Virgin Media O2 has announced its investment strategies and revenue goals for the year 2024, following a successful fiscal year in 2023. The telecommunications giant reported significant growth in both its investment in property and equipment (P&E) and its revenue, while also outlining key areas for future expansion.
For 2024, Virgin Media O2 is targeting P&E additions of between £2.0 to £2.2 billion, with operating expenses (opex) and capital expenditure (capex) costs to capture (CTC) remaining below £150 million. Notably, the company has invested £1,993.4 million in P&E additions throughout 2023, focusing on bolstering its network and services.
Investments were particularly directed towards upgrading the fixed network to fiber and expanding mobile capacity. The fixed network serviceable footprint reached 17.0 million premises, marking an impressive increase of 833,100 premises in 2023. Additionally, the company achieved its target of providing 5G coverage to 50 percent of the UK’s outdoor population, Virgin Media O2 said.
In 2023, Virgin Media O2 expanded its fiber rollout faster than ever before, reaching over 4 million premises.
The growth trajectory continued in customer acquisition, with a net addition of 31,300 fixed network customers and 46,600 contract mobile customers in 2023. Virgin Media O2’s leading consumer proposition, Volt, garnered 1.9 million customers by the end of the year, demonstrating increased loyalty and satisfaction among consumers.
Lutz Schuler, CEO of Virgin Media O2, in its earnings report, highlighted the company’s commitment to expanding its network infrastructure, stating, “We invested another £2 billion in our networks and services, with 2023 being the fastest year of fiber rollout.”
Lutz Schuler emphasized that over half of UK homes have access to the company’s fully gigabit service, and the 5G network covers half of the UK population.
Looking ahead to 2024, Virgin Media O2 cautioned that its outlook might be impacted by incremental investments in key initiatives aimed at driving future growth. These initiatives include increased marketing efforts across their expanding fixed network, new commercial endeavors, and efficiency programs in digital and IT infrastructure.
Virgin Media O2’s revenue for the fiscal year increased by 5.2 percent to £10,923.2 million, with mobile revenue rising by 0.6 percent to £5,949.3 million. However, consumer fixed revenue experienced drop of 2.3 percent to £3,325.2 million, attributed to spending optimization and increased cost-of-living pressures.
Baburajan Kizhakedath
