Virgin Media & The Grand 2019 Q1 Sprint
In the first quarter of 2019, Sir Richard Branson’s Virgin Media laced up its boots and added 102,000 new houses to its cable network, all part of a whopping £3 billion push to bring superfast broadband to the UK.
The Big Picture: 17 Million Homes – Aiming to Hit by Year‐End
- Current footprint: 14.51 million homes
- Customers: 5.534 million strong
- “Project Lighting” – an extra 59,000 broadband, landline or TV services added in the period
Revenue Reality Check
Despite the surge in connections, Virgin Media’s revenue dipped by 6.6 %, landing at $1.66 billion. It’s a reminder that every service comes with its own cost curve.
Mike Fries on the Future (No Bightyo Samarkad)
Quick win highlights:
- Added nearly 60,000 RMU units – a 32 % jump YoY, thanks to 26,000 brand‑new customers.
- ARPU slowed a bit due to fewer install & telephony revenue, some game‑changing PPV events, and a slew of promotions chasing market dynamics.
- Competitive position remains rock‑solid; the plan is to keep building 400,000‑500,000 fresh premises each year.
Paolo Pescatore’s Take: The Crown Jewel with a Touch of Drama
Paolo sees Virgin Media as a shining gem for Liberty Global – but also a bit of a “problem child.” He points out:
- Divesting other assets shows a motive to exit Europe by maximizing each component’s value.
- Acquiring Virgin Media isn’t cheap for anyone; it demands hefty long‑term capital to compete with BT and other aggressive fibre rivals.
- Liberty Global is clearly staked to the UK in the near‑term, backing their expansion plans.
- A future merge with a UK mobile operator is plausible, especially with the convergence push and the need for fixed and mobile assets in the 5G era.
All in all, Virgin Media is racing to fill the UK with blazing fast connections, while juggling revenues, customer growth, and strategic moves that keep the company both a shining triumph and a spirited challenge.
