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LBTYA Liberty Global

Participants
Mike Fries CEO
Charlie Bracken EVP and CFO
Thomas Mockridge CEO, Virgin Media
Andrea Salvato -
Nick Lyall Societe Generale
Vijay Jayant Evercore
James Ratzer New Street Research
David Wright Bank of America
Polo Tang UBS
Jeff Wlodarczak Pivotal Research Group
Carl Murdock-Smith Berenberg
Steve Malcolm Redburn
Ulrich Rathe Jefferies
Christian Fangmann HSBC
Call transcript
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Operator

Good afternoon ladies and gentlemen and thank you for standing. Welcome to Liberty Global's Full Year 2018 Results Investors 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 could be found under the Investor Relations section of Liberty Global's website at libertyglobal.com. instructions given presentation, and a formal session. answer today's will for be question After the the slides statement of X Page details statement. regarding Company's forward-looking harbor safe Today's growth the are Company's meaning with respect statements within Litigation forward-looking that outlook not Act any expectations presentation and other its Private and future Reform including fact. the and Securities the XXXX, of to may include prospects historical of statements information expressed to involve statements could risks implied differ materially statements. certain those results forward-looking These cause from that or these by actual risks the include XX-Q including recently those filings These detailed in Forms Securities its Global's Liberty filed and with amended. Commission, XX-K as and Exchange most conditions any statements to change expectations any on Global any of such the its obligation statement is which to disclaims any based. reflect these forward-looking in Liberty in update or like now Mr. the call turn to over would to I Mike Fries.

Mike Fries

your questions. time results you if begin Slide am as right to useful much the from certainly We actually And know haven’t a hello, which I then bit through thank late today. over prepared we hand call. right the remarks highlights. think but kickoff a X appreciate grab we’ll and the I’ll after you you I so and on the that our website you, get Europe chance, slides particularly allowed I All presentation do with to the I call for find understand you’ll to it. it’s now it you everyone. in take I’ll some walk Charlie we’ll get operator, joining where

cable of exit have XX view pretty deal moment, world-class for talk I’m XX sale not After just times CHFX.X transactions building the operating cash case the valuations to Swiss but more then have business markets or XX operating together transformational. cash decades keeping Eastern of to Vodafone, sure billion. of been of times business us XX Europe, of lens flow. Swiss regarding company the for of track, six times sale billion and aggregate about DTH which today and any course year's at of and between of represent growing in addresses impending in the the the Germany of both surprisingly our deal, of premium this a the first net enterprise deals, proceeds and sale flow. these am now this The last billion disposal an all you’re in you’re announced cash our or operations Europe I $XX completed and buying, of Austria but two received the value around going months we our the to not about $XX XX announcement

Europe proud we national or in a Swiss combinations challenge just going more on said detail incumbence, come. to many accelerate has more these long to create champions As we been be of and moment. transaction enable each for of the years couldn't Again benefit ambition customers in times to our it and is innovation which

to you our forecasting then and in Telenet going corner And bullet our X.X%. I’ll XX% from level lastly cash to out to this about ARPU VodafoneZiggo cash just together we X% guiding on to billion continues the year operations monetize back point had cash those the guidance our flow us X% are expansion, operative here. and JV continuing all in nearly free Media synergies that consolidated saw continues revenue Holland U.K. slide phase XXXX major program. will here, full in and that positive XXXX. a RGUs to of CapEx X% growth respectively. OCF XXX,XXX quite made our operating we we which investments in a announced rebased we've for reported major revenue in is Virgin and has And moment and OCF X.X% this And target today. in flow our flow which consolidate and we and by that is third at reduction full continuing and Virgin hit growth We do a cash And QX FX we then mention year. guidance the a growth rates our OFCF development. free here we tough also mobile capacity be it's rise and don't year the the numbers bit improve. operations but of to the and up we’re at X.X profile the Charlie in X.X% including free growth turned product company. a guidance both if as flow right over XXXX OCF and a meaningful take growth talk would Switzerland Interestingly an Switzerland for growth solid approximate so highlight with XX% XXXX to results operations strong increase around front driven reported start efficiency second continuing The going in last delivered also network comp in was of last we X% even XXXX

Sunrise cash. announced the of billion spend Communications just Slide on our to X, on CHFX.X few UPC So I’ll Switzerland deal business to a today in for XXX% we beginning sell minutes

enterprise something cash which price I with there. think is this Looking to are across bundle elements in the benefit for times customers will retail and superfast Sunrise Europe strong challenger and leading bundles, quad-play scale logic We our converged providers. this surely of to competitive we’re industrial of is has quad-play and in platforms the and at our markets video Switzerland transaction get just X.X timing more that UPC is to we’ll available and a the most net multiple deal parity. as one value needed adjustments, to ability advanced and dollar going create of use and about broadband a as build, and debt well been expect grow which the the XX for pleased moderate. to billion with the Vodafone capital year's combination together Obviously, we’ve we view to XXXX that of flow all record compelling we Like and and operating asset equates in from and And Swisscom. reference integrated announced, track really turnaround cable determine as closer businesses, the highlights franc should other with price Swiss of over headline the deals creation. broadband by end point. On transaction our to are to our proceeds optimal little of close our or billion and CHFX.X as this closed the buy, our Net working the

Slide German As announced X did the we the for last you'll we for see metrics over left-hand operating some XX years. the side example of Switzerland on deal

X.X% During or grew the every OCF and that timeframe, revenue nearly margins cash year operating we to over mid-XXs we’ve about from average flow per on increased with X.X% XX% year. ARPUs and XX% by

deal. parent billion of expenses, side slide we around bought and the after distributed what we'll another and right-hand the X.X in to $X.X we interest $X we that the billion see invested business you’ll this nearly and billion that's On of debt equity proceeds payment company in since net collecting of then

proud our us, more over investment a and are be know really for our local UPC really, So team really while and platform. I that that's bittersweet years. and they IRR a high prouder times operating couldn't moment Sunrise together teens four stronger it’s original of will we XX competitive be

X well on after Slide pro look Global So is a that. and just showing like what activity forma a this all basis does simple chart Liberty

where with and largest European leading First, we XX.X X.X fixed billion billion cash, of will we Slovakia, pay-TV mobile include million markets the corporate Ireland, six consolidated continue revenue Poland operator and subscribers and serve that's platforms Belgium, be over to of annual and and generate the X.X XX and costs. broadband and before cable Europe's U.K., operating million that RGUs, revenue core

for Holland our XX-XX Belgium, and mobile we MVNO Our base the in $X.X in which of fixed as $X the networks as are In up signed and margins, already western Virgin of million with high a mobile fully far terrific consolidated, time, converged include operating service. cases on And the with our flow another on growth annual intensity meaningful of fixed free this and I declining Europe, revenue with JV relies cash and to customers, of million mobile side scaled operating well of right of billion first a CapEx while the front are X Slide, we think Virgin billion Especially cash with course flow. RGUs asset. XX OCF these adds non broadband In was XX% box them. Vodafone, hand blue platforms and of

pending three would be as proceeds investment forma our $XX expected deals as around pro the our well billion, existing So of from portfolio. cash that

in we conservatively stakes LionsGate We the be AllXMedia, a present tax which ITV, U.K. value today. excess the that that along including with value taxable in billion. time, Europe, we should that billion believe in $X and in billion long tax shelter of E market And very then in $XX of that assets, income at of our So, considerable show portfolio, for attribute our including $X Formula all our ventures U.K.

which for out it numbers, not work Now, valuation, we're two can you. shown we on not basis of of which and official of the while an apparently sum are lay form chart. that do is to parts this both the does allowed the But

equals about about the in first per pending value $XX per share expected to is and public fair $X of cash is share. proceeds market the our the three which deal equates shares to The Telenet, the from that second

out JV, let they see Media, that on which pretty page else analyst you our to other assets So cash get numbers perspective by corporate multiple ops what current about today's valuation it's cap, what means or not It is for fit flush in discount the Dutch are to Virgin reflected doesn't our the put a cash in equity alone flow, punch are this everyone announcement. our the on line even matter from stock maybe the at other everything We'll clear. all. pretty doesn't you matter on Europe, better here story two today it you picture, put the Eastern these assets. the good almost for as It's market

Media's results more cover opinion. Slide two then Slides have it and I'll four here there our big we just operating Virgin and Charlie. my over in to are On hand takeaways X, I'll Now

ARPU and that year-over-year. And is a course by was the straight quarter implementation X% XX% our and of a QX roll delivered last which we first factors out of of reduce as our including a Virgin and of respectively. up year underpinned VX number in getting folks was fourth of which now and success, its The that strong rise that growth, and in about churn, are approach focus XX% X and on bundles with discounting boxes of to routers disciplined promotions a Hub homes more-for-more price

faster analysis, broadband I'll pay on our revenue subs, all we entire our indicates business homes else anyone year, nearly percentage emphasis, combined. subs, new as industry in the and sector analysis a the building many while BXB Our than last and basis as grew TV

Virgin is featuring what to We'll takeaway X WiFi our we've the more new NPS speeds will this through than apps search growth megabits up U.K., services Well, for broadband it second, went else in And better for a key and to we second easier improve launch lay going includes to than XXX or our voice buy, will online UI, foundation That per XXXX we're raise better gigabit customers faster we're rolled going beyond. Xx what XX the My the and be that's speeds today the app. work top The change make platform out in we've Horizon market. points. recently anybody and in launch boosters. nearly to got graphics, to the of continued there which is materially X Switzerland and hard done cities and that pay in for

impacts That termination to to includes Together costs XXXX in contractual Thirdly, I £XX the That Virgin million between both some XXXX XX% to on of from £XX And the year targeted million mobile the and like XX% nearly impact is things we costs Virgin network of that's mobile growth, and want negative up annualized the point headwinds in roll then the million Telenet. and OFCF monetize in [indiscernible] X, for basis. rates ARPU will Slide free see final intensity growth some capital our about business VX we make and continue prior we and XXXX XXXX. that more inorganic for RGU and our that here to add ability potential of outs that CPE. £XX And £XXX while some to Hub efficient spend. of now or operating reducing to million on regulated to million, cash XX%, some deliver highlight to continue encounter highlight lightning, with back XXXX and and going in in and will construction £XX about increases again results million And sure impact regulatory growth taxes OCF growth rates. beginning fiscal Benelux growth X, OCF. flow organic drove operations more headwinds these that programming an to on and rate of £XXX on this

competitive SFR adjusted broadly XXXX that revenue to ago, left net for free flat two was flow but sure the call you should be of if fight regulatory year that The but to and operating copy achieve with million. and end you'd know cash growth weeks drag a able On the cash X% their on €XXX we're earnings in headwinds the of over now. strong migration of flow ads through

video In including of fact strong Horizon exclusive and data was exclude up impact rating XXXX bundles which if But we based mobile customers. the product for into and services. WIGO an the League, a the offering. Premier the bundles X excited WIGO millennials EOS. TV HBO, It's set zero an for great the to transaction particularly connectivity SFR is in generous about and There megabit better experience talk migration, XXX about line mobile broadband our broadband up, Telenet's and subscriber fourth you the and Coming with quarter. customer superior going with partnership no for savvy fixed lot, rights allowance a digital I'm the app

contract XXXX said, growth. free of year. fully XXXX, was will OCF the year that €XXX in MVNO transition regulatory pressure synergy, at impact and million will €XXX and a realized will But large CapEx XXXX based million as continued Now be loss strong for cash a flow peak revenue Telenet. to remain adjusted a A

positive point OCF roughly Now QX stage has inflection a quarter. set was growth while on And flat momentum for in the heading Netherlands, OCF year-over-year, reached VodafoneZiggo solid grew the into fourth the X.X%, in revenue XXXX.

the fixed mobile financial stabilize. On to continue and the drive line top business to declines revenue steady began grow

for XXXX. XXXX line strategy are rollouts track XG supported taking in Looking Vodafone moderate the in million us then remains showcases €XXX million XXX the eligible in Holland launch ahead working is X a The VodafoneZiggo's plan holder since That first during X synergies. XXXX bottom X returned JV ongoing guiding share XXXX, XXX is convergence with half is bundle. of converged and to returned and to the for they're OCF XXXX. growth Horizon on by gig while guidance to over million cash million And in in the set half for over and households again and

foremost of closing European the we way its M&A Obviously, about and Vodafone review very The on positive and dealers first transactions. transaction So there. course we the And priorities Switzerland XXXX focused the should from through authorities XX. and competition by both the working are receive pending I'll we for competition key Swiss commission end. telecom four believe timing and feel end a with Slide in both will and favorable close on year approval

changing positioned we're next more model the of of operating the more the opportunity. shape the of in resetting efficient, better midst our and a as phase growth result and be of for Second, deals our and agile business, to

we'll some we of that seen changes already through to summer. have about and more the have might talk these announced You

(ph) above intensity, would an what our capital and year been the over state after to repeating can us last bears it steady billion years CapEx incremental again beyond. of expect scaling have X CapEx continue Third, you X that back this

excess OCF reduction I we'll value on on XX% drive result year then in focus continuing in said, as year. over call, finally growth capacity, our discussed And investments these guiding advantage as to operations, developing our deals course about with year-over-year as and process a we're As that unfolds. creation will to the of and XX% recent of pending of a we're say approximate close an on I've and product CapEx taking cash plans this of the more every have when CPE for

you. over So, Charlie, to

Charlie Bracken

growth. Mike. Thanks Revenue to OCF made titled I've and the Slide,

give of just increases, certain growth how later respectable point view some by Presentation aided things U.K side of Now did business Ireland. rate call, of growth items, rest in Lightning this you and insight that pretty Overall, a we comes cost mid the Belgium not from compensation like comes the XXXX for had rate of growth. about the is was historic a another from global in of because revenue and clearly and I'm talked that growth received on performs the rates our split negative grew contracts. OCF much can a from a U.K of our I and But results that slightly as breaches do that the much see, strongly you in I'll well the how of so And today. And to the revenue operations. going the Ireland on view pretty lot cost but single-digit cutting in lower. XXXX and

into had Eastern proposition. we video improve Europe, low on And very OCF solid continues with a as losses. Central time So pretty revenue performance in progress a the be growth. then single-digit our tough and do to we side, And translated that revenue which in OCF work

to down central year-over-year I'm going address and that detail more also shortly. in We or got cost

last another with purely a growth OCF growth the So revenue and the which year impacted X.X% of X.X% and QX by continuing for X.X% for aggregate rates revenue operations respectively. full in X.X% And the growth one-off the understated OCF year and the rates. was

Turning P&E years. A And broken normalized XXXX more XXXX page levels for to in It by we and XXXX and CapEx were upcoming our the intensity look us in my coming capital XX% is to CapEx few of has to starting on also was BX goes largely and high reduction additions the revert the terms The but down the entitled CapEx XXXX. in on coming is their with comments year and completed for the similarly investment levels driver. as level and XX% segment in in we XX.X% are they finish you’ll for high see network pretty integration. U.K. the behind IT number dramatically going us of regional and forward. upgrade Telenet XXXX upgrades a year CapEx declining down peaked

of of spent then terms $XX.X of Swiss in free that’s of was includes cash bottom sales billion In proceeds have three on liquidity would Even our of have can heavy investments And money baseline the IT positive also sales, it’s to where some $X of the to new programs. of in in and flow. percentage and X% property numbers reduced and we The was the the again from overview because the last slides and through the represents further the upcoming is continue without X% and entertainment the we expect in essentially and connectivity liquidity. brief BXB capacity level platforms cash product is a X% the decrease in our finally investments being as cash X% we and is to then X% we we in of generate sales. paid sale standard the spend lifting to come the periods. and leverage X% benefit the on to of see to think and network provides money that you see again billion page. upgrade And CPE CapEx the of at revenue which we spend, of down and XXXX neighbors from build

about We’re flow going presentation to from talk operations. a lot free the generation in this cash continuing

line cash $X.X now for guidance which number. but exchange of the in billion original of being, full We’re $X.X with the company to guidance part flow provided free going the time billion rates is our are achieved

four our and annualized year a be We calculated on of we ratios impact OCF. which leverage top five five that Our of gross has highlight would ended the the of side. at on the times our continue times little last quarter on our leverage end to the range. that have basis to I operated actually seasonality less

three And share half similar expect We XXXX what first line investors in of that with billion me more we you. with we ratios finally, XXXX asked have of on. exceeded details then told And again to topics in special phasing the QX. $X for repurchases let high in in turn

first at an have distinct two in done The we lightning, What understanding about basis. it internal which understanding many but look is how is businesses monitoring ways one entitled is from performance present actually Virgin. we Virgin’s

operations. will similar business legacy business business of first rest our very The be called is to Benelux

do revenue would grow is because also argue why prospects. a around and that it growth opportunities fact relatively can you solar the long-term is year in low market estimate and X% I versus Benelux superior we the was actually convergence. And of its this has see we penetration business to as mobile where say growth In this we revenue our fixed with it but think

to to a also around We the pricing up a is environment goes have Brexit. the we subject footprint it’s obviously and where hold on very been X.X% been able market volume X%. what historically to And to constant pricing think at drive on rational U.K.

we in we KPIs U.K. the performance potentially the business have this fastest here at and other And would for cable are is broken what to the returns. in the growing The lightning describe key world. and have scale you up as we company assess

lightning we just down million lighting column, homes X.X built I’m to-date going customers. with XXX,XXX So go to the

And So base. as actually line when that of around million pounds signaled the legacy roll-off terms the lightning think around XX% are that in with we in discounts introductory customers revenue. that and low broadly we ARPU translates previously into XXX penetration of

things we’re like On is OCF XX% your finance. fully the the fixed county margin going to estimate cost scale in

home the inception. running home at since CapEx look cumulative and If construction cost we’re per £XXX you key the at number per is the

Telenet come also homes. the into get more We course million and work build. includes are efficient as installation cost other translates uncompleted included the £XXX of in spend expect XXXX we But bucket. sophisticated the which for total progress to And the on and CapEx of a CPE in which it down in

estimate in So cumulative the around billion in £X.X lightning inception. on £XXX we total the we CapEx lightning on CapEx was spent million and XXXX since

Another key is this flow. point on slide cash the free

If which which like cash at free lightning of of to negative I it’s £XXX £XXX reasonable something the estimated we X.X% The assumption. CapEx million.. is to a around to the of debt debt you look think flow operating blended including used Virgin translates free impact that extent we of And million flow cost that negative finance a by billion interest. into cash X.X

as by phase its true as growing focus earlier we that. talked X% lower which growth slightly on probably well if to probably the look OCF with didn't marketing may pretty discussed as started did the contributed growth contribute XXXX also to Virgin actually headwind on It that really you on I growth about mention operations that a we the core much outlining side. a but in we and on slightly the for contrast we also operations rate. I core we as that focused put many at business a lower the So of doing revenue might

declines pound every intensity in the number lot up capital core go our cash it’s account at and on as expect the number of terms money upgrade. on that In flow also OCF to because level as these we is conversion XXP BX we reasonable of in a XXXX spent asset our free you recall may business converting box management

comment in We Mike U.K. also assets benefited from as substantial the tax earlier.

say flow making at very of that two Virgin free got you it’s of different we cash a when loss the not free because So misleading cash we’re to look profiles.

you how this if from side some look we got of at would about we page, thoughts here. the go Now hand right

we’re to think XXX,XXX year homes XXX,XXX an we do we While to are think area a of able MDUs opportunity. build consistently

think these on achieving in assets looks the are can cohorts please look significant early in And particular how infrastructure the and and at net building the to long-term chart are is to These business market clearly in case. feel a successful in U.K. very better valuable original the line XX% in shareholders. Overall fiber evaluations potential. getting and the we’re builds on of you with investments there We’re we the you most for attracting of currently minds penetrations infrastructure type our The lightning we I on excess understanding going vogue of is scale. are lightning that see upside believe right. asset for broadly our the bottom if very much but old we in

best I the The them say work. second key the we in called question are really asked thought the is we that we investors day question as central is costs central And efficiency. take but to things operating slide have could we got changes what would about centrally perform we a scale, a and and is costs drive what series practice of activities Opcos the out and of because our largely model, get back

broke see is of hand we we the which In you can page do as technology behalf is the company's. terms of essentially the and numbers right key first the spend the into in innovation type buckets all the of and the stuff at of two

So if million technology costs development, OpEx around and they strategy product covering get and economies product up spend CapEx to of scale share and and share adds platforms. that development $XXX

into $XX Liberty connectivity us well with as obviously continue lot payments you happening to of go already had of Telekom it phase. lot the million payments we but VodafoneZiggo America, Vodafone peak and Sunrise of services as believe from see the that transition with till because spend Latin the property agreements and will and money transactions platforms can we that closed. be any And Now case Liberty, investment by the Deutsche put a video in funded and will that

upcoming see those the down numbers you drift years. over So should to start

our where reductions The bucket and of corporate corporate procurement that’s been actually as broader of other which really finance, traditional reorganization. of part OpEx. is targeting costs is the management, people the functions the of we’ve our legal, starts increase cost majority $XXX million This

of to rationalizing of more should or We from part reducing been by more functions getting the reduction are get as by see we you estimating, to done and a that’s can left-hand the around XX% of page. that and time responsibility see you as XXXX the level side country layers the

topic our this special is the pro free forma cash last retained. so from is free is flow cash we the what generated assets So flow

topic. Now calculate made month explanation and how have There more of this over and we’ve a would a about the a technical adjustments this we it's and in appendix. the learn learnt not I lot I simple past like the is detailed

So into I operations you if the contribution On XXXX continuing for you of if includes get the that the to million from down the lightning. OFCF to that. detail OFCF estimated billion negative this $XXX of OCF X.X you but from want suggest at slide, go you look an get

So Then higher. is then million OCF to mandatory the which when is just and that’s U.S. that interest $XXX you billion predominantly we make. over tax we the payments and and could actually repatriation paid argue Telenet have turn $X a the the we you tax

and get asset of as loan those we a repayment of year and include actually us to shareholder €XXX then million the In tax we from another flattened we broadly we get form to last number interest. VodafoneZiggo shareholder terms referenced of which contribution next from the of XXXX expect that’s have million $XXX will here payments the remuneration. doesn't the And contribution as important

a of to capital cash you before items gets that free million. flow $XXX working So

it be lot capital focus three finance to just on working operational our working and clear, of buckets; we a have new about capital, all think restructuring. and in we As

and $XXX for see we range slide portfolio, across you'll company is is what try did plus what we pro XXXX. the within minus actually hold actually in a company forma $XXX speaking, from of or combined which for the XXXX. is negative the broadly million But Now million this the that in a

that there's let that new the few working breaks how headwinds slide. on our down. So me detailed all explain we Within a capital,

of a split around drag million contracts example For XXXX. $XXX was in

we do believe and where last we're factor financing addressable view And actually to as don't of companies, of earlier. reduce working which to is vendor we XX the XX% days. on extend capital terms changes everybody, to the on use tool choose to operational just if trying could a payment the of the get return finance, be price we mobile our the Now And will discussed better impacted that’s generally we in remind compared around XX% financing financing model XXXX from but drag. spend. terms a restructuring, to can focus to bend receivables better I bucket capital the we we to And operating point by in the

cash $XXX of gets So flow you of XXXX. for number the all million free pro forma that to

Moving the me up. let Slide, just round to last

we've In terms of outlook, given numbers these the XXXX excluding Switzerland.

dependent ultimately the a Now what immediately. case be under think Switzerland vote, we shareholder treatment. not which become operations discontinued be our will upon that It accounting will means may

sure investors make to about wanted as clear that I So to monitoring. was our performance they think

as first to The guidance is guiding metric we rebased are which OCF, down. flat

bit about us color. growing to about mean and economic talked sound investors being the Mike you broadband that might going a headwinds, possibilities. cautious reasons want lot lighting, quite of we're of of to we to how make what we is a is range but U.K. up why possible the environment one because with a the I the give on U.K. just actually that And the Brexit. little effects of some programming have very None about and in our happy to know are rates talks that investors sure take what's U.K. the we nicely. that's and like of a things if going wanted Now to think little disappointing and

emphasis the the significant $XXX of property which in you before much mind get There'll three be again a cash Switzerland. know is on is will just the actuals. reduction be to that vary. the and points; of company excludes adjusted guiding In for equipment other that translates out operations current million excluding free to billion discontinued first $XXX will XX% We're about of flow to that around XXXX key to that number we roughly guiding reduction the own investors cash OCF a flow year-on-year negative FX, OCF into driver pro our any guidance, Telenet, But growth. million closing. targeting a forma the How to of additions. terms our its key you our $X.X In at

Vodafone the to around to June, close close interest be we we close payments Germany. operations. we contribution in have we we this won't if a mid-year example, XXX in million If transaction flow will For relating July, the should think but semiannual assuming cash million XXX those from discontinued

the OFCF €XXX from includes I also about talked about the from Lightning. repayment it's million. negative excludes it finally, And VodafoneZiggo, contribution it Secondly, which shareholder earlier loan

our to we're when to million if allocate for made we flow $XXX case a business. for negative I'll transactions the And for that's interest, I've endpoint hit. first you being but the on to you turn the close buyback growth for year. high that the a this high $XXX And free more over do guiding Now the We'll of $XXX it with half getting very the million million cash you're is return that, buyback questions. operator update the time

Operator

Generale. first [Operator Instructions] And we'll from Lyall take Societe question Nick our with

Nick Lyall

ones Could ask I very quick two please. just

this time Just the Thank the be so can thing you please? give number should thinking mentioned the work us mention are about that and have no as you're what Charlie. between the Switzerland. buybacks thinking limit guidance efficient year's you size about idea terms give maybe rough update thinking just of an flow just free It in us but sizes, secondly, cash might and the well to and we of the buyback – you mechanics buybacks large like-for-like to to cash at you. what we a the could to you just what do that? out on about be just sort you a I of could And contribution may actually end Could

Mike Fries

Charlie, Mike, today on said it's of with every or of we're you describe proceeds. mean the use far, most I'll so can take to buyback question; structure in we the question. a call not quantum I the cash buybacks position Nick either work up as Swiss

complicated. determine could have market I working we the information, So at now. kind just easily we're to more look you alternatives of that those But on we'll absolutely into it's certainly think your this and as premature that on own, detail to it's stage get but not

to Swiss the cash, Charlie? You about talk want

Charlie Bracken

flow different you generated as Yes the XXXX shift. for this Switzerland sure, into characterize us XXXX allocate assets question you having to other there's sales a I'll very get big low cash versus it a CapEx central actually In how but the ratios but and years. it's relatively cost again intended in was strong by country,

EOS plan we'll to generation planning at upgrade the we'll and network. We and are push also to next XG to rollout to boxes continue in an continue the

million million much in is think I going [indiscernible] compare to its and lower around we’ll think I So, see you're XXXX. XXX XXXX XXX XX flow and cash that million to free contribution in around

Now what certainly XXXX the internal allocate that at could emphasize cost man internally. how disagree I with a in you it how we and reasonable look

Operator

And next with Jayant we'll take question Vijay Evercore. our from

Vijay Jayant

capital sort play play point, but U.K., that that at to I about want understand Virgin of buyback past with £XXX about you in the how headwinds. of think obviously having country has for what's headwinds leverage structure, about about now has obviously Can sort some of single points about Ireland talk for own. basis of speaking, amount you entity? probably I how out rolls-off is the you Ziggo But of own to debt just inorganic and right broadly a just called million don't then XXXX, Telenet think sort consider its would much want it's XXXX which XXX you talk of

Mike Fries

on question debt got specifically is around question the the question just we is correct, Virgin? So on your

Vijay Jayant

Yes.

Mike Fries

extent Yes, and about we to were X%, here. I this to Tom have hit. be X%. in answer inorganic or think I and headwinds want we’re that the next additional the up remember work on can jump it's we up that, cost programming where you would can our costs more year think contractual like – about that Charlie and costs X% But you that year would Obviously annualize to

hit. So taxes, this it's be we positive period a year. a should the XXXX expect that comparable be in not broadband to big The jump

doubling it goes when think comment but it – that next up like I specifically might it it be you more Tom something won't material. can as year

will on not of inorganic specific, headwinds a many So be one-off impactful as those being in basis without XXXX.

longer-term here Ireland, picture return So benchmark. you to do to you that second give want growth expect question more normalized the on to we the in a probably Charlie answer just leverage? U.K. in and the to

Charlie Bracken

does and because Yes, XXXX. more British just giving guess in clearly from on year it one that the [indiscernible] but end the I range keeps government,

is the raise. leverage the the and be also lower we've range it on back But was I on there that up a XXXX X normalized of was X of always components that think if range, a to said mobile bottom So growth. the will high on there space

we've growth U.K. I think that pretty assets. articulated high looks

no so transaction. you There I'm to times diversity for with imperative Virgin comfortable for uptick as So shelter – very ability X against I think pretty but of is we're today. have are at you that addressing the do of particularly U.K. on to rightly the more is a comfortable we and portfolio. where part We where out we our to X becomes deliver today extent pointed which and times to major

Operator

from New And James with we'll question Ratzer Street take our Research. next

James Ratzer

weak it you a much. kind the through looks you please. on you. be terms from structural? it us renegotiate I just very Good to have for talk shareholder questions Switzerland Sunrise are like the could security with or approve terms U.K. one-off if to accept transaction on bit quarter, is in deal; the happens looked side. evening, fantastic you good or One terms fail to business, to saying fourth What vote thank so they extent and something do a of what net that happen the on Yes Two their has And potentially Sunrise ability to what or mean if guys. case? the TV that have different go more the shareholders adds, that they secondly

Mike Fries

the And don't an some allude why adds. Tom, TV you or of answer work net up

it it concur On in the it synergies a core gives give pretty two does represent is deal the it for the us. that I is market high-quality for We reach, them. scope and position and the material entire clear good there. products, them would of yes, transaction network reach, them mean transaction, does terms and telecom across also the provide good scale all it number does a network good Swiss

There not usually as this expect for small shareholders will number. Swiss market, their sure see them their think am approve. shareholders in transformational be very a I So, not will all that I but being it fee. that it's that's precedent, deal to something agree, is we shareholders break will disclosing large we're it's and

on and I underwriters think their ability their rights relying on offering who the underwrite very we're a relying argument. make strong to

will but transformational deal do business. that that convincingly a this think is I for So

way, such it. say: by mechanism no vote as doesn't if plan to encouraged is the go our is pretty B. we're this there well, But So,

the go right way adds. quickly and to here. pretty on that it expect TV will We Tom, we'll net know allude

Thomas Mockridge

acquisition in positive. net in made right and was to of I in using for decision and think VX numbers. TV play customer adds QX we in cash in higher you The free full net rise and Yes, deliberate on the to did two-fold. see the on is, flow focus other that reason house XXXX much have and one our our QX. was price on that terms It XX,XXX VIP entire and weaker One a more focus adds not too boxes we is

Operator

All right on with and move Wright we'll Bank to David America. of

David Wright

no every April seen X% obviously different U.K. see there the know level we've to historically XX pricing driven U.K. XXXX, that And run through committed give you nothing the BT rise means X%. now to XXXX or rate we structurally X% less please, take is been another Do lower BT that to price and BT around effectively rise lap have OCF. perhaps rise of to is likely now to? of guys X% On think be we given do then structure again prices core the XXXX. that that so moving November to driver which will that's commit X% X% and price into price of months a you In CPI to sort down until comparative dropping a

Mike Fries

not one. year any following today, years. detail that proposal the I'll David, on going pricing We're or this provide take in to

that even or that in out announced haven't worked detail. We any great

you So give that we headline. can't

price regular would On hand been months. out point I every that BT the other increases taking has nine pretty

say or we it's customers increases sense for that you plan Philip there's our to this probably about either but for know a give them CPI as seems suggesting this there temporary to else no is not status that from long-term think makes I still with that honest certainly anyone just guidance it's it. any to you and talk plan. can't received us. and on is for at at Except this we I I'm know you quo year, future that this price be I've pause before the reasonable point indication

Thomas

is I new thing recently UI, Mike XXXX has potential the announced speed. And you mobile second have context rise, innovation I we before, customer. has think for that convergence, price right. necessarily fixed we think I if third get read in we applies Sky said put in two rise that on as is higher the the customers also our that rise to Mike, HorizonX with get and price I thing only no things. I think to think not add wrong, One think And existing to thing haven't for it I then get price

So give I lot our think we which have a pricing of to point. might satisfy us innovations some customers

Operator

question UBS. from our Tang Polo And we'll next take with

Polo Tang

I've actually got two questions.

the also for can there two So the really density? deal costs. and about you question together past My second deal, have why is Was just all talks catalyst maybe you insist taking years, the and Swiss to did in central just now? particular there merged the to on-off equity open cash talk came terms of been one to or deal on were any you

this by reduction when a terms you out but Swiss looking the terms correctly get And these costs that of XX% So of to the terms I you reduce central in clarify that of ahead? And hear numbers to assuming very costs, the benefits net helpful you in XX, about you're just the you Slide VodafoneZiggo? in German of laid did total deals you'll can go forward? Slide central that talked want terms also that hearing the benefits and recharge going I the you was clarify the recharge you received made from in there, of

Mike Fries

of Yeah, that. the I'm not not does Charlie short a all $XXX central you cost details million quantum received. if the up revenue to work point respond - can that disclosing those is those sure guys, providing answer we're include you that so

you. honest On discussions them that to it's year with deal, about been a with actually the we've in Swiss listen be been

took is an different and terms more. or structures, or beginning particular of substantive reason this there no conversations and In a of less around and amount this one have all why time ideas transactions end

we not of for think that drama long-term. you. The going us. might to to at there reflection a them that and taking platform be was So shares across - I much vary and to a discussed, think imagine. powerful best a the the with as we're they been be We very have in fact the the our is best multiple great for honest one reveal not is you structures it's And all company outcomes This business. have not a business And view of business. successful think the

want certainly more, that better deal attractive more was the add able cost that And Charlie, was the price were I cash to question. don’t realize. anything this to if the other outcome we for you than us central our us and alternatives. know to to Just

Charlie Bracken

benefits cost about There businesses of cost. zero Austria. no a revenues the a also low now in on handset $XXX gross confirm down were is business a million. margin just which cost. numbers The before that $XXX is Yeah, gross another include that's margin close to go million goes Those

consideration. one that's So

million obviously move but the forward thing I that around $XXX is going could think other although that would estimate, quite apples-with-apples. near not TSA it's comparing is the we

example, with $XXX the for money in into TSA. Germany that we're required aren't million on spending products the So

accordingly third-party would is of we reduce the data. spend that contracted that's So internal part the spend of spend, actually because most flexible

TSAs. well we Europe. anchor in apples-to-apples. the to of the maybe Virgin as the half the do I So But an be certainly Eastern think of tenant therefore it's quite majority could hard will core that actually spend year with say

of and not the I seeing all to that we're as where about want characterize reduction, we spend. to cost wouldn't were terms items much In about just restructuring efficiency is but certain that going the fact is also the

so we're labor. So in or area spend in not T&I them million $XXX about only

stuff we down XXX with about and focused scale of it talked we that or restructuring said And only think of most can So we had just XX% scale activities. you that it several I those the up. on is

Operator

Jeff take next from Research question we'll Pivotal our Wlodarczak with Group. And

Jeff Wlodarczak

balance, First, you're assets. the going And the existing got congrats on sort have the to still between Austrian billion alternatives? able I a Should to of cash. XX-XX attractive price you were we Swiss in buybacks the think roughly have get for Between about $XX.X VoD deals Swiss then and sale cash follow-up.

Mike Fries

were to I going ask Jeff. that you question knew

lot headed at on have The going fair think think I which we organic think timing is factors. market In different where to should the which have - it one the past, to the one it's yeah, but referencing what you're and completion that say point. at in I'm would course one. the point, and market said that I opportunities I was, depends is of where a be of be financial the of

that that I these can't really appreciate certainly provide the away question. and closer can't here, we'll more but down you So that. but I much we months-and-months completing color more any really than still color I on to as get give they're deals nail

Jeff Wlodarczak

XXXX of that do still ; feeling deal? actively VoD terms regulators with in the deal then to the talking very you I'm sure close are you of comfortable And mid and

Thomas Mockridge

statement may working certainly these with you have we contact point, I milestone accounts stop Vodafone charge reason over of not occur to we're believe mean wouldn't them. this commission it mid can contact back the there's - been are is and but the through regular that could no in we mean injections XXXX The June-July, be and in leading close. March the the regular all a many, by having and many at around we that that a expect have in or clock of may with

Operator

Murdock-Smith And our we'll question Berenberg. from next Carl with take

Carl Murdock-Smith

from Two me questions please.

in a in That the multiple for that noted reported this Consensus the Quite you've you've implies $XXX OCF means minus the Swiss cable what expecting causing a figure you're drop And back were U.K. to X% just Switzerland trading deterioration think so the was deterioration from I Slide that reported or expecting? growth XXXX. two-thirds confirm you the $XXX secondly of was just X% growth underlying the expecting of business million just on I I the from business? is the on add on improvement; footnote. if handsets First in rest you then wondering just the you year. XX, growth for understanding of XXx XX% just the from an Slide in was what transaction, TSA the rest this million could if mobile is X comment year? on the

Mike Fries

On assumed for in an it's not going that we to not we're provide budgeted the number year-over-year growth this improvement also also Switzerland except to Swiss - at independent map guidance outcome. say the our point and correct

your So but It's there to of not accurate. math. I'm sure it's way you're how one getting getting not certainly

that? Tom, growth, On U. the respond K. you to would

Thomas Mockridge

identify to table Just trying QX I - number think

Charlie Bracken

the in including the think that. I version Yes, lining confusion going,

of at there's in if fact rate you're you to underlying the growth, business. going growth believe no right, a that's problem considerably is think I quite is out that big because And that BXB also growing take not the handset. the the we that quite X%

negative as which spending X%, not Virgin is the So, we but the Cable. mobile, business [indiscernible] a don't consumer as and is average of BXB much [indiscernible]

Mike Fries

minus is BXB other mobile possibly X%, answer are and That's question. growth plus way XX%, that to know blended. that We growth two the approximately another

Operator

to on with Malcolm Redburn. Steve Moving

Steve Malcolm

into the question on deal U.K. dig the quick I'm Sunrise a going can. bit, I if a little to ask then

you're I worrying you bit Just past, particular about, in are a the you have than of guess thinking business calling business. about your I'm mentioned more there any the particularly that BXB sides Brexit, in

You there. exposure have government quite in little local

have a pocket the the approval. vote revenue then to the quite to do low the on single-digit free that the deal handset it blocking have on IP through. Swiss going they that you've line air net's on sort an I going the require presume grow in happen bit. to year this there they that about have for You year a you if hard if time lot see what Are handset hard side it's XX.X% just is I extension is that here And of the of this hitting also year? growth know And mean to deals. X here managed in you don't in lifetimes, a XX% obviously to because on approve minority that position will everyone basis deal, turns this up shareholder They with

give useful. here So position can would on us what you any very free net clarity be

Mike Fries

approval, Yes, XX% you a I'm question. not It's glad it's that XX% asked approval.

require clear you on they've the their tomorrow approval. position sure disclosed has So, what Sunrise do it's not to might position tomorrow. you ask own Sunrise Swisscom made views, the not maybe XX% and The us, Free is doesn't have clear But and - Net I'm about they might or not it us on made that. deal and the not to has that know call I'm so to call Swisscom question blocking - sorry, unknown approved their have board

of So On Brexit, I'm glad a here. lot we've you Charlie done chiming asked work, question. that

every the where determine U.K. has vulnerabilities done might company As based be. to

business very it's that is important position to tick. doing, impact would consumers, in the consistently since concern business on we're impacted. or or But how programming be for in will long our think time anybody as outside we make be have see make either biggest we Brexit now I that occurred. would evaluating that the have U.K. supply based consumers a The things point out as or any the don't vulnerabilities meaningful the contract people things

challenges. you they happens, if you and solid lots to of these want to related any matter supply sort of what what inflation of if I don't sort will all. But happen add points or of there's on imagine that? view to at a what and variations no are GDP principally sound it's revenue deviations if So will our contractual will and happen material marginal Charlie that, occur and view anything different happen know is business But no to can different as of to unemployment. what or

Charlie Bracken

well It's said.

going as where us is going to point look, none to think, I you happen what's return of price . rightly out, and really know

little I too early government. local wherever seeing to margin it's the of softness nevertheless are that's is say bit We actually, think going us, mentioned you and as for the on have to but impact

than be diving I economic think when we into there's that going what of in is of to all we us And gave deals. seeing waiting are new the think our [indiscernible] guidance the sort of I make environment possibilities economic material, rather we're range seeing know sure and think because mix I year. but consumers seeing none later

of So let's best. end hope see March the for how goes and

Mike Fries

confirm in Andrea transaction way that want. is know the described chime accurate, you but I Swiss I've it Sunrise just is if And the

Andrea Salvato

obviously It meeting. XX% shareholders that. to through we are gone our vote official It's Free representative be needs to of is of going it shares we And of Net likes good, get to a as the how that before have don't meeting. the news is any vote to

they suspect do we'll are tomorrow. they as and said, Mike they how results putting I place their So have, see

to them. I'm So a have sure you'll chance ask

Operator

we'll our Ulrich Rathe take Jefferies. And question next with from

Ulrich Rathe

conceptual cash cash not highlighting the forma I'm I'm XXXX is it to change free Is reported flow different to sort easily it I've left I forma a with in wondering life why easy you're a about follow-up, on I sort in the of Steve you operations? highlight particular And an the question Particular experience is what for you're this XXXX? this if perimeter? billion motivations sure expect cash in the just continuing there mean and here how new X.X expect in you may that to there to is definitions pro it flow, line Charlie. we these, this a is just in definition, could for I what you suppose pro connect is introducing done connect or change what continuing met, way entirely I the operations. in flow sort ask can free I you when is take One old handset XXXX in the the about free question this easier way this overall way? in to that you have of think top unfold asked big extension give if development are the And to of and of actually boost that the this U.K.

Charlie Bracken

has through, our offline. can you we free best guess assets through of completely free our concept the in is at previous in performance cash from got all. Company with been were the you damn of the go definition the how quarters. take transactions the albeit trying guys it honest, assets. we report be haven't and that per doesn't is cash reporting is XXXX the of I've to this compared it and there supplies the - of pleased would series quarters I'm This of What the through my perhaps as is to on those last argue change we couple men many a include consistent offline, about. sales take This Switzerland. do methodology. Well, footnote a of because we to I’ll same really flow I'll XXXX be no our definition forma how to changed dispute running as accounts, gone how flow these is is And can free This to and cash pro adjusted indeed is with XXXX

Mike Fries

I handset down free Germany free XX% mean for right. entire instance and since only to handset XX%. XX, But market in the U.K. Charlie we've the question is base of SIM slowed lot down, bit. before demand and handset XX% this On our are has think is market customer in a has into sold a slowed market in as as on SIM I said you that the having is Number especially hardware customer said XX% down two December.

take and together mobile huge keep doing not I you that So fixed opportunity are convergence we what we would think with that to grow if doing.

Operator

question from Fangmann with final our take HSBC. Christian We'll

Christian Fangmann

it transfer The of transaction. about mean I Swiss the specifically debt does the UPC technically debt ask debt to entity. at wanted the work Swiss is Just not how

it So technically? understand just just work or Swiss bonds it Thanks. this is wanted how does understand being to to transferred only are

Charlie Bracken

games I been. and the am often remember finding relative have to we address success going was around but goal

suffice we asset. lot you more implication to get with think allocating there give want detail want to don’t that Andrea I signing to the more of and UPC of are some say detail. So a is into to that do because we but transactions debt and

Andrea Salvato

Yes put kind Christian I been I the basically has that I around that press think [indiscernible] been that the UPC this bond is question? and the Does in a have disclosed derivative when of transferred and number have been in securities your portfolio but think answer over. releases

Mike Fries

call especially late, All announcement call. to everybody get just joining to in this signed we which ago but sure as right out it’s yes. so we folks an was take want we that Europe did I’ll appreciate before as hour the Listen soon as be the

joining. So appreciate you

this a and is do and We’re competitor market. put together decade bittersweet remarks or building excited in great market. Switzerland, it’s the all for a of about a really job two it's team I’ll management right it's this you tremendously operate Andrea my over done that a in going in proud But with businesses whole we to great there tell and particularly well that’s I Eric, Swisscom be achievement transaction these in terrific done do and said thing more to incredible Morris going the - company for this as Sunrise moment a this to job in know have us

So certainly us cash. win-win it's a a build time great to transaction for win-win a it and

cash we the And in we create soon. here shareholder appreciate speak very think and and noticed company we’re value. team terms Thanks the trust obviously doing business and you that and to will right how about the you've these to we’ll to much. use multiples were rebalancing support always As the in your thing of excited that this

Operator

concludes Ladies and Global's year this investor results full call. gentlemen, Liberty XXXX

also As Investor a a copy available of of Relations the reminder, Section you call materials. Liberty Global's a There can replay find presentation website. be the will of in today's