2/25/2009 11:39:00 AM
Virgin Mobile gains record contract customers at the expense of prepay
Virgin Mobile has reported record numbers of contract customers at the expense of prepay users. The company released its results for the quarter ended 31 December, today (25 February).
During the final quarter of 2008, the MVNO gained 70,800 contract users, taking its total to 649,000, but it lost 224,000 prepay customers.
Mobile revenue was £141.1m – down from £151.6m during the same quarter a year earlier. The company said the drop was due to 'a reduction in prepay subscribers being partially offset by growth in the number of higher-value contract subscribers’.
Overall, Virgin Media’s total revenues fell to £1.03bn in the three months to 31 December, from £1.05bn a year earlier.
Its on-net broadband customers increased by 57,100 year on year to 3.68 million – a gain that was down from 68,700 in the previous quarter.
Virgin Media's chief executive, Neil Berkett, said: ‘During the quarter, we built upon the foundations we put in place to offer a differentiated and highly competitive consumer proposition in 2009.
He added: 'Record numbers of customers are now using Virgin Media’s services, despite the current economic environment. We are successfully giving more people reason to choose us, and they are buying more products than ever before.’
The company said it expects its prepay subscriber base to continue to decline in 2009.