Virgin Media Not Concerned of Sluggish UK Economy

Yesterday, the United Kingdom officially entered a double-dip recession, as its economy shrank by 0.2% in the first quarter of 2012. A sluggish economic economic growth tends to mean tough times for the companies that rely on the advertising revenues. Thus, Benzinga reached out Virgin Media Inc.

to learn about the company's thoughts on the economy and outlook for the future. The company's spokesperson, Gareth Mead, noted that "if you take a view - which I don't necessarily subscribe to - that the UK economy is worsening, it needn't automatically impact on Virgin Media. The past five years, since the start of the economic crisis, have seen Virgin Media report year after year of growth." Mead continued: "While we are not complacent, recent downturns in consumer sentiment have seen people stay at home and thereby increase the amount of disposable income they allocate to home entertainment. After all, if you're at home, a TV and broadband subscription provides limitless entertainment at much better value than an out-of-home experience." Virgin Media is currently trading at $24.46, a gain of $0.29 or 1.20%.