Feeds

Virgin Mobile ups customers, drops profits

Float costs bite

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Virgin Mobile, the newly listed mobile operator, announced a 40 per cent rise in its half yearly earnings, driven by a substantial increase in subscriber numbers. The company now boasts over 4.6m subscribers, and said 647,500 of those had signed up in the last six months.

Operating profit fell from £44.7m last year, to £35.6m. This was due to £11.7m in exceptional items relating to the company's stock market float in July. In addition, the company reported a slight downturn in average revenue per user (ARPU) during the last six months. As of 30 June, this was at £142, but by 30 September, had fallen to £137. Virgin said this reflected the "exceptional customer growth" over the six month period.

The percentage of active customers was also slightly lower, with 78.2 per cent of the customer base having used their phone in the preceeding 90 days. Virgin says this is due a particular upgrade promotion, whereby pre-pay users are sent a second SIM with free minutes when they buy a new handset. The second SIM quickly becomes inactive.

Looking ahead, Virgin said that while profits in the second half of the year will beat those in H2 2003, they will be lower than the figures it has reported today. It said the next six months would see the full impact of Ofcom's rate cut - a forced 30 per cent reduction in the the price mobile networks can charge other operators to connect with their customer.

Shares in the company fell slightly on the news. The full results are available here (pdf). ®

Related stories

mmO2 looks set for first ever dividend
Vodafone dividend doubled, shares up
Ofcom orders mobile phone charge cut

Choosing a cloud hosting partner with confidence

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.