LONDON - British cable operator Virgin Media is continually looking to take costs out of the business and expects to reduce its property portfolio as part of that drive, its finance officer said on Wednesday.
Speaking at the Morgan Stanley Tech, Media and Telecom conference which was carried live on the group's website, Eamonn O'Hare said the group was also confident it could maintain its improved performance through signing up new customers and increasing the amount they pay.
Virgin Media reported third-quarter operating cash flow ahead of expectations in October, after adding over 8,000 net new customers and extracting record amounts from its existing base.
Virgin Media, which sells TV, broadband, mobile and fixed telephony, increased the average revenue per user by 5 percent in the third quarter.
We've increased the price this year ... and we've seen a gravitation by our customers into higher quality products which give a more favourable and richer mix (of customer base), he said. That underpins the 5 percent growth.
On cost cuts, O'Hare said the group had taken out a number of jobs and said the business had too many properties which could also be reduced.
Although we've actually announced quite a significant cost reduction programme, 120 million pounds ($201.8 million) over the next three years, I want to build into the DNA of the business of continually taking out costs and using that to invest. ($1=.5946 pounds) (Reporting by Kate Holton; Editing by Greg Mahlich)