VMED 02 - comment

Q422 numbers in line with our model. VMED 02 says that 30% of the £540m synergies have been achieved. Company EBITDA guidance for 2023 implies that around half of the improvement in the next 12 months will come from synergies instead of top-line growth. 

VMED 02 will be increasing prices by up to 17% in April so there may be some friction in customer numbers. However, the RPI+ formula being used is the same across the industry so isn’t unique. Trading down rather than breaking contracts is more likely. We will see this impact in Q2.