Virgin Media, the cable company formerly known as NTL, today revealed that it was parting company with the number one and two directors of Virgin Mobile, the managing director Alan Gow and his deputy Joe Steel.

Mr Gow, 51, said that he would stay at the helm until his successor is found while Mr Steel, 40, is leaving next month.

The pair were co-founders of Virgin Mobile eight years ago when under Sir Richard Branson's Virgin Group it pioneered the concept of the virtual mobile operator, renting the network of T-Mobile. Mr Gow was the finance director and Mr Steel the marketing director and both at the helm for the flotation of the company on the stock market.

Virgin Media said that the "changes reflect the ongoing integration between Virgin Media’s cable operation and Virgin Mobile, particularly in distribution and IT".

It stressed that Virgin Mobile would continue to exist as a brand and business unit in its own right. But the mobile arm has not shown an outstanding performance since its takeover by the US-listed cable company.

Figures for the first three months of the year showed that Virgin Mobile lost a net 61,000 subscribers quarter on quarter while revenues dropped £10.7 million to £141 million, although Virgin stresses that it has won contract customers while losing less profitable pay as you go ones.

There have also been reports that Virgin Mobile's heavily advertised TV handset, known as the Lobster, has not sold as well as hoped.

Mr Gow said: "Both Joe and I are looking forward to some time with our families before taking up new challenges.”

Neil Berkett, the chief operating officer of Virgin Media, said: “These roles have evolved as we continue to integrate relevant parts of our business and strengthen our position as the UK’s number one entertainment and communications company."

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive