4/28/2010 9:59:00 AM
Virgin cross-sells to add mobile contracts
Virgin Media added 81,200 contract mobile subscribers during the first quarter ended 31 March 2010, as it pushed ahead with a strategy of using its other sales channels to cross sell mobile.
Its total contract base now exceeds one million, accounting for 34% of total mobile subscribers. Meanwhile, its quad-play customers had increased to 11%.
Mobile ARPU was up 4.3% to 13.70, while revenue was down by 2.5% £131m compared with the same period in 2009.
The company said the decline in revenue reflected fewer prepay subscribers and lower termination rates set in April 2009.
Virgin lost 196,100 prepay customers in the quarter, as the company chose not to focus heavily on its growth due to higher churn, lower tariffs and overall lower lifetime value.
Virgin Media CEO, Neil Berkett, said: 'A combination of higher gross additions, low churn and increased ARPU enabled us to deliver year-on-year cable revenue growth for the fourth consecutive quarter. This has driven the growth in total revenue and, with solid cost control, a double digit year-on-year increase in OCF for the second successive quarter.
'We are developing our services to exploit our natural network advantage, both now and in the future. More customers than ever before are choosing faster broadband and every day millions of our customers are enjoying the benefits of the video-on-demand revolution we are leading.'