Virgin Media O2: Life after Netomnia
VMO2 had a mixed Q3, with it finally arresting the decline in underlying revenue growth thanks to improving mobile, but the broadband side continued to struggle.
Financing pressure drove the company to preview a new strategic plan, which has many sensible elements, including freezing fibre upgrades and looking to use wholesale off-net.
More detail will likely be required to calm the financial markets, as well as improved operational performance, which may be tricky in the short term as pressures persist.
Related reports
Virgin Media O2: Hitting the nadir?
31 July 2026VMO2 suffered a dip in revenue growth in Q2, albeit mainly due to price rise phasing issues and the Daisy integration, with EBITDA growth actually improving.
There were some concerning signs however, with mobile net adds remaining stubbornly low. Full year 2026 guidance is still achievable, but a return to growth in 2027 is challenging.
Regulatory developments have been mixed, and VMO2 will have to be careful what it wishes for as regards the future competitive structure of the sector.
Virgin Media O2: Tough start to a tough year
8 May 2026VMO2’s broadband and mobile segments both worsened in Q1 to decline at 3–4%, with altnets hitting the former and an over-publicised price rise change hitting the latter.
Subscriber trends however improved on both, with the broadband base notably reaching near stability as altnet pressure gradually recedes.
2026 will still be a tough year for the company, with service revenue/EBITDA guidance of a 3–5% decline for both looking realistic, but momentum thereafter is likely to be much improved
Broadband market revenue for the ‘big four’ dipped to -2.5% in Q2, thanks to short-term seasonal factors and long-term altnet pressure.
The CMA decision on nexfibre-Netomnia is now not due until December, stalling much-needed further altnet consolidation, although CityFibre is looking to shortcut this with a capital raise.
Openreach has been curtailed by Ofcom in its ability to compete with altnets, but not with VMO2, which could lead to interesting dynamics should the deal go ahead.
VMO2/nexfibre-Netomnia: Deal dead? What next?
2 October 2026The CMA has provisionally blocked the VMO2/nexfibre-Netomnia transaction, primarily because of the network overlap, and it is hard to see a path to approval from here.
CityFibre is back in the driving seat to consolidate the altnets, with the pressure now on the retail altnets to secure deals earlier rather than later.
There are substantial silver linings for VMO2/nexfibre in the deal being refused, it is positive for Sky/VodafoneThree/TalkTalk in our view, and more neutral for BT/Openreach given the pluses and minuses.
Virgin Media O2: Hitting the nadir?
31 July 2026VMO2 suffered a dip in revenue growth in Q2, albeit mainly due to price rise phasing issues and the Daisy integration, with EBITDA growth actually improving.
There were some concerning signs however, with mobile net adds remaining stubbornly low. Full year 2026 guidance is still achievable, but a return to growth in 2027 is challenging.
Regulatory developments have been mixed, and VMO2 will have to be careful what it wishes for as regards the future competitive structure of the sector.
Virgin Media O2: Tough start to a tough year
8 May 2026VMO2’s broadband and mobile segments both worsened in Q1 to decline at 3–4%, with altnets hitting the former and an over-publicised price rise change hitting the latter.
Subscriber trends however improved on both, with the broadband base notably reaching near stability as altnet pressure gradually recedes.
2026 will still be a tough year for the company, with service revenue/EBITDA guidance of a 3–5% decline for both looking realistic, but momentum thereafter is likely to be much improvedBroadband market revenue for the ‘big four’ dipped to -2.5% in Q2, thanks to short-term seasonal factors and long-term altnet pressure.
The CMA decision on nexfibre-Netomnia is now not due until December, stalling much-needed further altnet consolidation, although CityFibre is looking to shortcut this with a capital raise.
Openreach has been curtailed by Ofcom in its ability to compete with altnets, but not with VMO2, which could lead to interesting dynamics should the deal go ahead.
VMO2/nexfibre-Netomnia: Deal dead? What next?
2 October 2026The CMA has provisionally blocked the VMO2/nexfibre-Netomnia transaction, primarily because of the network overlap, and it is hard to see a path to approval from here.
CityFibre is back in the driving seat to consolidate the altnets, with the pressure now on the retail altnets to secure deals earlier rather than later.
There are substantial silver linings for VMO2/nexfibre in the deal being refused, it is positive for Sky/VodafoneThree/TalkTalk in our view, and more neutral for BT/Openreach given the pluses and minuses.