Virgin Media reports losses as net additions fall

26 Feb 2009

UK triple-play provider Virgin Media has reported a fourth quarter operating loss of GBP50.2 million (USD72.5 million) and net loss of GBP241.4 million, the latter of which was attributed to an impairments charge of GBP54.8 million relating to the company’s Sit-Up subsidiary, a home shopping business, as well as foreign currency losses. Total revenue for the operator fell 1.7% year-on-year, as Virgin reported declines in revenue from its business, mobile and off-net operations. Virgin also reported that it had seen a 40% drop in the number of new customers signing up as a result of the economic downturn in the UK; net customer additions fell from 272,100 in 4Q 2007 to 185,500 in 4Q 2008. The company’s board is now expected to meet this week to consider whether or not to sell its television business, valued at approximately GBP450-GBP500 million.

United Kingdom, Virgin Media