Virgin Media O2: Network accelerates at record pace amid TalkTalk rumours

Virgin Media O2 has accelerated its fibre network built across the UK by a record amount in 2023, reaching 17m sites last year.

Virgin Media O2 has accelerated its fibre network built across the UK by a record amount in 2023 amid rumours it could swoop on Talktalk’s consumer division.

The telecoms giant said its fixed network reached 17m sites last year, with a record increase of 833,100 sites in 2023. It said its 5G network now covers half of the UK outdoor population.

Total revenue grew to £10.9bn in 2023, up 5.3 per cent from 2022 as it saw strong customer growth across fixed, broadband and mobile.

This year, VMO2 will pay shareholders a total of £850m, helped by the sale of British radio mast builder Cornerstone Telecommunications Infrastructure Limited (CTIL) last year.

But it is expecting “stable to declining revenue” and low to mid-single-digit decline in pre-tax earnings for 2024.

Lutz Schüler, chief executive of VMO2, said: “Looking ahead, the 2024 outlook will be impacted by incremental investment in key initiatives to drive future growth, including increased marketing across our rapidly expanding fixed footprint, new commercial initiatives and wider digital and IT efficiency programmes.”

The company is reportedly in the early stages of talks to buy the consumer division of internet provider TalkTalk. A larger deal for it to buy the whole of the smaller rival failed two years ago.