Virgin Media Q2 suffers pandemic effects
August 4, 2020
Virgin Media, the Liberty-owned UK quad-play provider, has reported Q2 revenue of £1.23 billion (€1.36bn), a decline of 3.5 per cent on a reported basis and 3.6 per cent on a rebased basis, with certain low-margin revenue streams being temporarily impacted by the Covid-19 pandemic.
Q2 residential cable revenue decreased 2.4 per cent YoY on a reported basis and 2.5 per cent on a rebased basis. Virgin saw Q2 cable net adds of 24,000, compared to a 6,000 net loss in the comparative prior-year period
Cable subscription revenue decreased 2.1 per cent on a reported basis and 2.2 per cent. on a rebased basis.
A YoY increase in fixed-line customers was offset by a reduction in cable ARPU due to a £22 million revenue reduction attributable to pause credits and the cancellation of premium sports subscriptions following the suspension of certain sporting events due to Covid-19; Cable non-subscription revenue decreased 22.3 per cent on a reported basis and 22.6 per cent on a rebased basis due to the temporary suspension of late payment fees during the lock-down period. Virgin notes that it was compensated for the associated costs.
Q2 other revenue decreased by 41.6 per cent on a reported basis and 42.5 per cent on a rebased basis due to lower advertising revenue in its broadcast business in Ireland, largely due to the impact of Covid-19.