Virgin Media 2009 Annual Report Download - page 60

Revenue
Our Consumer segment revenue by customer type for the years ended December 31, 2009 and
2008 was as follows (in millions):
Year ended
December 31, Increase/
2009 2008 (Decrease)
Revenue:
Cable .................................... £2,488.5 £2,396.7 3.8%
Mobile(1) ................................. 535.9 570.0 (6.0)
Non-cable ................................. 58.7 62.3 (5.8)
Total revenue ................................ £3,083.1 £3,029.0 1.8%
(1) Includes equipment revenue stated net of discounts earned through service usage.
For the year ended December 31, 2009, revenue from our Consumer segment customers increased
by 1.8% to £3,083.1 million from revenue of £3,029.0 million for the year ended December 31, 2008.
This increase was primarily due to an increase in cable revenue partially offset by decreases in mobile
and non-cable revenues.
The increase in cable revenue was primarily due to selective telephony, broadband and television
price increases as well as additional subscribers to our television, broadband and fixed line telephone
services partially offset by reduction in telephony usage and higher price discounting to stimulate
customer activity and retention in light of competitive factors in the marketplace.
Cable ARPU was £44.81 for the three months ended December 31, 2009 and £42.34 for the three
months ended December 31, 2008. The increase in cable ARPU was mainly due to the selective price
increases and successful up-selling and cross-selling to existing customers, partially offset by declining
telephony usage and, to a lesser extent, higher price discounting as discussed above. Our focus on
acquiring new bundled customers and on cross-selling to existing customers is shown by cable products
per customer increasing to 2.46 at December 31, 2009 from 2.40 at December 31, 2008 and by ‘‘triple-
play’’ penetration growing to 60.5% at December 31, 2009 from 55.9% at December 31, 2008. A triple-
play customer is a customer who subscribes to all three of our television, broadband and fixed line
telephone cable services.
For the year ended December 31, 2009, mobile revenue decreased to £535.9 million from
£570.0 million for the same period in 2008. The decrease was primarily attributable to lower prepay
revenue as a result of a decline in the numbers of prepay subscribers by 469,000, or 17.4%, during
2009, partially offset by increased contract revenue driven mainly by an increase in the number of
contract subscribers by 300,300 in the year and a small increase in equipment revenue. Mobile revenue
was also adversely impacted by lower mobile termination rates that came into force following regulatory
changes in April 2009, which resulted in the reduction in revenue generated by certain call types
through our mobile services. The change in regulated mobile termination rates also resulted in lower
interconnect costs within our Consumer and Business segments.
Mobile ARPU increased to £14.00 for the three months ended December 31, 2009 from £13.35 for
the three months ended December 31, 2008. The increase was primarily due to increased usage of
voice and texts, partially offset by declining rates for those services, and the increased proportion of our
higher value contract customers relative to the total number of mobile customers which rose to 29.9%
at December 31, 2009 from 19.4% at December 31, 2008.
Non-cable revenue for the year ended December 31, 2009 decreased to £58.7 million from
£62.3 million for the year ended December 31, 2008. The decrease was mainly due to a decline in
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