Virgin Media O2 has extended its 5G+ coverage to 86% of the U.K. outdoor population
In sum – what to know:
Revenue pressure – Service revenue fell 3% as competition and prior customer losses weighed on both consumer and business segments.
Network focus – Fiber expansion, 5G+ rollout and satellite connectivity remain central to long-term strategy.
Wholesale growth – MVNO and fixed network leasing are emerging as key offsets to declining retail revenues.
U.K. carrier Virgin Media O2 is doubling down on network investment and infrastructure upgrades as competitive pressure and customer losses weigh on its top line in early 2026.
The operator reported a 3% year-on-year decline in service revenue to £2 billion ($2.7 billion) in the first quarter, with total revenue falling 6.5%. The drop reflects continued weakness across both consumer and business segments, partly offset by growth in wholesale.
Despite the softer financial performance, the telco reaffirmed its full-year guidance, pointing to progress in its long-term network strategy. This includes expanding its full-fiber footprint to 8.7 million premises and extending its 5G+ coverage to 86% of the U.K. outdoor population.
A key milestone in the quarter was the launch of O2 Satellite, enabling direct-to-device connectivity and extending network reach to up to 95% of U.K. landmass. The telco also advanced its radio access network upgrades and acquired additional spectrum from Vodafone UK to support capacity and performance improvements.
Operationally, the company showed mixed trends. Fixed-line net losses narrowed to 6,900 as the broadband base began to stabilize. However, mobile contract losses reached 61,500 in the quarter, reflecting ongoing competition across both consumer and business markets.
Average revenue per user (ARPU) remained under pressure, declining 1.6% in fixed services amid continued promotional intensity, while mobile ARPU was broadly stable.
In the business segment, revenue fell 5.1%, driven by a 9.9% drop in service revenue as the company streamlined its product portfolio following the launch of the O2 Business brand and ongoing integration with Daisy Group.
“In the U.K., despite a market that remains highly competitive, Virgin Media O2 delivered a third straight quarter of broadband improvement with just 6,000 losses compared to 43,000 losses a year ago. This was supported by strong commercial and retention initiatives and of course, lower churn. Importantly, and despite pressure on the overall market pricing, here our fixed ARPU remained relatively stable at £46.50, supported by more and more personalized and AI-driven pricing,” Mike Fries, CEO of Liberty Global, told a conference call with investors.
Liberty Global currently holds a 50% stake in Virgin Media O2, a joint venture established with Spanish carrier Telefónica in June 2021.
The executive added that the telco’s mobile network transformation is progressing with new RAN upgrade agreements and the transfer of the second tranche of spectrum from Vodafone Three. “That’s hugely important to us. O2 now has the largest 5G standalone footprint in the U.K,” he added.
