Despite losing 36,000 customer in the last three months, Virgin Media’s chief executive said he is “very satisfied” with the quarter’s results.
Last March Virgin Media reported that new customer sign-ups had fallen by 70 per cent and results for the second quarter show further customer loss, despite revenue rising by 2.2 per cent.
Of the 36,000 customers in total that Virgin Media lost, the company claims that 90 per cent of these were taking one or two services from Virgin – with 29 per cent taking just a single service - and the company is focusing on signing customers who will take three or four services together. Virgin Media said it believed 20,000 of the total figure were students who would sign up again when the new academic term arrives in September.
Virgin Media Chief Executive, Neil Berkett
Neil Berkett, chief executive of Virgin Media said: "We are very satisfied with the quarter. It proves our strategy of targeting the mass-market, digitally-aware, data-hungry consumers is working very well." He added: “We deliver superior growth, we do not chase unprofitable business. It is not in our psyche."
Virgin Media revenue rose by 2.2 per cent year-on-year to £986m, with operating cash flow up 69.5 per cent to £135m. The key metric of average revenue per user rose 3.2 per cent to £47.35, as Virgin targeted take-up of its premium subscription services.
Of the 36,000 customers who left, 21,200 were TV customers while 12,000 were broadband subscribers. However Virgin Media pointed to the fact that a quarter of its 4.04 million broadband subscribers are now taking a 20Mb or higher service. Half of all new customers are opting for 30Mb or higher services compared to 18 per cent a year ago.
50,000 TiVo sets have been installed so far, since the company rolled the service out earlier this year and 25,000 customers are awaiting installation.Source: Virgin Media