Friday 30th July


Virgin Media looses customers PDF Print E-mail
Written by Robert Piercy   
Thursday, 06 August 2009 17:48

Virgin Media lost 27,000 customers in the second quarter of 2009.

Most of these losses were low value subceribers who had prepaid mobile or commidity broadband.

More encouraging news for the cable company was an addition of more than 20,000 television subscribers although there were just 5,100 more broadband customers, down almost 90% on the last quarter. 58% of customers now have the triple-play of television, telephone and broadband, an increase of just over 5% from a year ago. 19% of customers have the V+ service and 55% regularly use on-demand with an average views/month figure of 32.1.

Financially, the company reduced it net loss to £47.6 million with revenue per customer increasing to £43.27, up £1.59 year-on-year.

Neil Berkett, Chief Executive Officer of Virgin Media, said: "I am pleased to report strong consumer on-net revenue growth and record ARPU during another quarter of solid financial performance. Our strong free cash flow is underpinned by good cost control and a high quality customer base. This reflects the success we have had in delivering and monetizing a compelling and highly competitive consumer proposition which exploits our strengths in broadband and video-on-demand. The growth outlook for the second half of the year remains strong.

"We have now reached a landmark milestone with the completion of our next generation network, which successfully demonstrates our drive to redefine the high-speed broadband market in the UK. More than 12 million homes now have access to 50Mb broadband, the fastest commercially available product in the UK, and we continue to innovate with our customer pilot of 200Mb.

"Our successful bond issues, over the last few months, reflect the market's confidence in our business and growth prospects. We believe we remain well-positioned to meet the wider economic challenges and to continue to provide our customers with more reasons to choose Virgin Media."


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