Virgin Media 2010 Annual Report Download - page 71

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,
2009 2008
Increase/
(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 £45.28 for the three months ended December 31, 2009 and £42.79 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 2.47 at
December 31, 2009 from 2.41 at December 31, 2008 and by “triple-play” penetration growing to 61.1% at
December 31, 2009 from 56.5% 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 revenue from customers for
dial-up internet packages which have not been sold since June 30, 2008, other rate decreases on bundled services
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