Feeds

Virgin Media Q1 revenue climbs as signups fall

Plans to test 1.5Gbit/s broadband

Next gen security for virtualised datacentres

Virgin Media saw total revenues were up 5.7 per cent in the company's first quarter ended 31 March 2011, despite a dip in the rate of increase of its customer base.

It pulled in £982.3m in Q1, compared with £929.4m for the same period a year earlier. The company delivered operating income of £110.6m, up on 2010's £69.6m.

However, it added fewer new cable customers than during the same quarter in 2010.

Virgin Media said it grabbed 20,200 net new cable customers in its latest Q1, compared with 38,300 in the same period last year. It now has 4.8 million UK cable subscribers on its books.

Demand for faster broadband has improved, the company said.

"In February, we unveiled a new 30Mbit/s 'XL' tier in place of the existing 20Mbit/s tier for new customers. This will create further differentiation from our DSL competitors which struggle to deliver more than half the headline speeds they advertise," it said.

"We now have over 150,000 customers on our 50Mbit/s tier, more than twice as many as a year ago and a 33 per cent increase since the year-end. We are also in the process of rolling out the country's fastest broadband service, 100Mb, which is now available to two million of our cable homes and on track to be available right across our network by mid 2012."

The company credited take-up of its faster broadband speeds and pay-TV for bolstering Virgin Media's latest results, even though it added fewer customers during the quarter.

Virgin Media's new TV service customers dropped by 70 per cent to just 10,100 for the quarter, compared with 35,700 in the same period in 2010.

Sales in the firm's mobile phone division rose 3.8 per cent in Q1 with the company recording steady growth in mobile contracts.

Biz revenue was brisk, with a 13.7 per cent increase to £159.1m, thanks to a climb in data revenues in Virgin Media's retail and wholesale markets.

Net income from continuing operations for the quarter was £4.5m compared to a loss of £163.3m in 2010's Q1.

"The improvement was mainly due to increased operating income, gains on derivative instruments and foreign currency gains, which arose due to sterling strengthening versus the US dollar during the quarter," Virgin Media said.

The company added it will soon start testing broadband speeds of "up to" 1.5Gbit/s in partnership with four companies based in east London's 'Silicon Roundabout'. ®

Boost IT visibility and business value

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
PwC says US biz lagging in Internet of Things
Grass is greener in Asia, say the sensors
Ofcom sees RISE OF THE MACHINE-to-machine cell comms
Study spots 9% growth in IoT m2m mobile data connections
O2 vs Vodafone: Mobe firms grab for GCHQ, gov.uk security badge
No, the spooks love US best, say rival firms
Ancient pager tech SMS: It works, it's fab, but wow, get a load of that incoming SPAM
Networks' main issue: they don't know how it works, says expert
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
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.