closedownarrowlogo-verticalmenu-barsearch Skip to main content
Jump to navigation
Virgin Media news

Virgin Media Chief Executive Neil Berkett remains confident for the future, despite a drop in subscription levels during the second quarter of the year.

Latest company figures reveal 36,000 cable customers switched provider between April and June, contributing to a three per cent fall in the firm's share price in London.

However, Mr Berkett told Reuters that despite customer attrition, he was "satisfied" with the results.

He explained that quarter two is "seasonally weak", and suggested that slow economic growth – UK GDP increased by just 0.2 per cent – had also been a factor.

Mr Berkett said such concerns are continuing to weigh heavily on the minds of consumers during Q3, potentially affecting their appetite for subscription TV services and broadband deals.

However, he predicted strong growth for Virgin Media in the strong to mid-term, as demand for entertainment services continues to rise.

"We are acquiring and growing data-savvy, data-hungry customers," he claimed.

Despite the slight fall in subscription levels, Virgin Media actually increased earnings between April and June 2011.

The broadband provider generated £986 million over the quarter as sales rose by two per cent, with increased spending from existing customers helping to support turnover.

Average revenue per cable user rose by three per cent to £47.35 per month.

Overall, Virgin Media's second-quarter operating cashflow rose by six per cent to £392 million pounds, while free cashflow increased 13 per cent to £123 million.

The firm announced last week that 6.5 million households across the UK are now able to sign up for its ultra-fast 100Mb broadband deals.

Virgin Media has been rolling out fibre broadband services since December 2010, and aims to conclude upgrade work by next year.

Upon completion of the multi-million pound project, the broadband provider aims to be within reach of around half of all UK households.

Join the conversation

comments powered by Disqus

Stay up to date

  • Google+ Follow uSwitchTech
  • Subscribe to our RSS feed

Latest Comments

  • Frances Wellcon 15 hours ago Sky and Virgin Media customers... No, but the manufacturers would! It's the author of the goods who holds the copyright and every time it's...
  • Clock End 18 hours ago Sky and Virgin Media customers... Quite happy to use Spotify, Deezer, Amazon Prime, Netflix, Now TV et al because they are all available...
  • Shirley Christine Payne 2 days ago EE broadband customers to lose... I have been with the same email address since freeserve days. I too only continued to use the services of...

Search news