Virgin Media 2010 Annual Report Download - page 60

Consumer Segment
The summary combined results of operations of our Consumer segment for the years ended December 31,
2010 and 2009 were as follows (in millions):
Year ended
December 31, Increase/
(Decrease)2010 2009
Revenue .............................................. £3,279.0 £3,083.1 6.4%
Segment contribution ................................... 1,982.4 1,841.9 7.6
Revenue
Our Consumer segment revenue by customer type for the years ended December 31, 2010 and 2009 was as
follows (in millions):
Year ended
December 31, Increase/
(Decrease)2010 2009
Revenue:
Cable ............................................ £2,641.8 £2,488.5 6.2%
Mobile(1) ......................................... 560.0 535.9 4.5
Non-cable ........................................ 77.2 58.7 31.5
Total revenue ......................................... £3,279.0 £3,083.1 6.4%
(1) Includes equipment revenue stated net of discounts earned through service usage.
For the year ended December 31, 2010, revenue from our Consumer segment customers increased by 6.4%
to £3,279.0 million from revenue of £3,083.1 million for the year ended December 31, 2009. This increase was
primarily due to an increase in revenues from our cable product offerings and, to a lesser extent, increased
revenue from our mobile and non-cable product offerings.
The increase in cable revenue was primarily due to selective telephony, broadband and television price
increases, additional subscribers to our television, broadband and fixed line telephone services and increased
number of customers taking our higher tier packages, partially offset by continued decline in fixed line telephony
usage and higher price discounting to stimulate customer activity and retention in light of competitive factors in
the marketplace.
Cable ARPU was £47.51 for the three months ended December 31, 2010 and £45.28 for the three months
ended December 31, 2009. The increase in cable ARPU was mainly due to 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 2.49 at
December 31, 2010 from 2.47 at December 31, 2009 and by “triple-play” penetration growing to 63.0% at
December 31, 2010 from 61.1% at December 31, 2009. 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, 2010, mobile revenue increased to £560.0 million from £535.9 million for
the same period in 2009. The increase was primarily attributable to increased service revenue, driven mainly by
increased contract revenue, partially offset by the declining base of prepay mobile subscribers together with
lower mobile termination rates that came into force following regulatory changes in April 2009.
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