Feeds

Customer exodus hits Virgin Media

Sky gloomy

Next gen security for virtualised datacentres

Virgin Media (VM) took another sound kicking from Sky last quarter, losing customers and money in the battle for broadband and pay-TV supremacy.

The firm's cable network surrendered 70,300 net customers during the three months to 30 June. VM estimated 40,000 of the refugees were motivated by Sky's withdrawal of the Basics package that includes the Sky One and Sky News channels.

The dispute is headed for a High Court showdown. VM reckons the impact on customer numbers will be mostly limited to this set of results.

Losses actually narrowed for VM to £119m from £195.8m a year earlier. Total revenue for the group was lower too, however, once the recent inclusion of Virgin Mobile was taken into account. The group brought in £848.7m for Q2 2007 versus £884.3m for 2006.

Average revenue per user slid from £42.75 to £42.16. VM blamed falling use of home phone services.

Searching for light in the gloom, VM claimed it has snatched back the lead from BT in the tit for tat battle for the nation's top residential broadband provider - a sideshow compared to its travails against Sky. VM now supplies 3.5 million home punters (3.2 million cable, 300,000 ADSL), compared to BT Retail's total of 3.8 million lines, some of which are used by businesses.

The bid by Virgin Media's backers to take the firm private, which it's hoped will allow it to act more decisively and deal with its crippling debts, also suffered a blow this week. Volatility in the debt markets that feed the private equity sector with cash for their multi-billion pound deals meant Virgin was forced to delay sale negotiations.

The full earnings release is here. ®

Next gen security for virtualised datacentres

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.