Virgin Media records solid second quarter results

24 Jul 2012

Reporting its financial results for both the first half and second quarter of 2012, British cableco Virgin Media has revealed an increase in turnover on the back of a number of factors, including continued improvements in its customer base mix, increased subscriber numbers and higher revenues from its mobile voice services. For the first half of the company’s 2012 fiscal year its posted total revenues of GBP2.033 billion (USD3.16 billion), representing a 3.3% year-on-year increase, while second quarter sales totalled GBP1.027 billion, up 4.2% against the corresponding period of 2011. Notably, the cableco highlighted a 15% annual increase in turnover from post-paid mobile voice services, while total mobile revenue increased 2.9% over the year. Revenue from the company’s business division meanwhile was reported at GBP166 million in 2Q12, up 9.8% y-o-y.

In terms of subscribers, at the end of June 2012 Virgin Media’s cable broadband accesses totalled 4.152 million, up from 4.048 million a year earlier, while the company had a further 233,000 off-net broadband connections on its books, down from 271,400 a year earlier. Fixed voice subscriptions meanwhile stood at 4.148 million, almost unchanged from the 4.155 million at end-June 2011, while mobile subscribers numbered 3.027 million, down from 3.052 million a year earlier, but up from 3.008 million at end-March 2012.

Neil Berkett, Virgin Media’s chief executive officer, said of the results: ‘This has been a quarter of improved revenue and operating cash flow (OCF) growth. We are well placed to benefit from the fast-growing demand for superfast broadband and TiVo positions us well to lead the evolving TV market. Customer average revenue per user (ARPU) and churn have improved and, together with our growing Business division and great value mobile offerings, we have maintained steady financial progress across the company which is translating into strong free cash flow as well as continued shareholder returns.’

United Kingdom, Virgin Media