Virgin Media O2 revenue dips as satellite service sees strong launch
Key Points
- Virgin Media O2 has seen a strong launch of its direct-to-device satellite mobile service, extending coverage to 95% of the UK landmass.
- Virgin Media broadband complaints fell 42% year-over-year per Ofcom, while consumer fixed-line losses narrowed to 6,900 from 44,700 a year earlier
- Virgin Media's full fibre footprint reached 8.7 million UK premises through its own network and nexfibre, using XGS-PON and RFoG technology
- O2's 5G+ standalone network now covers 86% of the UK outdoor population, the largest 5G+ footprint in the UK per the Ofcom Connected Nations 2025 report
- Virgin Media O2 service revenue fell 3.0% to £2,007.9 million in Q1 with full-year 2026 guidance reaffirmed across all metrics
Virgin Media O2 has seen a strong launch of its direct-to-device satellite mobile service, extending coverage to 95% of the UK landmass.
The launch headlined a Q1 update in which Virgin Media O2 reported service revenue of £2,007.9 million, down 3% year-over-year, alongside a 42% drop in Virgin Media broadband complaints and a full fibre footprint that now reaches 8.7 million UK premises.
Adjusted EBITDA fell 3.4% to £901.7 million as the company reaffirmed full-year guidance and pressed on with network investment.
O2 Satellite lets compatible handsets connect directly to satellites where there is no terrestrial signal, closing coverage gaps in rural areas, on coastal routes and across upland walking and driving routes.
Until now, UK mobile customers needing coverage in remote areas have relied on patchy roaming or dedicated satellite messengers from third parties. O2 is the first UK network to switch the capability on at scale.
Alongside the satellite rollout, O2’s 5G+ standalone network now covers 86% of the UK outdoor population per the Ofcom Connected Nations 2025 report, the largest 5G+ footprint in the UK.
The company also acquired £80 million of spectrum from Vodafone UK in Q1, part of a £343 million deal for 78.8MHz of frequencies that will deploy over the medium term and feed into network capacity for customers on busy cells.
On broadband, Virgin Media’s full fibre footprint reached 8.7 million UK premises through its own network and joint venture nexfibre, with build delivered via XGS-PON and RFoG technology.
Customer service indicators moved in the right direction too, with Virgin Media broadband complaints down 42% year-over-year per Ofcom data and consumer fixed-line losses narrowing to 6,900 from 44,700 in the same quarter last year.
Monthly ARPU per consumer fixed-line customer eased 1.6% to £46.50, reflecting sustained promotional intensity across the UK broadband market.
Mobile pricing held broadly steady for consumer contract customers, with monthly ARPU at £17.21 against £17.25 a year earlier.
Total mobile connections climbed to 46.4 million, including 14.1 million IoT connections, while contract losses across consumer, business and wholesale totalled 61,500 in the quarter.
The B2B side of the business now trades as O2 Business following last August’s tie-up with Daisy Group, with the combined entity continuing to integrate. Wholesale revenue grew 5.1% to £256.9 million, supported by MVNO growth and long-term leases of the fixed network to third parties.
Looking forward, the group reaffirmed all 2026 guidance metrics, including full-year service revenue and Adjusted EBITDA declines of 3 to 5%, capital additions of £2.0 to £2.2 billion, and Adjusted Free Cash Flow and shareholder cash distributions of around £200 million each.
