Virgin Media reports solid revenue growth in 1Q11; unveils 1.5Gbps cable broadband trials

21 Apr 2011

British cableco Virgin Media has unveiled its financial results for the first three months of 2011, posting increased turnover in all areas of its business, while total revenues for the quarter ended 31 March 2011 stood at GBP982.3 million (USD1.61 billion), up 5.7% year-on-year. On the back of what it said was ‘strong cost control’ Virgin Media reported that operating cash flow had risen 7.6% against 1Q10 to GBP376 million, while operating income stood at GBP111 million, up 58.9% y-o-y.

The operator pointed to the uptake of its broadband service as an important factor in the positive results, noting that 39% of new subscribers signing up to its high speed internet services were taking packages offering speeds of 20Mbps or higher, compared to 15% a year earlier. It said that more than 860,000 customers had now signed up to broadband tariffs with speeds of 20Mbps or more, while some 150,000 had taken up the cableco’s 50Mbps option, more than double than at end-March 2010, and up 33% against the end of the year. At end-March 2011 Virgin Media’s total broadband subscriber base stood at 4.061 million, up from 3.91 million a year earlier, while it also had a further 170,000 customers connected via ADSL.

Having confirmed that it was still in the process of rolling out its 100Mbps services across its network, it said that such speeds were already available to around two million homes on its cable network, and the upgrade is expected to be available over its entire footprint by the middle of 2012. Meanwhile, reports have revealed that Virgin is planning to begin trials of cable broadband connections offering speeds of up to 1.5Gbps with four businesses in east London. According to ZDnet, the trials are expected to begin this month, and will utilise Virgin’s existing fibre and cable infrastructure in the area. Commenting on the development the operator said in a statement: ‘Consumers accessing speeds of 1Gbps or more will be able to access even more interactive entertainment and services such as remote healthcare and online education, without the need to travel … As the pace of technological change increases, they will also be in the best position to enjoy web services yet to be invented.’

United Kingdom, Virgin Media