Virgin Media adds 9,000 households

Published on Tuesday 27 July 2010 21:59

TELECOMS and cable heavyweight Virgin Media has grown customer numbers in its spring quarter for the first time since its NTL-Telewest merger.

The group added 9,100 households on a net basis - those joining less those leaving - in the three months to 30 June, which is traditionally a weak quarter.

A year earlier it suffered a 27,800 net loss of customers but is now benefiting from a marked improvement in demand for its cable service.

Net cable additions of 7,100 in the second quarter came as it continued to spend heavily on marketing, as well as expand its fibre optic network to more UK homes.

Fewer customers are quitting the service in a turnaround of fortunes compared with three years ago, when a bitter battle with rival BSkyB over access to basic Sky channels took its toll.

Virgin Media, which has launched a share buyback to reflect its growing confidence, said cable disconnections fell by 2.3 per cent in the quarter, while it also benefited from cross-selling with its other services, such as broadband and mobile.

The firm said growth was "the result of increased product differentiation, higher marketing spend, and investment in growth channels such as retail".

Virgin Media's ongoing efforts to extend its fibre optic network also saw the group cover a further 72,000 households in the three-month period.

Underlying operating income soared to 79.6 million from 9.4m a year earlier. - taking earnings for the first six months of 2010 to 149.2m.