Feeds

Virgin Mobile ups customers, drops profits

Float costs bite

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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

Security for virtualized datacentres

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
Comcast exec: No, we haven't banned Tor. I use it. You're probably using it
Keep in mind if, say, your Onion browser craps out on Xfinity
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.