Tech
The economic downturn has resulted in fewer customers subscribing to Virgin Media's services, the cable operator said today in its third quarter results.
Reporting revenues of £991.1m - up quarter-on-quarter but down year-on-year - and operating income before depreciation, amortisation and other charges of £325m, Virgin said that it had added 8,300 net customers in the three months to September 30 and reduced churn to 1.5%.
"The broader economic environment in the UK has become more challenging and we have seen some
impact on gross customer additions. However, our business is showing good resilience as we
successfully target churn, drive further efficiencies across the Group and enhance our compelling product suite," said CEO Neil Berkett.
4.7m people now subscribe to Virgin's on-net broadband, TV and telephony services with 54.7% subscribing to all three. Average revenue per customer increased quarter-on-quarter and year-on-year and is now at £41.94.
In TV, 43,800 people opted for Virgin's V+ high defintion personal video recorder in the period, bringing the total number of V+ subscribers to 468,700 - 14% of the total TV subscriber base.
In broadband, which Virgin calls its "premier product", Virgin said that 19% and 10% of the subscriber base take its 10Mbps "L" and 20Mbps "XL" services respectively, with the number of customers taking the 20Mbps tier increasing 78% over the last year. It is on course to launch a fourth 50Mbps tier of service in the fourth quarter.
Reporting revenues of £991.1m - up quarter-on-quarter but down year-on-year - and operating income before depreciation, amortisation and other charges of £325m, Virgin said that it had added 8,300 net customers in the three months to September 30 and reduced churn to 1.5%.
"The broader economic environment in the UK has become more challenging and we have seen some
impact on gross customer additions. However, our business is showing good resilience as we
successfully target churn, drive further efficiencies across the Group and enhance our compelling product suite," said CEO Neil Berkett.
4.7m people now subscribe to Virgin's on-net broadband, TV and telephony services with 54.7% subscribing to all three. Average revenue per customer increased quarter-on-quarter and year-on-year and is now at £41.94.
In TV, 43,800 people opted for Virgin's V+ high defintion personal video recorder in the period, bringing the total number of V+ subscribers to 468,700 - 14% of the total TV subscriber base.
In broadband, which Virgin calls its "premier product", Virgin said that 19% and 10% of the subscriber base take its 10Mbps "L" and 20Mbps "XL" services respectively, with the number of customers taking the 20Mbps tier increasing 78% over the last year. It is on course to launch a fourth 50Mbps tier of service in the fourth quarter.
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