Virgin Media O2 is investing millions to create a modern UK headquarters at Paddington Central, following a strategic review of its property portfolio. The move will lead to the consolidation of several southern England offices and deliver a purpose-built workspace designed for the company’s future needs.
As part of the reshaping of its estate, the company will close its Hammersmith and Slough sites by the end of next year. Staff will be brought together across the existing Reading office in Green Park and a new Paddington office, scheduled to open late next year. This will be Virgin Media O2’s first major new office space since the companies merged in June 2021.
Most employees affected by the Slough closure will be able to continue their roles from the new locations, with the exception of a very small number of people based at the O2 retail store housed within the Slough building. The Slough office closure is planned for June, and the company does not anticipate any headcount reductions as a result.
Virgin Media O2’s Reading office, opened in 2019, features contemporary facilities and an innovative layout. Its proximity to Paddington means employees can travel quickly between the two hubs, facilitating collaboration and flexibility.
A lease has been agreed for the new headquarters at 3 Sheldon Square, Paddington Central, with developer British Land. A bespoke fit-out is planned to begin later this year to tailor the space to the company’s needs.
The investment will create future-ready workspaces that support collaboration and evolving ways of working. The Paddington office is being designed to align with Virgin Media O2’s flexible working policies, integrating up-to-date technology and connectivity while providing a central, vibrant location for teams to meet in person.
The refurbished building will include environmentally conscious systems such as air source heat pumps, which are expected to cut operational energy demand by more than 40%. These measures form part of the organisation’s ESG commitments as set out in its Better Connections Plan.
Patricia Cobian, Virgin Media O2’s Chief Financial Officer, said the move supports the company’s integration and flexible working culture while revitalising the office experience and creating new collaboration opportunities for employees. She highlighted that the London HQ meets strict environmental standards and offers an accessible, central location close to the Reading hub, providing the capacity the business needs for future growth.
The announcement coincides with Virgin Media O2’s reporting of its 2022 financial results, covering the first full year since the formation of the business on 1 June 2021. The results show customer growth across fixed and mobile services in 2022, including 27,000 fixed net additions and 142,000 mobile contract net additions, and a growing converged customer base with 1.3 million customers now taking a Volt bundle.
In 2022 the company invested £2.1 billion in networks and services. Its fixed network now passes 16.1 million premises, expanded by 519,000 homes during the year. Additionally, Virgin Media O2’s 5G coverage has extended to over 1,600 towns and cities, and 4G capacity has been increased across 725,000 postcodes.
The business delivered on its 2022 guidance: Transaction Adjusted EBITDA, a measure of profitability, rose by 6.3% year-on-year, while revenue remained broadly flat compared with the prior year.
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