Virgin Media bolsters customer base but losses mount

Client defections reach record low

More than 7,000 customers have signed up with Virgin Media in the first quarter

Broadband services provider Virgin Media increased its customer numbers by 7,100 during the first quarter of 2009 and brought its client defection rate down to a record low, but revenues dwindled and losses deepened at the firm.

Total revenue at Virgin Media for the first quarter was £935.7m, compared to the £947.3m posted in 2008. Adjusted net loss for the first quarter grew to £154m from £104.4m in the same period last year.

Churn – the term used to describe the level of customers switching to rival services – dropped to 1.1 per cent, an all-time low for the firm. In the year-ago quarter, churn was 1.2 per cent.

Average year-on-year revenue per user also rose for the third consecutive quarter, to £42.29 from £41.95 in the prior year.

"We began 2009 with another quarter of sound operational and financial performance," said Virgin Media chief executive Neil Berkett.

"We have achieved these results by continuing to deliver a differentiated and highly competitive consumer proposition that exploits our strength in broadband and video-on-demand."