Virgin Media Inc (the UK operator is listed NASDAQ) has announced strong results for 2010 the year and quarter ended December 31, 2010.
Revenue growth across all areas was up 5.8 per cent to £3.876 billion (€4.60bn) with Q4 over £1 billion, up 6.6 per cent. Operating cash flow – a key measure for indebted cable companies – was up 12 per cent for the year at £1.51 billion and operating income was up 144 per cent to £322 (£71m – up 9.2 per cent – in Q4).
The company said the much improved financials come from operational performance driven by sustained ARPU and customer increases:
* Q4 cable ARPU up 4.9 per cent to a record £47.51
* Cable customers up 1.6 per cent in year with 76,600 net additions4 to 4.8 million
– 17,100 net additions4 in Q4
* Mobile contract customers up 27.5 per cent in year to 1.2 million
* Triple-play penetration increased to 63.0 per cent and quad-play penetration increased to 11.8 per cent
Neil Berkett, Chief Executive Officer, said: “A strong financial performance combined with the launch of a number of market leading product developments ensured 2010 was a year of great achievement for Virgin Media. We have driven our consumer division to its highest ever rate of revenue growth, maintained robust cost control and delivered our best ever financial year. The significant strides forward in our Mobile and Business operations contributed to this substantial result.
“In the year ahead our new TV service, powered by TiVo, will provide a real step change in home entertainment as customers benefit from the unique power of the Virgin Media network. Together with the rollout of our ultrafast 100Mb broadband, across our growing cable infrastructure, we will further accelerate our lead in next generation services and meet the ever growing demand for greater connectivity. Our relentless focus on the customer, combined with our powerful brand ideals, will ensure we deliver a truly Virgin experience in and out of the home.”