Virgin Media is to buy back £375 million of its own shares following a strong performance during the second quarter of 2010.

The cable TV and broadband bundle provider signed up a record number of new customers in the three months to June – 9,100 – compared to a 27,800 loss last year.

Higher take-up of broadband deals and other services helped increase revenue by seven per cent to £964 million.

According to latest company accounts, average subscriber spend on Virgin Media products rose by five per cent to £45.88 per month, boosting profits.

Chief Executive Officer Neil Berkett commented that a buyback of stock, rather than a dividend, represented "a more efficient way of returning capital to company shareholders".

He said the share purchases were part of a £700 million investment plan designed to "deliver appropriate returns to investors".

Meanwhile, consumers have until tomorrow to take advantage of Virgin Media's latest broadband deal, which sees subscribers pay just £5 per month for the first three months of their contract.