Virgin Media Ireland’s losses skyrocketed last year despite the growth in customer numbers and sales.
Virgin, which generates most of its revenue from the provision of broadband, pay-TV, telephone and cellular services, saw revenue grow from € 363 million in 2018 to € 378 million in 2019. Customer numbers rose from 454,800 in Year 2018 to 479,017.
The increase in revenue was largely due to mobile communications revenue, which rose from € 28 million to € 37 million.
However, the company posted a loss of € 26.3 million for the year compared to a loss of € 856,000 in 2018. The cost of sales rose from € 73 million to € 85 million, while other operating expenses rose from € 234 million rose to € 255 million.
Investments were reduced from € 106 million to € 75 million in the twelve-month period. The operating result fell from € 59 million to € 39 million.
Directors said they had “a reasonable expectation” that the company would have sufficient resources to remain operational for the foreseeable future.
“As with any company that relies on other affiliate companies for financial assistance, the Directors recognize that there is no assurance that such assistance will continue, although at the time of approval of these financial statements they have no reason to believe that it doesn’t. If you do, continued operations are key for the broader group, ”they said.
The number of employees at Virgin fell from 751 to 665 during the year, although staff costs rose from EUR 55.2 million to EUR 59.8 million.
Covid-19 impact
In March of this year, the company hired 80 additional employees to meet unprecedented demand for its services following the Covid outbreak.
The company said it has seen customer service requests increase by 300 percent since the Covid-19 crisis began in Ireland. At the time, it said it wanted to make sure there was enough bandwidth to support subscribers and called for calls for help from the health sector and others involved in managing the state’s response to the crisis.
Figures from parent company Liberty Global earlier this year showed Virgin has around 993,700 subscribers in the republic.
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