(adds sector figures, further details and CEO comments)
LONDON (Thomson Financial) - US-listed cable company Virgin Media Inc. said
it gained 4,900 net new customers in the first quarter versus a net loss of
46,900 a year earlier, although average revenue per user (ARPU) fell due to
price competition.
Total revenues in the period declined to revenue 1.0002 billion pounds vs
1.022 billion.
Cable ARPU fell to 41.91 pounds from 42.75 pounds year-on-year and from
42.24 pounds the previous quarter, due to a "continuing shift of existing
customers to lower priced bundles," Virgin said.
Operating loss narrowed to 4.6 million pounds from 15.3 million pounds in
the first quarter of 2007, with the year-on-year decrease mainly due to reduced
selling, general and administrative expenses, partially offset by increased
operating costs.
The company said its churn rate, the number of customers ending services,
declined to 1.2 percent from 1.6 percent last year. Virgin expects its churn
rate in the second quarter to increase seasonally, although "remain
significantly lower than the corresponding period in 2007."
In terms of divisions, Virgin added an extra 88,400 net broadband customers
from 106,200 the previous quarter and 87,900 a year ago. The company now has a
total of 3.5 million cable broadband subscribers.
Total TV net additions were 36,800 in the quarter.
Telephony net additions were 29,000 versus 63,400 net disconnects
year-on-year -- positive for the second successive quarter following a period of
six quarters of subscriber losses.
Commenting on the results, Virgin Media CEO Neil Berkett said: "In
particular, churn continued to decline, reflecting the emphasis that we have
placed on this area. With our focus on reducing churn and stabilizing ARPU, we
are well positioned for growth."
TFN.newsdesk@thomson.com
jag
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