Virgin Media stems losses, increases sales

Even as its customer base shrunk, U.K. communications conglomerate Virgin Media fared well as second-quarter losses decreased. During the second quarter, Virgin said net loss dropped to $83.3 million down from $750 million in the same period last year when it had to take a $612 million goodwill impairment charge for its mobile properties. Company revenue declined slightly from $1.6 billion to $1.5 billion due to declining sales in its mobile business, where revenue fell to $213 million.

Virgin's Chief Executive Officer Neil Berkett downplayed the decline in mobile revenue since it ties customers to its other services: TV, broadband and voice. Broadband continued to be a shining star for Virgin, as average revenue per user on its cable network increased by 3.8 percent to $72.00 a month during the second quarter. Although Virgin raised the price of its cable service, customer churn did not rise above 1.3 percent. Nonetheless, the operator did lose 26,200 customers in the second quarter.     

For more:
- Dow Jones/Wall Street Journal has this article

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