British cableco Virgin Media has announced that it has recorded its first ever annual profit, revealing that in the year to end-December 2011 it saw a full-year net income of GBP75.9 million (USD120 million). Full-year revenues, meanwhile, stood at GBP4 billion, up 3% year-on-year, with operating cash flow (OCF) standing at GBP1.59 billion in FY2011, a 5.3% increase compared to the previous fiscal year.
Growth in the number of customers taking higher speed services was cited as one of the core reasons for the company finally reaching profitability, with Virgin Media noting that it added almost 580,000 superfast broadband subscribers – those taking speeds of 30Mbps or more – over the twelve-month period. The cableco noted that nearly 1.2 million of its customers are now signed up to broadband tariffs offering speeds of 20Mbps or higher, representing more than 28% of its entire cable broadband subscriber base. Some 700,000, meanwhile, are connected at speeds of more than 30Mbps, with almost 200,000 of those signed up for one of Virgin’s two top-tier products, which offer downlink speeds of 50Mbps and 100Mbps respectively.
Commenting on the results, Neil Berkett, Virgin Media’s CEO, said: ‘In a fast-changing industry and an uncertain economic environment, our 2011 results demonstrate the underlying resilience of Virgin Media’s business model, with modest revenue growth driving robust OCF and record free cash flow.’