Feeds

Virgin Media sees 36,000 cable customers scarper in Q2

That's OK, they were only 'low-value' rabble

Choosing a cloud hosting partner with confidence

Virgin Media lost 36,000 customers in the three months ended 30 June, but the ISP isn't that bothered about what it described as "lower-value single and dual-play" punters.

The company claimed it was happy to shed such customers in favour of tailoring "superior services" to those willing to shell out more cash in return.

"The value and mix of our customer base continues to improve as we focus on growing triple and quad-play penetration and improving the proportion of customers on higher tiers of services," said Virgin Media in its second quarter results.

"The number of triple and quad-play customers has increased by 2.6 per cent in the last 12 months, whilst the number of single and dual-play customers has decreased by 3.5 per cent over the same period."

The telco's total customer base now stands at 4.78 million, of which around 63 per cent of people on Virgin Media's books pay for three services.

That's slightly down on the company's Q1 results, when it reported a total customer base of 4.8 million.

Its Q2 revenue grew to £985.8m compared with the same period a year earlier, when it reported sales of £964.2m. Virgin Media delivered operating income of £134.9m, up on 2010's Q2 figure of £79.6m.

The firm added that its average revenue per cable user had climbed 3 per cent to £47.35 per month, which somewhat helped offset customers who altogether abandoned the ISP.

"During the first half, we have continued to focus relentlessly on delivering superior services tailored to the needs of these data-hungry households and businesses," said Virgin Media boss Neil Berkett.

"The increasing demand is evident in a 25 per cent increase in data consumption among Virgin Media s customers in just six months who have watched and downloaded more content then ever before.

"This trend is rapidly transforming the profile of our subscriber base, with more than half of all new broadband customers choosing 30Mbit/s or higher compared to just 18 per cent a year ago."

The company also announced a hefty £850m share buyback and debt repayment scheme to take the total amount of stock repurchased since mid 2010 to £1bn.

Shares in Virgin Media are currently trading down 3 per cent on the London Stock Exchange. ®

Beginner's guide to SSL certificates

More from The Register

next story
YOU are the threat: True confessions of real-life sysadmins
Who will save the systems from the men and women who save the systems from you?
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Ofcom snatches 700MHz off digital telly, hands it to mobile data providers
Hungry mobe'n'slab-waving Blighty swallows spectrum
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.