DIN-CUBE-RED-w2 Profiled in Dynamic Intelligence Network (DIN)

Virgin Mobile makes it clear, it wants to buy other MVNO

virgin_mobile-New-Logo-ftVirgin Mobile is a full MVNO in France and it has stated that it may request financial assistance from banks to acquire other telecoms. “We can be player in the consolidation of smaller players.”

The fierce competition in the mobile market has weighed on Virgin Mobile’s financial results for 2012/13, but the first French MVNO has had strong sales which did increase, and now wants to position itself as a player in consolidating the industry.

At the end of the financial year ending March 31, Virgin Mobile is down 16.6% for its gross operating profit (EBITDA) which was € 25 million against 30 million the previous year.

The Director General of the operator, Pascal Rialland, attributed the decline Wednesday to “the impact of new offers on the market.”

The annual turnover has increased, but only by 8% year-on-year to € 560 million with 300,000 customers less than in 2012

Mr. Rialland told AFP that “If 2013 will continue to be a steady decline in prices, which currently Virgin Telecom has also been affected by, we see an opportunity to potentially position oursleves as a new player in the consolidation of smaller operators as we have already invested in building our infrastructure.”

Virgin Mobile is a “Mobile Virtual Network Operator” (MNVO), which means it does not own its own network, and leases its transmission capacity from operators with the network: Orange and SFR. The company became in 2011 “full MNVO” and can now issue its own SIM card and control the heart of its telephone network.

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