European Communications

Last update10:59:00 AM

Revenue growth for Virgin Media despite decline in mobile

Virgin Media enjoyed a growth in revenues in the third quarter of the year, with the UK-based firm also welcoming a "solid" performance for the opening nine months of 2012 as a whole.

Revenues increased by 2.8 percent over the three-month period to reach the equivalent of €1.3 billion, while the company's net income totalled €152 million.

Over the first nine months of the year the company recorded a 3.1 percent growth in revenues, to €3.8 billion, and its net income for the first three quarters stood at €240.8 million overall.

Virgin attracted 56,900 net broadband additions in Q3, and its base of customers on superfast connections - of 30Mb and above - increased by 452,900 during the period to reach a total of 1.8 million.

Mobile revenues fell by 3.1 percent, however, with the company citing regulatory changes to mobile termination rates as a key reason for this decline, as they affected the level of inbound mobile revenues the firm received.

The firm reported that it increased its contract mobile customer base by a figure of 28,900 during the third quarter.

Among its other announcements, the company noted that its consumer cable customer base increased by 1.3 percent.

It saw a rise of 39,500 in its cable customer figures during the third quarter, compared to a rise of just 6,300 in the corresponding period of last year.

Virgin Media chief executive officer Neil Berkett said the financial results reflected decent progress that helped in turn to deliver healthy free cash flow levels and shareholder returns.

He commented: "This has been a quarter where continued strong demand for superfast broadband and TiVo has led to lower churn and meaningful cable customer growth.

"Combined with progress in our business division, we have again delivered solid financial progress."