Virgin Media 2008 Annual Report Download - page 75

Mobile ARPU increased to £10.69 for the three months ended December 31, 2007 from £10.59 for
the three months ended December 31, 2006. The increase is primarily due to the increased proportion
of our contract customers, relative to the total number of mobile customers, rising to 8.4% at
December 31, 2007 from 4.2% at December 31, 2006, partially offset by lower prepay usage in the
three months ended December 31, 2007.
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.
For the three months ended
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
Contract mobile customers(1):
Opening contract mobile customers . 328,800 299,100 246,300 192,100 120,800
Net contract mobile customer
additions ................... 47,500 29,700 52,800 54,200 71,300
Closing contract mobile customers . . 376,300 328,800 299,100 246,300 192,100
Prepay mobile customers(1):
Opening prepay mobile customers . . 4,102,100 4,115,900 4,215,200 4,330,700 4,390,900
Net prepay mobile customer
additions (disconnections) ...... 13,000 (13,800) (99,300) (115,500) (60,200)
Closing prepay mobile customers . . . 4,115,100 4,102,100 4,115,900 4,215,200 4,330,700
Total closing mobile customers .... 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.
73