Virgin Media customers are spending more as the firm mulls a London listing
VIRGIN Media yesterday said it had narrowed its losses after customers spent more on its services and that it was in talks about listing in London later this year.
The firm said its net loss had narrowed to £49m from a £449m loss a year later, when the firm was forced to take a writedown of £336m on its mobile business
Average revenue per user (ARPU) – the amount earned from each customer – beat analyst expectations to rise to £43.27 a month, from £41.68 a year ago, as it increased the number of customers buying three services to 58 per cent, up from 53 per cent.
Virgin Media has taken advantage of its cable network, which can be accessed by 51 per cent of households, to sell combined broadband, TV and telephone packages.
However, the company – which is 10.4 per cent owned by entrepreneur Sir Richard Branson – said that it had lost 26,200 customers in the period.
Chief executive Neil Berkett said that the firm is considering a secondary listing in London, to attract UK-based investors. Although listed on Nasdaq, it operates solely in the UK.
The listing would likely take the form of global depository receipts, and is expected to be announced later this year, sources close to Virgin Media said.
Virgin Media’s second-quarter revenues were flat year-on-year at £936m, broadly in line with a consensus of £941m. Operating cash flow held steady at £334m, beating consensus forecasts.