Virgin Mobile contract customer base hits 1.35m


Company makes 83,200 contract additions in Q2 resulting in its best period of mobile customer growth for three-and-a-half years

Virgin Media made 83,000 mobile contract additions to its base in Q2, up 23 per cent a year ago. It now has 1.35 million contract customers and resulted in the company’s best period of mobile customer growth for three-and-a-half years.

However mobile revenue fell 2.7 per cent in the quarter to £132.6 million compared to the previous three month period, which Virgin said was primarily due to the regulated change in mobile termination rates that reduces its inbound mobile revenue by approximately £6 million. It added mobile revenue would have increased by £1.7 million but for this £6 million.

At the quarter-end Virgin had around 591,400 cable households with at least one Virgin Mobile contract, up 19 per cent from a year ago. These households had around 806,500 contract mobiles, up 21 per cent and representing 60 per cnet of all contract subscribers.

Virgin estimates it has a further 172,200 cable households with at least one of its prepay phones, which represents around 16 per cent of its cable base that take at least one mobile service from the company.

Virgin Media launched a telephony proposition in April which rewarded home phone customers who sign up to selected deals with discounts off their monthly bill in a drive to further contract mobile penetration into its cable base. It had added 45,000 contract customers through this proposition at the end of the three month period.

Virgin Media CEO Neil Berkett said: “There is a growing and increasingly broad-based population of people who are becoming dependent on next generation technology and are prepared to pay for quality services. During the first half, we have continued to focus relentlessly on delivering superior services tailored to the needs of these data-hungry households and businesses.

“As digital media services become more central to our professional, family and social lives, the combination of our network and a clearly differentiated range of products makes Virgin Media uniquely equipped to exploit the growth opportunity that this presents.”