Richard Branson just keeps getting richer. Virgin Mobile reported a 40% increase in their net profits for the first half of the year. They remain optimistic for continued growth.
Net profits for the six months ending in September were £27.5 million, compared to £19.6 million last year for the same period. Revenue also increased 7% to £274.6 million. Shares in Virgin, which is majority-owned by Branson, went up 4.8% on the news.
“The past six months have been operationally very productive with the launch and expansion of our contract proposition and establishing a new platform for our next phase of growth,” said Chief Executive Tom Alexander.
Virgin Mobile started by just offering pay-as-you go services, but they have entered the contract arena in Britain this year. Clearly it has been a success. Since the recent merger of Telefonica and O2, there has been speculation that Virgin Mobile will be a takeover target, but Alexander firmly refuted the rumors.