Third Quarter Results puts Virgin Media in Good Shape
# Nov 2, 08:58 AM by Mick
Virgin Media reported last week that it saw a year-on-year increase in operating cash flow as it beat analysts forecasts for the third quarter, analysts had predicted OCF to be at Â£337m when it was actually Â£348m. In the third quarter, average revenue per user rose to a record 44.24 pounds from 42 pounds a year earlier. The Cable Co, sees its Broadband customer numbers increase by 39,000, VM now has 3.77 million Broadband customers. Meanwhile, 37,000 new customers joined its TV service, taking total TV customer numbers to 3.71 million.
Virgin Media said that it now has 59.5% of customers taking up three services while 10% are taking all four, “Quadplay”.
VM added 16,000 landline telephony customers in the quarter while Virgin Mobile added a record 88,000 net new customers.
The economic downturn over the last 12 months â€œhasnâ€™t been a problem for Virgin Media,â€ Berkett said last week, he also added â€œwe offer high-quality products that are indispensable for consumers.â€
Churn remained the same at 1.5% in the third quarter. Chief Executive officer, Neil Berkett had said: â€œOur focus remains on attracting high-value customers, who buy more from us and stay with us longerâ€.
Commenting on the results, CEO of VM Neil Berkett also said:
“I am pleased to report that this quarter’s results delivered a strong OCF performance.
I believe this demonstrates the success we have had in significantly differentiating and monetising our compelling consumer proposition. Our triple-play penetration is at record levels and over 10% of our customers now take all four services from us”.