Virgin Media O2 has revealed its main achievements and financial performance during the second quarter of 2024.
REVENUE
Virgin Media O2’s revenue fell 1.4 percent to £2.673 billion. Mobile service revenue dropped 6.4 percent to £1.398 billion, mainly due to low margin handset revenue.
Virgin Media O2 has hiked the price for fixed-line customers resulting into 3.1 percent growth in ARPU to £48.49. The growth in ARPU of fixed-line customers represents a £2.24 quarter-over-quarter or £1.45 year-over-year increase. Consumer fixed revenue rose 3.9 percent to £864.8 million. B2B fixed revenue fell 15.5 percent to £108.1 million.
Other revenue grew 18.2 percent to £302.7 million driven by increased nexfibre construction revenue.
CUSTOMERS
Virgin Media O2 has lost 13,600 fixed-line customers. Virgin Media O2 has 5.8 million fixed-line customers at the end of the quarter.
Virgin Media O2 has lost 118,400 mobile contract customers due to less activity at the premium end of the market. Virgin Media O2 has 15.9 million mobile contract customers.
O2 monthly contract churn remained stable at 1.2 percent. The total mobile connections – including mobile contract customers, IoT, wholesale (including MVNO partnerships) and prepaid — increased by 403,100 to 45.5 million.
Lutz Schuler, CEO of Virgin Media O2, said: “We remained focused on delivering more for our customers, continuing to invest significantly in our networks and services, to the level of more than £1 billion so far this year and successfully executing price changes.”
“The new network sharing deal with Vodafone UK builds on the success of our existing agreement and also keeps Virgin Media O2 in a strong position should the Vodafone-Three merger be approved,” Lutz Schuler said.
Virgin Media O2 expects to deliver a low to mid-single-digit decline in revenue excluding nexfibre construction.
INVESTMENT
Capex of Virgin Media O2 has reached £339.3 million in Q2 2024 as compared with £365.2 million in Q2 2023.
Virgin Media O2 said fibre footprint reached 5 million premises.
5G mobile connectivity covers almost two-thirds of the UK population.
Fibre build accelerated by 68.3 percent, as the total serviceable footprint grew by 295,300 homes in Q2, principally through build on behalf of nexfibre.
Virgin Media O2 rolled out 5G Standalone, with outdoor 5G coverage now reaching almost two thirds of the UK population (65 percent). Virgin Media O2 is on track to bring 5G to all populated areas by the end of 2030. Virgin Media O2 is making investment in increasing mobile network capacity and improving rural connectivity.
Virgin Media O2 has completed the first stage of its Shared Rural Network rollout in June in line with Government targets, bringing 4G coverage to 227 rural communities across the UK, helping to reduce the digital divide.
Baburajan Kizhakedath
