Virgin Media O2 posted a slight revenue dip in the third quarter, as the telecom giant rides out “an increasingly challenging macroeconomic backdrop”.
Adjusted revenue was down 0.6 per cent to £2.59bn, with results dragged down by a 3.7 per cent decline in handset revenue.
Total mobile revenues increased by 2.1 per cent to £1.5bn, with service revenues increasing 4.3 per cent.
Total mobile net additions were 629,000 in the quarter, with increases across Wholesale, IoT, prepaid and
contract. The contract mobile base increased by 47,000 to 16 million.
This was offset by declines in Consumer Fixed of two per cent to £851.2m due to a change in customer mix alongside continued decline in B2B Fixed.
Telecoms analyst at PP Foresight Paolo Pescatore called this decline “worrying”, especially at a time where the demand for home connectivity continues to boom.
“It feels like the honeymoon period is slowly coming to an end,” he told City A.M.
Virgin Media and O2 merged back in 2021 via a 50:50 joint venture between Liberty Global and Telefónica.
Lutz Schüler, CEO of Virgin Media O2, admitted that the quarter had been “increasingly challenging”, but said it had been “one of strong strategic and operational progress supporting our delivery for
the rest of the year and beyond”.
EBITDA climbed 8.6 per cent in the quarter to £991.2m, making it the best full quarter growth since Virgin Media O2 merged.
The company expects to deliver mid-single-digit growth in the full year