UK's Virgin Media O2 loses more than 100,000 mobile contract customers

Liberty Global

26/07/2024 09:25

LONDON, July 26 (Reuters) - British broadband and mobile
operator Virgin Media O2 lost 118,400 mobile contract customers
in the second quarter, reflecting weakness in the top-end of the
market where innovation in new iPhones and competing devices has
slowed.
    The company, jointly owned by Liberty Global  LBTYA.O  and
Telefonica  TEF.MC , said it now had 15.9 million customers on
monthly contracts.
    It also saw a 13,600 decline in its fixed-line customer
base, with losses on its existing network largely offset by
growth in its fibre network expansion.  
    Chief Executive Lutz Schüler said the group had continued to
invest in its networks and services despite a tough trading
environment.
    "Our fibre deployment has gathered significant pace, with
the Virgin Media O2 fibre footprint now hitting 5 million
premises as we push forward towards creating the UK's largest
national fibre challenger," he said in a statement.
    BT  BT.L , VM O2's larger rival, said on Thursday its
Openreach networks arm had lost 196,000 broadband customers in
the quarter as more defected to competitors.
    Price rise helped VM O2's average revenue per user on its
fixed network rise by 3.1% to 48.49 pounds ($62.40) a month, it
said on Friday.
    Revenue in the quarter fell 1.4% year-on-year to 2.7 billion
pounds, driven by the weak mobile handset market, while adjusted
core earnings fell 1.6% to 998 million pounds.
($1 = 0.7771 pounds)

 (Reporting by Paul Sandle, Editing by Kylie MacLellan)
 ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters
Messaging: paul.sandle.thomsonreuters.com@reuters.net))