Virgin Media revenues climb despite 47% subscriber slowdown

Virgin Media revenues climbed 5.7% in first quarter of the year, despite a 47% slowdown in sign-ups to its services.

Virgin Media: reports profit boost
Virgin Media: reports profit boost

The cable operator recorded revenue of £982.3m in the first quarter until 31 March, compared with £929.4m for the same period a year earlier.

The company recorded an operating income of £110.6m, up on last year's £69.6m.

However, despite the growth, Virgin Media added fewer new cable customers in the first quarter compared to the same quarter the year before.

Virgin Media said it boosted sign-ups by 20,200 in the first quarter of 2011 compared with 38,300 in the same period last year. It now has 4.8 million cable subscribers in the UK, a 47% drop.

The company said that customers using its premium services had increased 22%, while HD penetration increased to 41%.

Virgin Media signed up 50,100 new customers to its broadband services during the first quarter dropping from 72,300 in the same period last year. This include 39% of new customers taking 20Mb or higher speeds.

Neil Berkett, chief executive officer of Virgin Media, said: "This has been another solid quarter where we have maintained strong levels of revenue growth and generated substantial free cash flow.

The company has also announced that it will roll out a new 1.5Gb superfast broadband service it calls the world's fastest cable broadband service to four companies in East London around the tech capital, Silicon Roundabout in Old Street, including the online publisher Bespoke Banter.

Berkett said: "Our 1.5Gb broadband trial will achieve the fastest cable speeds in the world and, by pushing the frontiers of technology, it will help us to understand the kinds of services our customers may need in the future and the exciting possibilities of an increasingly converged world."

Sales in the firm's mobile phone division rose 3.8% during the first quarter with the company recording stable growth in mobile contracts.

Last month, .

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