Virgin Media stems losses, increases sales

Even as its customer base shrunk, UK communications conglomerate Virgin Media fared well as second-quarter losses decreased.

During the second quarter, Virgin said net loss dropped to €58.6 million -- down from €528  million in the same period last year when it had to take a €430 million goodwill impairment charge for its mobile properties.

Revenue declined slightly from €1.12  billion to €1.05  billion due to declining sales in its mobile business, where revenue fell to €150  million.

Virgin's CEO Neil Berkett downplayed the decline in mobile revenue since it ties customers to its other services, such as TV, broadband and voice.

Broadband continued to be a shining star for Virgin, as ARPU on its cable network increased by 3.8% to €50 a month during the second quarter.

Although Virgin raised the price of its cable service, customer churn did not rise above 1.3%. Nonetheless, the operator did lose 26,200 customers in the second quarter.

For more:
- Dow Jones/Wall Street Journal has this article

[This article originally appeared in FierceTelecom]

 

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