Virgin Media Subscriptions Decline

Virgin Media’s customer base dropped to 4.81 million in the first quarter of 2007, with a net loss of 46,900 subscribers.

Gross customer additions were down from 215,500 in the fourth quarter of 2006 to 184,300 in the first quarter of the year.

Virgin said that this was in large part due to Sky’s removal of its basic channels, such as Sky Sports News and Sky One, from the Virgin Media platform (see Virgin Media And Sky: The Story So Far).

The company’s total revenue for the first quarter of 2007 was £1 million, whilst its revenues from its consumer cable operations were £637.3 million, up year on year from £636.7 million.

Steve Burch, chief executive officer of Virgin Media, said: “Our first quarter of 2007 shows strong growth in TV and broadband, while fixed line telephone continues to struggle.

“We are encouraged by the decline in churn and the impact that our rebrand message is having on consumers. The £25 million incremental spending on rebrand and marketing will have long term benefits as we establish our position in the marketplace. With reinvigorated products and packaging, and a focus on cash flow growth, the outlook for our business remains strong”

Virgin Media: www.virginmedia.com