Virgin Media O2’s Q3 2024 financial result indicated that it lost 74,300 mobile connections and added 15,000 fixed-line customers in the quarter.
The number of mobile contract customers has reached 15.9 million at the end of September 30, 2024. Monthly O2 contract churn was 1.1 percent in Q3.
The total number of mobile customers, including IoT, has reached 45.4 million.
Virgin Media O2, announcing the financial result, said it has lost 15,300 mobile contract customers. In addition, Virgin Media O2 has lost 221,300 IoT connections. Virgin Media O2’s IoT business lost very low value connections following the launch of a minimum charge pricing mechanism.
The number of fixed-line customer base has reached 5.8 million at the end of the third quarter. It achieved growth in fixed-line customers due to investment in sales and marketing, which drove an over 40 percent increase in gross additions in the nexfibre expansion footprint compared to Q2.
Capex
Virgin Media O2’s investment for the first nine months has reached more than £1.5 billion. The focus of its Capex was the expansion of fibre footprint and 5G connectivity for enhancing customer experience. The number of fiber homes has reached 17.8 million.
Lutz Schuler, CEO of Virgin Media O2, said: “We delivered on both volume and value in consumer fixed, with a return to customer growth coupled with an increase in fixed-line ARPU. In mobile, we saw a quarterly trend improvement in key metrics, supported by a reduction in O2 churn during a summer of key campaigns for our loyalty programme Priority and inclusive EU roaming.”
Fibre rollout into new area, primarily on behalf of nexfibre, has reached 281,100 new premises in Q3 2024, with a 44.2 percent increase in build rate in the first nine months of 2024 compared to 2023. This includes the transfer of the first Upp premises from Virgin Media O2 to nexfibre.
Virgin Media O2’s 5G outdoor coverage reaches 68 percent of the UK population.
ARPU from fixed-line customer business rose 2.2 percent to £48.33 in Q3, supported by improved value retention of existing customers.
Q3 revenue dropped 2.4 percent to £2.701 million, as revenue excluding the impact of nexfibre construction decreased 4.5 percent.
Mobile revenue fell 4.2 percent to £1,441.6 million, primarily driven by 13.7 percent drop in low margin handset revenue.
Consumer fixed revenue increased 2.5 percent to £859.6 million, supported by growth in ARPU of 2.2 percent.
B2B fixed revenue decreased 13.4 percent to £106.7 million primarily due to a reduced level of long-term leases. Other revenue dropped 2.9 percent to £293.9 million.
Baburajan Kizhakedath
