Virgin Media posts best ever Q3 results

Virgin Media has posted its best ever third quarter results, with 18,000 new net subscribers and average revenue per user (ARPU) reaching a record high.

Published today, the operator's results statement for the period up to September 30 revealed that core consumer on-net revenue increased by 5.3% to reach £628m. This performance was buoyed by the second successive quarter increase of ARPU, up by 5% to £44.24.

Following a national upgrade of its broadband network, customers taking Virgin Media's 10Mbps service or higher increased by 157% year-on-year to 2.7m, representing 72% of its base.

The cable operator also added 39,000 new digital TV subscribers over the three months, along with 56,000 customers who switched over from the analogue service. This growth was partially due to the continued strong performance of its video on demand platform, which now regularly tops 66m views per month.

A further 88,000 new customers were added to the company's mobile service, which reached a total base of 873,000, up by 51% year-on-year.

Customers taking the triple play package - TV, broadband and landline - increased by 59% and quad-play subscribers grew by 10%, with both services maintaining low churn.

The strong performance helped Virgin Media's operating cash flow (OCF) to increase by 6.8% year-on-year to £348m, generating a free cash flow of £109m, up by 6%.

Commenting on the results, Virgin Media chief executive officer Neil Berkett said: "I am pleased to report that this quarter's results delivered a strong OCF performance. I believe this demonstrates the success we have had in significantly differentiating and monetising our compelling consumer proposition.

"Our triple-play penetration is at record levels and over 10% of our customers now take all four services from us. Our focus remains on attracting high-value customers, who buy more from us and stay with us longer. This strategy has led to the second successive quarter of record ARPU and strong consumer revenue growth. I am delighted that these results show we are progressing significantly in this regard."

Going forward, Virgin Media plans to further build out its fibre optic cable network to reach a further 450,000 homes in the UK. It is also currently conducting high-speed broadband trials for rural 'not-spots' areas in Cornwall and Hampshire.