Virgin Media Q3 2016 results | Virgin Media

 

Virgin Media Q3 2016 results

4th November 2016
 

 

 

Exceeded 14 Million RGUs in Q3 with 80,000 Additions in the Quarter

Lightning Delivering Strong Growth; Over 50% of Build will now be FTTP

Q3 Operating Income up 30% and Rebased Segment OCF up 6%

Virgin Media Inc. ("Virgin Media") is the leading cable operator in the U.K. and Ireland, delivering 14 million broadband, video and fixed-line telephony services to 5.7 million cable customers and mobile services to 3 million subscribers.

Operating and financial highlights*:

 •       Organic customer additions of 45,000 in Q3 and 117,000 YTD driven by summer promotions highlighting our superior speeds and additions from new build activity

o   Record U.K. organic customer additions of 49,000 in Q3 and 135,000 YTD supported by a reduction in U.K. churn from 14.1% in Q3 2015 to 13.8% in Q3 2016
 

•       Q3 organic RGU additions improved YoY and sequentially to 80,000; YTD at 223,000, up 140% YoY

o   U.K. RGU additions of 92,000 in Q3 was comprised of 60,000 broadband internet, 21,000 fixed-line telephony additions and a return to growth in TV with 11,000 video additions

o   Gained over 75% market share of broadband additions in our cable footprint in the U.K.

o   Quarterly RGU growth in the U.K. represents our best Q3 additions since 2009
 

•       Mobile net adds of 9,000 in Q3, with 26,000 postpaid gains partially offset by prepaid attrition
 

•       Expect to build between 450,000 to 500,000 Project Lightning premises in 2016 across the U.K. and Ireland

o   Added 95,000 new build premises in Q3; taking the YTD Project Lightning build to 250,000

o   More than 50% of new build will now be fibre to the premises ("FTTP")

o   Customer penetration, ARPU and build costs in line with business plan
 

•       Focused on delivering continued improvements in customer experience

o   Virgin TV relaunch underway with new TV bundles, new user-interface and Virgin Exclusives

o   Deployed new, improved WiFi router to 18% of U.K. broadband base since launch in Q4 2015

o   Launched 4G mobile services in Ireland in July and will launch 4G in the U.K. this month
 

•       Implemented 5.1% average U.K. consumer price rise effective November 1, 2016
 

•       On November 1, we acquired Arqiva WiFi with 31,000 WiFi hotspots in 6,500 locations in the U.K.
 

•       Rebased revenue growth of 3% in Q3 and YTD to £1,204.5 million and £3,580 million, respectively

o   Cable subscription revenue increased by 4% in Q3 and 3% YTD on a rebased basis
 

•       Operating income increased 30% in Q3 to £85 million and decreased 5% YTD to £253.5 million
 

•       Rebased Segment OCF8 growth of 6% in Q3 to £530 million and 3% YTD to £1,584 million

•       Property and equipment additions at 26% of revenue in Q3 and 24% of revenue YTD

 

For the full Liberty Global release, go to: http://www.libertyglobal.com/pdf/press-release/Liberty-Global-Fixed-Income-Release-Q3-2016-FINAL.pdf

* The financial figures contained in this release are prepared in accordance with U.S. GAAP

 

ENDS

 

About Virgin Media

Virgin Media offers four multi award-winning services across the UK and Ireland: broadband, TV, mobile phone and landline.

The company’s dedicated, ultrafast network delivers the fastest widely available broadband speeds to homes and businesses. We’re expanding this through our £3bn Project Lightning programme, which will reach 17 million premises by the end of 2019.

Our interactive TV service brings live programmes, thousands of hours of on-demand programming and the best apps and games in a set-top box, as well as on-the-go for tablets and smartphones.

We launched the world’s first virtual mobile network, offering fantastic value and services. We are also one of the largest fixed-line home phone providers in the UK and Ireland.

Through Virgin Media Business, we support entrepreneurs, businesses and the public sector, delivering the fastest speeds and tailor-made services.

Virgin Media is part of Liberty Global, the world’s largest international cable company, with operations in more than 30 countries.