Virgin Media O2 focused on innovation and investment

The UK’s Virgin Media O2 expects to build to more than 500,000 premises in its Project Lightning network expansion in 2002.

In its latest results, the company says it built 101,000 premises in Q1, taking the total Lightning build to 2.8 million.

Virgin Media O2 also invested £473 million of capital in network infrastructure and customer experience in the first quarter. Its fixed-line cable base stood at 5.8 million as of March 31, with an 8,000 net reduction due primarily to a reduction in gross acquisitions.

Meanwhile, its broadband base was largely flat in Q1, with the average Virgin Media broadband speed being 231 Mbps, up 24% y-o-y.

Transaction adjusted revenue in Q1 was £2.5 billion (-0.1% y-o-y) and transaction adjusted EBITDA £932 million (+2.6% y-o-y), the best full quarter growth since Virgin Media O2 formed. Its net profit was £92 million (+5% y-o-y).

Commenting on the results, Lutz Schüler, CEO of Virgin Media O2, said: “The first quarter has seen us remain focused on delivering and innovating to pave the way for the rest of the year. We have started to ramp up network investments while improving our products and services with big challenger decisions like not reintroducing EU roaming fees. The delivery of fixed and mobile price rises will also support revenue growth and allow continued investment as connectivity demand continues to increase. We’re pushing ahead into Q2 with the launch of Stream, our new IP-based TV proposition which evolves traditional TV bundles and offers our broadband customers a flexible and innovative way to get their entertainment whilst offering significant additional value. With Q1 showing solid financial foundations from a stabilising top line and improved profitability, we remain on track to meet our 2022 guidance.”