The average amount of money a customer is paying Virgin Media rose to a new high of £47.51 per quarter in 2010, driving revenue growth by 5.8 percent.
As it prepares for its annual earnings call in London this lunchtime, Virgin announced that its overall revenue rose to £3.8 billion in 2010 with Q4 being the first quarter the company had ever topped the £1 billion mark for a three month period. Overall in 2010, Virgin Media, which comprises TV, broadband, phone and mobile phone services, added 76,600 new customers. This was a massive rise compared to the previous year when only 17,600 were added. Indeed, in the final three months of 2010 alone, it added 17,100 new customers.
The area where Virgin Media saw the largest growth was in its broadband service. A year-on-year growth rate of 40 percent for its high-speed services was announced and in the fourth quarter of 2010 alone, it signed up over 44,000 new broadband subscribers from within its overall customer base, taking its total to almost 4.3 million. Of this figure, Virgin said that 780,000 customers took one of its higher speed broadband services. These include the 30MB (recently upgraded from 20MB) and 50MB as well as the super fast 100MB service which is only available in some parts of the country.
Looking at its TV service, the rate of new subscribers in Q4 fell to just 12,100 taking its total number of subscribers to 3.78 million. It also added 60,000 new subscribers to its Sky premium suite of channels and Virgin CEO, Neil Berkett, took the opportunity to have a pop at Sky, who lost out to Virgin and other providers last April in an Ofcom decision which meant it had to cut the price it charges rivals: “It is amazing what a little help from Ofcom can do."
However while this may have been a small victory for Vigrin, Sky’s customer base rose to over 10 million in 2010 and it reported profits of £520 million last month. It also reported strong growth in its broadband service with 24 percent of customers bundling it with their TV subscription. However with TiVo boxes now rolling out to customers, Virgin Media will be hoping that this combined with reduced Sky price will drive growth even further in 2011. "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," Berkett added.
Source: Virgin Media