Feeds

Olympic champ ad blitz dents Virgin Media despite £1bn sales

Crosses finishing line with record revenue in Q1

Boost IT visibility and business value

Virgin Media spent a whopping £52.6m on marketing costs in the telco's first quarter ended 31 March.

The company ran TV, print, online and billboard ads featuring the likes of Olympian Usain Bolt and Virgin Group's Richard Branson.

However, VM said the extra publicity spend, which climbed a massive 49 per cent during the three-month period, paid off with the ISP adding the most quarterly net customers in two years.

It reported to the City this morning that it had added 21,200 subscribers to its services during its first quarter. Annual revenue per user (ARPU) fell to £46.95, however, compared with the company's previous quarter ended 31 December 2011 of £47.85.

Earnings before interest, taxes, depreciation and amortisation and other one-time charges in the three months ended March 31 were flat from the same quarter a year earlier at £376.5m.

First quarter revenue stood at £1bn (up 2.4 per cent on same quarter last year), net income was £7m (up from £4m), operating profit was £131m (up 18 per cent), while free cash flow dropped to £87m (down 13 per cent).

"Over the remainder of 2012, we expect continued steady progress across the company which, combined with the underlying resilience of our business model, will translate into strong cash flow and shareholder returns," said Virgin Media boss Neil Berkett. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.