Virgin Media sees net loss widen in 3Q; revenues down marginally

7 Nov 2008

UK cableco Virgin Media has announced results for the three months ended 30 September 2008, revealing net losses for the quarter of GBP120.8 million (USD191.7 million), almost double the GBP61 million net loss it reported for the same period last year. The operator attributed the loss mainly to unfavourable foreign exchange movement, losing GBP104.7 million in the quarter on foreign currency losses alone. Total revenues for Virgin dropped to GBP991.1 million for the quarter, down from GBP1.01 billion in the same period last year; growth in revenues in the consumer and content sectors were offset by lower mobile and business revenues.

Net subscriber additions fared slightly better, with the operator reporting it added 37,800 TV subscribers and 68,700 broadband subscribers over the three month period. Additionally, Virgin noted that average monthly churn had fallen to 1.5% from 1.7% a year earlier, and reported that the number of customers taking its top-tier broadband offering had increased 78% year-on-year. Commenting on the results, Neil Berkett, Virgin’s chief executive, said, ‘In the face of a slowdown in the general economy, our business has shown good resilience.’

United Kingdom, Virgin Media