Liberty Global reports soft revenue growth at Virgin Media but headwinds will lessen this year

Courtney Goldsmith
Follow Courtney
Liberty Global bought Virgin Media in 2013 (Source: Getty)

Liberty Global, the US telecoms giant that owns Virgin Media, said revenue growth in the UK was soft in the period, but headwinds are expected to lessen by the fourth quarter.

Liberty Global Group, the company's European operations, posted revenue growth of 1.6 per cent to $3.66bn for the second quarter.

Liberty's operating income fell five per cent to $483m for the three months to the end of June, and it made a net loss of $637m for the quarter compared with net earnings of $204m the previous year.

Chief executive Mike Fries said cable average revenue per unit (ARPU) growth at Virgin Media was soft, as was expected, as the discounting and mix effects that impacted growth in the first quarter continued.

Fries said:

At the same time, we are seeing some early signs of progress and expect the ARPU headwind in the UK to lessen in the fourth quarter of this year.

Liberty reignited talks of a mega-merger with Vodafone in March following on and off talks between the two companies over the last two years.

The US telecoms group bought Virgin Media for £15bn in 2013.

Related articles