Virgin Media revenue flat in 2Q13 as business and mobile turnover offset gains in retail sector

5 Aug 2013

British cableco Virgin Media has released statistics for its financial and operational performance in the three months ended 30 June 2013, with turnover in the quarter flat as revenue declines in the mobile and business segments offset growth in the consumer sector. In the period under review Virgin Media recorded a total turnover of GBP1.026 billion (USD1.58 billion), with the company noting that the principle revenue driver for both periods was its cable business, which accounted for more than 70% of its consolidated revenue in the quarter. Pointing to support from a price increase implemented in February 2013, the cableco said that its cable business was able to deliver year-over-year revenue growth of 4% in 2Q 2013. By comparison, in the mobile sector Virgin Media recorded revenues of GBP124.3 million, down 5.7% y-o-y, with the decline attributed to lower pre-paid subscriber numbers and the impact of regulatory changes to mobile termination rates (MTRs). In the business sector, meanwhile, Virgin Media saw sales of GBP148 million in 2Q13, representing a year-on-year drop of 11.1%, with a number of factors blamed, including: the continued decline in voice revenue; contract renegotiations with key partners; and non-recurring revenue relating to a contract termination in Q2 2012 of approximately GBP4 million. On a reported basis, Virgin Media, reported that operating cash flow (OCF) in the second quarter of 2013 increased by 2% to GBP427.1 million, compared to the GBP418.8 million reported in 2Q12. Such gains, it said, were ‘primarily due to lower marketing expense in our selling, general and administrative costs’.

At the end of June 2013 Virgin Media’s cable broadband subscriber base stood at 4.306 million, down marginally from the 4.309 million reported three months earlier. In addition, the operator also revealed that it had a further 168,600 off-net ADSL subscribers, down from 180,900 at end-March 2013. Fixed voice accesses over the operator’s hybrid-fibre coaxial (HFC) network numbered 4.165 million at the end of the quarter under review, down from 4.179 million, while it had a further 114,100 off-net telephony subscribes at the end of 2Q13. Mobile customer numbers, meanwhile, increased to 3.026 million, with gains in the post-paid segment – up 2.8% quarter-on-quarter to 1.793 million – offsetting a fall in the pre-paid subscriber base, which declined by 2.3% q-o-q to 1.233 million.

United Kingdom, Virgin Media