Virgin Media reported a 27.5% increase in contract customers at the end of last year, taking its contract base to 1.2 million.
The company announced its 2010 full-year and Q4 results today (17 February). Mobile ARPU was at its best ever at £15.16 – an increase of 8.3% on 2009.
Mobile revenue for Q4 was up 6.7% to £148.3 million, driven by the contract ARPU growth. The company added 56,100 contract customers during the fourth quarter, rising to 1.2 million. Prepay disconnections were 54,200, compared with 98,300 a year earlier.
The company said one of its key strategic aims is to sell more mobile services into its cable customer base, as ‘we believe this impacts favourably on churn and lifetime value’.
Quad-play penetration increased to 11.8% of Virgin’s total base, compared with 10.6% a year earlier.
Total revenue was a record £3.876bn, up 5.8% on 2009. Quarterly revenue exceeded £1bn for the first time in Q4.
The company also passed the four million cable broadband customer milestone in Q4, overtaking TalkTalk to become second largest ISP in the UK
Virgin Media CEO Neil Berkett, said: ‘A strong financial performance combined with the launch of a number of market-leading product developments ensured 2010 was a year of great achievement for Virgin Media. We have driven our consumer division to its highest ever rate of revenue growth, maintained robust cost control and delivered our best ever financial year. The significant strides forward in our Mobile and Business operations contributed to this substantial result.
‘In the year ahead our new TV service, powered by TiVo, will provide a real step change in home entertainment as customers benefit from the unique power of the Virgin Media network. Together with the roll out of our ultra-fast 100MB broadband, across our growing cable infrastructure, we will further accelerate our lead in next-generation services and meet the ever growing demand for greater connectivity. Our relentless focus on the customer, combined with our powerful brand ideals, will ensure we deliver a truly Virgin experience in and out of the home.’