Virgin Media 2011 Annual Report Download - page 53

Revenue
Our Consumer segment revenue by customer type for the years ended December 31, 2011 and 2010 was as
follows (in millions):
Year ended
December 31, Increase/
(Decrease)2011 2010
Revenue:
Cable ............................................ £2,721.8 £2,641.8 3.0%
Mobile(1) ......................................... 552.9 560.0 (1.3)
Non-cable ........................................ 79.7 77.2 3.2
Total revenue ......................................... £3,354.4 £3,279.0 2.3%
(1) Includes equipment revenue stated net of discounts earned through service usage.
For the year ended December 31, 2011, revenue from our Consumer segment customers increased by 2.3%
to £3,354.4 million from revenue of £3,279.0 million for the year ended December 31, 2010. This increase was
primarily due to an increase in revenue from our cable product offerings partially offset by a decline in mobile
revenue.
The increase in cable revenue was primarily due to selective price increases and successful up-selling and
cross-selling to our existing customer base, partially offset by a continued decline in fixed line telephony usage
along with higher price discounting to stimulate customer activity and retention in light of competitive factors in
the marketplace.
Cable ARPU was £47.85 for the three months ended December 31, 2011 and £47.51 for the three months
ended December 31, 2010. The increase in cable ARPU was due in part to selective price increases and
successful up-selling and cross-selling to existing customers, partially offset by declining telephony usage and
price discounting. Cable products per customer remained relatively flat at 2.50 at December 31, 2011 as
compared to 2.49 at December 31, 2010, and “triple-play” penetration grew to 63.7% at December 31, 2011 from
63.0% at December 31, 2010. A triple-play customer is a customer who subscribes to our cable television,
broadband and fixed line telephony services.
For the year ended December 31, 2011, mobile revenue decreased to £552.9 million from £560.0 million for
the same period in 2010. The decrease was primarily attributable to the regulated change in mobile termination
rates, which reduced inbound revenue and a decline in the number of prepay customers, partially offset by an
increase in service revenues, mainly driven by increased contract revenue.
Mobile ARPU increased to £15.46 for the three months ended December 31, 2011 from £15.16 for the three
months ended December 31, 2010. The increase was primarily due to an increased proportion of higher value
contract customers relative to the total number of mobile customers, which rose to 50.2% at December 31, 2011
from 39.5% at December 31, 2010, partially offset by a fall in revenue due to the regulated change in mobile
termination rates.
Non-cable revenue for the year ended December 31, 2011 increased to £79.7 million from £77.2 million for
the year ended December 31, 2010. The increased non-cable revenue was predominantly driven by an increase in
the percentage of customers taking both phone and broadband in the year ended December 31, 2011, as
compared to the prior year, partially offset by a decline in the number of customers.
Consumer Segment Contribution
For the year ended December 31, 2011, Consumer segment contribution increased to £1,991.5 million from
£1,982.4 million for the year ended December 31, 2010. This increase was primarily due to the increase in
consumer revenues as described above.
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