...December 12, 2023 Customer spending rationalization weighed on VMED O2 UK Ltd. (VMED O2)'s core operating performance in 2023 but S&P Global Ratings anticipates a gradual recovery from 2024. We expect largely stable revenue in 2023 (excluding the impact of joint venture [JV] Nexfiber), with growth in the mobile segment offset by a decline in fixed. We expect mobile service revenue to expand about 3% for the next two to three years, supported by steady growth in the customer base and price increases that outpace inflation. VMED O2 continues to densify its 4G network and expand its 5G coverage, which is expected to reach 50% of the U.K.'s outdoor population by end of this year. In our opinion, expanding network coverage and customer-centric service offerings will steadily expand the mobile customer base over the next few years. VMED O2's fixed segment remains challenged despite growth in broadband customers, because many existing customers are looking to reduce spending at the end of the...
