Virgin Media O2 has reported total revenue of £2,549.3 million for the third quarter ended September 30, 2025, marking a 5.6 percent decline year-over-year. Excluding handset revenue, nexfibre construction impact, and B2B adjustments following the O2 Daisy transaction, quarterly revenue was broadly stable, down 0.1 percent at £1,946.2 million.
Mobile revenue of Virgin Media O2 fell 0.9 percent to £1,428.8 million as stable service revenue was offset by a 5.4 percent decline in low-margin handset sales. Consumer fixed revenue of Virgin Media O2dropped 2.1 percent to £841.4 million, reflecting lower customer numbers and a modest reduction in average revenue per user. However, B2B fixed revenue rose sharply by 34.6 percent to £143.6 million, driven by the consolidation of Daisy Group operations.
Virgin Media O2 continued to make strategic investments in spectrum and network expansion. During the quarter, it added £142.2 million in spectrum licences, including the first tranche of spectrum acquired from Vodafone UK as part of a £343 million deal covering 78.8 MHz. In October, the operator secured one-third of available spectrum in the UK’s mmWave auction at the reserve price of £13 million.
The company’s fibre footprint now reaches nearly 8 million premises, including coverage through the nexfibre network. All 18.7 million homes serviceable by Virgin Media O2 can access gigabit speeds. The operator also launched its first “Giga Site” in central London, enabled by spectrum obtained from Vodafone UK, to enhance 5G capacity and performance.
In a key development, Virgin Media O2 announced a UK-first partnership with Starlink to deliver mobile coverage in rural areas via Starlink’s Direct to Cell satellite technology. This collaboration is expected to extend the company’s reach to remote regions.
Virgin Media O2 recorded a mobile contract base reduction of 36,300, largely due to B2B losses, offset by 39,600 wholesale net additions. The consumer mobile base remained stable, supported by O2’s free EU roaming offer and ongoing network enhancements.
On the fixed-line side, Virgin Media O2 saw a net loss of 29,300 customers, an improvement of 22,000 compared to the previous quarter, aided by new commercial initiatives despite market headwinds.
Virgin Media O2 also completed the merger of O2 Daisy, which is expected to generate around £600 million in operational synergies on a net present value basis. The company expanded its brand reach with the launch of giffgaff broadband, strengthening its position in the UK’s fixed broadband market.
Overall, Virgin Media O2’s Q3 results reflect steady operational progress, targeted investment in network assets, and a clear focus on integrating strategic partnerships to enhance customer experience and long-term competitiveness.
Shafana Fazal
