Virgin Media profits reach 333m

Virgin Media has reported profits of £333m for the second quarter of this year, despite losing 19,500 customers during the period. The company reported its results for the three months ending June 30 today (August 7).

The company’s losses increase to £366m due to a write-down in the value of its mobile phone division. However, it added 55,900 net contract mobile phone customers during the period.

Its churn rate, which is the proportion of customers to cancel services, fell to 1.3%, compared with 1.8% in the same period last year. It says the lower churn reflects a “range of operational improvements” and that BSkyB removed its basic TV channels from Virgin Media’s platform in the year earlier period, leading to more cancellations at the time

Virgin Media added 24,800 net new customers to its cable TV service in the second quarter and 54,600 net new additions to its broadband service.

Virgin Media chief executive, Neil Berkett, says the company will now continue to cut “unnecessary cost” and tackle “inefficiencies”.