Virgin Media O2 said revenue declined by 4.2 percent year-over-year to £2,480.1 million during January-March 2025.
Subscriber trends presented headwinds, with fixed-line customers declining by 46,000 and mobile contracts falling by 122,800, though consumer mobile churn improved year-over-year, Virgin Media O2 said.
Virgin Media O2 demonstrated resilience by achieving a 0.4 percent growth in core revenue (excluding handset sales and nexfibre construction), reflecting a shift toward value-retaining segments.
Virgin Media O2’s consumer fixed business achieved 1.9 percent increase in revenue to £838.4 million, supported by a 1.6 percent rise in ARPU.
Meanwhile, mobile revenue dipped by 1.1 percent to £1,347.8 million, largely due to a 6.6 percent fall in low-margin handset sales, though this was partly offset by service revenue growth through price rise phasing.
The B2B segment faced pressure, with fixed revenue declining 7.9 percent due to fewer long-term leases and lower annuity income.
Virgin Media O2 is investing significantly in its network evolution, expanding its full fibre reach to 6.8 million premises and achieving 77 percent outdoor population coverage for 5G across the UK.
Trials for a giffgaff broadband service were also launched, aiming to replicate its successful mobile model and leverage wholesale infrastructure.
These developments reflect a strategy centered on sustaining value, upgrading infrastructure, and exploring new customer propositions in a competitive market.
