Virgin Media O2: Q2: Mixed results, Fixed soft, Mobile improves

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Virgin Media O2: Q2: Mixed results, Fixed soft, Mobile improves

J P M O R G A N Europe Credit Research

24 July 2026

Neutral

Virgin Media O2 VMED

Q2: Mixed results, Fixed soft, Mobile improves

Europe Corporate Credit -

Technology, Media &

Telecommunications

Andrew Webb AC

(44-20) 7134-0121

andrew.x.webb@jpmorgan.com

Virgin Media O2 reported mixed Q226 results this morning. All FY26 targets Alvaro Calero Fernandez

affirmed, with a notable deterioration in Fixed, partly offset by an (44-20) 7134-3000

improvement in Mobile. Revenues declined 7.9% y/y to £2,399m (JPMe alvaro.calerofernandez@jpmorgan.com

£2,446m), short of our expectations, on softer-than-expected Business (noting the Dihan D Udugampola, CFA

Daisy integration) and Consumer, where Fixed line disappointed. Consumer (44-20) 3493-6714

Broadband remains in focus, with -28k net subscriber additions and 4.6% decline dihan.udugampola@jpmorgan.com

J.P. Morgan Securities plc

in ARPUs. All FY26 guidance was affirmed, including revenues, which implies a

2H rebound and we note that 1H P&E additions are tracking the low end of the FY

range, issues which will likely be interrogated on the call this afternoon. With the 5y CDS 956bp, 9:30am, 24 July.

accelerated Phase 2 inquiry ongoing, we expect management will remain

circumspect in communicating developments in the fixed-line access market

(altnet competition). The targeted ~£200m distribution (a function of FCF

generation) remains unchanged, Virgin parents (Liberty Global and Telefonica)

may have earmarked these funds for the Netomnia transaction; the new CFO has

just recently joined and is unlikely to be in a position to make capital allocation

decisions at this stage. Net debt and leverage were stable q/q, ending the period at

~5.7x (JPMe 5.7x).