Virgin Media beats expectations with Q4 results

LONDON - Newly formed Virgin Media has posted fourth-quarter revenues slightly above expectations at £1.08bn and its consumer cable division reduced churn but lost a net 37,000 customers during the quarter.

The group, which rebranded this month from NTL:Telewest to Virgin Media, said cable churn, or the percentage of customers who left the service, was reduced to 1.7%. In the third quarter churn was 1.8% and the net customer loss was 37,000.

ARPU, the average amount of revenue per customer, was £42.82, up 34p from the previous quarter.

The consumer cable business generated fourth quarter revenues of £644.4m, up from £631.2m in the fourth quarter of 2005. Virgin Mobile revenues were £151.7m for the fourth quarter, the business was not part of the group in 2005. Content revenues were flat at £116.7m.

Steve Burch, chief executive officer of Virgin Media, said: "Out first set of figures under our new name show continued improvement, good growth in ARPU and triple-play penetration, reduced churn and strong broadband and TV net additions."

Burch added: the "performance of the underlying business is on track and provides a strong foundation for the rebranding to Virgin Media".

The news comes as the row between Virgin and Sky over carriage fees remains unresolved. The two companies must agree terms by midnight today otherwise the Sky basic channels will disappear from the Virgin Media platform, which is accessed by 3.3m viewers.

Sky and Virgin have been locked in a public war of words over the issue, which is the latest spat between them since Sky thwarted Virgin's plans of merging with ITV by taking a stake in the commercial broadcaster.

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