Virgin Media 2007 Annual Report Download - page 64

Mobile segment OCF
For the year ended December 31, 2007, Mobile segment OCF was £108.7 million compared with
£30.2 million for the period from acquisition to December 31, 2006, due to a full year of operating
activity, compared with 180 days in 2006, along with our shift towards more efficient sales channels,
such as cross-selling with our Cable segment products and other direct channels with lower subscriber
acquisition costs.
Summary Mobile Statistics
Selected statistics for Virgin Mobile are set forth in the table below. In the year ended
December 31, 2007, the number of mobile customers decreased by a net 31,400. Contract customer
gains of 184,200 were offset by net losses of 215,600 prepay customers. The growth in contract
customers reflects the drive for ‘‘quad-play’’ packages through cross-selling with our Cable segment
products. The decline in prepay customers reflects increased competition in the prepay market,
although the decline was halted in the latter half of the year following our decision to re-engage in a
more favorable prepay market.
Three months ended
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
Opening mobile customers(1):
Prepay .................... 4,102,100 4,115,900 4,215,200 4,330,700 4,390,900
Contract ................... 328,800 299,100 246,300 192,100 120,800
4,430,900 4,415,000 4,461,500 4,522,800 4,511,700
Net mobile customer additions:
Prepay .................... 13,000 (13,800) (99,300) (115,500) (60,200)
Contract ................... 47,500 29,700 52,800 54,200 71,300
60,500 15,900 (46,500) (61,300) 11,100
Closing mobile customers:
Prepay .................... 4,115,100 4,102,100 4,115,900 4,215,200 4,330,700
Contract ................... 376,300 328,800 299,100 246,300 192,100
4,491,400 4,430,900 4,415,000 4,461,500 4,522,800
Mobile average revenue per user(2) . £ 10.69 £ 11.11 £ 10.70 £ 10.07 £ 10.59
Mobile ARPU calculation:
Mobile service revenue (millions) . . £ 142.0 £ 147.3 £ 142.3 £ 136.0 £ 141.8
Average mobile customers ........ 4,429,200 4,417,900 4,434,700 4,499,300 4,465,400
(1) Mobile customer information is for active customers. Prepay customers are defined as active
customers if they have made an outbound call or text in the preceding 90 days. Contract customers
are defined as active customers if they have entered into a contract with Virgin Mobile for a
minimum 30-day period and have not been disconnected.
(2) Mobile monthly average revenue per user, or Mobile ARPU, is calculated on service revenue for
the period, divided by the average number of active customers for the period, divided by three.
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