Virgin Media stems losses, increases sales

Sean Buckley
10 Aug 2009
Daily News

Even as its customer base shrunk, UK communications conglomerate Virgin Media fared well as second-quarter losses decreased.

During the second quarter, Virgin said net loss dropped to $83.3 million down from $750 million in the same period last year when it had to take a $612 million goodwill impairment charge for its mobile properties.

Company revenue declined slightly from $1.6 billion to $1.5 billion due to declining sales in its mobile business, where revenue fell to $213 million.

Virgin's CEO Neil Berkett downplayed the decline in mobile revenue since it ties customers to its other services: TV, broadband and voice.

Broadband continued to be a shining star for Virgin, as average revenue per user on its cable network increased by 3.8% to $72 a month during the second quarter.

Although Virgin raised the price of its cable service, customer churn did not rise above 1.3%. Nonetheless, the operator did lose 26,200 customers in the second quarter.

For more:
- Dow Jones/Wall Street Journal has this article

[This article originally appeared in FierceTelecom]

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