UK based Virgin Media has reported a total revenue of £985.8m for the second quarter ended 30 June 2011, up 2.2% for the £964.2m revenue in the same quarter previous year.
The overall consumer segment, including cable, mobile and non-mobile, contributed £834.6m for the quarter, while the business segment provided £151.2m of the total revenue.
Mobile revenue in the quarter was £132.6m, down 2.7% primarily due to the regulated change in mobile termination rates that reduced inbound mobile revenue by approximately £6m.
Operating income for the quarter was £134.9m, up 69.5% from £79.6m in the same quarter prior year.
Net income from continuing operations for the quarter was £98.2m compared to a loss of £68.5m in the second quarter of 2010.
The improvement was mainly due to increased operating income together with £77.6m recognised with respect to a VAT refund received during the quarter, which is included in interest income and other, net.
Free cash flow generation was strong as the company generated £123m in the quarter, up 12.7% from £108.9 in the previous year’s quarter, while net cash provided by operating activities increased 14.2% to £286m for the quarter from £250.5m in Q2 2010.
Virgin Media chief executive officer Neil Berkett said during the first half, the company has continued to focus relentlessly on delivering superior services tailored to the needs of these data-hungry households and businesses.
"The increasing demand is evident in a 25% increase in data consumption among Virgin Media’s customers in just six months who have watched and downloaded more content then ever before," Berkett said. "This trend is rapidly transforming the profile of our subscriber base, with more than half of all new broadband customers choosing 30Mb or higher compared to just 18% a year ago."
The company expects that business data remains a key growth opportunity for them in 2011.
Virgin Media Business MD Mark Heraghty said they’re continuing to see strong growth in the public sector as we remain at the heart of the Public Services Network (PSN) initiative.
"New relationships established in the last quarter with both Cambridgeshire County Council and Westminster City Council have the potential to be worth over £200 million as we roll out new networks to connect key buildings," Heraghty said.
"But our market share is also increasing in the private sector. A mixture of cloud, big data, overloaded mobile networks and the increasing use of video is driving the demand for fast, secure and robust connectivity. As we continue to use our unique network asset as a platform for innovation, we’re able to deliver game-changing technologies that address these challenges and much more. The commercial opportunities that are out there all represent pillars for significant growth both during the remainder of this year and into 2012," Heraghty said.
Virgin Media recently successfully trialled cable broadband speeds of up to 1.5Gb, 240 times faster than the national average, at TechHub, part of London’s growing tech start-up scene around Old Street.
