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LBTYA Liberty Global

Participants
Mike Fries Chief Executive Officer
Charlie Bracken Executive Vice President and Chief Financial Officer
Tom Mockridge Chief Executive Officer, Virgin Media
Ben Swinburne Morgan Stanley
Nick Lyall Societe Generale
Michael Bishop Goldman Sachs
Robert Grindle Deutsche Bank
Daniel Morris Barclays
Jeff Wlodarczak Pivotal Research Group
Vijay Jayant Evercore ISI
Matthew Harrigan Buckingham Research
James Ratzer New Street Research
Call transcript
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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Liberty Global Full Year 2017 Investor Call. This call and the associated webcast are the property of Liberty Global and any redistribution, retransmission or rebroadcast of this call or webcast in any form without the expressed written consent of Liberty Global is strictly prohibited. At this time all participants are in listen-only mode. Today's formal presentation materials can be found under the Investor Relations section of Liberty Global's website at www.libertyglobal.com. instructions given presentation, session. a formal today’s will for be question-and-answer After

now Liberty Global risks with these any obligation most recently of these include filings change are in call slides Safe a and is Commission, XX-K in or Today's and meaning and XXXX. that the Mike not February expectations results the disclaims call this its to note such future the presentation to Page forward-looking those Act Private Liberty the recorded is of As statements facts. could XX-Q investor statements XXXX, detailed of for any statement Company's conditions any with constitute and respect by I statements which its that date, may the Mr. offer on those information Also including as including securities Global's or being sale. Exchange These amended. expressed would include the any today's filed statements that prospects growth reminder, turn within to forward-looking forward-looking of its statements Harbor outlook regarding historical on forward-looking stated this and based. reflect These Securities X any an the update Securities details over from on nothing to in call like statements. statements. risks involve to Reform other Fries. of to Company's expectations implied differ the Forms certain materially actual XX, Litigation cause

Mike Fries

we’re today to achieved, importantly today with I and had we’re call. quarter fourth enjoy you what what of a other Charlie Along these our where more headed. upto a opportunities the to results share issues results senior everyone welcome, I’ll always And during financial lot think you to needed. who on of is host cover CFO, to we operator. the Q&A sense We and around always give with as but to does. we’ve Thanks, he I'm from call on who as our world, the review a joined ask Bracken, in by going our chime execs our

grab are slides those X, a lot We and going on slide later, handful there. of you out or now of for can from speak to a copy start there’s operating good today, lay a XXXX. hope where going data to of financial highlights I’m we on

and but from Here growth the perhaps foundation we perspective, value creation delivered success importantly shareholders. our not only some for laid solid more for long-term operating even sustainable

big by down represented in for losses hopefully country number years two XX% me but and moment, hand XX.X almost over that XXXX which break excludes that continued and and stats to I’m through some video every subscriber base XXX,XXX mobile, side fixed I’ll RGUs going increase did Now, improvement the year-over-year million you for ago. the do ending takeaway and better on net video year. a XXXX in voice RGUs run broadband improvement with than is expanded left in two-fold an as We we our were and a

point our it's So, platform, video the of subs go of retain ability is, our our clear number our from video view. XX.X% apps, directly of evolution our to our all to user our that the expansion, correlated year-over-year is interface, it’s working whatever footprint

our OCF And billion if fourth as and in quarter large full year fourth by period. one the market couple growth for by driven the quarter last year year in was Charlie X% would best into the in Switzerland revenue in X% fourth X.X% growth for exclude a here. we Media. will X.X% that's each or in and were quarter growth or full impacted was On was I years, financial full indicated the front, slides And $XX have growth $X.X two alone dig part and Virgin the our and that Switzerland full up X.X% at the OCF negatively. revenue we the quarter growth billion. that year And been time, rebased experienced revenue you of Rebased

of our CapEx, the hopefully you slides, billion year of new in full you was not revenue. normal into sustainable of that investing Our $X.X many that spend for long-term clear Again, capital down a purposely how that the few have This to are or you'll see growth. we us, PP&E question. for but XX.X% breaks level is it's asked

all so right capacity how first, broadband offense thing most and we’re do. to our across service customers we are smart platform into of choosing our the lean being doing about reasons we’re driving the and that’s important quality and are the that? think can we for spend, We capital I

quarter a our we’ve We’re projects, a The represent a build opportunistically reach expanding to talked the of new so clearly CapEx, of alone discretionary our about return new that’s about networks high projects build lot spend. that.

at growing deeper AI new We’re churn discretionary applications, investing in center processes, mobile which and we’re drives ensure that down things perhaps convergence, gig ARPU. we next and pace. rolling fixed drives and in we’re making gen most products the Wi-Fi Horizon and record advanced will NPS Then X And in better the like tools a routers boxes up. quarter analytics, every we’re digital the our digital investments we based customers like retaining importantly know call get

on believe we the we this continue you’ll demonstrate, commitment side creation to hand slide, to see what right shareholders. an that unwavering value for is on Finally,

more to play create America, most. that. We spin-off now of done might our business We’ve Latin this to an a us about talked the talked rebalancing all year apart Now trying national disconnect of in we’ve and be to XX equity what that with the management, obviously of the in last deep strategy. billion growth pure our of levered $X focus of billion support year. times Austria, wide is and our European Then platform, announced multiple sets model. our the to promised Austria balance each year helps to core Clearly, of the prudent We’ve with scale, be already sheet commitment on this $X mile sale the completed point. of so that owning a stock of billion is have, another inch values. about market $X and all buyback liquidity private The markets biggest between and make our which evidence public we of approach course lastly,

to three focused you. remain key that sound So, we should familiar goals strategic on

to First, scale footprint smart and rebalancing driving national both expansion.

our equity profitable shareholders, combination in innovation. product to the investing And our third and growth that's view. of customer Second, optimizing network pretty strong levered in returns benefit through then a

up lowest over which Virgin quarter news our net year, I’ll quarter. for almost in X, the that’s order of the into a the growth up bit and and split discounting first Showed was we've sequentially. start and more clearly retain fourth the quarter rental top we in modest half, XXXX us. growth. more for pretty ARPU second between results half ARPU we're also see XXX,XXX digging RGUs the was the subscriber you'll in beginning detail, in XX% Media half in added XXX,XXX fourth Germany to with strategic the the year that last slide left, group, generated again difference that. being, the with losses and in and disciplined Now the much equally second video good in with is adds, worked slightly about Switzerland fourth the address primary that higher The In

price as continued So, increase activities growth the discounting of XXXX. for a really well sets in our that result in us up

the which net contract. total the and got the is that’s churn added for analog XXX,XXX pretty we that right sequential and as of of top that adds churn were adds to the in quarter We of and voice a control second year. weighted for third things abnormal increased uptick the also slightly was fourth video But switch RGUs the typical. half off initiative fact. those on of see we’ve us, under But MDU second matter in impacted and You’ll half, impacted loss Germany, XX% which not both saw an by in and data the from

Telenet of all wholesale almost Telenet eastern sub largely sub provided for that, access. deal Belgium, we in left, our things in for Belgium period. in lost year, as Telenet what’s But Poland lose, across year, XXX,XXX central also reminder, build we half and that's new basically penetrated there On the in new about the their we related And adds that of and to in generated the of the XX% Europe, the turned a to RGUs as Orange every silver XX,XXX bottom a second that's footprint. we around and on subs, access regime all video happening. unit us each with open breakevens those lining, in is the RGUs economically added same

a some X,XXX you’ll the Lastly, like did services, half a with is want and intense bundles as the investing X point midst not that new year. popular business and in are the pretty a Switzerland, experienced in Austrian half in really have But in both fixed perspective. support our first we of from that and we second video to and market Swiss differences. last Holland net And some went in months the has the I mobile for to broadband. see we’re the from There smarter of of XX our signaled adds loss out And and business to Netherlands, signaling the Swiss been XX,XXX months, in fixed positive product. in transitioning big competition

largely operators four. time. And network. And is Swisscom has For and for an three a I been today, some there mobile starters, has think rational competitor only inferior not challenger there’s the

a in strong We’re the across cross position here footprint.

superfast interesting just and this Switzerland. the options have discussed. two-thirds our By a we that sub we doubled on of broadband free strategic of as top for network cash for us, high broadband have half we’ve base market. week reaches speeds We flow which very an presents And OCF margins, for the that way,

this plan we’re as you as we’ve and our highlighted drivers. three handful on a Go done Turning of to progress those slide key time-to-time, in in of from we’ve Liberty here year know slide, X

In to discounting certain increases growth, is with increases U.K. But our price across been countries. about pretty Switzerland. competition and largest this communicated top do I’ll other about Project of footprint the of Lighting source the including on the Germany, price already hand, Switzerland, able I’ll talk in much impacting ARPU pricing We Ireland other our our news have haven't in start big because talk also that left. good the an future slide included most But and of exception. is new initiative we without markets, year, on we’ve both on take the we’ve which a XXXX, especially, our build And successfully here growth drivers, minute. we announced as CEE arguably throughout in so four

X% for for nearly whole year-over-year, around up at the Switzerland. and flat was year were the company Virgin So, Media in as ARPU while a we down X%

and in has a up and Of growth ARPU to kind cover X%. as In we’re minute. of course, a Germany U.K. indicated and is both corner, turned Belgium, I’ll back that I’ve

we for us spot So, a mix on. Certainly, has been there, story work bright one continue but a to BXB.

some On right, you the top see, numbers there. can

year here XX% quarter. We top hit and the have They grew this? there under BXB believe digit was as mark up XX% Belgium up line all, business. we in double of the Two our Belgium BXB fourth to growth completed market quick each XX% just back BXB growth of one that’s to and now last XX% Telenet mature across continue mainly and revenue. represent First MVNO the generate and of What’s an SME, customer are with mobile and in other year, on which together year driving SME. XX% the SOHO SOHO in Europe. and respectively share And XX% upside our observations growth still the the most added was revenue for of businesses Germany

we’re usually that on as go to encouraging some really both. but also back battling turning and are there and forth trends Now mobile, I’ll some headwinds

down year, every full the was For but the X%, improved quarter. revenue top line

and XX%, central of we and of revenue is in in really, organic. Mobile from and X% last growth Germany, year. MVNOs, the XX% Europe revenue for consolidated a X% low up Switzerland, have in quarter the XX% to negative first and we’re fourth course positive mobile from while X%, So, were respectively Virgin X% that’s quarter. and down a eastern Telenet, in in really our revenue base account and just launched where in a around which

bundle and in Virgin over XX% have competition subs, both better new a Virgin U.K. the they of and impacted headwinds, a we’ve markets discussed. postpaid and While back in drivers fourth MVNO the control as higher added with ARPU positive by of was continued which on with to sales usage, XG, some economics. both quarter out greater the EE, pricing strong handset and have revenue transition provides XXXX. But and regulatory will really bundling benefit from full up

of While generate Telenet subs is base the will complete share synergies all platform to lion that the period. migration and going the mobile in to

cases. both in news good So,

in Finally, particularly we flat our on on that that finished another proud bottom executed steady or example, fact our products fact a savings can I'm in not central right, indirect in the these you support see costs marketing. support very highlight and we set around largely are product plan were the year out both that the that back and of activity as call through all we most scale all an and $X.X billion operating cost and the functions, ourselves. efficiency central those out despite the the and invested year And with based for was commercial in of of of customer's functions at terms build efficiencies if T&I that’s new model. well box

slide is which operating the and U.K. is where note. positive valuable better XXXX as in very signs, MVNO to contributing to ended committed we you So, which next deals. strong migrate operating Virgin the our continue as new to it ARPU largest efficiencies talk on truly to most and BXB a some build, to about transition services and recap updates committed, all a our showing And great converged growth. is business more we're are especially for ever Media, and than Mobile perhaps some to growth cost we

her Dana, enough company see for after her decades I good the well get be Listen, who are with to let the to the First years two her all XX about Dana at will I’ve of state. can't home nearly Comcast and announcement the think and is family things disappointed motivation; great me U.S., about address who Comcast excited certainly I worked to Strong March. Dana, joining say and We outside we're understand leave. a Dana back end

the asked an new tools her Over and everything fantastic we've need marketing team year, processes aggressive grow rollout executives. at built the base important ARPU we Virgin Media. we’re most this a and implemented think is to of done She's products. I of and last she's of seeing the product and They’ve

revenue X% in in slide work OCF X.X% the has the seven, on some the ground see can step the clip You time, And range to the from X% of nine the work adding X% postpaid on the a the some from team team’s good which At quarter. in subs shows done QX. increasing at mobile top left X% QX in first up of through to QX. to record growth months in same over terrific the fourth

preparing mobile this Apple the on later In rollout way, FMC year. for Virgin fact, churn market of also by only driving products offers. and we full They’re converged doubled down of products our that share XG in and SIM with also quarter a

add our my routers out in XXX And network being update really product improvement broadband just boxes congestion on addressed, So, fiber-based think Virgin where end program Virgin’s and product Project continued in a rolled VX nationwide. when pace. Lightning, rolled few we in build at meg We X out record position. a a gig where out with U.K. being quick strong in been rolled We the market Wi-Fi remarks quality, I’ll has is a new added you

the especially It's XX of we front. from we and I’m proud the months progress on ago. course where XX made really that XXXX, day months night the of to were First through all, of construction

have every and over of it team build the control and that pace see cost chart we leadership working greater much from the you rate first story at authorities. planning a to on local top right, best. the And level on managing the really have the with the to can We contractors tells

marketing, can including it year, X released from you each homes million and up in built see. in that’s now quarter was prior ramping XXXX the and have for We XX% XXX,XXX as

say like XXXX, guidance general it's we We’re think providing pace. to this not I fair that but for

As we the project year go X still into homes we're million targeting overall timeframe. and this through

to we right, Project key that Our in the see trending confidence is KPIs fact well of part most. can continue our that goal term that due the customer matter on bottom longer in And you to Lighting the on no perform penetration are rates small towards XX%.

base GBPXXX mark. Also XX% ARPU is to ARPU overall date We’re after build generally premise hitting months. with line month. per discounts, importantly, XX around around been after XX% currently cost GBPXX our and And cost year steady per have after build in one

in You we're but timing and it CapEx, that going depending is the that homes or yeah, it we’ve where denominator of some overstated premise that include forward, it whether released on [ph] leaves GBPXXX vary a so bit will of startup greenfield arguably course the number also infill where on don't know that [ph] leaves number of that on with marketing variance the of of built, we backwards. remember looking because depending having for mark, but another doing depending also XX%

of from asked an many returns of Lightning. Now you project have example for

high look you On data, the data, which give should familiar bottom to left, some we some you. level

Now for X simply already and in market the marketing. the another assumes already U.K. million we never to this released home constructed premises build and

in between million Now the for ought use generate should annual hit at do cohort. math, with XX% aligns XX% OCF you the generate range. OCF GBPXXX a pounds When the base to revenue. million generate XX% IRRs that we an to contribution penetration margin of of on XX% of would to assuming existing GBPXXX this unlevered we with XX% number the the range conservative those million X GBPXX, If to and ARPU about

while with levels, OCF profile tomorrow infrastructure, will communities in really project. new is increase. Spending today as note expect see so short-term we what start fiber the in to a as over reservoir and for return out rising, XXXX. we're So, the I that's forth we build this growth that spending see you That's that and we growth it's CapEx to of in of this think to our CapEx the nature seeing important to just normalized base time kick

or going has any one on want about specifically comment before some probably may clear. not Charlie. thing but make over Now And even seeing to There I'm not as some and we do of press you’re make that, to announcements last I’ll Europe. handing it may one point been going speculation forward to in what I

We are one not more noted contrary. see a becoming are where the markets champion. In national than committed world, in, scale “dismantling” our to paper as we business ever European matters and core today's pathway to the quite a we we’re competitive

know Now and track that. that example best; is do we record sale and who allows business Austria latest investors the been of of have the strategy consistent time-to-time. pretty a with good of rebalancing really invest, this what that innovate, And UPC build grow. to on and focus would scale us accretively we Those Austria our just from have compete

over to you. Charlie So,

Charlie Bracken

I a Mike and on Thanks hello our provide finally, some and our property equipment year on performance look then additions. full recap financial Then everyone. level color will XXXX I conclude our and guidance targets. with and high will into segment results

So, our on full slide XX we financials. now, year I’m where present

billion top will next grew the quarterly This which rebased We the I see my upper our growth included two on best to X.X% some key Now in on QX, of can last years. performance, our slide. of into by left. which result our was drivers growth year. get $XX X% line in you in terms revenue

discipline will of that's On and with to billion a growth to key on the our a X.X% rebase cost OCF be I continuing elaborate $X point front, later. driver we regenerated

$X.X year as additions increased Our or XXXX in on billion and XX.X% revenue last more to $X that minute compared P&E too. of to billion a

for both terms new year-over-year main and next increased absolute build percentage However, increases in the our CPE the were revenue. commitment as our of to generation a drivers activity and

our at stood of X.X left bottom a at From flow the Adjusted gross blended respectively that swap while the times $XX made December XXXX nearly billion XXXX. borrowing our of slide. to leverage to $X.X and and extended progress cash during We perspective, tenant refinancings to eight X.X net full great X.X%. consolidated ratio years, reduced in adjusted times debt was free Moving with our XXst. cost was billion average

total $XXX of $X year billion of stock repurchased million our full QX, buybacks. Finally, our in bringing we to

segment Turning reporting. to slide XX, our in

On left, and show the for overall company including full the quarter far we results. year both growth rebased fourth or our

Moving our handset supported full of operations Media, strongest year the the of in to periods, our Virgin in in performance by X.X% a our solid posted QX business in sales, U.K. in part QX Ireland result respectively. in improvement two X.X%, The and growth the as an rebased revenue right, years, BXB. driven as, was large growth well by quarterly mobile

expected price full QX, grew effect. Unitymedia Media's X.X%. X% ARPU from Virgin As as took OCF increase rebased for year, revenue while XXXX the sequentially growth rebased QX, in November of X.X% the delivered grew

and Now each in quarter in signal June around the million carriage fourth third of our lost we in analog fees quarters. switched that mind of off $X and bear

headwind and by mainly X.X% will from mobile large revenue year own a migration rebased have XXXX. to results increased first growth legacy network. full strong MVNO headwinds. part customers Telenet’s In Belgium, We by posted QX in the continued of BXB offset our benefiting driven half of XXXX, the and X% post OCF Telenet XXXX, of rebased in during similar mobile

that revenue and each we approximately full XX fees of in were programming results cable we The quarter from reported million as, of our increased related fourth last second OCF the rebased After largely attached Switzerland content to periods. QX to September explained received in was rebased costs as and Moving costs in Swiss million year, francs the Swiss operators, the pressures. considering QX X% francs XX half well by the relatively of and flat MySports contraction competitive in MySports other launch distribution XXXX. Austria, year in

QX timing associated the and due with XX MySports And Swiss around net call, periods, higher XXXX. also earnings Swiss the than of last our on the QX will francs mentioned noting that million hockey to to schedule. we ice QX expenses worth expect the we it's in impacts QX and be the be As primarily

taking of Our eastern by continue line segment P&E slide reflected XX, in vast this build been key capital XXXX in intensity. ourselves Rounding majority intensity. region. rebased capital increased our build expenditures. of On products our More reducing capital into at in by in network with for to operations extensive slide while in OCF I European growing finally the into back, the OCF additions, with and tracking a has that and our level able year, new our XXXX, for a new and been period. we full been system, our has expenses customer pursuing have color we operational the we Switzerland. dynamic bit When levered strategy the out on stream central the the equity point by step our provide and supposedly activities pleased have somewhat, we outlier base revenue experience Prior increasingly on to we XX% our on our which and segments, CPE, we the our executing expansion investing full corporate cost a five growth intensity, when and an over program our would which upgrades, approximately and shifted our to pretty as lower excuse The X% part the at results were full at this high we’re posted business across recently enablers new a our address being capacity, began base, level XX.X% the Then year categorized efforts clearly performance. the XXXX. with year central build buckets; ramping more without main is is look

XX% spend As represented the new upgrades you nearly of and table, and can by see increased X% in revenue. XXXX build on from

the Similarly, choosing broadband we ensure line increasing volumes, baseline will in our This infrastructure. that of and spend to CPE As we’ve demand OCF with platforms. customers our consumption. XX% and next box allows first experience networks new to build We product ever our both us a advanced enablers, to TV continue year. to will increase do Today residential and continue of Wi-Fi investments which Growth generation and begin certain investments to in core for first partly XX% is to our to proactively Then over Mike detail box of million more new CPE. our invest connectivity. decision in in had future reservoir spend, of aggressively upgrade year-over-year. BXB build equipment class proactively contributions where illustrated improve or develop related $XXX this increased the robust XX% expected our of of to meet broadband a believe the an basis XXXX. functionality our In been table, was enhanced also capital accelerate to meaningful connect earlier, a capacity reflects our suite customers. customer our and our over reliability program next customers finally in set-top we spent video establishing data is on premise we but areas a The that category category increase products for and modest growth have of we penetration we

growth So, summarize, focused in up capital growth build sales. meaningful would things based on to this we and subscriber, in indirect growth. across costs are strong or top year we remain new cost growth And fall conclusion, and expect to Slide a see XXXX. from revenue we we line beyond. perspective, our We committed much to have ARPU XX% XX achieve double a on to digit delivered program keeping low into invest OCF more once new equipment expect wraps and subsides contribution of classifications. BXB see we continue to continue continued But expect promise and all builds to heavily and property continued intensity of back P&E the to a our to and flat. our

and will risks value, debt, tenure ample balance we very as by recently the Mike out evidenced attractive multiple. continue we maintain term current mentioned, Austria Our both create will where EPC of we of average all scenarios rate most our interest can a sale analyze shareholder at hedge And sheet, quantity. the and

over $X over for moving we've guidance, of XXXX spend we a of done, billion new and build it growth additions, on in XXXX. $X.X would to generate on rebased $X.X projects, finally free billion and So, billion like and adjusted our another to upgrade operator, cash flow And year, $X.X equity repurchase our questions. around we expect including to this equipment OCF property X% to billion turn

Operator

[Operator Instructions] first Ben And with our from question Stanley. Swinburne we’ll Morgan take

Ben Swinburne

you've asset be you, for Thank Austria cash Mike for talk build about Can your and like national Could you any I you assets the guys. about, But idea the just of in tax what how tax past. remind if Switzerland asset that general, you don’t what your in for maybe sale consistent you in those think efficiently, talk cannot Charlie. you about look through wanting of a cash. good sell portfolio? the in just to context a Germany paths champion know and can those us sort that's example. little markets. leakage talked tax maybe tax both with and in sales, talked to to be about in particularly efficient your on ability you’re as markets assets to with Related guys said or you for and just morning

Mike Fries

to going time have as may think an XX% or any market I business low we was we cautious know if that what be slightly doing. broadband may any – to an a and exciting and Look not you on had great great some that through I Germany that there, we ex or I’m steadily that growth because in think it’s draw that's the a specifically optionality been We investment, Ben. be conclusion. roughly know be thanks at not pretty a Austria you and path but a you champion. a economic for not in then that look suggesting there’s basis. us we're team. through to particular be with national have stats example, But And reach particular and for that MVNO great, we have It's was grow we management here Sure, had a to and We becoming run quite felt good, been a market. business. deal every competitive mobile continue continues doing and better market was market go recently. marketplace extremely growth, had a a but to a we addressing instance you tough company comb home

market. greater we particular two-thirds grow a that be us. want I almost awkward it's particular Ben, of for ought I’ve XX% But – with there, we on we that Switzerland, any whatever in at the don't or I have for specific market So, before to think reach about the to options. do instance said bit market it's coming look In up

Holland. which don't on as Charlie got people the mentioned today took I to is some turnaround just a screaming didn't challenges, track, really that’s results. you We year, Swiss I even a that. in some for It's a my think it to probably become that mean, I - we I continue that player a us for a next and/or particular are know in it's market issues in market, there us three fixed in It just there rationalization Holland a and will remarks. get level. couple, years We've market consolidate expect Vodafone the to the some marketplace. at look Ziggo have get Certainly on mentioned options in rapid rapid the larger in business to want turnaround as back

and So, in question taxes. the as this I'm your hit context. I want I think we're to that. you should Charlie, dance around about trying thoughtful being to opportunistic

Charlie Bracken

substantial asset. have a very we Yeah, tax

Ben Swinburne

Fair enough. enough. that's Okay,

Mike Fries

that, more in be have may specific I'll he I think cut off. sorry Yeah,

structure, would I’ll imagine You of have would a know past that. you tax plan clearly we tax it eventualities many leave all the to our I time we Ben, as for year respect for say at the with and long-term we We are all plan businesses. our very evaluating efficient and that

that. You’ll see to what we by mean

Operator

We’ll take from question Nick our Societe Lyall next Generale. with

Nick Lyall

there everybody. Hello,

possible. please couple a Just if

just the fixed sharply fixed overall so with question quite looking in Telenet results on one convinced in at mobile business of maybe very But and just is I'm please. terms on up mix very the quickly, anything the down little I’ve and Vodafone of U.K. still missed or is X.X% the Ziggo. a little the was Ziggo confused Secondly, a at why people first Telenet convergence. a a business? also mobile, shift the sound bringing year-on-year ARPU discounts being far there the down Just there in mixed you’re also and you it on into like Vodafone charm really bit being OCF

convinced missing. performance may businesses something why the Again, the So, so is you be so given are you. I far? Thank there of

Mike Fries

Sure. you’re however managing in end started, address churn increase price of first quarter ARPU want on, year, heavy to remember the the the to some might we the last related of think year. in though, I Tom you through when as really question the towards you’ll principle,

have the first at this that churn year-over-year in year-end, around what quarter's result is reflected so measuring And wouldn't the experience and business. is which discounting

we’ve this rate like the year fourth last XX%. talked year was a year about, it was as quarter about know discount of or may you in ago As XX% our average or

I quarter, the focused saw probably mostly And book in sales around a became around maintain about the we've in in and adds. back but fourth ARPU front fourth disciplined and little line. quarter churn as were was been down just net also bit we better how you particularly disciplined the what ARPU more and So, actually the that's being the book we think

that. I it's think numbers. see mentioned we growth; two year-over-year measuring But just I when those had So, a sequential you're you'll matter that continue ARPU think to of Charlie

at that all add Tom. want You to to

Tom Mockridge

ago, better. Constantine deck, of year year-on-year increase rise over year this quarter’s it's just in were half actually and we the feel there of as there’s first so that I’d QX we remember high. going to coming had rather we always estimate pretty the on mentioned than we price this Mike’s a sat period. But because managed you, a off In decline that it difference particular maybe the last year said only QX in nominal rises, that price we've were stated. We see bit a Thank significantly as much was period a

how VX we're ago. we structured this has whole boxes through action as about XX range about of and a about better issue to than base better were through are Mike QX performing mentioned, routers, months we an being better approach Overall, about management. that really more period shape it’s the discounting that deployed So, significantly in

Nick Lyall

confidence I'm it right. improvement it particular NPS churn. have to question, we gives Vodafone sort and referring of what particularly in depends Mobile you're In Ziggo seen on and Telenet in MVNO, the us measuring,

bundle trend partly competitors, as customers should want long-term. a If you're your and us. MVNO it are also for revenues products as of In be a the challenger in NPS has because growing mobile. us spikes, mostly markets incumbent because converging. the case the services there also involved, we’re to Holland and XX%, some combine our enter mobile know and we and we more have really you we're which churn There's with telcos more markets where as it XX% fixed fixed of is across defense we and encouraging from mobile, that case XX%, the in customers for which offensive for declines, there well, example, Remember Europe, has it's as

mobile in But the fixed want market, have more others, we we to the be to than that that it It we market are level. of inevitable want some some end to in to varies by be converged in convergence in is be profitably. knowing So, far and on business responsive course.

improving some base. sorts we in. which that Belgium, both in There WIGO metrics that all about synergies market have and do headlines we've in mobile the just with about are with small the relatively I business. of today to are endlessly across as and mobile them there things every we’re We've seen, in tailwinds ability think talked like is clearly

“in MVNO So, I’ve being former the either economics opportunity an latter fixed it describe know the that us with look an or reasonably we coming makes coming over out MNO to of massive mobile through as that's a transition” synergies, the long-term space in lot described being how it. be we a for we the challenger, good sense with so relationship, the and

Operator

take Sachs. Goldman our We'll with question next Michael Bishop from

Michael Bishop

there. hi Yes,

me. for quick questions two Just

points, picking it at just certainly the on from up it another sales. $X.X Firstly, CapEx billion out able way the take new about build presentation, implies to CapEx out XX% the look I on the pointed to and I'm

have that. a could So, that’s going sort there big growth exceptional was given OCF call of on see to X% we anything rate further XX%. pretty actually of debate And about whether your Then a else secondly, Clearly, as similar for the the the one-off the is wondering guidance level U.K. year. for towards be is I underlying in that. full Telenet future driver well. We

shake was wondering in really just in the your Thanks XXXX, didn't thinking much. could given Lightning us all if contribution better help I where from So, you're you contributed XXXX. understand comments at will Project out that very

Mike Fries

on. the [indiscernible] great. think and one add Yeah, just CapEx back thing I'll then be yeah, on point, should Charlie I

this year I So, and mean, thing would consider last CapEx. happening normalized that would should I add CapEx, what is happen year and contributes we both one to beyond incremental

box what we're the out. like VX roll things the with U.K. in Our doing

we're the year, this So, more end year. or last we towards of I budgeting had X think million million $X.X

video with our well upgraded as box fast So, our EO's with XK box. platform, we or connect are both proactively super our as,

CPE new routers customers. provide of X powerful So, Both are home. that in grow gig speed to the and those retain really us for of the tools sorts customers

somebody's we little new that's So, to we leaning say points that do put I build that capital than we a into was as to the new house, of business beyond were good CPE thing we that's down get exclude kind started trend where we would in like NPS home. to kind XXs, indicated are were that these and in view up of on My one all leaning Charlie? might more We otherwise. color XX the Any into box that low the build. long-term when of a spend. are we that back is devices you before VX But other we if bit know

Charlie Bracken

a in investments which as, of Yeah, experience, sure, mobile some front-loaded a the Telenet that think the you, front-load phone is say, is things base, customer of which well investments, as in IT to explained I Darwin investment. I’m would but which investments I Project I network to is [ph]

The big in is product. numbers you saw as other

lot capital. good in that’s a products investing We’re of and money

can the so pay of We’re it to call SME, is enablers, putting a will the digitization think [indiscernible] back quite front-loaded the money experience, and driving which which serve that’s lot BXB, we a richly. customer bit very of we

is from CPE also I I the growth Mike But VX got as XX%, got wouldn’t said the new audience, new talk just spend build lot of, with do build this do about one-offs to a has like. this. it. boxes, to actually if you make of think we do as The it's said, also So, in you, year you part with which but I

But compared quite So, so access it’s clear. the is about not slide to new build the we’re networks investments. on talking

Mike Fries

point. Great

was market X you will On detailed have aggressively. we in as the homes around be costs providing that any the Lightning K., Lightning higher U. of guidance question not really the or U.K. now anecdotally materially the million say, we’re XXXX either scaling because startup of would except expect contribution in in some than the to sort XXXX through it to we're

at more I than process, a that better in XXXX should so be meaningful larger much, XXXX. think we're contribution efficient it

going not give specifics. We’re any you to

Tom Mockridge

just you I’ll that. some give on

achieve, sort of As Mike lose we that the [indiscernible], we faster at need we to want the some sort EBITDA obviously acquisition because costs. can go we pace, more of

to of in ability. guided generally that saying, we can, as in respects was the profitability we’ll there because want take, of grow what see will we year-on-year. some terms to act it just number big it as these you So, one accelerating how fast But impact he’s with

Operator

from question next Bank. Robert our take with Deutsche Grindle We’ll

Robert Grindle

Yeah, you. hi there, thank

the out there Lightning million operators guys But Obviously sharing? entrants of Or your Project Project and beyond how X market slow the in Lightning to you you feel either U.K. going. you. in In the it wonder are target. some of on even by other plan cost roll new there by ahead an help to game in I you incremental get have and be traction is Thank the U.K. obviously build question, of opportunity opportunity original to well leveraging homes retraced the and they'll off is the gaining you've the to an about fiber programs. terms of

Mike Fries

have a Tom three do coming We've good over what's start. happening I'll ground. head a let on years. simply been really I’ll correct. That's that the address now We on building you're X.X say really years question, for

exactly and responded build. We nailed aggressively And get that the how but have been of we build how on very that it know the it. challenges today through and what positively call, kind to efficiently very, wake to as costs, also all know those we've challenges. done We how of to feel market and it the to in

we have like feel do we a big So, start. head

the I activity of you partially the think begun much, also them haven't fiber describe strategic. necessarily as a political, most see in lot partially really tactical, projects since announcements, today of would I them partially not

might create So I around it it. to them efficient, have announcements are we’re don't the point push of inclination both we've rate we've the of we rest more got capital, we'll know return, comes to a capital. be these It's to or reduce you. that who looking whether got the and conviction we've know costs correctly know showing know will got some collaboration for others capital cooperation to out the when We shove. and the to conviction of lot you of see. We us the

out way project opportunities and that could to our feel make better. does it me much to it feel there well even So, like like be in does we front very are

add So, Tom, to you some color want to that.

Tom Mockridge

is averaging that got wet XXX pretty have today cruise thing we happen. and making there, out the I’d out of it a actually on people the day, this six moment, add only Yeah, drizzly

group learned core Rob the Evans Mike alluded to way, across maybe the lessons, As we’ve cooperation the with hard Global. that innovation of some and under technology Liberty

probably ability our we have net-net, much, compete execute. ourselves And as people to the and but reorganized see opportunity We that much other us. about BT, more really with are helps to confident

Operator

Barclays. Morris Daniel from question Next comes with

Daniel Morris

price market. you your with top if I Good looking to I’ve is that's in conversely XXXX also on XXXX taking quite versus for in and more at that wondered morning. be also terms follow-up. question, Germany the I bit well. can specifically a to just increases of to got down one Thanks a market goes a where as U.K. ability talk the take XXXX in obviously the could going smaller substantially more Maybe price mean, talk you

XXXX. direction I a think in actually maybe different we again is growth year-on-year than of bit see the ARPU travel could

take your about bit So do ability market of to generally? follow-up. a how Then in you Thanks. the I've a price got think

Mike Fries

sub mentioned In price to across every XXXX because kicking market. we're U.K. QX quarter timeframe. March my it pretty know did announced was range remarks, but I Really from necessarily X%, sort across in a generally across and we much every would they I mean, those pretty market much would intend increases market. as of in X%. in all again benefiting say or It execute first the price market, we've in one I price in Most Well, the either already second you April to wasn't XXXX, certainly that from of the increases every every only the it in every increase. to be X% and in to X% was

we're these So, markets. peers our in like not

large changing retaining a have to take have being I and materially, good better we do year today in it price U.K., ARPU as markets clearly ability to increases price and I segue the hit to impact that do an ago And the and tools, base. was job retain have the that's as churn the about think manage price you that increase to price we see those we incentives the good increases, discounting learned our want that I much a don't much we got now, and do that would of is can price once take year to ago really the doing process, for to where And you say been a feel of do have value of a right ultimately both right because people We right the the and the you've XXXX? as that hit like what over in optimizing especially better are increase question, customers. possible what a relationship job I that we and Tom, on both

Tom Mockridge

in issues structure. better all and were XX much operating the a better buyout team a to in you’ve position are clearly, new position the as Yeah, earlier, I and and with ago we’re we said than a a much I we think alluded new months

three thing the I come has it’s out and would where not price of from from forward driving point Another is pressures certainly rise, years, we a rights that's than through. our now a have through going us know I going point deal was give completed it nominal which potentially but is which to rights, just a football CPO view. of loss pass before the yet, higher cycle cost don't overall,

retain to us give an that rise, opportunity can of price So, we share actually outcome. a should take that where

Daniel Morris

Lightning much look very if that the I you’ve U.K. was price we ironically. the XXXX. answered tailwind second key looks That’s that like of isn't your of OCF mean, stable-ish actually in you're there's helpful think versus your mentioned color. successful a a that and and partially Germany the two Thanks. growth XXXX Charlie markets which I mechanically already if is smaller But a question, possibility tailwind know guidance big you kind half in

think was to trying you that. perhaps …. Is just I partly answered you get but stabilized to growth anything how I So, year understand a

Mike Fries

a I'll include can on decide would the around guidance. give range that is. bit you range, X% what color Clearly, we’re saying a you the more if

have that range. closer to XXXX Our full would year in no been results lower end of

of believe there’s good we’re very at we the chance above range. obviously, that midpoint So, a or

we XXXX one and would in in I so is to being see headwinds cautious trend our up. our there are But we are because Swiss And also particular you for that suggest the headwind is business market.

As ago, I Switzerland. we don't turnaround massive a moments indicated anticipate just in

investment and in of areas cost the business. sports a phase that of have We we're in number

So, we're conservative there. being

If fourth X% results higher at we you quarter. the took out Switzerland in would or been XXXX, our in of have

we aggregate transparent we going out but our but we've the So, that understand Romania not XX necessarily so But something are moving about past member to business. business, we as sometimes cold, it somebody in the impact we headwinds they want overall everything results. to that. there of be a neighbor the Holland want aggregate our those was It's And be is some parts headwinds. be always transparent catches of or the clearly countries as reflective to with had whether of

Operator

We’ll Wlodarczak Group. with take our next Research Pivotal question from Jeff

Jeff Wlodarczak

assume the aggressive with First then to these quarter motion that's on despite versus churn this Is U.K. result Lighting U.K., to XXXX net fair benefit the RGU be follow. a of Then RGU new you that backing strategies. activity. assume trends continue probably better and off quality XXXX. customer to going is you of none much have lowering higher related price of although it Project in how And obviously ARPU

Mike Fries

a sales Jeff, sales average other color The quarter discount the down we ago. say a let, also I number below as about bit ago a disciplined a was fourth around thing a indicated quite and I’ll the it as would and little year discounting expenditures discount was kind But Tom really was function just of the explains that here. meaningfully careful again things, our and in bit of were to you well. fourth I earlier compared year down would marketing year-over-year as So, of churn say provide I it of was now, but Well, some was quarter discipline were

I that necessarily the moment a in it applied almost across And fourth to just what all believe So, about business as that and overall will we're see is suggest ago, I of personally I XXXX. And that would we with said agree trending. U.K. to and how metrics. don't consistent Tom trending indication an you the well, how quarter

Jeff Wlodarczak

that's then to own that And compared different comment U.K. moved things interesting. if network. might Mike, Chile enough. out say on on experience and Fair with than Thanks. your something speculation. in In can How today press XG be the your you building are you

Mike Fries

as optionality, I spend I see we know a and build network did light. as I it some all the at where opposed Well, doing been it look to that be at be would looking the we extent you that us in yeah that competitive say that, something would in in wouldn't U.K. to have don't we there rumors to really to looking Chile simply capital strategic around would that were more of

Operator

take Vijay we’ll question Jayant. next from our And

Vijay Jayant

the driving sort of sort some focused guys you're I making high lot give think Can investments about you ARPU. sense so a would on us sort see are these and really more way, aggregate how know of see. see of you advantages we speeds. boxes, you that with of CapEx because it keep the Michael of fast ARPU don't talking on end you ROIs And the sort have right broadband on numbers we look are you when the in developing you

Any any great. question pay So, a about there's obviously because these you color could customers up level share experience for that will at the broadly. will advanced unit services be

Mike Fries

a high build our the Yeah, slides upgrade. on in know part that showed new well say I'll and return very And is unlevered that you we we a largest as the of increased capital is, that do course, profile of basis.

return is it investment we're be return may highest the it today. making we're highest So, making, investment the

about vast gauntlet on through come describing here a the Charlie's capital ensure team us. that constantly and a of that's talking and to and we're of of acceptable rigorously So, examined is majority evaluated rate this incremental there's return must to it

happy take to connect customer. boxes, know not VX piece is are customers roll high on that. that So, out. And when goes focused a about might indiscriminate. we that NPS be say customer profitable ARPU us. a down generate churn that those of we the It's hopefully or spikes and you boxes we're some We that how simply in generally for capital careful related comfort incremental I’ll The smaller

reduction we maybe should I'm smart that. and that. more to any maybe But we financially would if we if aren’t, you economics you if going that's specific not be that just weren't are with to around But that's seeing suggest NPS share anecdotal we we that backing capital. detailed seeing not, the than off an opposite intuitively, So, interim weren't product and seeing spike,

Vijay Jayant

X.X that is returns? update generating faster excess on any And across DOCSIS also the rollout just footprint, on speeds,

Mike Fries

which at the and the mean, you consumption at on XX% been rate you return look to pace you XX% our spend, a historically whenever speaking, the there that or higher increasing us correlation rate if Generally Well, we capacity broadband XX%, speeds deliver are and have paying possible say XX% been increasing are speed end consumption. to which has the between is know at customers more.

that in historically. that If in superior competing you has look the us instances incumbents for worked staying at we're most ,which incumbents and with to the business is model

say capacity we to going In spend terms I to on capacity of to very there too. near here, have call I’m speeds we're you DOCSIS that of that down and our do you X.X, if relation terms we way darn the entire On all the to breaking optimizing spend footprint gigabit having consumption. look at X.X. And return, not always that usage exact in the in ready that and for mean, with rigorously are

ready. about we’re I last reported XX%, think XX% we you

incur I will ready X.X that The expenditure is to XX% has road been material. network X.X down to not only we’ll modems. And bring think year. the really new some-odd the this cost grow up that for at

possible. speeds in roll your the out course, do us we’ll the roll ready X.X won't pay and we of to services. most more we'll do that and indiscriminately, it to that just economic Of higher out better when point, for the that we'll And way we're customers

Operator

from And Research. Buckingham Matthew question with we’ll take our Harrigan next

Matthew Harrigan

fair about there, growth have Europe. or European just base ago really How for curious, capture the basically Facebook, the you out interesting has context see that to cetera. really do [ph] really telecoms was even that macroeconomic about economy? digital months from the could Aetna framework. economy time the profits few emerging allocated and the of I you digital consultancy being you. so you a your are study Thank more come et your of unit in At RCC you didn't so a in talk field numbers little new talking of same that most over the as said share moving your accelerate the Google

Mike Fries

know framework us. favorable you really And consumer's the benefiting and innovate as and been rewarding, in been who for those the the many the think. investment challenger to over we if and would quickly Europe I allowing it's is say said last decade Well, consolidation times very I think and beneficiary stimulating invest it's you evolving, know markets. in The I

So We’ve interesting moment years inflection It's a have talked favorable. an last here. very point. XX publicly. the interesting about been in this We're

get that European instinct power. investment, it'll view this advance that in and that saying like going businesses. and define doing return have that regulators of employment commission was as taxes should particular the are political most fairness a feel not sometime, way it ensuring that I'm looking to are in a significant to You principle. some terms in about resolution that they're the is more we're more highlighted implementation rational The discourage platforms swayed already not too of how I'm kind it's simply there's actors you plan. new as something my has which control national of There in to in argue contribution I one And and winds wants not be it's summer healthy suggesting they're any to their incenting about. for good as, concerned would that evolve. both balanced that we to over dominance, in investment, other, Union ecosystem. any of have occurs. particular, there's much have this ensure they is It'll all be scrambling healthy maybe you the of to in right view that have to a framework not disrupt about it around before or be outcome the well real rate existing I the and how for probably as And the what bit all brewing it's of opinion discourage and to there's to competition, is encouraging business. it going exactly is My who'd players investment to a even be market ensure XXXX market summer the going a before part, digital

as and market the suspect got We've it will work. case continue historically I our has do to principle I rational. to so. think But reasonable European to making the be been peers. do keep our in have We

Matthew Harrigan

little blue to – the and you numbers even a your RCC know it I to small business. a of Do mention, integral the [ph] mean I And sky, would aspects reaction numbers that, percentage be because have like you IoT and personal report there's absolutely

Mike Fries

But good another, point. yeah very that's it's a

I it to evolves and market. going It’s benefit it'll take think there as players in will be IoT time. all some business the

coverage. business lot require bandwidth the the a are low of mobile capacity, applications of ubiquitous will clearly in applications you're lot but If be that require don't that a

having developed. to to these for days, early also prevalent application IoT but that becomes everybody fixed Roberts, as even space if Randall a largely early more and it's I think business. you're it's as going applications if to is us require days Its Vittorio markets ask anybody driven. positive in XG the we for applications and be huge bandwidth, you Brian enough more the Stephenson in throughout Those for fiber us, as advantage that's So, these do

So, think early we revenue and here's won't it be we're mean, to it I capital. it's it won't here's budgeting benefit we're say spending doesn't how from too mean how just and doesn't it. interesting

of XX clear be next the to might months folks. over XX to it's some think I that

Matthew Harrigan

Not in XXXX thanks budget, the Mike.

Operator

Ratzer Research. one with Street from New have We question final James

James Ratzer

very as you thank Yes, much indeed.

I quarter, But to about question, quarter. we X.X% – the also didn't year-on-year. So, yet discounting just mean, around weeks less the trends could U.K. back ARPU actually talked improve, just I in kind if to seem rise please. you ARPU you’ve Mike for think still last I of about the doing year-on-year of I I six had the the really wonder, come issue down in price know

on fundamental savvy go taking mix interested and in and – sorry push Mike through just to spin to just Is in be consume, more it due that getting going effect ahead. U.K. So, to something it's here. more maybe bit is what's tough happening just to there And more secondly ARPU a price down. sensitive

Mike Fries

No, you question. ask the go ahead and

James Ratzer

Vodafone but on a made Yeah, only. the mean, about it in U.K., the release clear the slightly press assets also it’s European different the on topic. discussions second I continental

your can you aren’t with part comment in interested at just if of Vodafone at assets why all, So, U.K. the be negotiations time? this

Mike Fries

maybe not on the second comment question, we're will, going. Well, they but I can't

travel when On ask the so to XX is I’ll and say December point main in, year. here the that’s the let's year-over-year, the jump first of XX Tom, you're the path you ignoring looking question, December to point at you main throughout

ARPU had recall last the the So, want erosion say. year we sequential as went didn't sequential. is its be from to last in QX as through for ARPU we ARPU QX looking talked The may quite you two bit. to growth, one, we year I are some isn't ARPU year-over-year want a and you look the think we call, important change. have had as I coming about which do Between and last would in – QX number at you some to sequential to most and challenges And and we important quarters that? where Tom, add certainly between point QX

Tom Mockridge

and the that. call had pressure have about where going point, this I’ll issue, much it's to to to organization discipline last around I come the we ourselves to have we when systems, reinforce months team We XXXX particular three time the just earnings Yeah, that and its prove think a better is year. you in QX we effectiveness

James Ratzer

or going sequential QX into year growths hopeful I ARPU should this of year say? be You’d more of next

Tom Mockridge

increase. that we say the to we price meant just certainly I'm I think, better don’t that a around much feel saying I that we are – organized have

frankly As better systems, we people, we have ARPU. order combination to in around have better the mentioned better time we took anything if QX in on defend And volume in that. a commitment

James Ratzer

just last the of from of consumers kind kind then the with see bites more at U.K. discounters any in climate the economic pressure question around seeing [indiscernible] of favor just having not who general You’re kind all.

Mike Fries

But Media, other less I think operators. an to for of broad that’s is some of it Virgin than issue the the in

of position is our rich essentially BT says the that's this that ARPU not We if product We market. are clearly avoid the anything product. discounted open operator And winding. sell. highest a that people heavily piece the because bottom, other That's the in down market

about our TiVo So, market the triple now think about in position most mainly to best being I box fastest, we best that. operator VX primary the think in provider support having effective router. play the Frankly,

we continue focus We’re trying as to harsh thing for business. a efforts positive ARPU the and on accretion

James Ratzer

Tom you Mike, very clear. right. All and thank

Mike Fries

joining everybody Thanks we all call. right appreciate Sure. the guys,

a went results our to it forward on bit. quarter to little you few first in over Sorry, just months. Look talking a

money for I work levered can, remain we optimizing in the and and said things Tom putting that into about we means Driving really you networks customer where money. talked scale on that right. products guys. smart profitable churns As upfront, And national growth focused our investing then few our equity

months. So, a we the concludes think that’s you XXXX we’ll year Thanks full strong and Liberty combination speak Global Ladies few to call. gentlemen, in this much. investor very Operator: and

website call relations As materials. a section a Liberty of reminder, can today's be in find replay the of a at you will of There, copy available investor also presentation the Global's www.libertyglobal.com.