Feeds

Cable broadband shines in Virgin Media Q2

50Mbit/s by the end of the year

Secure remote control for conventional and virtual desktops

Virgin Media's recent move to push broadband to the centre of its offering is paying off. The firm announced strong underlying profits today and said it expects its forthcoming 50Mbit/s network upgrade to further distinguish it as a premium/expensive ISP.

Some 19,500 net customers left the firm in the three months to 30 June, but cable broadband subscriptions were up 54,000 on the previous quarter. It now has 3,836,100 total cable and ADSL broadband customers.

Discounting depreciation, amortisation and a one-off charge related to the Virgin Mobile acquisition, underlying operating profit hit £333m, up six per cent and beating expectations. Total revenues actually slid slightly from £995 million a year ago to £990.5m, but VM said efficiency savings improved margins.

Overall churn fell to 1.3 per cent from 1.8 per cent from the same period a year ago, despite price increases and in line with VM's previously announced strategy of hanging on to big spending punters.

CEO Neil Berkett said: "The second half of this year will mark a major milestone as we roll out our unrivalled 50Mb broadband service. We believe this superfast service, combined with our leading video-on-demand product, will prove extremely attractive to existing and new customers."

He might have a point. The number of customers subscribing to the top tier broadband package was up 82 per cent on a year ago. More than 9 per cent of it broadband customers take the current to tier 20Mbit/s service.

Berkett also said that talks with Sky to deliver its basic channels package to cable TV subcribers, were ongoing but so far unsuccessful. Sky withdrew the channels during a public spat over pricing last year that hit VM subscriber numbers hard.

The full report is here (pdf) ®

Internet Security Threat Report 2014

More from The Register

next story
Mighty Blighty broadbanders beg: Let us lay cable in BT's, er, ducts
Complain to Ofcom that telco has 'effective monopoly'
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Ofcom tackles complaint over Premier League footie TV rights
Virgin Media: UK fans pay the most for the fewest matches
FCC: Gonna need y'all to cough up $1.5bn to put broadband in schools
Kids need more fiber, says Wheeler, and you'll pay for it
prev story

Whitepapers

Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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.
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.