Virgin Media O2 reported a net increase in its total mobile connections for the full year 2025, overcoming significant customer losses in its retail segment. The UK telecommunications operator ended the year with 46.74 million total mobile connections, an increase from 45.70 million at the end of 2024. This growth was driven by strong performances in its wholesale and Internet of Things (IoT) divisions, which offset a decline in its direct consumer base.
The company faced substantial challenges in the final quarter of the year. It recorded 405,200 net mobile losses in Q4, comprising 164,800 contract and 240,400 prepaid customer departures. For the entire 2025 calendar year, total mobile net losses reached 935,500. Contract connections fell by 397,500, while prepaid connections dropped by 538,000.
Wholesale and IoT Drive Overall Growth
Despite the retail setbacks, expansion in other areas ensured the company’s overall connection count grew. Wholesale connections, which involve providing network services to other companies, rose to 10.43 million. This segment added 239,100 net new connections in Q4 and 382,400 across the full year.
IoT connections, used for machine-to-machine communication, saw even stronger growth. They climbed from 12.45 million to 13.88 million over the year. The IoT division added 321,400 connections in Q4 and 1.43 million across 2025.
As a result of these gains, Virgin Media O2’s total mobile connections still increased by 155,300 in the fourth quarter. The full-year increase stood at 879,200. Retail connections, which include both contract and prepaid customers, reached 36.31 million, up from 35.65 million. However, Q4 included 83,800 retail net losses, offset by 496,800 additions over the preceding three quarters.
Financial Performance and Market Reaction
The company’s financial metrics showed mixed results. Monthly consumer contract Average Revenue Per User (ARPU) was £17.31 in Q4, down slightly from £17.76 in Q3. The company stated that price rises implemented during the year were partly offset by higher customer churn, or turnover.
Total mobile revenue for the year declined by 1.9 percent year-on-year to £5.58 billion. This decrease was attributed to an 8.4 percent drop in low-margin handset revenue. Fourth-quarter mobile revenue was £1.42 billion, down 4.4 percent compared to the same period in 2024, again reflecting weaker handset sales.
Network Expansion and Executive Commentary
On infrastructure, Virgin Media O2 reported progress in its 5G rollout. The operator increased its outdoor 5G population coverage to 87 percent, a gain of 12 percentage points during 2025. The company also noted that its O2 network was named Europe’s most improved mobile network by independent testing firm Umlaut Connect.
Virgin Media O2 CEO Lutz Schüler commented on the annual results. “Against a tough market backdrop we met our full-year guidance,” Schüler said. “Our strategy of targeted investment of more than £2 billion in 2025 has delivered real results. While market conditions will remain challenging in 2026, we are well positioned to seize the right opportunities.”
Outlook for 2026
Looking ahead, the company anticipates continued market challenges in 2026. Its strategy will focus on leveraging its network investments and managing the balance between its growing wholesale and IoT businesses and its core retail mobile operations. The performance in the coming year will be closely watched to see if the trend of retail subscriber losses stabilizes and if revenue from new 5G services begins to offset declines in traditional handset sales.
Source: Mobile News
