Virgin Media makes first profit as users spend record sums
Broadband and pay-TV provider Virgin Media today swung to its first quarterly pre-tax profit since the collapse of predecessor NTL in a further sign of its financial health.
Although Virgin is heavily indebted, it made a pre-tax profit of £9.9 million in the three months to September. Operating profits doubled to £102 million before exceptional items. Chief executive Neil Berkett said consumers were signing up to more-expensive services because they want quality despite tough economic times.
More than 700,000 have signed up for faster 20 or 50 mega-bit broadband, up 41% on a year ago. Berkett said Virgin was well positioned because its historic £13 billion investment in infrastructure means his broadband customers get "superior connectivity". He today launched 100MB broadband, around 12 times' normal speed, backed by an advertising campaign featuring cartoon character Speedy Gonzales.
Almost 63% now take a "triple play" of broadband, TV and home telephone and 11% have quad play, which includes mobile.
Berkett said: "We are surrounding the home with all our products."
