O2 posts best-ever Q1 profits, with Virgin Media merger expected to close in June

The MNO grew its customer base by 5.1pc during Q1 to 36.6 million

O2 has reported its best ever first quarter profit as CEO Mark Evans says he expects the £31bn merger with Virgin Media to close in June.

The operator posted profits of £478 million during the first quarter, up 7.6pc year-on-year, while profit margin was 35.2 per cent.

However revenue was down 9.4 per cent YoY to £1.35bn during the quarter, with O2 citing this being down to the impact of the nationwide lockdown.

O2 also grew its customer base by 5.1 per cent during the quarter to 36.6 million, which includes its MVNOs giffgaff, Tesco Mobile, Sky Mobile and Lycamobile.

Commenting on the results, Evans said: “We continue to lead the market in terms of trust, transparency and fairness and remain committed to high levels of investment in our award-winning network. This has established O2 as the UK’s number one mobile network operator with the most loyal customers.”

Evans also said he is “confident” the service will continue in the joint merger with Virgin Media.

He expects the merger to be finalised in June, subject to final approval from the CMA (The Competition and Market’s Authority).

Last month the CMA provisionally cleared the proposed merger.