Shares in media company Virgin Media have posted a healthy 2.33 per cent growth since yesterday after the company announced that it had posted its strongest growth in 16 quarters with Q2 revenues growing by seven per cent to nearly one billion pounds.
The company, which was born out of the merger between cable giants NTL and Telewest, now has a market capitalisation of $6.61 billion and its shares are on the verge of reaching their highest value for nearly three years; they have grown four fold since January 2009.
Virgin Media said that it has managed to add 9,100 new households in the past quarter compared to the loss of 28,000 over the same period in 2009. Much of this success has been built on increased marketing expenditure combined with a number of technological innovations.
The company has focused its efforts on building an extensive fibre optic network across the country and currently has the fastest broadband service in the UK.
More significantly, because Virgin Media owns the network, it controls the end-to-end infrastructure unlike some competitors which have to rely on BT.
It has also confirmed that it may launch even faster broadband in the future as and when demanded by the market.