Virgin Media revenues up 2.9%

Virgin Media’s revenues were up 2.9% in the first quarter of 2010, to £963 million.

Revenue was boosted by 6% growth in consumer cable revenue, it said, with operating income also up, from £13 million to £76 million.

Q1 also saw the company add a net total of 38,300 new cable households, its best quarterly growth since it was created in the merger of of NTL and Telewest.

Mobile contract subscribers increased 45%, to go above one million, while total TV net additions were 35,700 in the quarter.

Virgin said that on a monthly basis, 58% of its digital TV subscribers use video-on-demand, with average monthly VOD views at 68 million, up 24%.

Neil Berkett, Virgin Media CEO, said: “This quarter, we added cable customers at our fastest ever rate. A combination of higher gross additions, low churn and increased ARPU enabled us to deliver year-on-year cable revenue growth for the fourth consecutive quarter. This has driven the growth in total revenue and, with solid cost control, a double digit year-on-year increase in OCF for the second successive quarter.

“We are developing our services to exploit our natural network advantage, both now and in the future. More customers than ever before are choosing faster broadband and every day millions of our customers are enjoying the benefits of the video-on-demand revolution we are leading.

“On average our customers pressed “play” more than two million times a day, every day in the last three months. The latest addition to our set-top box range, the V HD Box, will also enable more Virgin Media customers to enjoy HD television without an on-going monthly fee.

“Finally, we have completed the last step of the refinancing of our debt, leaving us with a long term “fit for purpose” capital structure that supports our ambitions to lead the market as the digital provider of choice.”