Virgin Media Establishes More Cable Connections As Mobile Dock Shrinks

Virgin Media Establishes More Cable Connections As Mobile Dock Shrinks

Virgin Media connected a further 102,000 installations to its cable network during the first quarter of 2019, as the number of mobile subscribers remained relatively static. The company is currently at the center of the largest network expansion in its history. The Lightning Project, worth €3 billion, was originally intended to extend coverage to 17 million by the end of 2019. According to these latest figures, Virgin Media's footprint is set at 14,51 million venues and the number Total clients in 5,534 million. During the quarter, another 59,000 broadband, landline and TV services were removed, citing the Lightning project as a direct cause. "On an operational level, Virgin Media has continued to improve subscriber trends," said Mike Fries, CEO of parent company Liberty Global. "During the first quarter, Virgin Media recorded close to 60,000 service unit additions, or 32% from year to year, driven by 26,000 new customer relationships. On the innovation front, we are pushing the boundaries in the United Kingdom ". However, Virgin Media revenue declined 6,6% to €1.66 billion, while the addition of 26,000 mobile subscribers was offset by a contraction in the pay-as-you-go customer base. go. . With this in mind, Virgin Media lost 7.000 mobile subscribers, for a total of 3.03 million. "Our first-quarter ARPU performance at Virgin Media was impacted by lower install and telephony revenues, the timing of some pay-per-view events, and increased promotions in response to market dynamics," Fries added. "However, our competitive position remains strong and we continue to expand our reach with Project Lightning, where we are building 400,000 to 500,000 new stores each year."

Direction of the future

Virgin Media is becoming increasingly important to Liberty Global, which is undergoing a restructuring. It is in the process of selling cable assets in Germany and Switzerland, while it has established a joint venture with Vodafone in the Netherlands. Virgin Media is a major contributor to the group's €2,87 billion in sales, but speculation is growing that CEO Tom Mockridge is expected to step down in favor of Chief Operating Officer Lutz Schuler on Thursday. end of year Schuler's priority will be to oversee the completion of the Lightning project, as well as the possible transformation into a wholesale communications provider. He had been informed that Liberty was considering wholesale, but there are no concrete plans to do so. "Virgin Media remains the jewel in Liberty Global's portfolio, but it is also a problem child," said Paolo Pescatore, an analyst at PP Foresight. "The divestment of other assets is a testament to the desire to exit Europe by maximizing the value of each asset. However, the acquisition of Virgin Media would cost nothing to anyone and would require significant long-term investment to compete with other providers. aggressive large fiber broadband carriers at BT "The latest steps taken to strengthen Virgin Media's portfolio suggest that Liberty Global is entering the UK in the short to medium term. Given the renewed efforts towards convergence and the importance of owning fixed and mobile assets (due to 5G and above), it is possible to acquire or merge with a UK mobile operator. . "