Virgin Media 2009 Annual Report Download - page 65
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Revenue
Our Business segment revenue for the years ended December 31, 2009 and 2008 was comprised of
(in millions):
Year ended
December 31, Increase/
2009 2008 (Decrease)
Revenue:
Retail:
Voice ..................................... £176.5 £190.8 (7.5)%
Data ...................................... 213.7 190.9 11.9
LAN solutions and other ....................... 36.7 61.6 (40.4)
426.9 443.3 (3.7)
Wholesale ................................... 153.9 182.7 (15.8)
Total revenue ................................... £580.8 £626.0 (7.2)%
For the year ended December 31, 2009, revenue from business customers decreased by 7.2% to
£580.8 million from £626.0 million for the year ended December 31, 2008. The decrease was
attributable to declines in retail voice, Local Area Network (LAN) solutions and wholesale revenues,
partially offset by growth in retail data revenue. Retail voice revenue decreased mainly as a result of
declining telephony usage. Our strategy is to replace this declining voice revenue with increasing data
revenue. Retail data revenue represented 50.1% of the retail business revenue for the year ended
December 31, 2009 compared with 43.1% for the year ended December 31, 2008.
LAN solutions and other revenue in the year ended December 31, 2009 was £36.7 million
compared to £61.6 million for the year ended December 31, 2008. The majority of this revenue is from
infrastructure projects which are non-recurring in nature. Our largest infrastructure project was the
provision of telecommunication network equipment for Heathrow airport’s new Terminal 5 which
contributed £0.4 million of revenue in the year ended December 31, 2009 compared to £21.0 million in
the year ended December 31, 2008. This contract, however, operated at a lower margin and,
consequently, it did not have a significant impact on Business segment contribution.
Wholesale revenue decreased mainly as a result of the loss of certain lower margin contracts and
wholesale voice customers.
Business Segment Contribution
For the year ended December 31, 2009, Business segment contribution increased to £339.7 million
from £335.2 million for the year ended December 31, 2008. The increase in segment contribution was
due primarily to the result of higher margin retail data contracts and wholesale revenue contracts
replacing lower margin voice and infrastructure projects.
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