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The owners of UK broadband, mobile and TV provider Virgin Media (O2), Telefónica and Liberty Global, are reportedly set to move forward with earlier proposals for a significant round of cost-cutting (i.e. a mix of job cuts and reducing capital expenditure) and are reportedly aiming to calm investors by cutting c.£600m.
As we reported in July 2026, the situation was partly triggered after the price of Virgin Media and O2’s c.£1.1bn of senior unsecured debt plummeted (at the time one $925mn bond fell as low as 57 cents on the dollar), which had also coincided with softer earnings (i.e. customer losses to rival networks) and the £2bn deal – supported by InfraVia Capital – to buy full fibre broadband altnet Netomnia, which squeezed free cash flow. The latter deal is currently going through a fast-tracked competition review (here).
In short, investors were growing increasingly concerned about VMO2’s ability to service its £22bn debt mountain, which inevitably ends up increase the risk associated with such debts (i.e. issuing new bonds and refinancing existing debt becomes more expensive and difficult). Reports at the time indicated that even VMO2’s safer senior secured bonds had also “fallen sharply”.