Virgin Media reduces losses

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Douglas Hamilton / The Herald / 09 May2008
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Summary

Virgin Media said yesterday it has cut its losses, added more customers and is on track for revenue growth after last year's bitter dispute with rival BSkyB.

The Hampshire-based cable company has reduced its monthly "churn rate" - the measure of customers dropping the group's service - to 1.2% during the first three months of 2008.

Virgin Media also added 4900 net new cable customers - its third successive quarter of customer growth despite the seasonally-quieter post-Christmas period.

The company said better billing systems and value for money had helped it retain more customers. Although cable revenues were 3% down to £618.2m year-on-year because of pricing competition, the decline slowed compared to previous quarters.

Opinion

Acccording to the article, Virgin Media said it has cut its losses by introducing better billig systems and value for money had helped it retain more customers. Although cable revenues were 3% down to £618.2m year-on-year because of pricing competition, the decline slowed compared to previous quarters.Especially, it is really hard for any company to reduce its monthly 'churn rate'; because, it is based on customers' change of mind. Therefore, this fact shows that customer responsiveness and value for money can make the change.

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