Virgin loses customers but gains spenders

Virgin Media lost 26,200 television, broadband and landline telephone customers between April and June.

But the group said today that the average spend of its subscribers rose by 3.8% to £43.27 in the second quarter compared with the previous year, as Virgin persuaded more of its customers to extend their packages into new platforms.

Most of the deserting subscribers were broadband and landline customers on cheap deals.

Chief executive Neil Berkett said Virgin's focus is on increasing the number of premium customers.

"We now have a record number of triple play' subscribers — customers who get broadband, fixed-line phones and cable TV services from us," he said.

This means its total number of cable TV subscribers actually increased by 20,400 in the period, while Virgin has added 5100 new broadband users. The number of its mobile-phone customers on contracts has risen 63% in the year to 712,300.

The US-listed company is investigating a return to the London Stock to reflect its UK-focus.

"We are hopeful we will make progress with this within the next few months," Berkett said. Its Nasdaq listing is a hangover from its days as NTL.

Group revenues were almost flat at £936 million in the quarter, while its net loss has narrowed to £49 million from £449 million a year earlier.