Virgin Media O2 has warned of falling sales and earnings in 2026 after reporting significant mobile customer losses following price hikes. The telecoms group lost 397,500 mobile customers on a net basis in 2025, with 164,800 of those losses occurring in the fourth quarter, largely attributed to O2 price increases.
The company announced in October that it would raise monthly prices for its 15.6 million mobile customers by £2.50 from spring 2026, up from a previously planned £1.80 increase. Broadband customers also declined, with a net loss of 138,400 in 2025, including 16,700 in the final quarter.
Annual results showed underlying earnings fell 0.4% to £3.9 billion, with a 2.4% drop in the fourth quarter. Excluding the recent deal with business-to-business provider Daisy, earnings rose 0.9% for the year but fell 1.3% in the last three months. The company expects steeper declines ahead, guiding for a 3% to 5% drop in underlying earnings and total service revenues, excluding the Daisy acquisition.
Chief executive Lutz Schuler said: “While we expect challenging market conditions to continue in 2026, we are well positioned to seize the right opportunities in each of our business areas.” The lower outlook reflects heightened promotional intensity and ongoing uncertainty in the consumer fixed market.
Separately, Liberty Global, Telefonica and InfraVia have jointly acquired fibre firm Substantial Group for £2 billion. The deal, which will expand Nexfibre’s coverage to eight million premises by 2027, has raised competition concerns. Simon Holden of CityFibre urged the CMA to examine the deal, warning it could reduce competition and force Netomnia customers back to Virgin Media O2.
