Virgin Media O2, one of the UK’s leading telecommunications providers, announced significant investments and impressive customer growth during the third quarter of 2023. The company’s commitment to expanding its network infrastructure and improving customer experiences has resulted in substantial progress across various fronts.
In the third quarter of 2023, Virgin Media O2 has invested a substantial £334 million, demonstrating a notable increase compared to the £304 million invested in the same period of the previous year. Over the nine months of 2023, the company’s capital investment amounted to £1,054 million, compared to £1,071 million during the same period in the previous year.
Virgin Media O2’s fixed network rollout made substantial strides, with over 500,000 additional homes now serviceable in 2023, including 250,800 in Q3 alone. The company’s expansion into new locations continued at a record pace, primarily on behalf of nexfibre, resulting in the passage of 250,800 additional premises with fiber during Q3. This year’s expansion efforts have elevated Virgin Media O2’s total gigabit footprint to 16.7 million homes serviceable by the end of the third quarter.
Notably, Virgin Media O2’s recent acquisition of the fiber altnet, Upp, in partnership with nexfibre, will significantly enhance the accessibility of Virgin Media O2’s converged services. This strategic transaction will transfer approximately 175,000 premises to nexfibre within the next year.
In the mobile sector, Virgin Media O2’s 5G connectivity expanded to cover more than 3,200 towns and cities, aligning with its goal to deliver 5G services to 50 percent of the UK population by the end of 2023. Additionally, the company announced plans to phase out 3G services by 2025, focusing on delivering faster, more reliable, and energy-efficient 4G and 5G connectivity.
The company’s investments have yielded impressive results in terms of customer acquisition. In Q3, Virgin Media O2 added 32,500 fixed customers, 40,800 broadband customers, and 50,000 mobile contract customers. The fixed customer base returned to positive growth, reaching a total of 5.8 million customers by the end of the quarter. Demand for fast and high-quality connectivity drove broadband net additions, with average download speeds increasing by 34 percent year-on-year to 349Mbps, significantly above the national average. The contract mobile base also increased by 50,000 in Q3.
Virgin Media O2’s leading converged consumer proposition, Volt, has continued to gain momentum, with over 1.75 million customers opting for these bundles.
Lutz Schuler, CEO of Virgin Media O2, expressed the company’s commitment to enhancing customer experiences, stating, “We are continuing to invest in our products, services, and networks to give our customers an even better experience. This has included bringing 5G connectivity to new areas and expanding our fixed network footprint faster than ever before to reach over half a million new fiber premises so far this year.”
The company’s adjusted revenue increased by 7.1 percent year-on-year to £2,771.5 million, with mobile revenue reaching £1,504.7 million, and fixed revenue amounting to £963.2 million. Other revenue saw a substantial increase of 174.3 percent, driven by nexfibre revenues and changes in the terms of a related-party contract during Q3.
Virgin Media O2’s investments and customer-focused strategies reflect its dedication to delivering high-quality telecommunications services and expanding its network infrastructure to meet the evolving needs of customers in the UK.