July 28, 2010

Virgin Media Q2 2010 Results

Virgin Media Inc. announces results for the quarter ended June 30, 20101.

Financial performance driven by strong revenue growth in all segments
* Total revenue up 7.1% to £964m; strongest revenue growth since merger over four years ago
* Revenue growth in all areas, including improved performance in both Mobile and Business
* Third successive quarter of double-digit percentage OCF2 growth, up 12.9% to £370m
* Operating income increased to £80m from £9m

Strong operational performance driven by ARPU and best Q2 customer net adds since merger
* Cable ARPU, up 4.9% to a record £45.88
* 9,100 total new customers in traditionally the weakest quarter for growth, compared to 27,800 customer loss a year ago
* Cable gross additions of 188,600, up 18.2%
* 120,800 product net additions, up 26.2%; HD customers up 79.7% to 1.2m
* Churn remains flat at 1.3%; triple-play penetration increased to 62.4% and quad-play penetration increased to 11.3%, reflecting continued success with our bundling strategy

Bringing "Digital Entertainment" into homes

"We grew our digital TV base by 25,900 in the quarter to over 3.7m customers. These viewers continue to enjoy our market-leading video-on-demand (VOD) service with well over half of them using and watching VOD as part of their everyday lives.

"We are also continuing to aggressively expand our High Definition (HD) offering. A year ago, we carried one HD channel, but this will increase to a total of 26 channels in the next few weeks. We have announced the August launch for Sky Sports 1 and 2 HD and ten Sky Movies HD channels and we expect to continue to increase the number of HD channels. As a result, our HD base is growing rapidly and we added a record 259,000 customers in the quarter to reach an installed base of 1.2m.

"Through our agreements with BSkyB, we have also secured long-term carriage of the Sky Basic channels and the former VMtv channels, along with access to interactive red button sports coverage and the opportunity to deliver selected Sky standard definition programming over the internet.

"We continue to work with TiVo to develop and launch a new converged TV and broadband interactive platform in the fourth quarter."

1 comment:

Media Boy said...

I have tonight been told that Virgin have got ''6 more HD channels are in the pipeline''.

I have also been told that Sky content on demand should be added in the next 1/2 months as agreed with Sky.