Virgin Media O2 has reported a 5.5 percent year-over-year decline in revenue for Q2-2025, reaching £2.53 billion compared to £2.67 billion in Q2-2024.
The drop in Virgin Media O2 revenue was primarily driven by a 5.2 percent decrease in low-margin handset revenue, which contributed to a 0.9 percent fall in total mobile revenue of £1,385 million.
Consumer fixed revenue declined by 0.9 percent to £857.1 million due to a shrinking customer base, while B2B fixed revenue dropped 8.2 percent to £99.2 million, largely on account of lower rental income. Revenue excluding handset and nexfibre construction impacts was slightly down by 0.4 percent to £2.18 billion.
For the first half of 2025, revenue of Virgin Media O2 stood at £5.01 billion, marking a 4.9 percent decline from the previous year.
Despite the top-line pressure, guided Adjusted EBITDA rose 1.1 percent in Q2 to £985.9 million due to cost efficiencies, though total Adjusted EBITDA dipped 0.4 percent to £984.2 million. Adjusted Free Cash Flow for the quarter was £158.3 million.
The company reaffirmed its 2025 guidance, aiming for revenue and EBITDA growth excluding handset and nexfibre effects.
ARPU
Virgin Media O2 reported stable year-over-year ARPU for its fixed-line customers in Q2 2025, with monthly ARPU increasing marginally by £0.02 to £48.51 from £48.49 in Q2 2024. The sequential increase was £1.51, reflecting pricing actions and service upgrades.
The company maintained ARPU levels despite a reduction in the fixed-line customer base, supported by efforts to enhance customer propositions such as multi-SIM capabilities and data rollover features. This stability in ARPU indicates resilience in core customer revenue amid a competitive market and customer churn.
Subscribers
Virgin Media O2 experienced mixed subscriber trends in Q2 2025. The fixed-line customer base declined by 51,300, including a loss of 51,400 broadband connections, driven by annual price changes. On the mobile side, the company saw total mobile connections increase by 703,100 to 46.17 million, with strong growth in IoT connections rising by 975,800 to 13.2 million.
The mobile contract base fell by 73,600 in the quarter, mainly due to B2B losses, though monthly contract churn improved to 1.1 percent. Prepaid mobile connections rose slightly by 9,900, and wholesale connections grew by 85,300. Despite net losses in mobile contracts and fixed-line services, overall mobile subscriber growth was supported by gains in IoT and wholesale segments.
Capex
Virgin Media O2 increased its capital expenditure in Q2 2025, with property and equipment additions rising 6.4 percent to £532.7 million, reflecting continued investment in fixed and mobile network upgrades. ROU asset additions decreased 38.6 percent to £38.4 million, contributing to a total capex-driven decline in Adjusted EBITDA less Capex by 2.8 percent to £413.1 million.
The company reaffirmed its guidance for P&E additions between £2.0 and £2.2 billion, emphasizing its focus on expanding fibre and 5G infrastructure. The rise in capital investments aligns with strategic goals, including supporting nexfibre deployment and enhancing network capacity.
Baburajan Kizhakedath
