Virgin Media O2 sales and earnings drop in ‘turbulent market’

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Virgin Media O2 has reported falling gross sales and income because it misplaced additional fastened line and cellular clients within the first three months of the 12 months.

The telecoms group shed one other 6,900 fastened line family clients on a internet foundation – these becoming a member of much less these leaving – although it stated this was a 38,000 enchancment on a 12 months earlier because it appears to be like to stabilise its buyer base.

It misplaced one other 61,500 shopper and enterprise cellular contracts on a internet foundation within the first quarter, which was narrowed from a 70,300 internet loss a 12 months in the past.

The agency stated whole underlying revenues, adjusted for the latest acquisition of Daisy, fell 6.5% to £2.39 billion within the first quarter, whereas underlying earnings dropped 3.4% to £901.7 million.

It expects revenues and earnings to each drop by between 3% and 5% over the 12 months as a complete, however is investing as much as £2.2 billion in its networks over 2026, together with greater than £500 million within the first quarter.

Lutz Schuler, chief govt of Virgin Media O2, stated: “This 12 months is all about navigating a turbulent market panorama whereas investing, the place the situations are proper, to maximise alternatives, future-proof our networks and lay the foundations to construct long-term buyer belief, profitability and money era.

“With a transparent buyer focus and underpinned by greater than half a billion kilos of funding within the first quarter, we now have began the 12 months delivering in opposition to our core technique by way of the launch of O2 Satellite tv for pc, a primary in Europe; increasing our 5G Standalone footprint to be the biggest within the nation; making continued enhancements in customer support and satisfaction; and increasing our fibre footprint to nearly 9 million premises.”

The agency stated Virgin Media buyer complaints diminished by 42% year-on-year within the first three months of 2026.

Virgin Media O2 purchased Lancashire-based telecoms group Daisy in Might final 12 months to spice up its business-to-business operations.

Virgin Media O2’s buyer losses come amid latest strikes by the agency to hike costs, in addition to intense competitors within the sector.

Final October, it introduced additional tariff will increase for cellular and broadband clients from April this 12 months.