Feeds

Cable broadband making more money than cable telly

Easier piping stuff than providing it, says Virgin Media

High performance access to file storage

Virgin Media makes the bulk of its money from its cable customers in the UK according to the company's quarterly filing with the US Securities and Exchange Commission (SEC).

And a mild increase in revenues from its cable broadband business fuelled the last quarter for the telecom and media company. For the three months ended 30 September 2011, Virgin Media's broadband revenue increased to £685m ($1.09bn), compared to £662.6m ($1.05bn) in the same period last year. Virgin Media put the healthy income in the cable sector down to "selective" price increases, discounts to newbies and successful sales of new products to existing customers.

Money from Virgin Media's fibre-optic cable services made up 68.5 per cent of its total revenue for the quarter.

Overall, the company's quarterly earnings were up compared to last year. It made a revenue of £1bn in this quarter ending the 30 September, an increase of 2.2 per cent on the £978.4m revenue it made in the same period in 2010.

But the rise in cable broadband was offset by lower profits from mobile customers and from its TV division. "In our consumer segment, cable customers account for the majority of our revenue," VM said in the report, going on to specify that "cable broadband internet is more profitable than our television services".

Revenue from cable television makes up a significant chunk of Virgin's income, but customer uptake there has declined slightly since last year, falling to 3,762,100 from the 3,766,700 average customers Virgin had in the same quarter last year.

In contrast, cable broadband subscribers have shifted up to 4,072,900 from 3,969,800 in the same period in 2010.

Revenues from cable telephone services have fallen slightly too.

Customers who subscribe to multiple Virgin Media services bring in more profit for the company than those who simply use a single service. In mobile, contract customers brought in much better returns than the pay-as-you-go ones.

Rumours today that Virgin TV will drop the American channel Current TV from its offering to UK customers next year are possibly a sign that Virgin Media is more willing to invest in the areas that bring in bigger bucks.

Though VM didn't confirm or deny that the channel was closing, only telling us that "Current TV is contracted to be on our service until early 2012", and "we constantly review our channel line-up to ensure we are providing our customers with content they want to watch and enjoy".

Otherwise the media company has made some savings by implementing cuts packages from 2008, including ditching properties and bringing rental costs down and making some cuts to staff.

Virgin Media's sales to business customers were up slightly from last year, but 84.4 per cent of its profits are still from the consumer sector. ®

High performance access to file storage

More from The Register

next story
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
Skype pimps pro-level broadcast service
Playing Cat and Mouse with the media
Beat it, freetards! Dyn to shut down no-cost dynamic DNS next month
... but don't worry, charter members, you're still in 'for life'
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
prev story

Whitepapers

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.
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.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.