Virgin Media O2 (VMO2) has released its Q1 2025 financial and network performance results, offering a snapshot of its progress in full fibre broadband, mobile coverage, and customer growth. While the operator’s fibre network continued to expand, the report also revealed a slowdown in new broadband connections and a modest drop in mobile users. The figures reflect both the pressure of industry-wide discounting and shifting market dynamics as alternative fibre networks gain traction.
Virgin Media O2 Broadband Network Grows to 18.4 Million Premises
FTTP Build Reaches 6.8 Million UK Homes
VMO2’s combined fixed-line broadband footprint – which includes its own infrastructure and nexfibre’s open-access network – now covers 18.42 million homes across the UK. This marks an increase of around 165,000 premises in the first three months of 2025.
Of this total, 6.8 million premises are now served via full fibre (FTTP) using technologies such as XGS-PON and RFOG. This figure includes upgrades to legacy coaxial cable networks under Project Mustang, a long-term plan to convert Virgin’s entire network to FTTP by 2028.
The majority of new additions in Q1 came from nexfibre’s ongoing rollout, which aims to reach up to 7 million homes, particularly in areas outside Virgin’s traditional footprint. Virgin remains the sole ISP using nexfibre’s infrastructure under an exclusive agreement, although other providers are expected to join in the future.
Nexfibre Expansion Slows in Q1 2025
Rollout Pace Declines After Strong Finish to 2024
Nexfibre’s build activity delivered 165,000 new premises in Q1 2025 — a notable drop from the 485,500 added in Q4 2024. This decline suggests a temporary slowdown in construction, especially after the boost seen from the integration of former network operator Upp during late 2024.
Compared to earlier quarters:
- Q3 2024: 281,100 premises
- Q2 2024: 295,300 premises
- Q1 2024: 194,000 premises
Although progress continues, the pace of expansion is slower than expected. Some of the Q1 build also included minor infill work by Virgin Media, particularly in new housing developments where contracts had already been signed.
Broadband Customer Numbers Drop Amid Market Pressure
Fixed Line Base Falls by 44,000 Connections
While VMO2’s fibre network expanded, its broadband customer base declined in Q1 2025. The company ended the quarter with 5,694,900 broadband subscribers, down from 5,738,900 in Q4 2024. This represents a loss of 44,000 connections, a sharp turnaround from the previous quarter’s 12,000 gain.
The drop is being attributed to several factors, including:
- Intense price competition across the broadband market
- Annual price increases for existing customers
- Growing popularity of lower-cost alternative networks offering full fibre
This decline marks one of the more significant customer losses in recent quarters and raises concerns about how VMO2 is competing on value.
5G Mobile Coverage Now Reaches 77% of UK Population
Modest Drop in Total Mobile Customers
On the mobile side, Virgin Media O2 continues to push forward with 5G rollout, reporting that outdoor 5G coverage now spans 77% of the UK population. This is up from 75% in Q4 2024 and 68% in Q3 2024, indicating steady progress in expanding the mobile network’s reach.
However, overall mobile customer numbers dipped slightly to 45.69 million, down from 45.70 million in the previous quarter. This figure includes wholesale users, suggesting the decrease was minor but consistent with the trend seen in broadband.
Virgin Media O2 Revenue Down in Q1 2025
Financial Snapshot
VMO2 reported total revenue of £2.48 billion in Q1 2025, a drop from £2.72 billion in Q4 2024. The decline in revenue coincides with reduced customer numbers and market-wide pricing pressure.
Despite the dip, the company maintains a positive outlook for the rest of the year. CEO Lutz Schüler stated that VMO2 remains on track to meet its full-year guidance and sees “green shoots” of growth emerging, especially in customer service performance and infrastructure investment.
NetCo and Wholesale Plans Still Pending
No Update on Virgin Network Access
One area where information was notably absent is the long-awaited launch of NetCo — the wholesale platform intended to open Virgin Media’s fixed broadband network to other providers. Originally expected in the first half of 2025, no further updates or launch timeline was provided in this quarter’s results.
Meanwhile, nexfibre remains open-access by design, but Virgin Media is still the only major ISP currently live on the platform. The lack of third-party ISPs is likely limiting uptake in newly built nexfibre areas.
Giffgaff Begins Full Fibre Broadband Trials
New Low-Cost Brand Targets Broader Market
To extend its reach in the budget-friendly segment, Virgin Media O2 has begun trialling full fibre home broadband services through giffgaff, a sub-brand known for its low-cost mobile plans. These trials will use Virgin Media and nexfibre infrastructure and are expected to offer simpler pricing and contract options to appeal to more price-sensitive users.
This strategy could help VMO2 compete more effectively with alternative networks and discount providers, especially in urban and suburban areas with increasing FTTP competition.
Virgin Media Launches ‘Fit at Home’ Offer for TV Customers
Free 3-Month Fitness App Access
In a bid to add extra value for its Pay TV customers, Virgin Media is now offering three months of free access to the “Fit at Home” app. The app includes more than 500 workout routines, ranging from fitness classes to physiotherapy programs, aimed at users of all ages.
The offer is available to customers using Virgin TV 360 or Stream and must be redeemed by 30 June 2025. After the promotional period, the service typically costs £10 per month.
To activate the offer, customers need to visit the Apps section on their Virgin TV device and scan the QR code shown within the Fit at Home app.
Customer Service and Strategic Outlook
CEO Emphasises Stability and Turnaround
Despite the challenges posed by customer churn and revenue decline, VMO2 remains committed to its long-term strategy. CEO Lutz Schüler said the company is focusing on “retaining customer value” by offering fast, stable broadband and improved service delivery.
Key improvements noted include:
- Fewer customer complaints
- Better satisfaction scores
- Progress in network upgrades and 5G rollout
The company believes these improvements, combined with disciplined pricing, will help it return to growth by the end of 2025.
The Bottom Line
Virgin Media O2’s Q1 2025 results show a business in transition. While network expansion through nexfibre continues, the slower pace of rollout and decline in broadband subscribers reflect the competitive pressures now defining the UK market. The company’s efforts to diversify — including the giffgaff broadband trials and fitness content for TV customers — suggest a strategy focused on maintaining relevance and growing market share.
With fibre competition heating up, VMO2’s success will depend on its ability to offer reliable connectivity, transparent pricing, and value-added services while opening up new access points like NetCo. The next quarter will likely be crucial in gauging how well the operator can reverse customer losses and drive growth across its fixed and mobile services.