Subscribers flock to sign up with Virgin Media
5 May 2009Virgin Media is still recruiting new subscribers, getting them to sign up for more than one service and managing to cut down the number of people who switch to rivals.
"The Virgin Media brand sits firmly in the value for money rather than cheap category," said chief executive Neil Berkett. "And while I wouldn't want to be flippant about the recession, I am very pleased with the first-quarter figures.
"There are clear indications that customers are looking for value which explains why 57% of them now take their broadband, TV and telephony together from us."
The cable company, once known as NTL, added 7100 new customers in the first three months of this year. That was well up on the 4900 recruited in the same quarter last year and much better than analysts' forecasts it would actually shed 2,000.
Churn, the rate at which customers switch to rival services, dropped to a record low of 1.1%.
Berkett, who became chief executive just over a year ago, also claimed that the Virgin Media brand is now beginning to shake-off the dismal reputation NTL had for looking after its customers.
"We still have a long way to go, but compared to where we were a couple of years ago we are doing very well," he said.
Operating cash flow for the quarter dropped 4% to £312 million but the group swung from an operating loss of £2 million to a profit of £13 million.
Reader views (1)
Unfortunately my experience of Virgin Media is even worse than dismal, and I would urge all readers to think very carefully before signing up - 3 missed appointments so far, then significant damage to my garden, dire responses from customer service, no reply at all when contacting complaints dept and no working phone service yet since installation two weeks ago - I'm a very reasonable person ordinarily, but no way is all this worth a £4 a month saving on BT phone and Orange broadband!
- Patricia Cole, Bromley, UK, 08/06/2009 22:23
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