Virgin Media’s revenue ‘up’ despite customer losses

Thursday, July 28th 2011

36,000 customers deserted Virgin Media in the second quarter while 4,000 new customers had enrolled in the same period in the previous year. In spite of it, the revenue of the Cable group went up by 2.2% to GBP 986 million in the second quarter. Neil Berkett, the chief executive, said that this was because the people did not mind spending more for the next generation digital technology. Tim Boddy of ‘Goldman Sachs’ analyzed that the revenue per user grew by 3.2 % to GBP 47.35 a month because the company concentrated on customer value rather than volume. Mr. Berkett said that the data requirement by domestic and business consumers had risen by 25% in the first half, indicating a change of attitude of the consumers. They have no hesitation in paying extra for high speeds, say 30 MB or more. The slight drop in revenue to that forecast was only because of the poor performance by the business division and mobile operations. ‘Everything Everywhere’ the largest mobile network operator in the UK, suffered a loss of GBP 0.1 billion in the second quarter due to regulatory changes. 300, 000 customers left the company. Incidentally, their chief executive, Tom Alexander of has given way to Olaf Swantee, who will take over the reins of the merged T-Mobile and Orange.


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