Virgin Media, which is currently being acquired by US firm Liberty Global in a deal worth £15 billion, has reported first quarter revenue growth of 3.6 percent to £1,043 million, thanks to an increase in demand for its superfast broadband and TiVo services.

The number of customers on superfast broadband (30Mbps and above) increased by 337,900 during the period, taking the total to 2.5 million. Meanwhile, 171,900 more TiVo customers were added during the quarter to reach a total of 1.5 million, representing 40 percent of Virgin's TV customer base.

However, the company's business unit, which has previously been held up as the golden child of the group, saw revenues decline by 4.1 percent to £163.4 million, reflecting lower voice and install revenues.

Virgin Media said that significant contracts can cause some unevenness in revenues from quarter-to-quarter, especially at this stage of the company's growth cycle, and that sales momentum has improved compared to the second half of last year.

“The first three months of 2013 was one of our strongest sales quarters in almost two years and there is a good pipeline for the year,” said Tony Grace, managing director of Virgin Media Business.

“We continue to see growth within the mobile backhaul sector in particular, having secured a major deal with Telefonica UK which, combined with other orders in the space, means we now have material backhaul partnerships with all the UK’s mobile network operators.

“While there is clearly a challenging economic environment, we remain focused on delivering against our growth strategy and during the quarter this has led to the release of six new products to the market which will improve our proposition for the enterprise sector.”

As well as securing the Telefonica deal, Virgin has also signed five-year backhaul contract with Sky, as well as “significant orders” under a framework agreement to support the creation of a UK-wide Aggregation Network for another large UK mobile network operator.

“We expect to see the revenues from these new contracts benefit the second half of this year and we remain confident that the underlying growth rate for business remains strong,” the company said in a statement.

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