Virgin Media Q1 2011 financial results show good customer growth
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.