Virgin steady progress
April 25, 2012
Reporting its Q1 2012, Virgin Media says it is making steady progress against forecasts. Most notable is the incline by 1.7 per cent year on year in the ARPU to £46.95 (€57) boosted by further penetration for TiVo, up 242,000 to 677,000 or 18 per cent of the subs base.
Turnover was up 2.4 per cent to £1 billion with net income up £4 million to £7 million. Net cable additions were 21,200 reflecting lower churn and ‘superfast’ broadband was taken by 146,700 bringing the total to 843,600 or 20 per cent of the base.
Neil Berkett, Chief Executive Officer of Virgin Media, said: “In the first quarter of 2012, we’ve made steady progress against our strategy. Demand for superfast broadband and TiVo, the UK’s first mass-market connected TV service, continued to gather momentum. We once again demonstrated the unique power of our network by starting to double the broadband speeds of over four million customers. We have seen an increase in ARPU and greater customer loyalty with our best subscriber retention for two years and this has reinforced our confidence that people increasingly appreciate the value of a genuinely next generation digital experience.
In addition, a growing base of mobile contract subscribers together with strong revenues in Virgin Media Business showed again that we have multiple sources of revenue growth. 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.”