7/24/2012 4:43:56 PM
Contracts drive Virgin Mobile results
An increase in contract customers saw Virgin Media's mobile revenues rise 2.9% to £136.4m.
For its quarter to 30 June, contract service revenue was up 15% to £101.7m. The move away from pay-as-you-go resulted in a 20% decline in prepay sales to £32.8m. Virgin Media said changes to mobile termination rates (MTRs) also affected the business to the tune to £6m. Stripping out the effects of MTR changes, mobile revenue would have increased by 7%.
Virgin Media ended the quarter with 1.6 million contract customers, compared to 1.3 million a year ago. However, prepay customers were down by 35,200 during the quarter. Mobile ARPU was up from £14.29 last year to £14.86. Overall sales across Virgin Media were up 4.2% to £1.03bn. Operating income increased by 33% to £180m for the quarter.
Virgin Media CEO Neil Berkett said: 'This has been a quarter of improved revenue and OCF growth. We are well placed to benefit from the fast-growing demand for superfast broadband and TiVo positions us well to lead the evolving TV market. Customer ARPU and churn have improved and, together with our growing business division and great value mobile offerings, we have maintained steady financial progress across the company which is translating into strong free cashflow as well as continued shareholder returns.'
Editor: Graeme Neill