Virgin Mobile revealed mixed first quarter results today with its contract customer numbers up, but prepay base down.
The virtual operator's results for the first three months of the year showed a 59,400 increase to its contract customer base, but a decrease of 127,600 to its prepay.
Overall the MVNO’s total mobile customers were down 1.5% to 4.42 million with the prepay customer base, which still forms 90% of its total customers, falling by 5.4%, while contract customers increased by 77%.
The results show decreased numbers in ARPU which was £10.04 for the first three months of the year compared with £10.07 for the same period last year.
Virgin claimed the drop is partly down to improved contract offers, but mainly due to increased competition.
Mobile ARPU and subscriber numbers combined meant that Virgin Mobile's Q1 2008 revenues were marginally down on those from Q1 2007 at £140m, but had fallen 8% when compared to £151.6m in Q4 2007.
Virgin Media CEO Neil Berkett said: ‘We are undertaking actions to improve mobile prepay performance including selective price increases, better focused customer retention activity and efforts to reduce customer acquisition costs.’