Virgin Media 02’s revenue declined 4.2 per cent in Q1 2025 from £2.6 billion to £2.5 billion.
Total mobile revenue decreased 1.1 per cent to £1.3 billion, driven by low margin handset revenue, which fell 6.6 per cent, partially offset by service revenue growth, including the benefit of price rise phasing.
B2B fixed revenue was also down 7.9 per cent to £100.1 million due to a reduced level of long-term leases being entered into and lower annuity revenues.
The company’s adjusted EBITDA, excluding the impact of Nexfibre construction declined 1.3 per cent at £14.1 million for the quarter from £925.7 million in Q1 2024, attributable to a reduction in Nexfibre construction EBITDA, with growth excluding this impact supported by increased core service revenues and a reduced level of opex CTC.
Lutz Schuler, CEO of Virgin Media O2, said, “We have started the year on track with our guidance, delivering growth in core revenues and profitability. Despite a tougher Q1 trading environment, we’ve remained focused on retaining customer value through fast and reliable connectivity, disciplined pricing, and improved service.
“Our investments in networks and services continue to position us well for the future. We’ve seen further improvements in customer service as our turnaround strategy gains momentum, with lower complaints and higher satisfaction.
“On the mobile side, we’ve expanded 5G to reach three-quarters of the UK population and improved network quality in key areas. The expected acquisition of spectrum from Vodafone-Three will further strengthen our position. On the fixed side, our combined full-fibre footprint is approaching seven million premises. We’re also starting trials of Giffgaff broadband to further extend our market reach.”