Virgin Media O2 owners weigh measures to reduce debt, report says
July 30, 2026 12.58 Europe/London By Julian Clover


Virgin Media O2’s shareholders, Telefónica and Liberty Global, are considering a range of measures to reduce the UK operator’s £22 billion debt burden following a sharp sell-off in its bonds, according to a report in the Financial Times.

The newspaper said the two companies are discussing options including reducing Virgin Media O2’s expected £200 million shareholder dividend this year, lowering capital expenditure and cutting jobs. The discussions follow growing investor concern over the operator’s leverage and future cash generation.

The report said prices for some of Virgin Media O2’s unsecured bonds have fallen sharply during July, reflecting increased market anxiety over the company’s financial position. Investors are also said to be assessing the impact of the planned acquisition of fibre operator Netomnia by Nexfibre, in which Liberty Global and Telefónica are investors, amid concerns over future infrastructure costs and cash flow.

Virgin Media O2 has been facing increasing competition in the UK broadband market from Openreach and a growing number of alternative fibre network providers. The company has reported continued investment in fibre expansion and mobile infrastructure while maintaining its full-year financial guidance.

Virgin Media O2 told Broadband TV News it had nothing to add, and pointed to recent investor calls.