VMO2 claims ‘continued operating momentum' in second quarter results

29 Jul 2022

Virgin Media O2 (VMO2) has published its financial results for the quarter ended 30 June 2022, with the company claiming the period under review saw it ‘delivers continued operating momentum with improved growth in transaction adjusted revenue and EBITDA’. VMO2 reported a total turnover of GBP2.549 billion (USD3.1 billion) in the quarter, broadly unchanged from GBP2.543 billion a year earlier. Mobile revenues were reported at GBP1.427 billion, representing a 2.2% year-on-year increase, while fixed revenue totalled GBP1.006 billion (2Q21: GBP1.037 billion). VMO2 recorded adjusted EBITDA of GBP972 million, up 4% y-o-y, and a figure the company said represented ‘the best full quarter growth rate since [VMO2] was formed’, with growth having been supported by the flow through of price rises, as well as cost efficiencies and the realisation of synergies, but partially offset by increased energy costs.

In terms of operational indicators, VMO2 reported a total of 5.768 million ‘fixed line customer relationships’ as of 30 June 2022, up from 5.677 million a year earlier; of the most recent total, 5.612 million were reported to be fixed broadband subscriptions, up from 5.494 million at mid-2021. In the mobile sector, meanwhile, VMO2 reported a total of 33.095 million retail subscriptions, with a further 10.431 million wholesale subscriptions, to give it a total of 43.526 million mobile subscriptions as of 30 June 2022.

VMO2 also offered updates on the progress of its various infrastructure rollout projects. In that vein, the company confirmed that its ‘Project Lightning’ network expansion build increased to 114,000 in Q2, up from 101,000 premises added in Q1 2022 and 89,000 premises added in Q2 2021. According to the operator, the cumulative Lightning footprint is now 2.9 million premises, with the company claiming to be on track to add more than half a million Lightning premises in 2022. In addition, VMO2 said the FTTP upgrade of its existing network ‘is starting to ramp up’, following the completion of trials in the first quarter of 2022, and it confirmed its goal its to roll out full fibre across its fixed network by 2028.

Progress was also reported with the company’s 5G network rollout, with this infrastructure now reported to be available ‘in more than 600 towns and cities’, while VMO2 said it remains on track to achieve 50% population coverage by 2023. 4G enhancements were also made during the quarter under review, with capacity for the company’s LTE network said to have been upgraded in 154,000 postcodes.

United Kingdom, O2 UK, Virgin Media, Virgin Media O2 (VMO2)