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Virgin Media Achieves First £1B Revenues in Q1

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British multi-media giant Virgin Media said first quarter revenues were in line with company forecast at £1 billion, up 2.4% from the same period. It is being backed by growth in the different business segments, enabling them to post a net income £4 million higher than the previous figure to £7 million.

Financial Highlights

The company that brought IPTV in the United Kingdom now holds 18% of the TV base with more than 600,000 customers, giving £678 million in revenues.

More than 840,000 British customers now have 30Mb and above broadband speed constituting 20% of the total cable broadband base.

Virgin Media’s current advertising campaign features sprinter Usain Bolt sporting a Richard Branson beard, reflecting the company’s programme of doubling the speed of more than four million customers.

The company has recently rolled out 100MB speed tier, which are now being subscribed by about a quarter of a million customers, including the 50 MB and 60 MB speed tiers.

However, the mobile business was impacted by the shift from prepaid service to contract services as well changes in the mobile termination rates regulations.

Virgin Mobile now has 1.6 million contract subscribers and 1.4 prepaid customers in a flat interplay of revenues at £138.5 million, 1.2% higher than a year ago.

Virgin Media Business, the company’s corporate arm contributed £170.4 million of the total group revenue. VMB won the bid provide free and unlimited wireless connectivity for passengers of the tube in time for the London 2012 Olympics.

“We are putting the power of our fibre optic cable network at the disposal of customers out of the home for the first time,” Virgin Media said in the report.

Against a Bigger Vodafone

Virgin Media remains undisturbed by the recent announcement made by Vodafone to acquire Cable & Wireless Worldwide, which gives the competitor additional infrastructures that can compete with Virgin Media Business.

“Vodafone owning this asset isn’t going to change the strategic landscape. The opportunity for us in the enterprise sector is undiminished,” said Eamonn O’Hare, Chief Financial Officer of Virgin Media.

CEO Comments

Neil Berkett, Chief Executive Officer of Virgin Media, commented:

“In the first quarter of 2012, we’ve made steady progress against our strategy….Over the remainder of 2012, we expect continued steady progress across the company which, combined with the underlying resilience of our business model, will translate into strong cash flow and shareholder returns.”

Company Spotlight

Virgin Media is the telecommunications business of the Virgin Group providing broadband, cable and IPTV, fixed lined telephone, and mobile services in the United Kingdom.

Shares of Virgin Media are listed on both the NASDAQ and the London Stock Exchange. Virgin Media stood at £15.28 a share at 2:00 PM GMT, adding 54 pence to yesterday’s trade following the news.

References
↑ Virgin Media first quarter results beat forecasts
 Virgin Media Investor Relations

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