Retail data booms for Virgin Media, but sales still fall flat

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Retail data booms for Virgin Media, but sales still fall flat

Alex Scroxton

Double digit growth in retail data sales were not enough to offset declines in retail voice and wholesale voice and data at Virgin Media Business (VMB), which has turned in third quarter sales of £154m, up just 1.2% year-on-year.

A 4.4% slide in wholesale revenues will come as a slight concern to channel players, and although VMB declined to provide further comment on the state of its channel business, it put a positive spin on the lacklustre results today, saying it expected better growth in the Christmas quarter with a strong order book and some key deals signed earlier this year starting to pay off.

The firm said its sales mix proved its strategy to focus on business data growth had been the right one, and managing director Mark Heraghty said he was looking forward to growing more opportunities in the new year.

"Organisations across all sectors are expressing a desire for what we have - the UK's only nationwide fibre-optic network. This was seen by the £100m plus deal with MNBL, which is revolutionising mobile backhaul by taking advantage of the superfast speeds offered by our network," he said.

"Our launch into the cloud also received a great reception from the analyst community and we're already seeing a positive response from customers," he added.  

Across Virgin Media as a whole, headline growth of 2.2% pushed sales up to the £1bn mark, while operating income rose 26% year-on-year to £128m as more consumers chose to take advantage of higher value services, such as superfast broadband and TiVo.


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