Virgin Media O2 has reported falling sales and profits as it lost further fixed line and mobile customers in the first three months of the year.
The telecoms group shed another 6,900 fixed line household customers on a net basis – those joining less those leaving – though it said this was a 38,000 improvement on a year earlier as it looks to stabilise its customer base.
It lost another 61,500 consumer and business mobile contracts on a net basis in the first quarter, which was narrowed from a 70,300 net loss a year ago.
The firm said total underlying revenues, adjusted for the recent acquisition of Daisy, fell 6.5% to £2.39 billion in the first quarter, while underlying earnings dropped 3.4% to £901.7 million.
It expects revenues and earnings to both drop by between 3% and 5% over the year as a whole, but is investing up to £2.2 billion in its networks over 2026, including more than £500 million in the first quarter.
Lutz Schuler, chief executive of Virgin Media O2, said: “This year is all about navigating a turbulent market landscape while investing, where the conditions are right, to maximise opportunities, future-proof our networks and lay the foundations to build long-term customer trust, profitability and cash generation.
“With a clear customer focus and underpinned by more than half a billion pounds of investment in the first quarter, we have started the year delivering against our core strategy through the launch of O2 Satellite, a first in Europe; expanding our 5G Standalone footprint to be the largest in the country; making continued improvements in customer service and satisfaction; and expanding our fibre footprint to almost nine million premises.”
The firm said Virgin Media customer complaints reduced by 42% year-on-year in the first three months of 2026.
Virgin Media O2 bought Lancashire-based telecoms group Daisy in May last year to boost its business-to-business operations.
Virgin Media O2’s customer losses come amid recent moves by the firm to hike prices, as well as intense competition in the sector.
Last October, it announced further tariff increases for mobile and broadband customers from April this year.
