Virgin Media UK: challenging quarter, but opportunities ahead

Report Overview

Virgin Media UK: challenging quarter, but opportunities ahead

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Virgin Media UK: challenging quarter, but opportunities ahead
Virgin Media had a challenging quarter, with its early price rise driving weak subscriber figures and product spin-down, resulting in reduced revenue growth and an accelerated OCF decline
The market environment remains challenging with very competitive pricing on superfast and little push for ultrafast, but superfast pricing is easing and competitors’ ultrafast pushes should accelerate in 2020
Full fibre roll-outs remain a threat and an opportunity in almost equal measure, with Virgin Media’s positioning likely to be clarified as the regulatory mist clears over the next year

Contents

Price rise hits subscribers, but not (yet) ARPU

Pricing environment: challenged but recovery potential

OCF decline continues

List of charts/tables

Figure 1: UK cable revenue growth and group OCF growth

Figure 2: Virgin Media UK consumer cable operating performance

Figure 3: Virgin Media selected recent price changes

Figure 4: Virgin Media UK cable revenue and operating statistics (residential and SOHO)

Figure 5: Broadband entry level dual-play pricing, new customers (£/month)

Figure 6: Broadband high speed pricing, new customers (£/month)

Figure 7: Broadband pricing by speed tier (£/month)

Figure 8: Entry-level broadband pricing

Figure 9: Superfast broadband pricing

Figure 10: Virgin Media Group operating performance

Figure 11: Project Lightning progress (000)