growth driven by the increased number of contract customers.
Contract net additions for the quarter were 57,500 to take Virgin’s total contract subscribers to 1,154,700, representing 38 per cent of its total mobile subscribers and growth of 32 per cent in contract subscribers in the last 12 months.
Virgin reported 63,000 prepay disconnections compared to 126,200 in the same quarter last year. It said this loss reflects the “competitive market and our strategy of focusing on contract due to the higher churn, low tariffs and lower overall lifetime value of prepay customers”.
The results also show that 706,000 of Virgin’s cable customers now take at least one mobile phone service from it with 516,000 taking at least one mobile contract.
Virgin Media chief executive Neil Berkett said: “Our continued focus on exploiting our strategic advantages with the resulting multiple opportunities for revenue growth, as well as robust financial discipline has delivered another strong financial performance this quarter.”