Virgin Media results show continued effect of cord cutting
16 February 2016 | 0
Virgin Media has released its fourth quater results for 2015, the first since its rebranding from UPC last October.
Total subscription across broadband, phone, digital TV and mobile were 1,048,100. This breaks down as 371,200 broadband subscribers; 311,200 digital cable TV subscribers; 358,100 phone subscribers; and 7,600 subscribers to its mobile service – also launched last October and using Three’s network.
Increased competition in the market has seen a decline in the customer base from a total of 1,111,200 subscriptions from the same period in 2014. Broadband services, however, continued their upward trends from adding 7,800 over 2014. Digital TV continued to suffer from the popularity of cord cutting, down 22,000, though phone subscriptions grew by 13,800.
Overall revenue for 2015 for the UK and Ireland was $7 billion, down 4% from $7.1 billion in 2014. Quarterly revenue remained flat at $1.8 billion compared to the same period in 2014.
The quarter also saw the completion of UPC’s purchase of broadcaster TV3, an upgraded Horizon service adding ‘replay’ and ‘startover’ features as well as new parental controls for restricting certain kinds of content.
As part of its relaunch as Virgin Media, the company announced a new top-end broadband package offering speds of 360Mb/s, currently available to half all homes across Ireland.
Carol Grennan, chief financial officer, Virgin Media (pictured), said: “2015 has been a year of continued investment in our network and products creating a platform for further growth and innovation in the year ahead. In particular, we’re delighted with the strong results for our mobile service which is the most competitive in the market. Later this year we plan to introduce 4G and handsets which will provide even greater choice and value for our mobile customers.”