Virgin Media customers added an additional 136,800 services in the second quarter, more than double the 59,000 so-called RGUs (Revenue Generating Units) added in the equivalent period in 2007. Virgin has also been able to continue to pull down its monthly churn from 1.8% in the second quarter of 2007 to 1.3%.
However, hit by a charge of £366m in its mobile segment the company slipped back in the red to the tune of £333m compared to the £3m profit of 2007.
Virgin Media CEO Neil Berkett said the results laid the foundation for future growth. “In the face of a tougher national economic environment our business has demonstrated good resilience. We continue to focus on improving our operational execution and driving unnecessary cost and inefficiencies out of the business.”
Broadband continues to be the main driver of new business, 54,600 were added in the second quarter, TV added 24,800 subscribers (a sharp increase from the 2,200 in 2007 that followed the removal of Sky’s basic tier channels) and net telephony additions were 3,400. On the downside cable ARPU fell from £42.16 in Q2 07 to £41.63 as customer spun down to lower priced packages.
The BBC iPlayer continues to shine with 10.5 million views to the catch-up TV service in June, delivered through Virgin’s regular TV service. 60,700 V+ PVR subscribers were added in the quarter to reach 424,900.
