Strong consumer performance boosts Virgin Media revenue

Mobile subscriptions pass one million, but business revenue slips

Consumer cable customers drive Virgin Media revenue

Telecoms and media giant Virgin Media added 38,300 new cable subscribers in the first quarter of 2010, boosting overall revenue to £963m, up 2.9 per cent year on year.

Virgin Media chief executive Neil Berkett said: "Higher gross additions, low churn and increased ARPU [average revenue per user] enabled us to deliver year-on-year cable subscription growth for the fourth consecutive quarter."

However, revenue from Virgin Media's business arm shrank 6.6 per cent year on year to £139.9m from £149.8m 2009, and down sequentially by 3.6 per cent from the previous quarter's £145.2m.

Virgin Media's consumer sector customers delivered £789.5m in revenue, up from £753.3m last year but down on last quarter's £796.1m.

Virgin Media's mobile contract subscribers increased by 81,200, up 45 per cent year on year, breaking the one million subscriber mark.

Churn – customers switching to competing telecoms companies - was just 1.1 per cent for the first quarter, a record low, according to Virgin Media.

Virgin Media also said that its successful bundling strategy had given it a triple-play penetration of 61.9 per cent, and an 11 per cent quad-play penetration.

Quad-play is an offer that encompasses paid-for IPTV, broadband, standard phone services and mobile phone services. Triple play is quad-play without the mobile phone services.