Additional services drive Virgin growth
October 29, 2009
Quad play, VOD and fast internet access are proving increasingly popular with Virgin Media customers.
Q3 results published by the UK cableco show its total revenue in the quarter rose by 1.3% year-on-year to £953 million (€1.055 billion), though its operating income fell by £3 million to £50 million. On-net ARPU meanwhile rose by 5.3% to £44.24 and churn remained unchanged at 1.5%.
Quad play penetration in Q3 stood at 10.1%, while the triple play figure stood at 59.5%. The average reach of VOD rose from 49% to 55% of customers, and 72% were receiving broadband internet at speeds in excess of 10 Mbps (13% in the case of 20 Mbps and higher).
Virgin Media’s total RGU (Revenue Generating Unit) figure in Q3 stood at 12.85 million. Commenting on the results, CEO Neil Berkett said: “ I am pleased to report that this quarter’s results delivered a strong OCF performance. I believe this demonstrates the success we have had in significantly differentiating and monetizing our compelling consumer proposition. Our triple-play penetration is at record levels and over 10% of our customers now take all four services from us. Our focus remains on attracting high value customers, who buy more from us and stay with us longer. This strategy has led to the second successive quarter of record ARPU and strong consumer revenue growth. I am delighted that these results show we are progressing significantly in this regard”.