Virgin Media’s total revenue for the first quarter of 2007 was £1 million, with the company saying that the majority of the decline from the previous quarter was due to a reduction in content segment revenue.
The cable company’s revenues from its consumer cable operations were £637.3 million in the first quarter, up year on year from £636.7 million.
However, its profitability deteriorated owing to decreasing revenues from the business cable, mobile and content areas of its business.
Virgin Media made an operating loss of £15.3 million in the first quarter, compared with an operating profit of £9.2 million in the last quarter of 2006.
The company’s net loss for the first three months of the year was £120.3 million compared with a net loss of £119.9 million in the first quarter of 2006.
Despite a £25 million rebranding campaign, the group’s customer base dropped to 4.81 million with a net loss of 46,900 subscribers.
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”
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