Feeds

Virgin Media suffers growing pains as Cable Cowboy daddy settles in

Life under Liberty Global: Flat sales, big operating loss hit UK telco's Q3

Security for virtualized datacentres

Virgin Media reported flat sales and an operating loss to the City this morning as the telco adjusts to living under the roof of cable giant Liberty Global.

It said revenue stood at £1.02bn during the company's third quarter ended 30 September 2013, while restructuring costs relating to Liberty's summer takeover of Virgin Media hit the ISP's bottom line.

The firm said it had lost £46m in operating costs during the period as it continued to integrate its business with the European outfits owned by its parent company, which is run by American billionaire John Malone, AKA the Cable Cowboy.

Virgin Media said today it expected to splurge more cash on the restructuring process into 2014.

It added: "Operating income for Q3 has also been affected by higher depreciation and amortisation costs, higher stock-based compensation expense, and the impairment of certain network assets."

On the commercial front, Virgin Media added that its growth had been knocked by increased competition, particularly from its rival BT - which launched a new sports TV channel in August.

The telco also reported a big net loss of its "revenue generating units" (RGU) in Q3 compared with the same period a year earlier.

It said that it had added 30,200 internet subscribers to its network to the end of September this year, down from 56,900 in 2012.

Thousands of telephone and TV customers unplugged from the service during the quarter.

Virgin Media said:

Customer and RGU growth were both lower compared with Q3 2012 which had been helped by our broadband speed upgrade and associated marketing, as well as the launch of our triple play 'Collections' bundles in April 2012.

The company's total number of subscribers on its books for all its products still stands at close to 4.9 million people, due to a slowdown in uptake of Virgin Media's products. It said that 13,500 customers signed up to the ISP services in its third quarter, compared with 39,500 in the same period last year.

Liberty Global also coughed to a quarterly loss of $830m, after its debt burden increased as Malone continued to expand his cable empire from the US into Europe. ®

Beginner's guide to SSL certificates

More from The Register

next story
You! AT&T! The only thing 'unlimited' about you is your CHEEK, growl feds
Man, we did everything but knock on their doors - carrier
The DRUGSTORES DON'T WORK, CVS makes IT WORSE ... for Apple Pay
Goog Wallet apparently also spurned in NFC lockdown
Watch out, Samsung and Apple: Xiaomi's No 3 in smartphones now
From obscurity to selling 19 million mobes a quarter
Brazil greenlights $200m internet cable to Europe in bid to outfox NSA
Only one problem: it won't make the slightest difference. And they know it
Wanna hop carriers with your iPad's Apple SIM? AVOID AT&T
Unless you want your network-swapping tech disabled for good, that is
Knocking Knox: Samsung DENIES vuln claims, says mysterious blogger is a JOKER
But YES, system does store encryption key on the device
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.