Virgin Media sees record churn rate, but drops in revenue

Virgin Media has seen a record fall in its churn rate and added 7,100 in new customers in the first three months of the year.

However, excluding the disposal of its Sit-up business in April, the company posted first quarter revenue of £935.7m, which was down compared to £947.3m in the same period last year.

Virgin Media’s average monthly churn rate fell to a low of 1.1%. It also added 30,600 TV customers to reach 3.65 million, down from 36,800 in the same period last year. It added 47,300 on-net broadband customers to reach 3.73 million.

Its average revenue per user also rose year-on-year for the third successive quarter to £42.29.

Chief executive Neil Berkett says: “For the third successive quarter, we’ve achieved year-on-year growth in on-net ARPU (Average Revenue Per User) and have driven churn to a record low, whilst maintaining strong levels of cash generation.”

The latest results follows news that the ITV player brought over four million views to Virgin Media’s TV platform during March.

The uplift from the ITV player led to a strong month for Virgin Media’s on demand TV service, with over 58 million views in March.

The company has just launched a campaign to promote its fibre optic network under the banner “Powerful stuff”.

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