VMO2 Reports Decline in Fixed & Mobile Contract Bases Despite Fibre Expansion

Virgin Media O2 (VMO2) has recorded a drop in its fixed-line and mobile contract customer bases in the second quarter, even as it ramps up investment in fibre infrastructure. The company reported a loss of 13,600 fixed-line customers, bringing the total fixed base down to around 5.8 million. On the mobile side, contract customers fell by 118,400, largely attributed to lower demand in premium segment devices.

Despite these customer headwinds, VMO2's full fibre expansion accelerated. The company built fibre to an additional 295,300 premises in Q2—a build-rate increase compared with both Q2 2023 and Q1 2024—largely through its joint-venture Nexfibre, for which VMO2 is the build vendor and wholesale partner. This pushed its full fibre footprint to about 5 million premises.

Revenue performance was weaker. Overall Q2 revenue declined about 1.4% year-on-year, and excluding Nexfibre construction revenue dropped roughly 4.1%. Mobile revenue suffered a sharper fall of about 6.4%, with handset hardware sales down nearly 19.5%, which VMO2 said dampened growth. Adjusted EBITDA also fell modestly, by approximately 1.6%, to £998 million.

Looking ahead, VMO2 expects a "low- to mid-single digit decline" in revenue excluding Nexfibre construction. However, core consumer fixed + mobile service revenue (excluding handset sales) is expected to stay roughly stable. Adjusted EBITDA excluding that construction impact is projected to decline in the same low to mid-single digit range.

VMO2's CEO, Lutz Schüler, emphasised that the company is focusing on long-term investment: accelerating fibre rollout, executing pricing changes, simplifying operations, and leaning into network sharing (notably with Vodafone UK). Despite the customer losses and competitive pressures, VMO2 claims its strategy positions it well for future growth in full fibre and fixed + mobile integration.