Virgin Media post record revenue growth in Q2 results
Virgin Media have released their second quarter results for 2010 today which show record revenue growth since the company was formed from the merger of Telewest and NTL. Revenue grew by 7.1% to £964m. The average revenue per user for the cable business is also up to a record £45.88, a 4.9% increase. The company are quoting 9,100 total new customers in what is normally the weakest quarter of growth, compared with a 27,800 customer loss last year. The total number of broadband customers now sits just above 4.2 million following an addition of 28,100 customers, with 74,000 of these customers on 50meg broadband. 259,000 customers took advantage of Virgin's HD products this quarter pushing the installed customer base to 1.2 million.
"A growing base of customers, combined with increased ARPU and improvements in Business and Mobile revenues, drove strong revenue growth and a double digit year-on-year percentage increase in OCF for the third successive quarter.
This performance was driven by our ability to offer households and businesses an increasingly differentiated range of digital services. Going forward, we'll continue to differentiate our propositions by proactively exploiting the advantages of our network and our mobile capability.
Confidence in our long term ability to deliver strong free cash flow, along with the recent completion of our refinancing, enables us to announce today an initial Capital Return programme that complements our existing debt reduction schedule, without compromising our ability to make further strategic investments in the business."Neil Berkett, (CEO) Virgin Media
No further details have been released with regards to the 100meg broadband product as yet other than this is expected to be launched in the fourth quarter of 2010.