Virgin Media O2 Q3 results show targeted investments on track

Virgin Media O2’s results from its recent Q3 financial report shows the company is on track to continue targeted investments over the next year.

There was stable combined consumer fixed and mobile (excluding handsets) revenue, underpinned by fixed-line ARPU growth.

Total Q3 revenue excluding nexfibre construction decreased 4.5 percent, which was primarily attributable to handsets – a reduction of 2.4 percent year-over-year to £2,701.8 million.

There was also an increased investment in growth drivers and prior year comparator impact EBITDA growth in quarter, as Adjusted earnings (EBITDA) excluding nexfibre construction decreased by 4.1 percent year-over-year to £1,001.7 million, prior to £7.7 million of operating expenses cost-to-company.

This decrease was due to the approximately £38 million impact of a related-party contract change in terms during Q3 2023, and targeted investments in marketing on the growing nexfibre network and digital efficiency programmes.

Commenting on the company’s performance this quarter, Lutz Schüler, CEO of Virgin Media O2, said: “During Q3 we have continued to make progress against our core strategy as we invest in the foundations for future growth.

“We delivered on both volume and value in consumer fixed, with a return to customer growth coupled with an increase in fixed-line ARPU.”

In mobile, the company saw a quarterly trend improvement in key metrics, and its 5G and fibre rollout continues.

“We have invested more than £1.5 billion so far this year as we focus on delivering a great customer experience with fast, reliable connectivity in more areas, increased loyalty benefits and improvements in our customer service performance,” explained Schüler.

The first nine months of this financial year has seen Virgin “tracking well” against EBITDA guidance.

This positive performance will help the company to continue its strategy towards targeted investments in the salient final quarter.

Virgin also continues to make progress in upgrading the UK’s digital infrastructure, with fibre rollout into new areas continued at pace as build, primarily on behalf of nexfibre, reached 281,100 new premises in Q3 2024, with a 44.2 percent increase in build rate in the first nine months of 2024 compared to 2023.