Solid first quarter results for Virgin Media

25 Apr 2013

UK cableco Virgin Media has reported a solid first three months of the year in financial terms, recording growth in revenue, operating income and net profit in the quarter ended 31 March 2013. In the period under review Virgin Media generated turnover of GBP1.04 billion (USD1.62 billion), representing a 3.6% year-on-year increase, with revenues from its cable-based operations rising by 7% against 1Q12 to GBP725.8 million. Turnover from mobile services meanwhile stood at GBP137.8 million in 1Q13, down marginally from GBP138.5 million generated in the same period a year earlier, while non-cable revenues totalled GBP15.5 million, compared to GBP19.0 million in 1Q12. Operating income for the three-month period was GBP149.8 million, up from GBP130.9 million, with the cableco saying such growth was a result of improved revenues and gross margin, while net income increased by 7% y-o-y to GBP139 million.

In operational terms, at the end of March 2013 Virgin Media’s broadband subscriber base totalled 4.309 million, up from 4.148 million, while fixed voice accesses numbered 4.179 million against 4.147 million a year earlier. The operator also noted that demand for its superfast broadband services, which it classifies as those offering speeds of 30Mbps or more, had continued to grow, with customers taking such products rising by 337,900 to surpass 2.5 million, or 58% of the total broadband subscriber base. Mobile voice subscriber numbers, meanwhile, dropped marginally to 2.996 million from 3.008 million y-o-y.

In terms of notable deals made over the quarter, Virgin Media highlighted a ten-year deal it had struck with Telefonica UK for the provision of backhaul to 1,500 sites, while it also said it had secured a significant five-year backhaul contract with BSkyB.

United Kingdom, Virgin Media