Virgin Media Adds 60,000 Post-Olympic Internet Subscribers
More people are using Virgin Media’s superfast Internet, television and telephone services, but mobile revenues are down.
Virgin Media added 60,000 new subscribers to its broadband services in the last three months, boosting its internet customer base to 4.2 million.
According to the company’s third quarter results, the number of new subscribers is the most it has acquired in more than two years and more than double the amount it attracted during the same period last year.
More than 40 percent of its new broadband customers chose to receive speeds of 60Mbps or faster, while the number of customers receiving speeds of 30Mbps or faster increased by 453,000 to 1.8 million, accounting for 42 percent of its total subscribers.
Virgin Media results
The company attributed much of its success to the London 2012 Olympics and ran a marketing campaign featuring Olympic champions Usain Bolt and Mo Farah. Almost three quarters of its customers accessed one of the BBC’s 24 additional Olympic channels as the TV subscriber base grew by 10,700 customers.
The rise in the number of television, Internet and telephone subscriptions increased the average revenue per user by 1.8 percent to £48.37. However it was not all good news as mobile revenue went down by 3.1 percent to £127 million.
“This has been a quarter where continued strong demand for superfast broadband and TiVo has led to lower churn and meaningful cable customer growth,” said Neil Berkett, CEO of Virgin Media. “Combined with progress in our business division, we have again delivered solid financial progress with continued revenue and OCF growth, translating into strong Free Cash Flow and shareholder returns.”
Virgin Media subscribers will also still be able to access the London Underground Wi-Fi network from 2013, once free access ends at the end of this year.
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