Virgin Media O2 reports strong revenue growth and network expansion in Q2

Virgin Media O2, a leading telecommunications company, has announced impressive financial results for the second quarter of 2023, showcasing a remarkable 6.2 percent increase in revenue, reaching £2.71 billion.
Virgin Media MVNO modelThe mobile sector played a pivotal role in driving revenue growth, with mobile revenue soaring to £1,493.8 million, a notable 4.7 percent increase. This upsurge was mainly attributed to consumer price rises implemented during the quarter.

However, the consumer fixed revenue faced challenges, as it experienced a decline of 3.8 percent, amounting to £832.4 million. The decline was primarily due to the phased implementation of price rises, offset by a decrease in Average Revenue Per User (ARPU) resulting from households optimizing their spending. Notably, this reduction was most pronounced in home phone and mid-tier TV packages.

Similarly, the B2B fixed revenue faced a decline of 7.8 percent, settling at £129.8 million. The decrease was attributed to a high level of installation revenue for high-capacity data services in the second quarter of 2022, along with a reduction in underlying service revenue.

On a positive note, other revenue surged dramatically by 112 percent to £257.1 million. This remarkable growth was primarily driven by nexfibre revenues, where no such revenues existed during the same period in 2022.

During the second quarter, Virgin Media O2 witnessed a net reduction of 24,700 in the fixed customer base, which now stands at 5.8 million. The decline was primarily due to an increase in disconnections as a result of the implementation of price rises during April and May.

In terms of broadband performance, the company demonstrated resilience, with a net reduction of 15,300 during Q2. Additionally, the average download speed across the broadband base increased by an impressive 34 percent year-on-year, reaching 332Mbps by the end of Q2. This is approximately five times higher than the national average, indicating the company’s commitment to providing high-speed internet to its customers.

Virgin Media O2’s Volt, the leading consumer convergence proposition, has been gaining momentum and has now surpassed a significant milestone of over 1.5 million customers taking advantage of its bundled services.

The company also continued its expansion of the fixed network into new locations, adding 175,500 additional premises in Q2, up from 107,800 in the previous quarter. The total gigabit footprint of Virgin Media O2 now stands at an impressive 16.4 million homes serviceable. Furthermore, in June, the company introduced services over the nexfibre network, using XGS-PON technology, with more product enhancements planned for the future.

The deployment of full fibre across the existing Virgin Media O2 network has been progressing steadily during Q2, and the company remains on track to upgrade its entire fixed network by 2028.

Virgin Media O2’s commitment to providing quality service across the UK is evident in its expansion of 5G connectivity, which is now available in more than 2,800 towns and cities, with the aim to reach 50 percent of the UK population with 5G services by the end of 2023.

Furthermore, the company’s dedication to supporting rural communities is demonstrated by its participation in the £1 billion Shared Rural Network programme, reaching its 50th rural site in June.

In recognition of its outstanding performance, Virgin Media O2 was rated the “Best in Test” and “Best Rated” for user download and upload speeds in a recent broadband benchmarking survey conducted by Umlaut, surpassing other major providers.

Virgin Media O2’s combined FTTP (Fiber to the Premises) footprint has expanded to reach 3 million homes by the end of Q2, and the company is on track to extend this coverage to 4 million homes by the close of 2023.