Virgin Media O2 loses broadband customers as full fibre reach hits 9 million premises

Virgin Media O2 (VMO2) has reported a fall in consumer broadband customers in its Q2 2026 results, even as its full fibre footprint with nexfibre climbed to 9 million premises.

The operator lost 28,200 consumer broadband customers over the quarter, taking the total to 5,417,900, down from 5,446,100 in Q1. That compares with a smaller drop of 5,300 in the previous quarter. VMO2's own summary describes a consumer fixed base of 5.5m and a reduction of around 30,000 in Q2, which it framed as a roughly 23,000 improvement on the same period a year earlier.

On the mobile side, connections across the O2 network slipped slightly to 46,428,700, down from 46,446,500 in Q1. The total includes O2, giffgaff, O2 Business, IoT and MVNOs such as Sky Mobile and Tesco Mobile. Mobile contract connections stood at 24.5m after a fall of 29,000 in the quarter, which VMO2 said was an improvement of about 30,000 on Q1. Wholesale contract connections grew by around 34,000.

Full fibre footprint reaches 9 million

The combined Virgin Media and nexfibre network now reaches 18,811,600 homes serviceable, up slightly from 18,796,600 in Q1, with all of those premises able to access speeds of at least 1Gbps.

Of that total, 9 million Virgin Media and nexfibre premises are now covered by full fibre (FTTP) lines using XGS-PON and RFOG technology, up from nearly 8.7m in Q1. Nexfibre's network on its own accounts for around 2.6 million-plus FTTP premises.

Most of the increase comes from Virgin Media's ongoing work to upgrade existing Hybrid Fibre Coax (HFC) areas to FTTP, which is being supported by a complementary programme through nexfibre as part of the Netomnia deal. Virgin Media and giffgaff are currently the only major retail ISPs on nexfibre's open access full fibre network, and the two share some of the same parentage.

Financials in line with guidance

VMO2 reported total revenue of £2,398.9m in Q2 2026, up from £2,390.1m in the previous quarter. Adjusted for the Daisy transaction, the company put total revenue at £2.4bn, down 7.9%, with total service revenue of £2.0bn, down 3.9%, and adjusted EBITDA of £975m, down 2.9%. Adjusted free cash flow came in at £232m.

Around £1bn was invested in the first half of 2026. Network construction and other revenue fell 95.9% in the quarter, which the company said reflected the expected reduction in low-margin nexfibre construction activity. Consumer fixed ARPU decreased 4.6% to £46.56, while consumer mobile contract ARPU remained stable.

VMO2 reconfirmed its 2026 guidance: a total service revenue decline of 3 to 5% year on year adjusted for the Daisy transaction, an adjusted EBITDA decline of 3 to 5% on the same basis, investment of £2.0bn to £2.2bn, and both adjusted free cash flow and cash distributions to shareholders of around £200m.

The broadband customer figures no longer include VMO2's fixed business base, a change introduced last quarter, so only the consumer base is counted in the total.

Coverage and services

On mobile, 5G Standalone (5G+) is now available to 86% of the outdoor population, which VMO2 describes as the largest 5G+ network in the UK. The company also pointed to the expansion of O2 Satellite, which it says was the first UK mobile network to switch on direct-to-device satellite connectivity, increasing landmass coverage to 95%. Compatible Apple iPhone and Google Pixel devices can now use the service.

VMO2 said its customer service turnaround was continuing to deliver results, reporting a 50% year-on-year reduction in Virgin Media broadband complaints and a 57% reduction in O2 complaints against Q4 2025, with levels back to previous lows.

Lutz Schüler, CEO of VMO2, said: "Our performance in Q2 is in line with our full year guidance. It reflects the continued navigation of a highly-competitive market backdrop, a focus on execution and transformation in our three operating areas, consumer, B2B and wholesale, and a relentless commitment to improving customer experience and building strong foundations for future growth. Underpinned by significant investment, we are making good progress against our long-term strategy with a fibre footprint reaching 9 million premises; the largest 5G+ network in the country; the expansion of innovative new services like O2 Satellite; a new wholesale partnership; and a clear transformation of our customer service, with faster issue resolution and significantly lower complaint levels."

The results come while the market awaits the outcome of VMO2 and nexfibre's acquisition of Netomnia.