VMEDO2 - comment

A 1% rise in underlying revenue was due to additional mobile customers balancing reductions in the Consumer business. Customers are churning off or reducing their packages in response to price rises. We take comfort that the pace of customer losses has slowed to 3.8% from 4.8% in Q1. Picking through the reported EBITDA (and the bewildering array of adjustments, margins are lower, but EBITDA is higher as revenues have risen. Capex remains high at >45% of Transaction Adjusted EBITDA. 

Nexfibre: Liberty Global and Telefonica’s joint venture with InfraVia is building a competitor to BT Openreach. In March Virgin Media O2 was also rumoured to be bidding for Cityfibr,e which is also building a fibre network to compete with BT. Nothing more has been heard about this. Virgin Media O2 is the construction partner for Nexfibre and will be the anchor tenant for the new network. Nexfibre expects to complete construction by the end of 2026, but it did go live at the end of June.