Virgin Media O2 returned to revenue growth this quarter as the telecom giant turns to price rises to ride out the inflationary storm.
Revenue hit £2.5bn for Virgin Media O2 (VMO2), up from 0.2 per cent year-on-year, while net profit soared to £78m, up 331 per cent.
Mobile revenue was up 2.2 per cent to £1.4bn, while fixed revenue dropped three per cent to £1bn.
It comes as some VMO2 customers were whacked with a staggering 11.7 per cent price hike in April.
The converged telecoms-cable firm also improved customer growth, with 13,000 mobile contract net adds.
Commenting on the results, chief exec Lutz Schüler said: “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.”
He said it was important the firm did not become complacent as the macroeconomic situation becomes increasingly difficult.
Speaking to City A.M., PP Foresight TMT analyst Paolo Pescatore said: “It is apparent that the UK telcos are seeing the fruits of consumer price hikes during the latest quarter.” However, he warned they need to “tread carefully” as households tighten their belts and look for better deals.
“Flexibility will be key and moves towards personalisation of tariffs will represent the next battleground among providers,” he told City A.M.