Virgin Media’s latest trading figures showed its revenue increased 3% to £4.2bn in the year to 31 December 2014, with operating profit up 41%, mostly due to revenue growth and economies of scale following its purchase by Liberty Global.
Cable subscription revenue grew 3% in 2014 and the quad-play company’s mobile revenue was also up, by 9%, while churn rate reached a record low of 14.6%.
Chief Executive Tom Mockridge put the fall in customers leaving down to better customer service and a more effective network, which people value more as they watch more video via broadband: “The fundamental reason is people use their broadband services so much more. The use in our network is running up 60% on last year.” Mockridge said that Virgin's first infrastructure expansion in 15 years is overdue and that the company will continue to prioritise infrastructure improvements over acquiring content.
Average monthly revenue per user also rose, to £49.36 in the fourth quarter of 2014. While some could be attributed to price rises, the company also sold more products across its quad-play offering of telephony, broadband, mobile and television services.
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