Virgin Media boosts customer numbers ahead of O2 merger
Virgin Media today reported its biggest quarterly increase in broadband customers since 2017 as the firm said its proposed merger with O2 was on track.
The telecoms group said its fixed-line customers have surpassed 6m after an increase of 37,000 in the third quarter. This is compared to a loss of 3,000 in the same period last year and marks the biggest rise since the third quarter of 2017.
Virgin’s Project Lighting full-fibre rollout increased to 125,000 premises over the period, up from 93,000 in the first and second quarters, taking its total build to 2.4m.
Mobile customers increased by 92,900, with the number of converged customers taking a broadband and mobile contract rising.
As a result, revenue ticked up 0.8 per cent to £1.3bn over the quarter, with increases in business to business and mobile offset by costs related to the Covid-19 crisis.
Net profit hit £190.4m, compared to a £49.1m loss last year. However, earnings before interest, tax, depreciation and amortisation slipped 3.6 per cent to £514.5m.
Virgin said it had “successfully navigated” through the pandemic, continuing its broadband investment and postponing its UK price rise for customers.
It came as Virgin Media, which is owned by John Malone’s Liberty Global, switched on its gigabit broadband service for 2.6m homes across London.
The telecoms group said it was on track for its planned £31bn merger with Telefonica-owned O2.
The deal is currently facing scrutiny from European regulators, while the UK competition watchdog has requested permission to carry out a full investigation in Britain.
“Our relentless focus on keeping the country connected and supporting our customers with a great service is really shown in these results,” said chief executive Lutz Schuler.
“We’ve seen improved NPS, reduced churn, increased converged bundle take up and delivered our best customer additions since the third quarter 2017, underpinned by an 860 per cent increase in broadband additions compared to the same quarter last year.
“This sustained progress has helped to drive positive revenue growth and improved earnings as we navigate through the turbulence of the coronavirus pandemic. We remain focused and fired-up for the rest of the year and will keep pushing ahead to deliver.”