Telefónica and Liberty Global weigh a €700 million adjustment in Virgin Media O2
The plan involves cutting staff and operating expenses and a reduction of 200 million euros in the dividend to control debt.
Telefónica and Liberty Global, the 50% owners of Virgin Media O2 (VMO2), are considering a plan to cut costs by around £600 million through job cuts and reduced operating and capital expenses. The plan aims to address investor concerns about the sustainability of VMO2's capital structure, which has a net debt of £22 billion. The company's debt has been under pressure, with bond prices falling, and its broadband customer base declined by 33,500 in the first half of the year.
Telefónica and Liberty Global are also exploring a possible reduction of €200 million in the annual dividend paid by VMO2.
Written by urgent.news from El Pais Economia's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
