Skip Navigation


Virgin Media Q1 2011 financial results show good customer growth
Wednesday 20 April 2011 10:41:24 by John Hunt

Virgin Media first quarter results for 2011 have shown good company performance through customer growth. The company saw customer numbers grow by 1.2% over the last 12 months with net additions of 20,200 in Q1. This pushes the total number of customers up to 4.82 million in the cable business. The company report operating profit up by 7.6% in the quarter. More customers are opting for faster broadband products- 39% of new customers took 20Mbps or faster up from just 15% in Q1 2010. 150,000 customers now take the 50Mbps tier product (around 3.7% of all broadband customers).

"This has been another solid quarter where we have maintained strong levels of revenue growth and generated substantial free cash flow. As more customers demand better connectivity, we have seen an increase in the take-up of faster broadband speeds and continued to improve the quality of our customer base. Alongside this, there has been strong early interest for our next generation home entertainment service, Virgin Media powered by TiVo, and we anticipate consumer demand for this will grow as we accelerate our roll-out.

The investment we are making in developing our multiscreen capability and our unique fibre optic network, will allow us to transform the connected experience for consumers and businesses and ensure we remain at the forefront of the UK's digital future. Our 1.5Gb broadband trial will achieve the fastest cable speeds in the world and, by pushing the frontiers of technology, it will help us to understand the kinds of services our customers may need in the future and the exciting possibilities of an increasingly converged world."

Neil Berkett, (CEO) Virgin Media

The mobile side of the business has also performed strongly with an increase of 22.6% in contract customers, increasing to 1.3m. With this the company has seen quad-play (where a customer takes telephone, TV, broadband and mobile telephone products) penetration increase by 1% on last year now standing at around 12% of the customer base. 63.4% of customers opt for triple-play (taking the three fixed-line products), and 22.7% dual-play.

Comments

Posted by herdwick over 6 years ago
150,000 customers now take the 50Mbps tier product (around 3.7% of all broadband customers).

still selling like stale cakes then !
Posted by herdwick over 6 years ago
ElReg says "Virgin Media said it grabbed 20,200 net new cable customers in its latest Q1, compared with 38,300 in the same period last year."

a decline in growth, rather than good growth, shirley ?
Posted by krazykizza over 6 years ago
@herdwick Growth is usually measured onn a Quarter by Quarter basis, rarther than annual like End of pear fisical results of other types of services.
Posted by chrysalis over 6 years ago
herdwick customer additions in affect doesnt mean much anyway, the important figure is the 7.6% profit growth. Infinity eg. will probably post healthy figures for additions but in retrospect its a diaster as they not paying anything extra over adsl prices.
Posted by Bob_s2 over 6 years ago
Very strong figure from Virgin. Mosre customers and more importently higher profits

It also shows strong growth for higher speeds when they are made available A pretty impresive result when many companies are seeing fewer customers and lower profits.
Posted by herdwick over 6 years ago
"Customer additions doesn't mean much" No, of course not. The fact that each one brings a few hundred quid per year of revenue to offset the fixed cost base is neither here nor there ?
Posted by New_Londoner over 6 years ago
20k net new customers added seems remarkably low. Difficult to know whether teh number of customers for the 50Mbps service is good or not until BT publishes its figures for FTTC - given the earlier start, I assume Virgin would want to show a healthy lead here.
Posted by gavinthain over 6 years ago
Get the iPhone with good T&C's and I'll be another quad rather than triple. Come on virgin, everyone should have iPhone by now.
Posted by sylvantos over 6 years ago
Gavin the problem is its down to Apple who they choose to partner with. The other thing being, Virgin Mobile is one of the much smaller networks out there. 1.2 million customers is absolutely laughable compared to other networks...and can you imagine the terrible packages they'd offer? No thanks.
You must be logged in to post comments. Click here to login.