Virgin Media Enjoys Subscriber Boost

Virgin Media has announced that it added 24,000 net cable subscribers in the fourth quarter of 2007, while churn dropped to 1.4% from 1.7% in the previous quarter.

The cable company also saw its broadband subscriber net additions grow by 15.6% to 111,200, up from 96,100.

Its earnings before interest, tax, depreciation and amortization, increased by 2.6% to £321 million from £313 million.

However, its revenue fell by 2.9% to £1.05 billion from £1.08 billion year on year.

Neil Berkett, acting chief executive officer, said: “Our fourth quarter results represent our best operational performance since the cable merger in early 2006. They demonstrate that our customers are responding positively to a compelling consumer proposition combined with the strength of the Virgin brand.

“We are achieving good results from our stated strategy of exploiting our superior network capability to drive broadband growth and deliver the next generation of personalized on-demand content, as well as focusing on reducing churn.

“With a strong brand, superior products, and improving service and operations, we believe we are well placed for continued growth and cash flow generation.”

On Monday, Virgin Media announced that it is appealing against the Competition Commission’s ruling that Sky must reduce its 17.9% stake in ITV, saying that it does not go far enough (see Virgin Media Launches Legal Challenge To Sky-ITV Share Ruling).

It said in a statement: “While Virgin Media strongly supports the Competition Commission’s conclusions that the acquisition has led to a substantial lessening of competition, it is appealing the Competition Commission’s recommendation that a reduction of BSkyB’s stake in ITV to 7.5% is adequate to address this problem.”

Virgin Media: www.virginmedia.com