Virgin Media O2 has reported Q3 revenue of £2.7 billion (€3.2bn), down 2.7 per cent YoY – primarily attributed to handset revenue decline offsetting stable consumer service revenues underpinned by fixed ARPU growth.

The telco’s total fixed customer base now stands at 5.8 million with 15,000 customer additions in Q3, showing a return to fixed customer growth as increased sales and marketing investment saw gross adds on the expanding nexfibre network ramp up by more than 40 per cent compared to Q2.

The company also added 16,200 broadband connections in Q3. Its full fibre footprint reached 5.6 million premises. Vigin Media O2’s 5G services are now available to 68 per cent of the UK population.

Virgin Media O2’s total mobile connections (contract & prepaid) stands at 23.5 million. The Virgin Media O2 mobile contract base remains stable at 15.9 million with a reduction of 15,300 connections in Q3.

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, we saw a quarterly trend improvement in key metrics, supported by a reduction in O2 churn during a summer of key campaigns for our loyalty programme Priority and inclusive EU roaming. Our 5G and fibre rollout continues at pace, and 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. In the first nine months we are tracking well against EBITDA guidance, enabling us to reiterate all guidance metrics with confidence, as we keep our foot on the gas with targeted investments in the salient final quarter.”

Additionally, Virgin Media O2 has announced an agreement to sell an 8.33 per cent minority stake in mobile tower joint venture Cornerstone, to funds managed by Equitix. This follows on from a previous minority stake sale in Cornerstone by Virgin Media O2 completed in November 2023.

The transaction will see Virgin Media O2 sell a 16.66 per cent stake in a holding company that indirectly owns 50 per cent of Cornerstone, receiving £186 million in cash upon completion along equivalent terms to the previous stake sale. Under the ownership structure, Virgin Media O2 will continue to proportionately consolidate Cornerstone as a joint operation.

Cornerstone is the UK’s largest mobile towers business, which was established in 2012 and has the highest density of towers in the UK. Cornerstone owns and manages a nationwide network of around 20,000 sites used by Virgin Media O2 and Vodafone UK, providing services for approximately 60 per cent of UK mobile subscribers. Established in 2007, Equitix is a mid-market infrastructure investor with more than £11 billion of equity invested across 350+ assets. The addition of this investment will increase Equitix’s portfolio to over 23,000 towers located across the UK, Europe and the Middle East.

Schüler said: “This additional minority stake sale follows the same logic and strategic rationale as our previous deal, allowing us to successfully monetise our infrastructure while retaining a controlling share in an important asset. Equitix is another strong partner to have onboard that clearly sees the long-term value in Cornerstone at a time when we are investing billions of pounds to enhance 4G coverage and bring 5G to new areas of the country.”

Achal Bhuwania, CIO of Equitix, added: “We are delighted with our investment in Cornerstone and building a partnership with Virgin Media O2. As the UK’s largest telecom tower portfolio, Cornerstone provides infrastructure services that are vital for nationwide connectivity. This investment demonstrates our continued commitment to invest in critical national infrastructure which is central to our mandate to invest in core infrastructure.”

Other posts by :

1. Italy joins Germany in IRIS2 alternate thoughts
2. Kazakhstan to create museum at Yuri Gagarin launch site
3. AST SpaceMobile gets $42 or $1500 price target
4. Analyst: GEO bloodbath taking place
5. SES AGM results: Appaloosa still objecting
6. SpaceX’s Shotwell worth $1.2bn
7. SpinLaunch’s revolutionary plan for 280 satellites
8. Consolidation impacts satellite sector
9. Project Kuiper plans first satellite launch

Categories: 5G, Articles, Business, FTTH, M&A, MNO, Mobile, Results, Telco

Tags: Lutz Schüler, Virgin Media, Virgin Media O2