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Virgin Media Loses More Customers As Revenues Continue To Rise

David Gilbert


Logo - Virgin Media

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 Neil Berkett

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


July 28, 2011, 12:11 am

All I will say is that the HMRC needs to look closely at VMedia and their rivals accounting practices. Looking at how they charge the Customers to the final balance sheet!!

Oh, VM, BT et al have managed to get the competition commission to look at the BSkB's purchasing exclusive rights to movies.

While ACS Law is alleged to be now sending notification letters to alleged Greek illegal downloaders.


July 29, 2011, 12:55 am

Well Mr Berkett
I have just moved house and tried to transfer my existing cable TV/broadband/phone package to a new house not 1 mile away -
So two packages and three installation dates later they arrive on yet another date unannounced!
- Problems you would not believe. A fellow board member will be hearing frm me in due course Mr. Berkett.
Virgin are cute on marketing but actually walking the talk is far from the truth. It has cost me mobile calls, total of 2 hours holding on the phone. Explaining to an overseas call centre operator what the difference between broadband and fibre optic was. The fact that their system says I can have, what they say I can't on the phone. That I can have my old phone number but getting it is like pulling teeth. etc etc.

Sooo angry you would not believe.
oh yes They're quick enough to send the first bill too!

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