Virgin Media O2 reveals plans to open new London HQ as it dials in earnings of £10.36bn

Virgin Media 02 has said it is “confident” it will deliver its 2023 profit guidance, as the group posts strong revenues in its first few months of merging. 

For the year ending 2022, the broadband giant saw revenues of £10.36bn up slightly from the pro forma figure of £10.35bn the previous year. 

The group which formed in June 2021, also said it exceeded  30 per cent of its £540m synergies target which included completing the movement of all Virgin Mobile traffic onto its O2 network. 

It was also revealed that Virgin Mobile migrations to O2 plans will initiate in March 2023 and complete by the end of the year. 

On  its mobile offering, Virgin Media 02 said it issued 5G connectivity to some 1,600 towns and cities as well as boosting 4G capacity across 725,000 postcodes during 2022. 

The group also outlined plans to deliver 5G services to 50 per cent of the UK population in 2023.

“We have firm foundations in place, a clear strategy and a team that’s focused on building long-term commercial momentum and I’m confident we’ll deliver our 2023 guidance,” said Lutz Schüler – chief executive officer at Virgin Media 02. 

It comes as the group has also revealed plans to create a new ‘multi-million’ pound London headquarters in Paddington and close its existing sites in both Hammersmith and Slough. 

The group said that beyond a “very small” number of individuals based at the O2 retail store contained within the Slough office, employees will be able to continue with their current role at a new location. 

“The company is not looking to make any reduction in headcount as a result of the Slough office closure which is planned to take place in June,” Virgin Media 02 said. 

A lease for the new HQ building at Paddington Central’s 3 Sheldon Square has been agreed with developer, British Land. 

Patricia Cobian, Virgin Media O2’s chief financial officer said: “While we’re proud of our long history in Slough, with two incredible offices in Reading and London this investment is an important step in our integration plans that will better support our flexible working culture, while bringing the buzz back to the office and creating exciting new opportunities for our people to collaborate.”