Subscriber growth and increased spend bolsters Virgin Media’s 2010 results

17 Feb 2011

British triple-play provider Virgin Media has unveiled its financial results for the year to end-December 2010, proclaiming the twelve-month period its best ever as increased customer numbers and record average revenue per user (ARPU) helped drive full-year revenues to GBP3.875 billion (USD6.241 billion), a 5.7% year-on-year increase. Turnover in the fourth quarter of 2010 meanwhile stood at GBP1.003 billion, up from GBP941.3 million in the same period a year earlier, while operating income for the three months ended 31 December 2010 was GBP71 million, a 9.2% increase against 4Q09. FY2010 operating income was GBP321.9 million, more than double the GBP132 million for the previous year.

In terms of subscribers, Virgin Media reported that it had 4.29 million broadband subscribers at the end of 2010, up from 4.1 million a year earlier, while the number of customers taking its telephone service had risen to 4.33 million at end-2010, up from 4.28 million twelve months previously. The proportion of customers taking three services from the cableco meanwhile rose to 63%, up two percentage points over the year, while quad-play customers accounted for 11% of Virgin’s overall subscriber base. Cable ARPU in the last three months of the year was GBP47.51, up 4.9% and representing the highest ever level for the operator. In terms of mobile virtual network operator (MVNO) subscribers, Virgin reported a wireless customer base of 3.068 million at end-2010, down from 3.174 million a year earlier, but up marginally against the previous quarter.

Commenting on the results, Neil Berkett, Virgin Media’s CEO, said: ‘A strong financial performance combined with the launch of a number of market leading product developments ensured 2010 was a year of great achievement for Virgin Media. We have driven our consumer division to its highest ever rate of revenue growth, maintained robust cost control and delivered our best ever financial year. The significant strides forward in our Mobile and Business operations contributed to this substantial result.’

United Kingdom, Virgin Media