LBTYA Liberty Global

Mike Fries Chief Executive Officer
Charlie Bracken Chief Financial Officer
Lutz Schüler Chief Executive of Virgin Media
Baptiest Coopmans Chief Executive Officer of UPC Switzerland
Steve Malcolm Redburn
David Wright Bank of America
James Ratcliffe Evercore ISI
Robert Grindle Deutsche Bank
Nick Lyall Societe Generale
Matthew Harrigan Benchmark Capital
Christian Fangmann HSBC
James Ratzer New Street Research
Call transcript
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Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Liberty Global Second Quarter 2020 Investor Call. This call and the associated webcasts are the property of Liberty Global and any redistribution, retransmission or rebroadcast of this call, or webcast in any form without the expressed and written consent of Liberty Global is strictly prohibited. At this time, all participants are in a 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 X the forward-looking details the Safe Page slide regarding company's of Harbor statements statements. the and expectations facts. with include the to not its Act may historical statements future respect and XXXX, Private growth statements and of are prospects, of company's presentation Reform information Securities the Today’s including outlook Litigation other forward-looking meaning within that could by cause those These statements. actual to risks forward-looking statements from implied involve differ expressed that or these certain materially results These most risk in detailed Liberty Global’s and Exchange filings Securities include those Form amended. with Commission, recent as the including XX-Q its filed statement disclaims any based. Global its these change any of in forward-looking such statements expectations or Liberty on is to reflect condition any obligation to any update any which the now over like turn would Mr. to to call I Fries.

Mike Fries

operator, to welcome QX call. everyone results and Thanks our

of well and us each all, you and as you’re I joining First we appreciate today. safe hope always,

through minutes majority messages is and remarks time plan the key we'll prepared this to to run your questions. level answering on our the you're the spend so sure or then slides and set Our XX of quarter about for be

this remains some of so navigating couple the minutes each then I how been and has highlights remarks work from following like sure working wellbeing in no our Beginning with the I'll Clearly, exception, pandemic. upfront few to home and we're in of into our course. the spend the people, our most of As join a get more Obviously, primary with on and to handful In XX% the along of get heard slide to does I'll off on case balance It's XX% work open they pretty from been be plant have installing sure customers. it key slowly in of to Q&A. and We're and with you've presentation comprehensive required detail each kick quarter. point. those the I'll the is to to country. course the and involved which and be you everybody's governed that's hit to are local usual, bear a and exactly protocols we'll from safety have can want line up of for so companies the of key top color open but them what focus Q&A who and to me continue me building session we've of and home and from needed. that need that field, I've a asked we're regulations execs in and be and also as doing. to mind by the X of on different Most maintaining we and servicing carefully whom offices Slide COVID-XX summary a

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pretty Now challenged region has while better severely the on environment been well in expected. the the COVID-XX, has many the by weathered macro whole than crisis Europe and

bright of which the handling effective and accounts, a is, least spots quarter but anticipated all there, in XX% pandemic. Eurozone by XX% sequentially, of not fell GDP some As the the there's pretty

as tragic confirmed most levels fallen pretty curve death near All constant April countries. from with and core or to successfully have while XX% and have mortality peaks cases in daily flattened every staying fingers our the operating impressive, zero Europe below is markets and of at in just anywhere XX% in of March rates these crossed

crisis brought The striking. pretty the it's together. U.S., region the with has that also contrast you If

addition businesses that adopted help It economies recently to the designed reform €XXX In rolled both investors among recovery hardest to those billion stimulus the the measures on confidence and fund EU crisis. against at rebound, appears future the seems consumers out level, rise. hit be national to and protect

the You NPS can mid-May. operating in we deliver a fueled to margin by And line allowed quite in hope that to which steps recent customers to anticipated see guidance strengthening robust delivered this EBITDA revenue more, we had and significant zero Not reliable gears, items, we and original seen I modest I'm well, low and since the report that churn, reported we've our of content very were you've against of our Telefonica on going adds more nearly in us highest that many by driven a from, bit, the lower in to theme two continues were to cash Against UK euro’s better later impact years. is to heard in is Charlie perform XX% that QX was start. about great the and frankly, dollar speed, UK shortfall and reconfirming XXXX occurred the or about dig flow. into backdrop, peers. broadband those and networks a business than and that's over all more up achieve free year-over-year. our fact, additions, record pleased give our In off we’re to well ‘XX XX% JV more The customer from Pushing with net surprisingly, heard know and best by since case, data a our levels, mainly levels.

shareholders, higher. £X.X I And after of customers UK, about we pre-merger deal we a As remind excitement the fastest company, fixed mobile in about going for with be call, like the and for combine process country's talk this in billion. level deal in valuation couple GBPX.X Liberty the mobile review admired details to teams all talking a proceeds a expected again. you of combination for even network Media the synergies, convergence But underway. is the great to And my slide. a next on regulatory billion opportunity you planning, together, and largest our hear can broadband our the coming well creation this win into just I'll that Virgin will respective that win, out also It’s moment say. we're I'll is the reviewed the as about when the last extraordinary. financing the extremely place good to win, falling is are and most for a of months value it's the deal transformational working the is and into long-term UK’s

of everything So for deal. this on is completion the track

here allocation. points additional capital of couple So on

loaded five on the year. last adding the borrowing and XX year, plan finally, treasury buyback the into extending program. to you're the that over we'll reducing markets last means around we’ve fully We're work what today to indicated we have course, the XXX I million our years costs that know definitely months. and and first swapped be always volatility X%. billion have our of stock question we to price preemptive of To already purchased million reviewing you being. the activity to half our announcements this As ask, to on of call, those buyback over about expect And capital we the us going in seven would front year given we do but any for don't putting XXX remaining then debt, And time teams options, the really in tenant were of our active our refinancing

we're great ahead And recap UK. making subscriber and operating to then are for EBITDA our and course, JV delivered strong cash free progress Telefonica confirming results, we're of and XXXX. the So consensus flow guidance of the with on original in

I EBITDA. fixed the or XXXX and German T-Mobile times the times markets. UK, powerful fixed highly combinations strategy of business where XX we clear revisit case, mergers enabled or billion sale six mobile of total multiples over along transactions, completed through some broadband and our and our and billion. deal recently. that Australian the for we've on the recent would announced operations mobile with of build a XXXX, at thought the it $XX creation logic underpinning orchestrated us for And only in is a over billion course This player sense These smaller to our this a work these mobile here. value we and consolidation. in and operations XX.X sale the were Vodafone fulcrum last was five, or fundamental the network more banking of the returns for for national of efficient Speaking our of the the make to deal $X.X at investments very cable exiting of decades Business mobile champion deal $XX other EBITDA our Since premium we've those organic growth In through certain long-term was tax each asset with to and significant two accretive case in were

and the also because Telekom, seen buyer, or you're by these accounts fixed homerun for But numbers. all Vodafone You've Deutsche all works. mobile were convergence deals a whether seller

by create acquiring Slide to provide strategy mobile I mobile fact, numbers think developments is drives And drives and fixed years. support flow it scale, drives why important drives in the and us. in with markets. sustainable player we seen champions, that. in I've synergies, working one ultimately, most those UK, X massive It Holland it's In better cash in strategic of the my or own brilliantly our is XX Europe it valuations, combining it some for Belgium, to chose the a which

else's On the Belgium gaining scale and incumbent more share start Holland, that growing. today both we’ll our reach UK, cases, we're one network, with and the in one these of And of to broadband from as highlight the TV continue XX% the to we’ll mobile We XX% number interested and and services in ratios BDC TV. in in Virgin with a we In the are and roughly broadband convergence number converged customers we be are mobile In and top product and to share operations combined using in one left, JV broadband. our us. we'll more fixed in we exceeding we're mobile the reach number And know surpassed markets. today in someone customers. highly in bundle footprint gigabit two and number expand on of in

that us It opportunities and the VodafoneZiggo fixed opportunity ancillary recently agenda, of puts also not does first surprising shape content to XG. in it Now the by also monetization the scale and launching to enhances own expansion to our channel It and air be gig also expansion shouldn't And one Flanders and Belgian these it the supplement strongest broadband drives is like to to launch infrastructure. the a know It's in utility franchise with announced a in free in OTT and the take project ability our UK now to advantage those and and strategic markets. even anchored and it leverage critical view. acquired services compelling Not new Telenet two surprisingly, a Netflix is success company position of of control strategies similarly all and the and my largest in do? is new VodafoneZiggo sports infrastructure was content areas which network and we to rollout political ideas network What regulatory future. its the previous merger more in in Holland. a offering. makes

you've fixed value seen, are of creation. a significant synergies as Second, source transactions mobile in

important that customers and real, we've shareholders Holland expectations Just total from of growth case synergy and in were These generate demonstrated benefit achievable stable expect This deliver Fixed Belgium we significant billion. the get to that over basis. able results of the you again, NPV €XX the are the UK investors, flow. And anchored what €X of longer never turn course to distributable the even higher synergies, free top and for in of platforms. we increasingly really over are mobile Belgium, do and smarter, in also sustainable where in experiences, flow free mergers Belgium, outcomes. their these accrues rationalize synergies and over the an Holland, the repair real involved, derived lastly faster bodes we as directly we've And and reductions we synergies assigning on announced but target. better the valuations excluded and and customer and and the again that when mobile in responsive predictable occurs see the three missed cash EBITDA to trajectory as more And slide. on of a markets UK, And churn, cash in the term same. NPS, Europe, billion we've by also particularly fixed more around the deals can realization In inevitable Holland, well consolidate. are are remain right of to needs. The increases

like you and add EBITDA stocks you on KPN mid-single your you. times right, the cash to X examples, take half own TeleX, average, it's dozen flow these we But and cash trading show Swisscom, free up mid-teens or bottom digit including off, On with the companies free multiples levered operating year. these at are in can

use synergies on you try desirable challenger. cash some evaluations, valuation proportionate when clearly, company greater free because to a underpins annual and for valuations, So or public skill, at dividend be market focus This in the national cash you're the our the us stable we are these of collect streams and or our or investment operating advantage operating of if you certain parent in basis, champion especially take cash us characteristics, makes look perspective frank where free EBITDA transparency parts higher whether it and flow assets. levered sustainable you free instances and support or to on these free sense at national of flow, from high listing cash to interest regardless flow margin own should partly

time, Media. Speaking thoughts for and a address I'll presentation the usual we you of high of the each in each company market I'm our then Q&A. here Virgin for might your points the any with In hit we operating from during your have to information. questions, few just have updates can start going operations, interest

which fixed the all to starting quarter in Swiss quarter, operational strong up are both back the with it's ratio. competitive had This a mobile beginning additions, bundles, news Lightning the market that, another I but that growth to in Lutz in mobile last than remains ads, our ARPU and really and into XX,XXX churn supported was by we well to not to customer Nobody think to invested is and the we’ve or commercial year strong in those the and normalized cumulative across Media, fixed had highly X in you investments flat. part adds These on million. and the footprint with the Virgin on to leading bringing customer impacted adding basis, quad-play faster us of their including platform postpaid nationwide be We and of through Oomph We close. gigabit-ready was are broadband premium on operation. X pausing XX,XXX new homes XX% team the of building footprint. is X.X network BAU XX,XXX initiatives million points on particularly the and on video robust sports a ads why digital which QX expect and in has a customer merger market are cylinders even really home sets ARPU with a total Good all And the our more the Lightning rollout by reduction bill results trends momentum The way improving. hit know on pay-off XX,XXX have by gig these accounts broadband UK. estimate in COVID, XX Virgin quarter two. all and

example, is exceeded, and sales all-time an NPS pre-COVID year high For last at actually in and June both levels.

of forward. can will up sports ensures we cash particularly Telelub quarter, cash an remain and as year I free us full that flow in XX% don't expect which that levered changing $XXX also if have you'd in do the market forecast some to speed, sunrise get rationalization. reached we million And they can the build years MySports of what think already times, we country fiber opportunistic the is that flow. think this supports market. each up XX% rationalizes of which and we’re customers and of me in By competition Strategically this heard focused that, requires the of really. by with free articulate to seven And agreement announced free salt the that We in to five anything their next on both to had our to. plan, many say flow that see operating still much the market Swisscom We you've access say we're the financing jointly you'll to cash sort giving the to is our of adds going so announcement way, some over

broadband customer broadband add to proportion rose net by Moving a subs. a since strong higher and have a Telenet, digital they fast with their year-over-year of best XXXX, and of was that levels on ARPU’s X.X% quad TV quarter play number supported

now play, stands rate or quad the mobile XX% XXX,XXX conversions Speaking total the exceeds attach base in ratio at Belgium. mobile of fixed and

And a it well The it in revenues above coverage finally, with they weeks there the investment target and from impact revenue acquired and all are a underneath end for on few ago. and VodafoneZiggo good and its XG flow dividend handset XXXX. a surprisingly to and you'll XX While of gave in that's thing. available stuck confirmed forecast is nationwide the sales free was subscription original year. The of also advertising slotted the now COVID, the Not gig cash guidance new that April in coverage growing year also spectrum continues back for see particularly performed license Telenet X full with nationwide track pandemic. through rollout infrastructure networks just XXXX

mostly X% business the to in mitigate controls, in cost results were revenue which normalized Our fixed solid. mobile growth VodafoneZiggo’s managed COVID the up drove the second of QX team proactive roaming with X%. space, ARPU and quarter the in impact The EBITDA related

and full flow EBITDA available to $XXX their guidance, million reiterated also distributions to growth million including for of So cash as shareholders. a year result, $XXX free VodafoneZiggo positive

financial, to to our JC me, mentor want to talk just passing and to back I board one Sparkman. a hand a the of dear Now, it here and take through to recognize the I switch gears Charlie before of moment friend members,

You end to built us. I to great might industry. to sure on he brought all he Officer and XX company was board operating sadly but the family. have him a Journal. I’d cable years John make last Wall just be was over able a our Operating that JC’s in to Street our be TCI same I missed XX over while part Malone's seen want note In the I of Global have and his just wisdom Chief his say that to over will JC Liberty obituary want last legend to back a years that, He he was don't in the side Charlie, the was the of by over XX and you. years. words, With recognize on the contributions moment to energy

Charlie Bracken

$XX reduced Thank million $XX estimate entitled the QX on million increased you, our respectively. revenues around I’m charges or $X consolidated mobile is QX the late and contributed $XX impacted $XX we Mike. around million million from $XXX million. fixed mobile estimate that sales sports COVID revenue year-on-year million. around were and running Overall accounted XX. that slide X.X% decline BXB reduced and that, the and Within impacts and for premium handset reduced roughly X% impact COVID of we

broadcast We also estimated and saw Belgium at businesses, $XX million. Irish which we reduced revenues our

the the We impact impacts are material to minimal. the So help in sports such as adjusted COVID actually quarter and covered consider marketing EBITDA of and more was premium from offset expenses, benefited impacts, the also which quarters. the sales revenue lower impacts. is recent margin we estimate revenues churn when of with of reduced you and and mobile Many handset low line trend that estimates in the on

was the COVID. As adjusted rate a in QX we unaffected our believe EBITDA aggregate growth largely result, by that

impact group we decline equipment On the in Property revenue the financials versus show QX. adjusted declined of XX.X% were for slide of on entitled quarter next without of X.X%, of sales additions decline group. sales. the and EBITDA for and the QX key XX.X% of X.X% the Lightning the overview, the in we’re the Despite X.X%

$XXX with and pre seven debt million, free X%. end, with As strong average operating quarter XX.X% year. million, on and OFCF at the of tenor debt refinancings flow And after XX% $X.X billion. remained saw Lightning completed Lightning a improvement result, for times cash average we times $XXX year-on-year gross year growth number CapEx, construction our quarter Group a of in adjusted strong years up liquidity X.X Having cost our X.X remains was net. an QX, a at EBITDA at beyond

more On was which which detail down analyze COVID the page five CPE XX% CapEx, buckets. on did we an continue around entitled P&E have our year-on-year. additions, in to impact spend, major provide our we

remain to home increased were XX,XXX quarter. the to UK. modestly trended of expect per without gig to much across £XXX the down Despite We with we Project in years. as in CapEx, behind would as space, major of this date. and significant our Box invest the lower well quarter that connect reduction completion expect Connect premise upgrade upgrade efficiencies. the upgrades the the of category previous the project roadmap this in billion the a Belgium which around large even However, turn £XXX for Cost the upgrade COVID, maintenance Lightning IT In a the $X.X Lightning the other platform construction impact digitization was homes intensity we spend completion in CapEx of our line lay in in in set and of of in XX% XX.X% have XX% we our investments of investment we cost well was Lightning box years. the in first in supporting half the sales. with one required below still as down premise cost of future been with categories platform see is UK down as IT coming from spectrum we and the build capital our projects spent figure and Baseline, XX% benefited the XX.X% Capacity the capacity at mobile top spend to in year-on-year, versus in drive of and the year and constructed the and to platforms continued sales. we And us, Belgium, in growth. volumes major Without the excluding estate, our of the the the broadly COVID. but with product or aggregate, category, video as

flow X.X%. divisional the breaks our It subsidiaries benefit the million. our higher down assets. for revenue and key growth a UK flow to major but free than a The line of in previous free which €XXX figures overview, with and the the positive on decline first OFCF by tax saw flow to provides analyze its roadmap end recently major the guidance to of million the Turning and half first also EBITDA X.X% of adjusted Ireland despite cash OFCF of at loss in strong revenue free lower carryforwards, was asset at a €XXX $XXX declined free half some of and confirmed investment. declined example the CapEx million $XXX a the conversion strong cash X.X% build Adjusted as Belgium million flow EBITDA significant before meaning that and In our whole, cash the flow construction Belgium. cash $XXX remains X.X% Lightning operating Underlying reported after. They that new million. cash generating

we adjusted realize market confident rate. remain half. the despite pressure $XXX discussed line. of repricing top million in cash flow year Mike million OFCF Swiss on and they’ll XX.X% free to first efficiencies, around in operating As that the continues the the attributable full declined period was for the And at exchange today's in the $XXX EBITDA put

the $XXX adjusted As was assets they the and Mike OFCF first performer X.X% our in increased standout to EBITDA highlighted, growth of half, COVID million. growth, VodafoneZiggo. reported X.X% Despite major revenue

Working as €XXX the had adjusted capital venture million with of the million $XX remainder the was tax paid distributions working months, cash interest flat joint that the $XXX And and of $X.X cash months, the million the CapEx six Lightning year free we of million. of group a previous expect half of full just years. shareholders before expect for six the to cash was flow half first $XXX the the year. billion. after loan shareholder $XX to first first flow their million broadly second a and operating half for free interest million on XX% for whole, Turning be consistent negative under The year. our impacts €XXX to the in of for we projected capital We

CapEx flow even confident As million. before no CapEx. year after million disruptions to COVID cash Lighting and remain free Lightning $XXX was major a flow target realizing $XXX We free cash CapEx billion our result, $X construction subject adjusted after further full from of of

in So track. JV the on with Telefonica remains UK conclusion,

have customer navigate the COVID-XX high And to but NPS continuing QX we far through record We’re in able so to impacts positive achieve been manageable. COVID, despite were on additions.

our the financials by optimistic the half first for encouraged and remainder actually We’re of year.

May recovery. and full all lockdowns between metrics and gradual economic confirming assuming are We the that to a we saw of our XXXX March guidance based on return no

our not of we're questions take this the we'll Given time, guidance uncertainty this backdrop, and raising at now.


with will question-and-answer to Instruction]. Steve electronically conducted be The And [Operator Redburn. first we'll Malcolm sessions go

Steve Malcolm

you're XX% I Mike board a at for kind I and free to the not I of really you happy think board Why in and quoted more to getting with that tremendous Telenet value side guess, sell the is bit cash VodafoneZiggo of the back own stake. equity Slide the conference, you'd mean I coming VodafoneZiggo. it from the is Just status the love X your seems of is? you question And and this saw and multiples, north yield. in jumps trading mean, out that recent stake flow like a Telenet and Charlie. do you quo? multiple

think assets fair do clearly stakes and You think in on thoughts interested not the hear Benelux Just can is is you? stock what why to you sort to sort that for of out? you market giving your your value those

Mike Fries

result, trades FMC about path, of at example, the but stock? the continuing think think local a it begins drive Sure, in we believe with that along and better is performance that that operating on us in these really many I cash valuation. there. champions the side, And to on and talk businesses we're in are that those the as was markets point. if number page, punchline yields, being investors are at the stability And Telenet these underlying a these flow. stable the will better think raised higher least And and starting in greater be getting prefer we this continue businesses. FMC a markets that evaluation multiples can I businesses to And Are on course path businesses flow strategy we also good of but and sustainable But that local giving benefits it's the these that a I valuation of levels. own understand our you and on to free underlying as we point to cash free the which clear premium of of that's to the you the see

need to that when positive, and will sort things the Telefonica be see cash that be money as help that the few one. put co, strong and we're get today the continue and it's surprising the the to but need performance these we're look to entire reason and done, only wouldn't talked No flow VodafoneZiggo And So, be results the UK OX real if not And, and bridge been that a have it achieving get results we're and UK saying it we question demonstrating that's and will we we’ve it someday, the to strategy completed that perhaps the positive about able at to and that pursuing to of that and achieve so is underlying to bridging to of show and in could is. see approved those Media to to a demonstrate many stock, of value or gap a to of event example public not already We we certainly gap. the the all businesses think for course between I want we top we’re for investors gap. same And right explaining get can that need someday, the today. it these transactions some work. times even Virgin have out value I'm UK they transaction here I've

But I’d our isn’t and that, I helping investors. boat. same We put sheet work path the shows for in it's the see evaluation the on path be a money on money that think long-term appreciate wanted hopefully the to the to we're some today combination But put that’s we're for of where like to we slide is money creating that balance a right to work. things. and we’re…

Charlie Bracken

I pretty Mike, undervalued. also it’s add? feel we can just I do think also

working Erik it there's dividend. growth profiles, and John, we're stability not reasons which it’s in trade certainly could technical around their and flows, it I that's so And less us with distance because shareholder Proximus, think be to that to number cetera. less clarity attractive to buybacks why would why et cash between KPN have stock and/or think possibly balance around a around liquidity distributions, I of the clear

So I can the comfortable of We wouldn't we with say some Telenet. [Multiple Speakers]… feel value that get more

Steve Malcolm

working that’s this you guess doing the despite Telenet listing moment. where structure XX% I Telenet either like doesn’t at is mean And was good and seem but really where that So not deal, trading current that local it the my is VodafoneZiggo it’s really for mentioned of you with own numbers quarter. I Telenet trade XX% great VodafoneZiggo, of arguably really and question below that

up my whether So current work… that you was the really set to question think

Charlie Bracken

can has They’ve think so VodafoneZiggo they the actually that growth to every Europe, make single case KPN you telco would in metric. trade in beaten superior any substantially. just I we

valuation that we particularly around, to them fair not have. with to say they KPN, it's think be synergies I inside would So, way other the of the the expect

a and the lot very them at But a company, at reason I predictable talking certainly we’re very about that. disconnect it’s it. whatever flows echo a fundamentally Telenet and at a But to is strong the head we’re with valuation. think valuation here and cash think even aware doing scratch trading this I for point, discount to valuation stage, the we’re that Mike's of isn't

Steve Malcolm

I'm with unusually guess I agreeing you.

listing [Multiple performing better moment a that there's undervalued then figure to big I Speakers]… the the clearly are think there close TeleX that new that a Just whether at out discount better a companies it’s at probably with would itself than it’s and structure trying to local like is out and

Mike Fries

than bit the stocks I mean, page. on some of levered this more a we're

the is based to clearly value the answer same, creating is we’re… of but overtime thing strategy where the Of course Telenet undervalued I at think be but undervalued, Telenet fundamentally VodafoneZiggo do and has transparent which we're good might on


Bank We’ll David with Wright go to next of America.

David Wright

Just on the adds, UK adds. trends, Internet cable strong obviously,

performance. You out that much regulation? it is you add you than period, a think less on really consumers contract Thank bit better the supported stand Was you. lockdown think as guys trend, a end just the maybe commercial has new the UK does committed little is through to driven has color little you to still maintain what a driving of quite perhaps will thought market a outperformance? lot the of surely reacted Could you the it which that? that What that provisioning

Mike Fries

couple performance numbers. together times a to that cases things year, and certainly you that or the a actively say meg certainly we was services And with the From across still and that to We then And certainly quality. customers products in competition which chime perspective, flight advantaged things didn't the us. churn important. some matters. maybe just my two Lutz, there's and XX reduced I'll were XXX when or usually felt country We expected, saw and like more, and we’d you critical was XX slightly offering resulted available mind make installing at is essential the in XXX fact Those installations. I’ll field secondly, here. let a consumers, then continued to than the this and my stop better that in we're in in

that? add So Lutz, to to want you

Lutz Schüler

up beginning think came on kids removed with we at any stuff charge our channel came generosity right data Mike. them crisis I free exactly the what up mobile caps was and that. them mean, like offer broadcasting offer Yes, to of you program voice, we customer I with the of offer, packages for said did for the speed, what more

rapidly. NPS has increased so And

which one. quite committed mean, success. some stay the they and keep number I two that's and time since contribution to on is, and our expanding few Number great also was So installing to the employee so satisfaction a also, decided keep it to also company peoples is increasing

by our moved mean increased search we I And digital started the now QX. digital. quickly journey digitalize we sales XX% our channel media. to to has Thirdly, QX from sales channel, to

sales channel churn the has stopped high churn leads installing. then of lower obviously they side NPS on then percentage So digital also increased to And XX%. have Openreach, to the

going three you’d our that to a quarters row. churn you also over consecutive churn network really another in see quarterly is could So therefore, not down but

the So momentum NPS. therefore, higher we world. and we And Mike as connection have matter when also lower quality have sales churn is the outside momentum, the to we connectivity higher speed and have and higher said,

David Wright

real of and through quarter you of back bit a of maybe more We Can know of lot May could exiting market indication that us June Openreach a than And rate. with in full was sort rather kind I in more a outperformance Was intra add sort sort bit and the kind the of then. of trends bucket installations kind any you muted? that June run initial more little possibly quarter, of give the almost of kind whether normally April, the maybe little spike.

Lutz Schüler

we perspective, sales the from momentum. accelerate actually So

From dramatically back have churn lower have more see I up bit but churn, seen it level be. now, still felt we the to that competitors market. the mean a a it's in May come are I they think we April the than our and you has have So, our up used not I on mean number, in -- churn


Ratcliffe We'll Evercore ISI. James go to next with

James Ratcliffe

the sports? were people the talk Two about longer take and pay the convergence clear the of a term to customers on the sports if bundle And the in maybe you of pitch how there, customer, fixed the UK lot of lack of the indeed you TV, transaction. how at impact it, so TV But to dropping customer commentary can suffered but this thrown on fixed you secondly, one, margin. the for about for as in part pretty Can itself? get the the that product a one, big mobile could, is go you much discussion I profitable mobile And and secondly, rationale COVID the business I of on lucrative a -- big for beyond mean discount? is convergence towel point. picture there and about are a what packages talk a lack TV reason compelling churn just sports sports, the beyond the reduce is proposition how U.S. wake what is

Mike Fries

generate that's don’t we business very evaluate to mobile the UK our might marketplace. massive still course, say term on comparison have closely We doing the every sports. consumers proposition this you that TV deliver long pretty across and stay Lutz, good business, how package in can the TV what gross for evolve least up we today, and basic the on we're give OX example of U.S. and in at an in principally one fixed to a because I'll margins industry in work of and environment. expense

they from that's business, could contribution the be by something economics if are to point nice of overall gross vary to high our so And and EBITDA but a quite XX% market our We margins and sort us as the TV as of to our as evolve though, don't your view to in XX%, of do evolving. realize, thinking important will, go, we have intend you applied. let and that it TV

spending that in we so integrating experience so seamless. we're cost And -- bit available sports device is what a are premium time of the is apps a OTT of our ensuring things quite basis like your reducing on and the home, that on put

say and to turn just you play ready Amazon, roll. play TV Netflix, and you rock that BBC play on, the So you're

And developed do apps, entertainment of because think that we're to longevity spend we we utilize. it's has And to intend so cost continue consumers, and because cheap down. platform the to we've easy relevance integrating has drive the and to in

provider. to reimbursed a ended in margin our most a costs from but and business back fortunately in we view, business. and not pay whatever of sports TV those from we for in yes, customers us, customers, having of the paused. sports, there's customers getting So just up And the did TV And handful sports to profitability point pausing, pause, there lose we're lost money essentially we is

the loss, last we bundle that matters was impactful bundle TV because a is for that us, Vast researched hugely broadband margin largely broadband purchase know, that of point of the product to The see the I'll a is to want make a their it customers. component So decision. loss in and this, we've customers entertainment zero majority for

air to hand part So just our you EBITDA. contributes But revenue of is our and and still who the OTT Europe embracing lot are on eliminate out consumers do on for bit anyway, the and watch to free of across highly a thankfully platform. that but them entertainer other apps we embracing point product it just it who still can't bundle the wouldn't of television that relevant to part

So Lutz, UK about how you you want bundles the and to that in new see evolving… talk

Lutz Schüler

which Yes, it's converge brings not fixed a customer product. buy think a discount, mobile only the to I

when to higher think mbits with get the speed. now get are we've package. done Oomph Actually I are of it's a combination But benefits. what going consumers highest we offering is they XXX they Oomph

package such great momentum it’s but more So similar I combination, that. combination gigs creates XX speed so instead or a then with for instead important of strong there. of they it’s a speed package, think great they a And also and then support. some special them, a customers service hotline this fixed plus. have one is like then gigs for where And X data results five customer get Higher don't mobile

XXXX. now discount. an Oomph the here increased now we been mean, And its XXXX so, point. mobile than times but then X I not the have more increased when percentage And in base from last, since customer up it's much think I fixed to came and the X discounts converge increased place has

XX% interested mean very because talked them market OX, some actually made product take in Media. and Now different two we opportunity, of a prefer Virgin converge such when research the are like thirds have are huge I the Virgin we that bundle would of brands Media. customers a close fixed about. simply And just that they broadband you have OX then to do providers provides And

the synergies I right the combination different therefore, up and all it's then coming So is tailwind understanding about product this with case. in for and think the segments revenue now then the and that offering then

Mike Fries

see can You it.

to study to it matters people quarter, of If almost you And we've fixed in it’s and because that's that mobile giving this, finding just space. every in second results that outperformed KPN the speed just consumers metric but more. the rhythm were it not in the is is cost, VodafoneZiggo we're reducing

fixed for mobile more on and matters what combination, more, convergence more it's the more the sitting more same, for Sometimes maybe even for that's less exactly delivers.


go We’ll Grindle Bank. next to Robert with Deutsche

Robert Grindle

contract. perhaps very of HX you the of your playing guidance? broadband of perhaps week constructs to address you. the out are back play to Going and lot do quite well. been so not indeed, have your Thank But of benefit is Has to lockdown intend UK, this by than in reckons last XX% customers recently well that seem that number moving within and up you a some more peers Ofcom your

Lutz Schüler

of the So in think previous given the call. end we talked notification, And message can have I I contract confirm there. I've quarterly about

less we contract planned actually impact is So of the of than for. have end notification

stay discounts So have as to additional what are planned less customers That simply for. does means challenging that mean? to get we that

So, think one. I number that's

realize and on our And if the customers, our we than path value delta. times not our the that speed customers our actually is NPS speed if and need speed. we money in think and we And and XX% are household number kids that and I discounts you speed have overrun playing that about increasing that think we in here. to with not we at stay. and right average Dad UK members, average so matters are And you you of are mean, that the working them are the when higher are should Mom perceive ever. therefore, big think is are four, number, doing they you video churn for therefore, two I that are think we don't or on look five the we improving more our streaming, they contract, X.X than to video need calls, that concerned numbers,

Mike Fries

notification period for contract But or of active largely hit end the that say really customers the was the Lutz pause time significantly the period but discount in COVID we the more expected we was just was before of most it as required keep industry. it was then also less maybe saw what during churn to said, I’d began less.

we far expected. than customers business more the engaging so but let we period our our of we gotten short good. to pre to we'll know We the back third and only for recently results this, you time, quarter least impact with was get COVID, And had so contract in when at of on end so less

Lutz Schüler

and Mike our XX there We to first days and said in guidance, what been start also coming regards will also and average we no half to have offline with notification obviously support the in at we contract the as fall. planning we obviously, of our will is it careful in end end notification, this have And that seen of but are we see quarter…


our from next question Nick SocGen. And we'll with take Lyall

Nick Lyall

on mean, doing also one that convergence coming sports and you EBITDA release about still up, is the mentioned so XX% as deal the but in Horizons well, off. is gigabit down way, I the ex you've the Swisscom is quite got

long say it operational think the just a and EBITDA, is away? So, to between long at changes if you But some the all, how business. seems you’re rising making can quite and obviously you could about up way try Thanks. to before revenue -- still weigh start

Mike Fries

as described strategy. tactics terms in remains of it's The turnaround plan been our our and

lastly TV been about and gig, success trying And I box process some digital delivering NPS of working So Having the it's competitive. been to a the lot smooth retain penetration market things mentioned fixed-mobile our the the all ensuring a transformation to for continue be we've keeping that of There's to the quarter. driving that, positive convergence, is -- in every said EOS happening. X operations steady story which maximized, that record getting has then also well. there's quite customer us

specific breakeven we we’ll we EBITDA, which I have be as competitive, be back details be to provide think, packages. offers stay and And didn't growth. when on to anybody, would to we means to have We and when I really thoughtful don’t believe, pricing,

that course. continue we’ve not don't timeframe, know to sure and point. public We that And made we will that at I I'm of evaluate this

and the term. plan. Just to is were for like to anything Baptiest recent the [Multiple it's Baptiest say if positive take plan longer, want very sound you the solid us this we're if that is plan don't Even it to we still and itself The add long know momentum working. bit Speakers]… to around in if looks I on, that a about feel to

Baptiest Coopmans

I very think be Mike market. it's says, like it to continues a competitive

we We’re building the growth saying commercial say momentum quarter and can saw he and Switzerland. Lutz was in for that

So was of terms that than I May better was Switzerland the in to sales. is and of And point point better all April May than investments. like past out would June the

at the quarter, margins to look the XX% operational not incident. that's second an you flow free cash If back in

So, gig simplify the the we in now of really video have past we’ve network the to X investments taken the new opportunities platform, business.

of is momentum there platform, cash this to generated sales be history now. So continues very coming strong a


to with go next We'll Matthew Harrigan Capital. Benchmark

Matthew Harrigan

Your almost of network industry and and lot just a of kind and ECTA, for out effect in a Google. of like association, have your translated number innovation that really guys pointed the free rider really Facebook consultancies investment the is

some going acceleration more forward even had growth you've five maybe of businesses. on Now years broadband

You’ve XG offering. got in the

the at look kind And people even time? kind your addressed. and and over out your of right COVID network more the network you fixed-mobile with time, now and that bit who hurt, of have know at I the business the got could things forced accelerate any and talk you're growth you some are that how you as the layer there character when using I apologize. the Is issues been probably feel benefit long-winded, some your on XG, but the same been hurt. nice little longer being of your chunk through hopefully costs numbers, And value companies? layers term. at some to to you have Mike, just possibility looking of following if with now structure capture a of between then to of other COVID of more you’ve DOCSIS, owners LTE your revenues do network opposed changed getting a little cost revenues been and latency your that has the your off as But a faster, convergence grow can of and You’ve

Mike Fries

X sure there. somebody I sounds asking in speeds follow things over I I shows can gig a time. our us network to question. be talk continuing you're the like here drive to want gigs and jump XX It to mean, from couple strategy, which about

whether to mobile it's side. no going the the the fiber there's is be strategy -- matters same With continue on and through So clear, to wherever speed way can lead are X.X, the convergence, half built build the to we're said to and by that mobile home, the consumers. it's in to the considerably the home we whether homes and DOCSIS with we fiber fixed race, wireless can Lightning

term sort provide powerful I options described look purposeful we’ll deliberate quite intended the and combination. on something all we're there app. gig those we things are we if X they've as even X The rate… by you killer powerful. closed, only you it's more markets So launched, of XG and get the really that the long today. an option UK, operate is across And OX gig with well ones since in once side. that's the deal is over XG not in, growth the driven a cost certainly And XG the and to the and accident, the think But the providing

costs. You've got lower

You've got synergies.

importantly, on have sustainable got and the which free continue and we products. significant at margin values. flow. On we high is that looking capitalize revenue growth, haven't churn, is flow cannot the got know you done dividend less cash these consumers historically. just and relationships in assets And operations free you cash margins you've matters cash sustainable operate an able there's And drive And infrastructure ourselves, these that ensuring opportunity to those the way taking that but and which to innovate and all a EBITDA and to We everywhere networking heading, on free flow. we and market NPS to us, just also higher where that we're we're to you've shown that as bundles side, public are whether retail deliver that this the

your basic So I've that addressed sure strategy. specific not is I'm question…

Matthew Harrigan

the react to you than what way I and thinking able increased use. people be Do historically, more [Multiple to Speakers] your Yes, think I value better I as been going network. outside frame has to more you benefiting you’re your from of time? to period mean network the succinct do it guess it, your a pricing given your of power to and it price you mean over has in have facility -- network increased are are companies really translates that

Lutz Schüler

our shows think I combining are Speakers] that we four us strategy [Multiple now. products

and broadband our is in understand more We way. getting video. the product OTT perfect video are combining And customer we’re we more a product. fixed, mobile, data voice, is What doing help and with the of

right a customers. high then for offer the combination these all we digital, our of therefore level help creating at of and we’re the With customers really stickiness

think don’t this I play about FMC that able offer customers in is to helps? the are think that know our with the And increase bring there to also also are us and step when when operators you this will step. I an hopefully. who step stuff. therefore, forward, to there. are other and our play perfect a that, Going way have pricing. position we to first margin us, successful quad where we opportunity And is But you And in and is done with that about will that we successful can that think sell we our if all give are the there quad

Matthew Harrigan

lot. a thanks does, It


go We’ll [Multiple Speakers] next HSBC. to Fangmann Christian with

Christian Fangmann

in coming pretty would the Baptiest's overall then the your results. aggressiveness, I've what the earlier fiber And on say I to ARPU a around down results with the are are in in your interested now I strategic to seen that would going be of Sunrise joining failed, Switzerland, you a last What so year thoughts market roads? terms bit and weak we deal follow-up I mean home seeing good thoughts that of the that there. are point, And and And these Switzerland to Mike mentioned forces back spots Switzerland in options and mean, backwards. front.

roughly So, the as as HX, in second because better it what can bad or that Is Thanks. investments? speaking it are the seen, trends for you're better be half? lower of

Mike Fries

Baptiest, you can work on answer on the second one.

On options one as remarks, the of articulated. these speculating strategic my same to from not clearly sense. always into the And make going ones the which we've I'm in mentioned But think the remaining, market most benefit I would we get the rationalization. first that

to are do our part in We that. trying

we the underestimate quarter part announcement Swisscom, small in wouldn’t Of of with achieved course, the deal very second a that. with the sports

own that's in and long haul, product, going major access think well of access, our having to benefit the on consumers the sports impact typical in consumers to our as both investments a as products. to our our I have sports both

agreement with We reduced fact that in gives this pricing, further rational them pricing us very Swisscom, have strong a agreement. with great MVNO a MVNO in agreement a

make of in we work operators Swisscom, are and heals starting many marketplace, in marketplace. that the think in the us and a to so, manner particular decisions And the

if will I down X And realize on you down, it you XX% They the at announcement gig the infrastructure us try guidance homes figure not and the our on here look start that. look of things quarters, mentioned In already think network that But to expensive. certainly looks one certainly this would reaching customer the hope be through continue Swiss when five that number decision. looks than we product. and give last to improvement value capital years to to equity we yield the on work you I And with one the If they something market that take the to And our ultimate our they strong. front. thought can going And the meaningful or I little which do numbers XX%, in like and makes that, here million Swisscom pretty meantime, that that years. and on million XXX parse of last can I are same something keep -- adds of their if trajectory of to what to They us appreciate to better situation that push there's shoes, see million in than X homes sense I around, confident. break financial seven thing products, But bit and and that it’s time to the see to sloshing we're out our seven on in prior were let's the going X.X put take a better like you cash the drive I'm than to As the the market build benefits heads just time as to makes want good flow, flow. the financing free cash strategic reliance business. and fiber five quarter less, get to free about but see that. is you Those we're will quarter, in whatever and probably the still us. here better more to the two

the You matters color you instance. flow, on some particular to want that and… continue drive free cash Baptiest, ARPU provide the that's in this to metric

Baptiest Coopmans

confirms business. cash that’s No, XXX I going think quarter intrinsically forward, flow this of free the the this in and

top Charlie been that impact Switzerland line of the margin Secondly, COVID low has explained.

the under BXB If to the you business look continues roof, grow.

Net would just And never the Score, go and the back high UK quarter the X% take COVID. found Promoter you better distribution, we low to BXB core for if of still the at Switzerland. that good. In way price business, of with we as the impact as So we grows lines And exit way has NPS, if the But can our in business points. improve. our rate you to margin new we run starts we found consumer broadband in advertising, our reiterate found is like trend the I out promotion look way been delivered

free time of platform. matter a cash It's now from stable but there. is momentum the So flow a


last take James Ratzer Research. New question from our Street with We'll

James Ratzer

Two please. questions,

Just coming to UK. the back

if period sending letters becoming would first both picture this are saying I've extended your be you I your is price year, price the I you've you've no little one making seen bigger competition. XX of one introductory mean, months, was and offer bit competitive rises price around of which of the that wondering now to versus more The competitive. out to XX kind from been pivoting more kind seem you mean, I strategy, it's strategy. a

was fall quantify notification well. of you're driven that is by have tariff? and great. I you be quarter impact just What if of had expectations, wondering to customer of telling this these through seem much it's was notification base growth you. trying about X.X% as that flat. you're now support help sports, I the of contract best the mean, to Thank end way percentage little the to of would of to How So in your then line a strategy pivot worked ARPU be I actually bit will base, have end second And and the with actually best us So mean contract question from in it's its fully the being steer that tariff KPIs? you us in is could impact excluding I a maybe saying really what towards think when notifications?

Mike Fries

guidance, guidance about contract included of original guidance the think of in which don’t that end monetary nature. tariffs, things rates, provided the of as best year. end headwinds, taxes million we We James, at annual and our of as beginning of well contract said and I there's any on network specific that £XXX

been end not you don’t less. we ahead say, on sense it’s track and I that into achieve we've November, was not sense here much down an And expected quarter, in I are view appropriate but go customers, price in closing to we numbers point what -- taking in, great dig fourth of not What our thing of and we total can longer you be, that the pushed amount which end third we consideration time uncertain that on this expected least broken moving. to growth. said sense got only the there. But give environment have period think for largely occurring in from levels through actually increase, think approved short which contract, is components. been the a always in offer makes very of give has impact you a of but to prior the better the to into seems get increase in how price certainly back was correctly has of of think that do record I neutralize down we discount Lutz as things greater time very phone it the than And that contract a so we’ll the that So just churn to those color a we’ve to at plan, them had experience were you we’ll the volume reactivated quarter to as to expected, we’re that the of

So you can talk about Lutz? that quickly,

Lutz Schüler

was ARPU So, ARPU of exactly first, the And growth ‘XX, question. development X.X%. the QX a year ago, so an to of the ‘XX from ARPU

impact, growth you ARPU an now we you and at of ARPU look the X%. the Now, have if development COVID exclude

one the of delta majority And put is between the rise we have which phasing price because of the the bit it contract So different the and notification. of explains price point. month X.X% rest the of years two a the is end forward,

this we in notification than deterioration is a saying of end from not and other lower I'm there’s an on general what think than is the I therefore, So bit ARPU contract estimated.

price Second on rise, have, have we but to sensitivities. look on respect XXXX we side, hand it in paid also one at absolutely decided we the not do and federation to

to more time a would point, also the for and I and been certain And make certain us. no. is we with customers price it to compensating the see your when we have momentum would are that to XXXX. certain if for net say that kicked cosmetics finish compensate margin So would answer have in can also dilutive net aggressive we adds some adds? can on momentum, is higher current there’s that in get in reaction XXXX for The question,

OFCF provider. is ambition our growing term create a long So, to

net speeds, levels months different been, said that, Having So to position down a the to across not absolutely it share. therefore, are so to the by also year get fair market has the idea it's adds. acquisition over market has about price competition, the when X%. compared position, you not not our is in value price obviously, the and watch price But strategy. change in last customer come is And reacting that that the we the have we XX to

Mike Fries

here bit at little know Yes. we’re I of a hour top everybody. the Well, thanks of past. the

happening, transaction and you safe got joining Hope appreciate appreciate we support. things your We've of about always a a this COVID rest us lot pandemic for lot UK things on all the today, of coming those with performance, great stay of in track, well So, as the you it all and momentum. summer. positive positive considered through this of talked our of and markets period we're out

forward November. to Take talking look in to So, you care.


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

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