Virgin Media has posted disappointing results for the final quarter of the last year with its revenues plunged by a whopping £50 million as the ongoing economic downturn has further taken its bite off from the operating revenues of the cable operator.
The company announced on Wednesday that it had trimmed down the cost of its Sit-Up shopping channels by £54.8 million after the company failed to obtain the contract for the renewal of its Freeview capacity, which eventually pushed the company into operating losses worth £50.2 million, as against £17.8 million losses registered by the company a year ago.
In addition, the number of new users signed up to the services of the company has also declined substantially by 40 percent, as the company had managed to attract 14,800 customers in the final quarter of the last year, down from the 24,000 customers for the same period a year ago.
Cumulatively, the count of broadband, television and telephone packages sold by the company had declined from 272,100 in the last quarter of 2007 to 185,000 for the final quarter in the year 2008.
The company posted net losses worth £241.4 million for the final quarter, as against £120.8 million in the third quarter of the last year and losses of £163.2 million for the same period a year ago.
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The current recession has not spared Virgin Media. As mentioned yesterday, the company seems to be in a unique position to weather the economic turmoil as it bets on its fiber optic network to beat the competition in the broadband market. Also, Virgin Media blamed the depressing house market for some of its woes as people stop moving around.