Feeds

Virgin Mobile ups customers, drops profits

Float costs bite

  • alert
  • submit to reddit

Combat fraud and increase customer satisfaction

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

Top three mobile application threats

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T dangles gigabit broadband plans over 100 US cities
So soon after a mulled Google Fiber expansion, fancy that
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Turnbull gave NBN Co NO RULES to plan blackspot upgrades
NBN Co faces huge future Telstra bills and reduces fibre footprint
NBN Co plans fibre-to-the-basement blitz to beat cherry-pickers
Heading off at the pass operation given same priority as blackspot fixing
NBN Co in 'broadband kit we tested worked' STUNNER
Announcement of VDSL trial is not proof of concept for fibre-to-the-node
Google eyes business service in latest Fiber trials
Lucky Kansas City buggers to host yet another pilot program
prev story

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.