Customer numbers dip at Virgin Media O2 ahead of price hike
Virgin Media logo with O2 logo in foreground
Virgin Media O2 has reported lower customer activity over the first three months of 2024 before an increase in prices.
The UK telecoms giant said overall revenues dropped as it also witnessed lower demand for mobile handsets.
The group, which was formed in a £31 billion deal in 2021, reported that total revenues were down 0.5% for the quarter to £2.59 billion compared with the previous year.
It added that revenues were 4.3% lower year-on-year excluding its next-generation high-speed fibre operation Nexfibre.
Our performance in Q1 sets the foundations for our full year guidance as we make key investments to support future growth
Lutz Schuler, chief executive
The decrease was primarily driven by low-margin handset revenues, which dropped by 24.6%.
It meant that total mobile revenues were down 4.7% to £1.36 billion despite an increase in mobile service revenues.
Virgin Media O2 said it saw “low customer activity” over the quarter with its fixed-line customer base – which covers broadband and landline – reducing by 2,000 to 5.8 million at the end of the quarter.
Its contract mobile base of customers also dipped, falling by 74,500 to 16 million at the end of the quarter.
It came ahead of an 8.8% price increase for its customers in April.
Lutz Schuler, chief executive of the group, said: “While there is much to do in the remainder of the year, we are gathering momentum in accelerating fibre build and marketing the Nexfibre footprint, launching new services to enhance and improve customer experience, and progressing wider IT efficiency programmes as we continue our digital transformation.
“Ahead of price rise implementation, we delivered improved service revenue growth across both mobile and consumer fixed.
“Our performance in Q1 sets the foundations for our full year guidance as we make key investments to support future growth.”
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