Virgin Media 2008 Annual Report Download - page 60

Revenue
Our Cable segment revenue by customer type for the years ended December 31, 2008 and 2007
was as follows (in millions):
Year ended December 31,
Increase/
2008 2007 (Decrease)
Revenue:
Consumer ........................................... £2,456.3 £2,486.2 (1.2)%
Business ............................................ 626.0 641.8 (2.5)%
Total revenue .......................................... £3,082.3 £3,128.0 (1.5)%
Consumer: For the year ended December 31, 2008, revenue from residential customers decreased
by 1.2% to £2,456.3 million from revenue of £2,486.2 million for the year ended December 31, 2007.
This decrease was primarily due to a reduction in telephony usage and higher price discounting to
stimulate customer activity and retention in light of competitive factors in the marketplace. In addition,
in 2007 we took significant steps to increase alignment of the prices paid by our existing customers with
the prices paid by new customers, the full year impact of which has been reflected in 2008. Partially
offsetting these decreases have been increases in revenue from selective telephony and television price
increases as well as from additional subscribers to our television, broadband and fixed line telephone
services.
Cable ARPU increased slightly to £42.30 for the three months ended December 31, 2008 from
£42.24 for the three months ended December 31, 2007. The increase in Cable ARPU was due to
selective price increases and successful up-selling and cross-selling to existing customers, partly offset by
declining telephony usage and higher price discounting as discussed above. Our focus on acquiring new
bundled customers and on cross-selling to existing customers is shown by Cable Revenue Generating
Units, or Cable RGUs, per customer increasing to 2.40 at December 31, 2008 from 2.29 at
December 31, 2007 and by ‘‘triple-play’’ penetration growing to 55.9% at December 31, 2008 from
49.5% at December 31, 2007. A triple-play customer is a customer who subscribes to all three of our
television, broadband and fixed line telephone services.
Business: Revenue from our business customers for the years ended December 31, 2008 and 2007
was comprised of (in millions):
Year ended December 31,
Increase/
2008 2007 (Decrease)
Revenue:
Retail:
Voice ............................................... £190.8 £214.6 (11.1)%
Data ................................................ 190.9 170.6 11.9%
Other ............................................... 61.6 67.3 (8.5)%
443.3 452.5 (2.0)%
Wholesale ............................................. 182.7 189.3 (3.5)%
Total revenue ............................................. £626.0 £641.8 (2.5)%
For the year ended December 31, 2008, revenue from business customers decreased by 2.5% to
£626.0 million from £641.8 million for the year ended December 31, 2007. The decrease was
attributable to declines in retail telephony voice revenue, retail other revenue and wholesale revenue,
partially offset by growth in retail data revenue. Retail telephony voice revenue decreased mainly as a
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