Virgin Media O2 posted a £3.3 billion loss in 2023 after the firm added a huge goodwill impairment to its accounts amid rising debt costs and tighter cash flows.
The telecoms giant has more than £8 billion in loans which are pegged against central bank interest rate benchmarks such as SONIA. That has led to hundreds of millions in extra debt interest costs after interest rates increased by more than 5% over the past two years. The firm’s average borrowing cost is now 5.2%, up from 4.7% a year ago.
