Virgin Media O2’s total mobile revenue for Q1 fell by 1.1 per cent year-on-year to £1.35 billion.
This was mainly due to a 6.6 per cent drop in low-margin handset revenue. However, mobile service revenue saw modest gains, supported by recent price increases.
The mobile contract base declined by 122,800 connections during the quarter, driven by churn among lower-value B2B customers. In contrast, Virgin Media O2 reported an improved performance in the consumer mobile segment compared to Q1 2024.
Consumer fixed revenue rose by 1.9 per cent to £838.4 million, helped by a 1.6 per cent increase in average revenue per user (ARPU). This growth came despite a net loss of 46,000 fixed-line customers, as aggressive discounting across the market drove up churn.
Excluding the costs associated with building the joint venture new fibre network, nexfibre, the company posted a profit of £921.7 million—up 0.8 per cent year-on-year. Including nexfibre, overall profit declined by 1.3 per cent to £914.1 million.
Lutz Schüler, CEO of Virgin Media O2, commented:
“We have started the year on track with our guidance, delivering growth in core revenues and profitability. Despite a tougher Q1 trading environment, we’ve remained focused on retaining customer value through fast and reliable connectivity, disciplined pricing, and improved service.
“Our investments in networks and services continue to position us well for the future. We’ve seen further improvements in customer service as our turnaround strategy gains momentum, with lower complaints and higher satisfaction.
“On the mobile side, we’ve expanded 5G to reach three-quarters of the UK population and improved network quality in key areas. The expected acquisition of spectrum from Vodafone-Three will further strengthen our position.On the fixed side, our combined full-fibre footprint is approaching seven million premises. We’re also starting trials of giffgaff broadband to further extend our market reach.”
Full earnings details HERE
