Monday 14 October 2019

Losses down as broadband subscribers go to Virgin

Stock Image: PA
Stock Image: PA

Gordon Deegan

Broadband provider, Virgin Media Ireland saw its pre-tax losses plummet by 90.5pc last year to €856,000. The drop came as revenues at the firm increased by 6pc to €364.36m from €344.52m.

The company, owned by US billionaire John Malone's Liberty Global, increased its customer base by 3,280, to a new high of 454,800.

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Virgin Media's residential revenues rose to €329.1m from €312.34m while those from business customers increased to €35.25m from €32.18m.

The directors said that they are satisfied with the performance of the company for the year of trading.

The company's capital expenditure last year increased to €106m from €98.97m.

The loss at the company last year takes account of large non-cash depreciation costs of €73.6m. Its operating lease costs last year decreased slightly to €2.4m from €2.5m.

The business recorded an operating profit last year of €58.5m though interest and other finance costs of €59.4m resulted in the modest pre-tax loss.

Virgin Media's workforce last year increased to 751 from 729 leading to an increase in staff costs to €55.2m from €51.25m. 

Those staff costs include restructuring costs of €1.66m after the firm had incurred costs of €1m under that same heading in 2017.

A breakdown of staff employed showed that there were 570 employed in operations, 88 in administration and 93 in marketing.

Directors' pay last year totalled €834,000 - a marginal decrease on 2017.

At the end of the year, the firm had shareholder funds totalling €12.8m.

The company's cash pile decreased to €5.16m from €11.29m while its gross profit increased to €291.27m from €279.6m.

The directors said that the firm has current liabilities of €124.6m and state that after obtaining the necessary assurances, including a letter of support from Virgin Inc, that sufficient resources will be made available to meet any liabilities as they fall due.

The accounts also disclose that on September 3rd 2018, the company acquired PBN Holdings Ltd for €4.5m.

Irish Independent

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