Virgin Media says it is on course for a return to revenue growth after stemming a customer exodus following last year's spat with rival BSkyB.
The cable company has cut its monthly "churn rate" - the measure of customers leaving the group - to 1.2% during the first three months of 2008.
This rate peaked at 1.8% in the second quarter of last year following the row, which resulted in Sky pulling its basic channels in March last year.
Discounting customers who move house from cable to non-cable covered areas, this leaves the cable business with annual churn rate of around 10% - on a par with its rival.
Virgin Media also added 4,900 net new cable customers - its third successive quarter of customer growth despite the seasonally-quieter post-Christmas period.
The company said better billing systems and value for money had helped it retain more customers.
Although cable revenues were 3% down to £618.2 million year-on-year due to pricing competition, the decline slowed compared to previous quarters.
Chief executive Neil Berkett said the results reflected a solid performance, "better positioning ourselves for a return to revenue growth".
"In particular churn continued to decline, reflecting the emphasis that we have placed on this area," Mr Berkett added.
The group - formed from mergers involving Telewest, NTL and Virgin Mobile - has 4.8 million customers in total.
Virgin founder Sir Richard Branson is the largest shareholder in the business, with a 10.5% stake. The company said it was the largest residential broadband provider in the UK with 3.8 million customers and 88,400 net additions in the first quarter.
It added that 1.6 million Virgin television customers were now using its video on demand service - where viewers choose their own shows - every month. Since April, Virgin's customers have been able to catch up on BBC programmes using its iPlayer service.
Virgin's "triple-play" offer - where customers take up three of its four offerings of broadband, TV, fixed-line telephone and mobile services - increased to more than 51% over the quarter.
The group's overall operating losses narrowed to £4.6 million compared with £15.3 million a year earlier, while its operating cashflow - a measure studied closely by analysts to judge the company's ability to service its debts - was up 6% to £324.2 million.
Virgin Media is listed in New York and has its UK headquarters in Hook, Hampshire. It employs more than 10,000 staff.