LBTYA Liberty Global

Mike Fries CEO
Charlie Bracken EVP and CFO
Lutz Schüler CEO of Virgin Media
Maurice Patrick Barclays
Ben Swinburne Morgan Stanley
Christian Fangmann HSBC
James Ratzer New Street Research
James Ratcliffe Evercore
Matthew Harrigan Benchmark
Jeff Wlodarczak Pivotal Research
Call transcript
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Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Liberty Global's Second Quarter 2019 Results 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 Web site at instructions given presentation, session. a formal today's will for be question-and-answer After

statements of are X the of to Today's outlook and forward-looking forward-looking details the XXXX, information presentation and other and historical the Safe include Page fact. expectations slides its regarding including company's the of with Reform Securities Private Litigation Harbor not company's statement may future that within Act prospects, meaning respect statements statements. growth

actual those of filed involve as results expressed any reflect and XX-K from statements to These Forms expectations disclaims any Liberty amended. Commission, certain Exchange change from these recently in could any is in cause including Global's and differ risks statement those to forward-looking XX-Q which forward-looking update on or statements. these the that materially condition its statements Global These detailed most filings by implied Securities its any based. or risks such the include Liberty obligation in to

I would call over like Fries. the Mr. Mike to to now turn

Mike Fries

speaking plan. man Thanks, today, to course results appreciate always and We business, talk our broader about opportunity operator. show. to our strategic everyone call. the to are of two QX we you welcome to And the our And

and We XXXX the were needle through in it will off by we're substantial the you delivering Slide since have And six other laid So on making for progress. And be in it'd entitled remarks. nearly Charlie And that big engage all I key priorities. to kick a I'll handle movers These which we're goals key ago. we'll or maybe year, good then we minds. accounts, made revisit the idea prepared the our Q&A. months out the leaders at, thought X, halfway is

Number announced Vodafone course, completing was Sunrise. M&A one, the with and transactions of

are a phase It fourth closed is to Swiss deal we and within two the a everyone worth of reminding the that is think of with Vodafone broadband in be in billion, multiples. of and regulatory and video double-digit strategic with on in eight quarter. deal the marketplace of the what value might transaction proceeds case Europe, which ago and €XX.X result in generating our review, saw midst a capitalized converging these expected, days track fixed purposeful on As net and deals each a financial OCF close rebalancing,

Now restructuring an a on in on was to are efficiencies, this European our confirm this of technology platform, platform and reflect also radically of ahead section. OpEx that of for both And which the year, if slide corporate a for secondly, size here in our track, costs bit earlier and our and our reduced about model unleash has we right and OCF we attempt delivery OCF Charlie resetting on year. services resulted in will which straight his operating we benefit But talked as structure, our to cost not the the years. full three reducing flat plan growth guidance

our and capital look our in to investments recent reducing products. intensity was priority as networks major third The we optimize

are and re-confirming Belgium, UK, Here reflecting lighting Charlie flow guidance a UK. CPE all and significant cash are XX%. were slow the year-over-year, cash about of of op-cos we guidance call down that the the for through will six free generating free And is the nearly we in operating of on the And margins show, on operating with months, swaps P&E XX% growth through bill our we ahead factors, focused to free mentioned cash as of didn't are and did more including product flow more looking additions June, excluding in decision Switzerland fixed down flow, I cash cost operating we year, number for well at and upgrades mobile growth, plan while XX% free efficient provide in flow up completion and development year. our

we allocating importance that for our in of lastly, And transactions plans quiet closing. I of that, realized the capital. highlighted then excess relatively about anticipation these developing we've And mostly been

months. but six during about total yesterday, As and XXXX, before when this the to Dutch first our our you you Swiss €X buybacks transaction tender, of purchase outstanding billion million would €X.X the have auction seen cash roughly first of we step our and completion with announced billion the modified also of shares, bring for include $XXX represents XX% XX%

Now forma our to balance. billion Swiss it forma or leave to pro around shows if I'll context But cash €XX to to with And value today needed. a illustrates decision the transaction you from how total for cash the the cash review, pro €XX.X that walk Starting of Sunrise completion tries and the on get before capital of transaction. next put into it this deals, Vodafone allocation, slide, a bit. we billion

focus of On right side five allocation not our cash the strategy the areas we lay beginning, with surprisingly, slide, and of that buybacks. with out for capital hand

The price The easy to Dutch It expected repurchase in is price range you for A $XX.XX and Monday shares to of strategy, million up $XX.XX occasions C But the shares. and worth should next $X.XX that of how past, of was expected of We've of long-term formally stock. balance set will approach. be to in against XX back on to to that this to is we'll launch when we yesterday's billion it's some effectively in create thereafter. the this the close, $XXX tenders to to our continue may and and continue we shares in be be up off plan investments now week, clear close we opportunistic and It to $XX for and current we business Class billion to bought Class XX remember. and days XX $XX.XX prudent We repurchases, years. have execute. significant us and efficient that in in as we having gives over flexibility fundamentally believe size past, like on And option used value. done to several how

Now consider may down we time. the those or tender additional do on of purchases road, both return internal we'll may decision of may market based factors, open offers external that number make we course neither, the and at and we

us. moving leverage won't And we structure X be that to right it to capital slide, is X surprise the down believe to you for a times continue the

to Of credit the times course, But year. on in of all our something end below at the times X we for by is proceeds. the like today gross basis, adjusting leverage net be X expect our groups of Vodafone a

conditions we to levels. things these sort. those the forward, cash make may using financial target consider decisions upon at Going leverage that performance, we'll market maintain But based of and time again,

in subscribers, fixed in and and $X additional Now flow mobile have $XX deploying operating nearly billion Remember, cash to assets considerable markets. it Holland. subs operating an million million our cash operating mobile we we totalling nearly $X when fixed billion flow of externally, are capital first comes coming core of and still our and $XX operating foremost and on Europe, JV XX-XX focused of and out

these We markets. are in invested

shouldn't attractive or capitalize only confidence you. This in prospects. arise. in a wheelhouse, if, surprise and is as to on our compelling be to look their have if our position, say, opportunities we'll We fortify And it and I

sectors will a operations, scale understand words generate commentary. just a then we existing we beyond topic because building seems be here, are and few bit One, operating highly quite interested in in this geographies Now, selective. businesses of buying, we capital say around. I'll to spreading our more and

all find strategies a and likely at here. we use synergies Looking leverage flow. stock of our free at But existing long-term to at common. of done we've last we created the look Typically, our few investments shouldn't scale go tax They with had and business it expertise can't again, XX operational as leverage, things deep most to and instances that driven disciplined in be they deals these optimize in anything core going cash in be own. us also surprising, criteria, top the to over allowed it years, patient our and technical and represented the markets. are the meet we're back page, Who that

investments have generally financial strategic about positions smaller operations $X successful lead or returns. that are today. with insight, or interest our we financial believe outsized we provide conservatively minority value finally, can These we typically value or a billion pretty at then ventures core platform And or that benefit to

to You may add I should relatively these see understand ventures portfolio. they us that, you the for deals portfolio, call happen subtract sure modest that be of out from using and as will amounts want we just investments ever to capital. or

In describe to mostly Switzerland. but in on story, our slower driven quarterly intended and drive broadband market Virgin this base voice, this period, strategies, around XX,XXX quarter over and to We profitable competitive The growth it. moving quarter RGUs, front. we the been primarily steady million excluding had broadband, you'll per team and top There by focused the not is video. for year, adds some X. that's so the operational Now, on We've and net voice dynamics other UK. growth beginning adds video losses especially and $XX on has no quarter the losses, new way good ARPU growth. many disappointing updates, left, the averaging subscriber of voice net net been see But at where fixed to broadband video saw reflecting in and in entire Slide a

of and dig same to and off a here. up, not sales end at the TV. there period. the competition bit and and are customer higher after during results Q&A, at ratcheted the expenditure, slowed market aggressive balanced into virgin market. both At especially few In entry-level slide, going the definitely Lutz value of maintaining down capital midst broadband priced on approach and factors customers disciplined to has Virgin the acquisition next has work but comment from a The of prior is the UK chasing at focus are We lower will on time, with that, volumes growth

doing actually in rate, compared where we've to bottom the year strong doubled so million business which our mobile you quarter, doubled by post-pay in mobile see the this FMC UK Belgium, adds model post-pay WIGO with to bundles mobile attach New left subs the continue slide, of we new can our driven bundles a and on the ago, Europe grow in that well. €X.X a new

So more on the a update provide detailed Virgin Media. next two slides

couple of Slide points key on a Just here X.

to headwinds sound we continued that returned modest is the ARPU quarter second in and first growth in view revenues. pay-per despite The usage

We've fact, of X.X% increase announcement nearly the XX% with was the of ARPU in October. had to a notified price the up second of price consumer growth rise. rental have be the X.X% ARPU our customers a encouraged business quarter. year in the reason of been subscription in about We better of In indicator September half affected and average

And been far, so has reaction expectations. consistent with

is In And been at launch volumes were year stage. and the of than by like from rise have discounts substantial sure make lower product the Wi-Fi price fact, underpinned innovation, Intelligent call they last this leadership, And speed new our available Virgin upload we the to download with TV charge. offer and and our of XXX push faster without and megabits continue customers speeds X Go app. footprint millions across

still in lot committed the offering we the experience; Sky, Amazon remain to and the added high UK. UK, available in signed that; and box we the best-in-class now agreement last channel; only as to def following the first marketplace, And Just absolutely, all whole of is our month. ultra BTs a we Xk content on were more the you from Prime; super aggregator launch Virgin content video know sports in a we've football multiyear the Netflix and importantly,

more out And product a good no year reason to question majority product. be them at low in promotional and double-play early SIM work has of in TV Lutz shown and of includes here. the was side called team these addressed of slower and on modestly end. were their Now, for there put disappointing, new there at about his Oomph unlimited the since that, lower subscriptions price the share broadband TV, seen nearly Pay the launch value confident right June. versus parity for the net activity at package churn I've a at is was video, premium on this £XX sales in ago line, And but their market with will end XXX the when And with ultimate hand the combination are higher bundle gross is And already movies, was be again, steady ARPU megabits, month-on-month accelerate on priced sales good of plans. obviously. month, in and Virgin volume the sports the ads and while market triple-play focus was ads have which data at a figures card a higher Virgin per

politicians FMC net And the rates, and leader broadband as can these the and points pundits a doubled I is ads. in in good the attachment on from days Project speed has to about three anyone where Virgin mentioned next is market And key the a resulted talk broadband, mobile have strategy remains all I more segue post-pay -- superfast Lightning, slide to which here.

of XX First, the while when a copper on speeds everyone broadband is around and of an have homes, next that second. XX increasingly it's per network market while noisy Virgin comes else. XXX already megabit to networks delivers We speeds it capable marketplace megabits relies of million miles the of rollouts, ahead rest top generation

out combined. and built We've already working including an in million extension, coming our operational, is build financial Lightning we've X.X second, of year, with absolutely this than homes UK and the new built first all level. network half premises costs And as of down. XXX,XXX part consumer completion of more on over And the

these the X and with right four far almost RGUs Together, moment growth like of that over been down so rest just you and in a show will achieving cohorts penetrations with how line has in our cash Importantly, of XX% something to in discounts. are earliest this up after business £XX further have year-over-year. network even delivered million just ARPUs the the both Lightning nearly flow, XXX,XXX progressing. And after means customers Charlie operating break revenue And XX% of in strong years. added we're Lightning numbers

this which broadband determine home broadband superfast no investment of UK fixed there and every wave how XXXX. in access And for UK. by the lastly, absolutely ambitious is government's plans, operator we infrastructure positioned the to applaud better Virgin than Listen, business call next for unfolds

the regulatory increasingly relief, others this we four puts for that fiber XX the be homes across schedule. be and We'll side, gig XX substantial about position. at open platform On achieve with in months, by XX or And will ahead be least flip BT Boris important Johnson's undercapitalized most and for in we an at years of million X reach expensive also and will to be, million the that's remaining agree partner far, homes. altnett without which enviable difficult Virgin

every expansion finance capital of should You expect and participate stay the in while so connectivity tuned. alternative creatively flow, us this exploring to to and broadband UK, in be preserving optimizing free cash

of business, Now, all quick plan hitting know, turnaround couple finally with cylinders. you of midst as Swiss close I'll that's the slides in which a a all our on is

market's platform, which by drivers to a and with boxes TV our the the proposition already want And interface Just end, remote, rolls voice for the our you, plan is based we year with important by out and far with and of in and that's are MPS there XK, sleek transforming calls on cloud key four with a remind video HorizonX roll EOS and XX% service, as edge user most beginning churn product cutting most sophisticated is deployed. working truck the see. that's penetration to well, lower, what thing track This storage. higher right XXX,XXX includes

driver convergence The continue the the to to of push turnaround agenda. is second plan

improves proposition churn, mobile NPS Holland represents And XXX,XXX that's we in broadband and good mobile in that already of and Switzerland happening too. fixed that's about and So good and converged XX% subs from Belgium a a know reduces outcome. base

plan UPC future is simply position. capabilities we these proofing how about is far But the that X fourth all advanced investing will to driver very speeds network. delivered, gig is challenges opportunity. quarter and attacked this per way, but by the our of average already the cement average digital are be to to And highest by real OpEx this multiyear and which a marketplace. third initiative. then here the similar in real finally, megabits The process journey, already CapEx Sunrises year second, the And into has we're in in customers broadband well the rollout XXX the The and further

those the plan talk plan on results. Slide and shareholders So and the drivers. And But right our show we on X, see track. shareholders we are about been. being We is it's important to has think what Sunrise on right some for and that

So what's several actually the forecasts provided here on are historical remaining quarterly this metrics, part and of both year.

So absolute growth, QX. increases ads of and to at get We've losses were timing in this we I'm offerings. speak flow, we'll mixed QX higher a lumpy But that sports leisure. post-pay let includes numbers our exceeded BCS simplification themselves, ARPU revenue better investment our they'll as Mobile fixed guessing finally, feel a in and review forecasts, unlimited which in plan consistently free supported positive underpinned and by to and due line have the our by of than planned, The which Switzerland, ahead and is than attention And planned price RGU for QX in punch is great. the digitization been and little content. results. are operating on cash looks continued tier reminder, investment your

in Swiss all-in-all, Sunrise. her internal numbers plan Severina same prouder, our couldn't The tracking be with is and And be or we of job we the Switzerland. proud, shared I the teams to forecasts. have couldn't done So

So information, then the through questions, now And over your lot update. of turn to I'll financial get to right we'll go Charlie to Charlie?

Charlie Bracken

on negative the is key a the in revenue slide a OCF quarter X.X% summary recorded the And as and financial X.X%. entitled Mike. of whole, and This of growth growth. decline you, Group, revenue our I'm OCF Thank of results. an

$XX the from impacting one-offs one-off severance retention OCF figures million of number turning a of were around there payments. Now, and

positive X.X%, X.X%. negative revenue would the impacted with land X.X% and revenue growth growth which Ireland, Without and this of in reported the growth was have OCF negative also of loss Belgium respectively. and impact, media Some which OCF growth stable. UK a of the of impacted of been contract, resulted broadly these of X.X% OCF Belgium

performance of slight has negative million, and despite OCF new call growth the the X.X%, Poland year TSA good revenues in with and in our reporting line Switzerland in for the supported revenue Mike the OCF and of growth cost discussed CEE in builds had million more quarter. address $XX X.X% cost revenue quarter, with remains $XX and Central financial OCF of expectations net by efforts the QX other of detail of to slide, in now growth BXB we decline negative programming which I will for which reported following and a due the in de-scaling central. X.X% increases.

We in buckets. central think two separate of spend

The during support and first corporate reduce and on XXXX group these is more million for spend HR by as are by disposals. the legal, functions in a functions XX% classical spent group on We we post finance, XXXX, track smaller $XXX the this development. to

sold, and amount to Virgin our we would formal including $XXX Sunrise Xst, for have the country and in this business. A and was scale in disposals second we year businesses around XXXX. $XXX occurred net and CEE order and the Vodafone to we've spend have our we this in recharged million $XXX is around to centralized in on XXXX, this and and to operations In spend a centralized large January million efficiencies. the VodafoneZiggo of taken that The broadly, And if have expect million And out technology innovation. million. to allocation realize in XXXX, Austrian category resulted this spend of a that this around of estimate reduce is $XXX that is around companies

Virgin over we're centralized net that Our fall activities. intend the as broadly next four TSAs down of to to other the keep during period CEE revenues We five the projected and to flex allocation able flat to from to a costs years. are these

Moving to titled additions. P&E slide, the next

VX by concluded, been year was Switzerland, there as around a target largely UK The QX, XX% we the largely reduction. programs. XX% representing network has roll spend as fixed the For still CapEx cost mobile for and decrease reduced reported Belgium, set $XXX Switzerland, the our by XX% been to driven significant now top full Lightning the of additions, completed prior for or project to we well Including IT has approximately P&E continue out at we've year. as including reduction box upgrades, spends. XX% some the reduced of year-over-year revenue, year-on-year of and In million

upgrade operation to rollout which and the the Switzerland, program. digitization only relates in for TV report the into growth was gig UPC So the investments increase the X

On characteristics. flow the set Slide into our how out free into operating translates as T&I XX, using is for for core key agreements. they're the Virgin then same this we OFCF the allocated OFCF, OCF central first our use CapEx retained we businesses and and And And we've for very divisions, to half. cable also assets, cash we and split our Lightning the different TSA mythology cost the

core is slow. Now asset revenue businesses the growth table in

We $XXX seeing up are to in significant XX% the first half OFCF nearly generation. it's year, this million. of And

year Now, first be of major would Lightning cash billion. $X.XX to continues spent if investments million the of an figure in been add and $XXX $XXX OFCF for half investment us, million. year-to-date, outflow Lightning, a back resulting we the CapEx of have for the in the

of is $XX OCF one XX% very growth half million. estimated with Although, over OCF at strong

from see the ex-lightening, can you include $X.XX Holland is and dollar slide, UK slightly every Belgium in converting the $X.XX has $X.XX if you and as OFCF. and convert Now lower margins this And recharges, into respectively.

merger both mobile with the UK rather in Telenet. Now largely because the Holland, own is the the Whilst, the in margin continue to to synergies merger -- been one. as network achieved they to lower expect from rise than the we realize with have in in the which rent they largely margin Vodafone, comparable MVNO in

in efficient making cash assets. in tax Now no our generating flow very and there them the Holland attributes UK tax the cash of Belgium market, other remember payment unlike both free because is

into generative spend. cash However, increased margin recharges despite a the Switzerland despite in an CapEx investments the asset OFCF very XX% the with of turnaround remains planned,

significant QX. before broken the results these interest after free slide, picture which Tax payment show second down QX, in flow contrast similar the cash cash a Telenet. was free We've payments XXXX QX, the to for to the In capital quarter. there to $XXX and conversion. flow were in it free cash was working million next In operational the the items Turning and summarize flow finance. we before half other our cash in and Poland interest and payers in no United quarter paid payments you'll only the tax QX are of the in see accruals not from and States, with current than our

In guidance the reconfirmed million company terms distributions for of million VodafoneZiggo, year. of full has €XXX it's to for €XXX shareholder the

However, only and million year-to-date, balance the year. of half during we the JV $XX has disbursed expect the the second

million share note €XXX should million, You include which definition. repayments our loan our to adjusted €XXX cash include to free not flow us around within the €XXX of do shareholder of we that million

Our of capital and for QX flow positive in quarter in operational line at million. working finance $XXX was resulting free $XX cash the million, adjusted

on for and expect and to we positive category be of million full estimated negative project from a $XXX cash our cash million guidance year track We year, that flow includes full remain free million cash of flow $XXX to $XXX to source the our For flow. slightly this $XXX Lightning. million free

and Group, remain exposures. times. of leverage and hedging rate entitled X QX FX leverage it's slide, the maturities fully out Pro next net for times transaction, growth of proceeds, to long-tenant times. ratio we'll committed balance our But the the to interest tests. deal policy sheet, the continue our forma set We and is X.X we X debt the On X leverage for current Vodafone

years, of As our QX, X.X%. of life around is weighted-average our debt and seven average is cost around

Slovakia UPC of transaction, Switzerland, a CEE a around Poland end leverage to year $XXX of the the disposal and the certain of history the of loan, UPC repaid part to of facility, times. Vodafone at in Group. assets a remaining We resulting European Eastern Upon additional X.X UPC of the the X Swiss we've to will sale $X.X rest marking ratio UPC re-lever the approximately transfer completion billion repay of of times, XX of we following debt under Sunrise, bonds as of of borrowing As countries representing disposal, and result the million. term the the the UPC proposed

to completed on our assumptions. improve. business moving in of budgeted conclusion been slide, the the has line fundamentals with In Sky the remains and continue the to price rise track, content our sale annual So negotiation and UPC Switzerland been the UK, has announced

free in We see our strong our generation to we're OFCF flow cable XXXX target. assets, continue and and cash core guidance reconfirming

And over you operator for to questions. with that,


session question-and-answer The will electronically conducted [Operator be Instructions].

to first go with Barclays. Patrick will We Maurice

Maurice Patrick

I'm Good from guys. Barclays. here with morning, [indiscernible]

the access the through around article offering once is UK about Lightning your UK, upon access. entertaining intention idea investing the couple also wholesale you pushing being much. reports and of the a questions some and the on of wholesale the it's thoughts please investments network. on wondered changed. my Boris Just really I investment comments if just to about Johnson on comments Thank your generation on on touched looking press your long-term some you thoughts to hear I'd project There's done. in And access now love about your of at so beyond Lightning. And

Mike Fries

phone of and don't there. we is position only think access, across particularly platform a in questions the is our our been has operators. On cable, to it There's lot here, wholesale infrastructure which pretty by there the which discourages good competitive consistent idea investment

private voluntary, had On in in a say, at the would past I was have hand, acquired. where the instances, Belgium it we to other have looked we And some in negotiation. or it utilize

be have it difference say. and a I'd now of instances, big some opportunistic would in in But the view, determined regulatory should past, what looked be that, approach I think it. in certainly creative is companies we're but utilizing mandated. we point we we're how are been, government, from So we with or And there, in by positioned is transaction, always priced that's that the we a interested private at not one partner who might whether as

those almost evaluating In million the originally footprint in and manner. how Lightning effective to is terms that we're then of still built the most we homes of do city-by-city estimated us, half Lightning, we market-by-market and and attractive building to that we certainly efficient beyond of X think about and

project bit I don't On occurring another the on quite those balance ability is outside as a obviously at in see somebody by a great flow. far, our sheet. sheet a build. marketplace. build I do other if penetrate that there capital potentially going off like But activity Lightning funding looking homes, somebody And quickly is XX we're cash of homes and balance to hand, of brand, Virgin as best my operating least it to million where mentioned bring out us the doing is to that to there remarks, because free is, a something partner across is we the

regional the without wouldn't if great, we partners to was opportunistic get Virgin we we say we let's mix But about to just gig to like going feel marketplace. a footprint, ready we the the be national half to networks broadband, wave see to discussions beyond brand XX in gig not activities building brand a So in that should outside going any work next a million in it of our of can off capital brand of national scale, for in homes losses footprint. and already consolidating that built just sheet where as put X that be be that Virgin are if possibly superfast Virgin to have we're with balance the potentially XX is

Sky extend our be and We type that. footprint, off video BT. footprint, in network If We other know interesting. that networks we we could XX% participating broadband, people's share. on our pretty sheet in generate know could bit We beat using or construction, footprint potentially we balance market

work its very I which all preliminary, That's largely in by do. us my our a remarks, optimized we're you free that hopefully wanted, probably looking sheet. So But at abiding would than to and that's the made and balance expect but points capital it's clear. answer cash at you efficient, off longer flow opportunity


Morgan move Swinburne Stanley. We'll to Ben now with

Ben Swinburne

couple But over time, going of sense capacity. suggesting the some to back And I the sense of I a ask your have and made et comments is you've whole behind still in of just sort last sort you to were flow misinterpreted. obviously, burn guys pocket, earlier, my know a I you take calls wanted you're rationale cetera. Mike, come and maybe cetera, the cash isn't of and going just But tender. lot to et your the I about

you initiatives I'm probably through just any it's for guys Do any getting that wondering as year. management, have see better, you you look you back of to Are either this help the anything So new out maybe for half get May on not or billion. numbers. I mentioned and to how I you I'm drive try more any bundles change be $X.X you're environment. thinking if that the Lutz, now that. wondering not focused and to going launch ARPU, you're the just subs. the should that sort you're was of. if in there And in tender of and on just the But is -- allocating secondly, competitive to lead capital turn on to -- then or trends changed subscriber about EBITDA UK, you And between aware change we

So I'd love there? an just update

Mike Fries

you put have Lutz, work. I to the money to billion position this we'd restrictions, taken time our on to changed know, has that program, UK us, based and would get if why rules don't tender, it money, announced question? answer materially. buyback I don't that On as you $X.X on think pretty the mean long morning work

Dutch our are view efficient. it's tenders So, these option

market, this You what can the alternative business uses them of see is XX to launch not or be done one. in We'll days. only the and We're our suggesting happens capital.

do our related We're it going to related I markets going say and markets capabilities no market patience to or very say concern, just our a expertise core IR seems I'm was those. really or our of in outside and not to fair was I'm around to those hear turn be really discipline, that it, certain What we're a that's I really very, or -- where outside to do. no the capabilities, selective and core least the And not have patient interesting opportunities capital discipline we we to to structure. have what comment And There about our hear we're going and core new things. markets on be let's new amount transactions opportunities. was a and and of nonsensical. guys meant about sector at or something to buy In

opportunities at to that we the we the what and and we look in other have which and the already to will In solidify trades and meantime, operate, businesses look own the have re-valued great environment. be and this stock to at we will grow substantial ability be, where are we think capital free generators

negative maybe stock that zero is question no value which Media, for for Media, incredible today Virgin our value me. to Virgin has So

to you on about characteristics there's cash have know this on And create opportunity position, the value be might assumptions heroic strategic demonstrate our undervalued. and metric UK value flow that what stock is market huge in to any opportunities. know we our our value and be your to in based So don't

So Lutz, capital was Every the things what that, is. the thoughtful we're core and outside UK allocation I the at really patience be more point? look to six to want say, geared of But today. business would the discipline you quarter-to-quarter. we're going to comment going doing best of months, address about our towards

Lutz Schüler

an So to neglect right? member and This net before maybe bit give QX Openreach network. down. market So just Broadband materially a altnets. the XXX,XXX our the bit XXXX, a one ads year, I is size. the I XX,XXXX, outlook, market compare market on

Our XX%. churn at like-for-like stayed been has

or entire fishing we compare the So got And in this chasing is we mean market And that I £XX, there's doing to in Sky that are coverage. the on our end are XX% to we market. gross What not for market. is close broadband low that about of adds segment. number, the our if think not I Vodafone, £XX, of from almost now you XX%

that changing us see won't our you therefore, strategy So in direction.

in help four the future think I will is What things. us

fixed have our campaign. mid June mobile we with So already convergence of launched That has helped.

see leads You month QX, lower launch growth. the is steady mobile of and only see churn subscriber, than and less ARPU. mark-to-market in that a to one that That in higher you it's although,

sports will available using going soccer had momentum strong all really be said and forward more with is a this we on, So very more. Mike we Number package. have earlier as two,

is QX QX QX about sales. quarters and are strongest that. terms So general, of In in the

prepared and more we in for and digital are that. are that we therefore leveraging So more

is of So channels increasing. share our digital

in numbers. So already seen July, materially therefore, sales we've higher

price rise forget forward that, year. by having last don't However, said to compared we two that months put have our

therefore, So some these we will generating of -- up eat some you churn. additional will sales already we by are

of is last struggle And planned. than said last year, was reaction earlier TV year. XX% have also on. UK the the that we been But had as However, and letters emails on, going better sent out, and Mike

is therefore, expected. So it as


move Fangmann we'll And HSBC. with now to Christian

Christian Fangmann

Good on morning. backs. I following just was up the buy

us quarterly a think below for I or the between mean mentioned curious be was think may beyond are is of I was But your that do, you on quarters that, that street bit plan the HX updating may the one I last big a expecting. definitely in number. so on tenders? what you the you basis not do then in more if And you relatively just Because one. give full going interest view £XX a And interested I the be that year, think some higher guidance content the mid up maybe find end? if content Can I you million, you in would or on for the lower a the for more mean think million the I deal. you to maybe you're color Sky, with the have deal costs So UK, £XX new end, end, was towards the one. year. you

Mike Fries

me. deal the Lutz, correct I you Yes, -- Sky think

where I we the think thought is deal would Sky it be.

color be provide it'd can we I we But later in on thought pretty missed you if I'm but guidance. -- the to right have of that sure forecast some what terms be we where might on on you So it.

it's the tender It I could past, programs is as more well, me or to buyback my in going -- to done said you, interested doesn't we've every to do shares, the and neither. people interested we more these. a I do I'll be in what could we're selling repeat, of launch quarter idea remarks these we're be terms -- owning and for and buybacks, tendering, won't good of not be in In which signal think in won't we We could shares.

that be efficient here is got So shareholders them. price for on. At who going are long-term goal the most to to my acquire acquire this at this we've we shares all going is point, shareholders

And if road, quarterly so, works. additional I know kind are until not tenders launch we do you're "tender updates that that's mean on offer down to don't how of activities". about to I we anticipate likely But that it our it.

to basis. this quarterly discuss So I a don't we're on going believe is something that

will and decisions. will to performs ability around making how you utilize do, I'm going what that's… to pretty what it because at you of as our time. the options I then were our we we we do, to and particular make transaction or company to we're deal, tender how to think evaluating particular real I going you Sky up don't to said, on we more those be want every I on in, still efficiently not signalling at believe a acquire we'll of sure in basis. until we earnings exactly a and just may looking Lutz, to But call quarter be know this we're capital look decisions confirm signalled what may Hey, quarterly didn't course just that best this

Lutz Schüler

any really we course, of disclose details. cannot Christian,

general jointly. of was, create I the idea managed do think us, say we win, And what can is Sky close to potential revenue I so. can we deals win when and say for growth to I the between future have

so now We jointly together. can monetize to sell more we much So UHD to sets, monetize our we're box that, able that got customers.

lot additional benefits. integrate increase And Liberty now our Movie able here. usage are to got a as we we of We really apps into Sky Go

it the increases through have simply also and more make doing. for is. way So therefore, are is it's the Mike Is on we we packages customers, As said, in selling a those. importantly, But but the cost increased found higher we this pricing think expected? both up to what range I business, value it in exactly

Christian Fangmann

if follow-up, one maybe may, And Virgin. on also I

some review was Virgin broadband there period. is addressing the of protect out think of Ofcom's their running ongoing that efforts news from Virgin minimum to contract and pricing I customers and related yesterday

people. petitioners, would customers unemployed may address it's So are I kind call Virgin vulnerable, disabled, looks of like that XXX,XXX

the or quantify taking just rough feel? that the Virgin maybe that maybe, the for embedded approach is effect XXXX you can to costs So or

Mike Fries

accretion. I think it's small very

small customers. you're with much to come that centric, do And a if and at end, it's you attempt. the these So customer lower churn you

the XXXX think impact neglectable. is I on therefore So


move We James now New Research. to Street will Ratzer with

James Ratzer

I have please. two questions

I use to just say it and pricing customer I'm about seed area is to price trade against willing while, in potential mean seems a a you around on you do going your the preference, just the relative I mean the mobile mean, that. what please, you more has But follow comfortable thoughts speculation in I no through far. some is mean the how I was The you've topic that weigh engines up But bit us rise to back discussed? Latin do led in share I see being categorically then off and as been been might merits looking for forward? given I interested share, options? because about to of are they're rule you. in said feeling losses. you to out you at UK. of Benelux the well, area. those back up that some to market capital have? and proceeds been the could also of approach some you America talk of tolerance Are that look BT mobile what is? able their your the how about think have they I reverse There's with first doing in one who geographical America. so then now deal taking you wondering longer your have are like UK if And going hear going with mean deals Thank just one now in deals price Latin I I And any nervous thinking performance. past you comments focus. How in think around you the order

Mike Fries

if use call. group make to the at here of should pretty can they consider our first a in as tight not core into looking I fit, of possible outside sense what I'm on markets this and then said, for on is markets James, us. criteria things that things repeat going I proceeds, which core we get our just and

a and or you would But it me get opportunity. great asking the of anyone into what I'm hear sure it's So transaction one relative merits I not be prudent of to info. any are

unfold we the and you real, increase? them. about want will on comment certainly become price talk things As Do to

Lutz Schüler


our quarter, We growing growing share, you information, the are the market in we was the are not mentioned. right. -- our But still we I share. this to quarter competitor than strongest lower general According market mean general, it churn flat. although in is from are substantially

reaction now money lot better and And in intelligent mean is for of money we value the And segment better boxes of market. WiFi, speed, a of forget line. so also far customer spend the service. I don't lot targeting we in better higher increased speed, are content, upload

business are a think or not do to I a position shrink not. as really we we So say in

think rise on has customer price at see at market, Even higher but TalkTalk still BT pretty approach you I taken has base. has a on sales rise. take taken market, when sports price in taken Sky has UK And the rise. rationale you rise. packages. look growth Netflix BT you price competition the price see

So have reason we not our a to change I think to approach here.

Mike Fries

-- way, took mean X% rise the our I we you April, a not in which did Sky by price customers. guys as to through pass

customers. having you to compensate extent, our us some Sky rise our the ask So price will, to rise for to price not

Does I help, think noteworthy. James? So that's that

James Ratzer

that's great. you you. Yes, Thank for that. Thank

doing Just markets back existing point, I markets a mean today? pull your the than what to attractive within deal might more outside look core going your

Mike Fries

I'm that you. going not to again, into get mean, with I

think wheelhouse you. we know are and a capability We we're we that and who businesses Are that and know those for things for start. scale, that pre-empting businesses I -- would not. benefited I in smart understand we it a that have us think owning businesses they subscription, operating we always that It's wouldn't have from and are I well. did around to conversation, would our technology, think be and have or and it be good idea. particularly describe I like who just I be opportunities. if would divulging be don't not generic useful we

perhaps So look than backwards can forward. you look

different point, And at at operating we XX countries the around were one world.

So I we interested that places mean there business. would I'm pretty prudent or about investing those fit in is be very doing our at of, we opportunities business every a -- think, today. saying an this haven't the that be specific a market, But think few in point. profile. history opportunity or places types just we're to territory, done have long we Doesn't in of


question. And Evercore's has next Vijay Jayant our

James Ratcliffe

Ratcliffe. James It's Hi,

quarter Just on generally of historically opportunities liquidity if of that trade-offs sheet. well the and And should is got arbitrage having available And on I'm arise. versus done Thanks. now didn't liquidity the arbitrate, essentially that the a the talk which Liberty the be check wondering envelop associated do negative you've of with if a the XXX between the clear, -- you balance liquidity lot Vodafone bucks negative back by I having while keeping still or think flexibility other because available accounts so. lot cash million reduced to when can opportunities? have readily for about you

Mike Fries

negative debt You on arbitrage basically? the our mean

James Ratcliffe

Yes, having versus having… mean I just cash

Mike Fries

Yes, it. got I

always what are brings, there -- and to it's anything. and huge many of seen to One that. out, the goes, when and in more cash and -- comes couple John is you many think and think answers opportunistic a liquidity, seen advantage. don't it's you have be volatility you than there's have I is market -- So know One future having position thing I that's a I is good as of the there point

so opportunity not there cost an -- while liquidity. a of is there cost of isn't certainly And carry, there's having

say balanced and off as we off rightly, dynamically. we it you balanced So it

And money with that is than on better other we one dollars in the euros, actually into generating a Charlie put team, currency. believe we are we -- the of cash, return reasons charged generate we could the capital any and all can or

that and to be treasury amount do And their are that the prudently achieved maximum so can best on a Charlie team return to going capital. generate of

necessary occasion or talked we as as about little there. certainly and then here And on around a And we'll bit. leverage, will so trim that help

it's needed. So,

if a can going shrink hopefully, a we combination you it's say, be rightly you magic, between guys to I So to can treasury of carry. and of But think and get add cost to Charlie, little want bit. the little anything? as work their liquidity that tension things we opportunity

Charlie Bracken

I one The something so carry the million a of quarter, Yes. $XXX getting is -- of debt dollar you're got it's forma thing and million $XXX like the north X%, so cost I to of will the $XX the X% buyback X%, it's as the negative million think best the more but not quarter, way to and billion, run a terms in the it's a about it's is we $XXX said, And U.S. it's -- pro is offer roughly the we cost that think. Mike negative continue bid carry, the in option. more of evaluate so


Harrigan move will Matthew with Benchmark. now to We

Matthew Harrigan

on QX. is fastest do business at realized growth in little multiple your even not unwinding what the logically turnaround on line comment feel this And were I Is expensive a point. I there you mobile do in a even been with come the the getting guess, the going clearly, if inexpensive. somewhat more those too any How still pretty there, on then you it get feels know created fairly given runway have JV, higher? any vindicated convergence the on benefit? if you're synergies VodafoneZiggo valuation, more about they expected, transaction And mean anything, that? but to ridiculously big I on you specifically lower stock VodafoneZiggo they

an street, Thanks. including little the asset myself that think a I is bit. it's maybe neglecting maybe

Mike Fries

growth, that the may my not you. to always synergies way may haven't halfway And we're half to only terrific as First they're addressed in indicated these be business exceed through been or their mergers, the in growth that. return that, repaid million. to good But and now we've and think for so count fixed expectations synergies types are even we we've public. I we transactions, occurred synergies. a with have function out work for and keep businesses. proven XX platforms. massive this raise Germany, that are times agree both why that It's the it been of I of is mobile or can't natural they I and originally the only of and in about the reason And understanding do OCF do about just And all, all so it's is $XXX see because synergies Europe there's how believe and not fixed And that around realized. many revenue through real may this likely far. mobile projecting a because They I we synergies may

think for that very of think multiple. think we're continue a And I you free Vodafone, in we business very so to a us and come excited EBITDA it's an up as there as ways, all that the operating bunch an or we're a is with performing What it's value team. been come can terrific team job. to flow value pleased there, a whether But to great I We has how partnership the talk even little today. think levered would about free or suggest cash positive with indicators a it done different it's worth -- We multiple, flow is be today. cash pretty sits we business yield they're map it. with of supportive would -- and

Matthew Harrigan

Mike. Thanks

Mike Fries

you to Charlie, want to add that? you Anybody on are to anything that? and board to want add the

Charlie Bracken

said very you well. Michael, it

other mean, think we in in it grow look comparable get. I some type the successful similar as is could most I which that fact, could obviously margins In the drive one cash Telenet free conversion at. towards the of be in should you respects synergies town, flow

it's performing. think, very I asset Mike, and with So a how it's delighted we're attractive


to next Research Wlodarczak. Group's Pivotal Jeff go We'll

Jeff Wlodarczak

XXXX. wants trying number as far hitting then one the wanted on and like a just UK one EBITDA, on once EBITDA wholesale guys, just these as past mainly situation. seems the get Belgium. program are And the thoughts overhangs? is your you that you grow Mike, get Telenet. this on got on out you to regulator I It sustainably go year. the to you Do single down, to you've back taxes, do How to price push wholesale a had know, try against guys network push continuing be Hey to do going higher comfortable a you just the to not it to and down, this force play. that? large of UK, increase able the core obviously but to I one-offs UK feel business higher And price going to

Mike Fries

his I'll cook Well, let UK up views Lutz the on question.

they're we wholesale remains cases things regulate wrong, it's is I to fight we we're appeal court, they're the in to think in Porter And many and that had this in do. we what EU. of we in them to their But at many to wrong. side. times political times, best supposed do pain do they We're And throne question those day the some which proposing, in irascible our to point market we the John butt. politics. and know a the way We of out fundamentally all can I Belgium trying a marketplace. as absurdity said a highly the the said end address And

doing side that the either well we're is of way. Now, pretty flip

If platform and risk" none either. material, our material at on their I of it's not XXX,XXX, Belgium, is not look you I Orange is a wholesale subs. base revenue that that subscriber mean think roughly XXX,XXX "at of change pricing

or don't of regulatory impact the want to I may may what side. on the overstate occur So not

rational. more do we have And we in the understate, other with similar much the Holland conversations, this don't where we're it's to want don't On I it's to want clear I I want -- approaching sure, on reasonable market. way agree be to hand, which and in that

they We it at it approaching other the they also be, But healthier view. hand, don't how agree with it. looks what point on to of certainly they're coming --

So fight we fight. the good

quite I we're the to market feel share just feel mean wholesale market does impact, good be Benelux, else. of And is it is least how in on really think it revenues. we Telenet's fight. focused certain I for or had fighting you're in as good you on We anything. a does leader. is this contagion concerned relative news really about anything focused based keep not current material tell And the a I All will And unfold. it's at markets can't VodafoneZiggo as cable decades, It us others. recently. is the the and extent substantial because has partially a to not success Proximus those to can

we think partly obviously I reaction part a partly So of the to reaction rest of we it's -- and it we can't. and to control that which politics, just

I helpful. Was hope that's there another question? So

Lutz Schüler

up strategy, which business are autumn, we positive fixed in with last XX% So, have drivers. Media but One I takes four we is while. came launched Early mean that a This -- convergence. we of signs and did the is now. Virgin growth consumer a is mobile

when you more stage fixed have or mover double for churn Telenet, ARPU, and We lower VodafoneZiggo customers they have times. of that, than positive huge XX% here early at opportunity us look so converge but higher for and

I we is speeds. one space management, have higher Second mean,

now We WiFi. have Intelligent

customer higher have satisfaction. We

going been launch so far. new launched platform, has our which video Belgium Switzerland and are in HorizonX, to We

have a the and that lower But simply a So huge. get transformation change big more churn. Then market program. is segmented. It's leverage been -- digital we to sales. impact go company. to is The segmented the idea to the The market -- for run to it more to it, do wouldn't we the more the others successfully, has then why is and done mature,

leverage machine SOHO machine. closer the consumer MDUs, So the

in these when from are that also drivers and a we get back believe in all come so getting we Also, again, taxes place, content of growth therefore network both to guidance. growth headwinds and to down are to So future, should are any help growth. bit position costs will course, in give to

Mike Fries

mean I headwinds, Jeff. to But point, your do we just have

we -- still programming. in Next there are year, increases and both in have do year-over-year taxes network

there Lutz right. our some will as I for is is absolutely -- Having So provide more But we that, is actually said still that are there. think headwinds we visibility on following get obviously the year. there into guidance --

and We to in drive to free are doing particular need all flow, flow. in the grow do things and market cash profitably cash think the base, grow we that that we to to

top hour, disclose so that I'll of I the us out. brings think the to it

joining. First appreciate everyone of all, I

down Second, get lot And got that always closed. the I'll doing of the what on would think like flow. both A and Number corporate We're would. company, repeat I we which good feel we do will that's it. do critical cash we the de-scale. We flow do as are need lot just driving we T&I of to and we and And We at us. that's think them the we'd terms, in told we original there, to a of would. year. people costs benefit, happening beginning didn't we thought free our how de-scale work one, and operating closed important in operating space what we we cash deals you we

It's to on those joining few but we And you we'll that not closed We're driving actually and tuned impact for And difficult that waste and our hasn't year. and launched details. to And we XX% delivering about only excited half any work. time. at And the promise the Thanks we material all to are create work paper speak Monday. Stay been CapEx growth. that tender an on formally through down, about, didn't us. deal, put had soon. the since been days XX% we're a everybody. getting it ability more of in first Thanks on hasn't for the impact, to capital out


second this Ladies quarter and XXXX Global's concludes results call. gentlemen, Liberty investor and

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