Virgin Media gains customers and returns to revenue growth

UK service provider Virgin Media O2 said it gained 8,000 net new fixed-line customers in the second quarter, taking its total to 5.8 million, with 16,000 additional broadband customers.

The JV between Liberty Global and Telefónica added 805,000 mobile connections in the quarter including wholesale customers. Mobile contract additions numbered 13,000, taking the total to 16 million.

The company did not break out TV numbers in its release.

Virgin Media O2 said it had returned to revenue growth in the quarter, posting transaction-adjusted revenue of £2.5 billion, up 0.2% year-on-year. Transaction adjusted EBITDA was £972 million.

The company said the increase in fixed line subs was down to the continued growth of Project Lightning, its fibre build out

“It’s one year on since Virgin Media O2 was born and, while we’ve got much more to do, we came out of the gate running and achieved a huge amount in our first year as a joint business. Our mission has been to upgrade the UK and be the biggest challenger in the market, and we’ve continued to do just that.

“In Q2, we’ve grown our fixed and mobile customer base once again, as fast and reliable connectivity remains a top priority for consumers and businesses. We’ve seen an improved revenue performance alongside our best quarterly profitability growth since we merged, putting us in solid shape to meet our full year guidance. The launch of our Virgin Media O2 sustainability strategy was also a major highlight in the quarter, and we will back up our bold commitments on carbon, circular economy and communities with real action,” said CEO Lutz Schüler.

“As we navigate a tougher economic environment and provide our customers with great value and targeted support, we have clarity and focus on three growth waves that will drive sustained commercial momentum. Firstly, our integration is firmly on track, our synergies are being realised and we’re innovating at pace with convergence at our core; secondly, we’re moving forward our digitalisation plans to improve our existing operations and build future foundations; and thirdly we’re investing heavily to expand and upgrade our fibre and 5G networks to bring top-class connectivity to more of the country.

“While I’m proud of what we’ve achieved in just one year, nobody in the business is complacent, and we remain focused to deliver even more.”