11/11/2008 11:56:00 AM
Virgin profits down despite adding contract customers
Despite customer growth Virgin Mobile’s revenues fell in the third quarter this year by 11% compared to the same period last year. Profits at the virtual network operator were £28.1 million for the three months ending September 30, compared to £31.5 million during the same period last year. Quarter on quarter profit drop was 21%.
Revenues at the operator also saw a fall of 8% year on year, with the figure for the third quarter at £145.5 million.
Virgin Mobile added 78,300 new contract customers during the quarter, taking its postpay base to 578,600. In total the MVNO had 4.1 million customers. The operator also revealed it had attracted 2,000 mobile broadband customers within the first month since the launch of the service in October.
Virgin Media CEO Niel Berkett also said the group would see workforce being cut by 2,200 or 15% by 2012. The job cuts are scheduled to start in the fourth quarter next year.