Feeds

Virgin Mobile ups profit

Predicts further rev growth

  • alert
  • submit to reddit

SANS - Survey on application security programs

Virgin Mobile says it has been unaffected by a broader slowdown in consumer spending even though the amount of cash spent by each user is down on last year.

Takings over the last year were up 15 per cent from £453.3m to £521.3m while operating profit was also up from £48.6m to £53.7m.

Reporting numbers for the year to March, Virgin Mobile - which is predominantly a pre-pay business but recently unveiled a contract service - said the number of active users were up 24 per cent to 4.03 million from 3.24 million.

The snag for Virgin Mobile - which doesn't own its own network but instead piggybacks on T-Mobile's infrastructure - is that the average amount of revenue (ARPU) it gets from each punter is sliding. In 2004, ARPU was £147 but this year it's fallen to £127, blamed in part to a decline in interconnect fees (call charges between operators).

With ARPU falling and competition from no-frills rivals such as easyMobile yet to bite, Virgin Mobile is looking to drive down costs.

Even so, Virgin Mobile chief exec Tom Alexander is extremely chipper today: "In the past three years we've tripled our revenues, and 2005 has been our best year yet. Our strong performance shows Virgin Mobile has the ability to sustain sector-leading service revenue growth within a competitive environment."

Looking ahead, Virgin Mobile remains "confident in achieving strong growth" for the year ahead and expects to increase revenue by around 15 per cent over the year. ®

Related stories

Virgin Mobile hits five million UK users
easyMobile.com takes aim at easymobile
Fresh undercuts discounted easyMobile tariffs

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
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.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
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.