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Virgin Media raises game
Chris Forrester 29-06-2010
virginmediaVirgin Media, the UK’s cable operator, is testing broadband speeds of a breathtaking 400 Mbps. As if to echo this optimism, Moody’s Investors Services on June 28 raised its outlook on Virgin to “positive” (from “stable”).
Moody’s cited the cableco’s ability to operate in a “resilient” fashion despite the UK’s tough trading conditions. Moody’s said Virgin had performed well in spite of an economic slowdown and intense competition. The company also has a strong cash position and improved debt profile. Moody's said Virgin's cable revenue for 2009 rose by 3.8%, which comprises around two-thirds of total revenue. The average monthly revenue per subscriber rose as well.
But Virgin's non-cable businesses were a drag. Mobile revenue fell by 6%, other non-cable revenue was down 5.8% and its business segment revenue dipped 7.2%. The first quarter of fiscal 2010 showed the same trend, said Moody’s.
Virgin Media has already boosted its broadband speeds this year, and is promising 100 Mb/s by the end of this year, and is test-running 200 Mb/s services. The ‘400 Mb/s’ tag is currently limited to new CPE units, which will be rolled out to clients taking higher-bandwidth contracts.
Chris Forrester 29-06-2010
virginmediaVirgin Media, the UK’s cable operator, is testing broadband speeds of a breathtaking 400 Mbps. As if to echo this optimism, Moody’s Investors Services on June 28 raised its outlook on Virgin to “positive” (from “stable”).
Moody’s cited the cableco’s ability to operate in a “resilient” fashion despite the UK’s tough trading conditions. Moody’s said Virgin had performed well in spite of an economic slowdown and intense competition. The company also has a strong cash position and improved debt profile. Moody's said Virgin's cable revenue for 2009 rose by 3.8%, which comprises around two-thirds of total revenue. The average monthly revenue per subscriber rose as well.
But Virgin's non-cable businesses were a drag. Mobile revenue fell by 6%, other non-cable revenue was down 5.8% and its business segment revenue dipped 7.2%. The first quarter of fiscal 2010 showed the same trend, said Moody’s.
Virgin Media has already boosted its broadband speeds this year, and is promising 100 Mb/s by the end of this year, and is test-running 200 Mb/s services. The ‘400 Mb/s’ tag is currently limited to new CPE units, which will be rolled out to clients taking higher-bandwidth contracts.