Virgin Media’s financial results show losses

Virgin Media has announced its latest financial results, writing off some investments while revealing that it has fallen deeper into the red.

Today the company said that it had slashed almost 55 million off its revenues as the result of a failed spectrum bid, while it had also seen a slowdown in the number of new subscribers signing up to its services.

Writing off this money pushed the firm into a quarterly operating loss of 50.2 million, compared against the 17.8 million loss announced for the same period last year. Net losses in total at the firm amounted to 241.4 million.

Job cuts were expected, and Virgin Media announced plans to cut jobs to the tune of 2,200. This, it said, would contribute to the 120 million annual savings it had previously promised investors. These savings are supposed to take effect by 2012.

Virgin Media said that existing users were increasingly upping the nature of their commitment, changing from a low 2Mbps connection for example, up to a 10Mbps one. In addition to this, the majority of its customers, 55.9 per cent, take all three of its services TV, broadband and home telephone. The firm has also just launched a 50Mbps service, the rollout of which it expects to have completed by the summer.

However, the firms mobile business continues to take a hit. Virgin announced the bitter sweet news that it had gained a number of new contract customers, but it had also lost almost a quarter of a million pre-pay users.