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LBTYA Liberty Global

Participants
Michael Fries Vice Chairman, President & CEO
Charles Bracken EVP & CFO
Lutz Schüler CEO, Virgin Media
André Krause CEO, Sunrise UPC Business
Jeffrey Wlodarczak Pivotal Research Group
Maurice Patrick Barclays Bank
Akhil Dattani JPMorgan Chase & Co.
Polo Tang UBS
Nick Lyall Societe Generale
Ulrich Rathe Jefferies
James Ratcliffe Evercore ISI
Robert Grindle Deutsche Bank
Stephen Malcolm Redburn
Call transcript
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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Liberty Global's Third Quarter 2021 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 express written consent of Liberty Global is strictly prohibited. [Operator Instructions]. Today's formal presentation materials can be found under the Investor Relations section of Liberty Global's website at libertyglobal.com. instructions given presentation, session. a formal today's will for be question-and-answer After X the forward-looking details the safe Page slides regarding company's of harbor statement statements. the prospects expectations historical with include the to are its Act may not statements the respect information XXXX, Private future and and of that growth of company's presentation Reform other Securities fact. the Today's including outlook Litigation and forward-looking meaning within statements that implied These from could these involve forward-looking risks cause materially or certain to those results expressed by actual statements. differ statements These those the in recent Global's Securities XX-K, Liberty and XX-Q most as forms risks its detailed include filings amended. Exchange within Commission, filed and including which Liberty any change such of based. Global reflect update or any to in to any disclaims these its forward-looking on in statement obligation is statements expectations conditions the now turn over to like would conference to Mr. the I Fries. Mike

Michael Fries

questions. right. We've Q&A and All results sure a QX We operator, as share everyone. call, in team today, and to needed. of get hello, of Thanks, joining got them I'm the I'll appreciate our you involved is on and Most got you've my the lot senior a call. lot

solid perspective. So our operational, I'm it off was some key from right view kick strategic highlights from going financial quarter, which Slide and X an the on to with in

focus of that that is pillars squarely paying we First all, results focused creation and remain off. X of outlined QX value we on our call, in our

newest one equity by handful a into champions side, long-term and are on postpaid course, mobile cash experience strong strategic feeling our share the strong U.K. after even network our third on businesses transformation converged flow all just free XX and couple side, it the And those X platform further of in in group FMC networks. and commercial and which additions Operationally, our And and from our other months go with on upgrade positive quarter very commitment a our to Switzerland, fixed-mobile upgrading model cash in cylinders. fixed also months a growth. growing all of growth current that year, in QX. the And months continue the across momentum we those about firing better lastly, we'll up with sequentially flow highly to broadband plan. per about expansion of to and and a then superiority buyback we predictable strategic the by our levered about follow. value, is and are in Ventures of Of champions begins for the talk and opportunities We're of sustainable our free with national which the remarks European bookended capable Portfolio delivering of supported guidance, are fiscal

have a and into our our for value X, we before good our focused our relation of a commitment in sector. remain recognized ESG, mid-XXXX. clear our in terms And across absolute creation XXXX really in by a and as want and that release been in X. bit and peers that I'll we've targets pillars So to also and on work on our by we would record this confirm find those dive track prioritize Scope I covering section have to to know X deeper very Net called leader developments. who a Scopes here recent to earnings a moving add what Slide on, X X just goal our you'll ambition This includes Zero

understanding building forward, of for looking and this you're we will a we're how this way believe what and company moving it. drive the simple If stock is

and in the key core Switzerland, our Belgium, share U.K., around revolves all characteristics. all some it course, which businesses Holland Of operating really

And drive of product, suppliers. every these investment a content engage the are they innovation point for of in markets FMC secular leading renewed the assets champions the the national X significant those us gives and and share. towers. tech regulatory all to fiber generally their us from scale. and also means like the ability increasing with Each in tailwinds unparalleled us infrastructure market shape to ability demand scale it and That the incumbent national operations ability regulatory way. And from chasing power, benefiting global to view. pricing for gives consolidation like they're connectivity, either and with same of #X or markets valuation the is gives First, or support It

assets Now and I'll monetized. U.K., tower but that do moment, talk about yet we have fixed a have be Holland in Belgium the strategies in network our to

are shareholders each have fact, The just alone synergy $XX sustainable of realized. ways goal churn, or that more evaluate to And to and Along still of about more strategic customers billion, underlying continue Switzerland give market, that it's XX% will fundamental very share we'll reason. when generally way, a value tower targeting announced review between around to public market synergies. convergence material leads accrue of more the financial The and for and Liberty convenience. their realizing we per and private reduced U.K. reduce choice, or value. of the gap NPVs $XX In in and combination, either higher Telenet to every that are And more FMC to in NPS is portfolio growth.

way and Of as may Poland XXx way, in is and pursue one course, cash value, the are talked Xx of we XXXX. just by we've that. flow. that of UPC a in example at deal, some way, operating free to strategies unlocking public also selling time premium EBITDA the those about of from assets But and listings Multiples a is latest time

catalyst invested. over we've generated, That's returned infrastructure for a also initiatives, unicorn call, what to valuation. which And at a including valued excited is or AtlasEdge, Since billion we about to our IRR of which the all, capacity data is Plume, per our initially couple An $X $X.X gap inorganic capital a using of moving XX% Ventures is in just and which the and billion greater reached and property second tech capitalized to talked for $XXX strategic XXx transparency the Now with portfolio, continue a $X last and status, the organic is We're parent. today about our infrastructure, in share. alone in growth. edge. $X.X at our our existing million is stock about every DigitalBridge SoftBank more we're including scalable closing We've on portfolio we verticals believe, capital our additional pillar. all content raised tech, doing create early-stage tech here, this to we'll provide to investments have This what center assets quarter. and at the JV from

just fact XX of they the In announced Colt. from centers acquisition data

levered our the model. us truly ways, value apart equity Now growth driver sets third from our peers this here In many in is Europe.

significant generate long level to This cash commitment with operating you with when an over true Now formula. fixed-rate, businesses flow at company And you with we a have unwavering and we leverage combine accretive. the proven debt term. have X winning both to that have think this is free back especially excess Xx liquidity, low-cost buy the is sustainable that when you underlying

we buy represents a XX% today flow, for $X.XX as XX% and we as just the in XXXX shares XXXX Now should value flow share increase a on calculate back basis mentioned, creation This commitment cash per free of that I And it. cash of our help outstanding increase sort XXXX story going free underpin forward. to an of to and but our over flow raised billion. you've seen free XX% guidance cash XXXX

and Now Holland. Slide X for few shows fixed in some numbers are key Switzerland, There a quite operations mobile here. U.K., performance metrics Belgium our the

into So before each, make I'll a few diving just observations.

just quarter platform. work revenue are including growth of There all, we that see with the factors here, stable First generally third the BXB that's broadband across or combined strong of with postpaid XXX,XXX these X results. you'll at And adds strong growing net markets. and lots mobile had in in

the rising continue to tariff up start leader business, year. BXB the Now we revenue of what is, our XXXX homes, net the BAU. best back the per changes our of on on rise and notifications. we way, annual and out, than meaning surprisingly, X%, OpCo growth here, growth helped good just see to churn, another pricing its year-to-date, as to tough In remain growth, XXX,XXX. month, delivered rising. we generate going are Virgin reminder for build and not capture was quarter an the its contracts X.X% in driver should synergies, estimate by related industry VMOX in fixed a does And IFRS growth a of adds on Lightning XX% costs financially, our JV. which all substantial a call our on broadband get X% down that to looking broadband year, lap sort I revenue price X.X in adds and point expect But as growth OX net one-off new CPI we of Perhaps newly we at delivery million basis, quarter X%. consecutive prior OX that's comp customer the of around EBITDA IFRS page of which of footprint. which both and and a And backhaul each growth helped think, positive less our reported that net By you'll was include this of on was quarter forward. for the the separately, this territories, remains continue to the contemplate legacy markets, which formed quarter the sixth mobile we Consumer earlier mobile to VMOX, structural Also postpaid first as Media

into in get detail will in moment. Charlie So that more a

onetime ARPUs that solid side. it's the growth synergies for but a performer supports be growth good quarter. the Moving has to second, postpaid mobile EBITDA stable, and if opportunities Telenet seventh to and converged maintaining postpaid in X% revenue greater have straight strong the would and consecutive growth but see to across a strong than relates and growth in it QX the strategic the XX,XXX stable market of talk fixed in Telenet increasingly then controls has again is you to business. some We pricing delivered strong been the had lead upsell of Sunrise adds adds steady from growth. eighth about a actually quarter quarter on in also an broadband quickly. our of broadband BXB lastly, quarter exclude to momentum and was a good market year-to-date. competitive with net VodafoneZiggo continues growth a of Telenet delivered Switzerland revenue mobile should and capture. mid-single-digit costs Netherlands Revenue cost its been marketplace. with rising commercial UPC We'll face with and as remains in year-to-date. EBITDA And

and quarter. boost competitive speed and focus the fixed the that revenue X.X% customer recorded straight VodafoneZiggo of tenth X% retention operationally to environment, with like Despite its growth side, X% a quarter in in on the SmartWiFi. more On EBITDA range, largely is things total generated growth, broadband

Now X. convergence on we convergence a mobile on the driver fixed provide fixed where I with we mobile remains and just stand updates some key outlined, key growth of Slide

On a mobile product at X the we every the left, X means you'll of across is see markets, broadband from now X us. convergence approaching taking or that subs that are which also

NPS we've cross-sell know, We're our and OX at us. broadband rock stands improvement product XX% the newest and about BT, which seen Mobile is U.K., X in a relative resulted been significant the and excited particularly now, FMC Virgin of markets. are in strong and after benefits. for customers to upsell taking you position and X the is the X mobile Belgium FMC and and at In from at Holland, a solid. which As years XX% we've In market, XX%, of This our contract benefits this consistent years. combination churn

Virgin's important actually So are OX out mobile today. subscribing X/X use that broadband can of only it's that point the base service to

using week XXX% leveraging extensive So X-gig great way, more that sizable X.X We're its as benefits network our the that new convergence of call, covered was last get. you is Belgium, launch a XG the reach pretty last speed and will by in as we're And and my really a have superior but are approaching With We. of launched market ahead, XX better fixed be I'll boost ahead you service. product imagine. And October weeks And and launching Sunrise repeat say, from just an more broadband up remarks sales speeds multiple to FMC beyond. and also you X customers the broadband of each that. leveraging from on that opportunity leader, networks comprehensive XX% the mobile product step more more in in ahead, multiple give sense pads our first a benefits fast today, is in, André been called cross-sell data to And Swisscom, we're And And just probably give with this how also I'll like broadband very its in SIMs X the our and product opportunity, of even the we XX% off try And already a best you for with in to is and that points is there's only well. has presented would of feedback VMOX direction and up XX%. to staying staying our not we'll X VOLT. value. is Lutz X steps buy flawless, address VOLT the But the many customers having Sunrise strategies on intention its steps Sunrise other of end clear. XX-gig start. and And extensively in to every more things. of update of as gig, us, speaking And has and André markets mid-XXXX. market, Sunrise is principle The fiber-rich so called this existing one VOLT to markets, the Holland new of might is network with noticed converged with the too positive in quick market and market. I network

X. the undisputed to leader from spending clear our the remind to in a it's Slide one are hard That's the also why today. pretty It's that next. on minute read that's So to across it's territories chart operating market from worth speed we this. on important investors And

at just XX% Switzerland beneath in our context, at X-gig You'll into ranges see of Ireland, least footprint these latest with see to estimates XX is U.K., XX% expected the the that in will year-end. that the households to Belgium the their orange you'll fiber to orange show of order U.K. overbuilds Holland. Holland to speed that incumbent fixed show bars from each And XX% to put end million the In bars the telcos in be year. our XX% by our access and Belgium, have we of in markets of in where of the

is our real, is average it's So that in the subscribing to the product than is market fact faster actually speed advantage reflected today generally customer a and average. the that X to Xx

are always of not innovation. we comes it broadband to Now markets on ahead we've that static, right? or when been curve know And the

investors. summarizes minds wholesale NetCo-ServCo of technologies? what's X of And we X Two, to current issues bottom all on know One, we data of will what so are the three, chart And upgrade our the of And by the enter points. we market core thinking top market? on a these around seek the considering are model?

the starting on U.K. So left. with the far

XX% solution already total an we announced XGS-PON overlay by with our plans about homes, our HFC network, to fiber-to-the-premise of course, XXXX. Of

upgrade a and solution. fully the higher X reminder, only are for customers we'll CPE fiber and incur want costs build networks since modestly need drops our DOCSIS to As are costs only U.K. those ducted, who or a relative

so engineering validating you happy goal trial midst everything results out, in now and quarter expect, information right far, our that report certainly XX,XXX-home the more of As to a checking and in of locations X with I'm costs. fourth on might we'll the in call. provide we're is upgrade that

investment nor fiber-to-the-premise did in market on still assume our decision we the continue might move the or wholesale no a industrial or to this on made. evaluating you U.K., financial as not reselling decisions we any But was creation overbuild partners. look ideas. from our have picked are network, And contingent forward up, the NetCo those we the of But to been at have Regarding opportunity.

a our to decision homes Moving you'll X our also fiber-to-the-premise just of similar announced right, in million to overlay solution XXXX. seen that Ireland, by network essentially pursue HFC we the a have

on its Media remainder. ducts infrastructure and of advantages own on Ireland with aerial plant benefits the to access to Now Virgin U.K. X/X the the from similar network

cost We All only with roughly It is the million less costs drop solution. total premise, or from expensive the DOCSIS comes €XXX to of equity per in, capital the marginally X here Global. U.K. million be which €XXX higher than expect €XXX than less a project require will about than Liberty

absorb So a leader cost Media from that Virgin and our would remains a Ireland we perspective, this could easily the in market. speed was ensure

And Ireland's opportunity. network integrated at options, of Now a nonbinding of of lack in expansion, Flanders' given also agreement and looked market this keep about and our Continuing size intention company, several we recently the customers, Fluvius, this a we're to the current to case, company, wholesale to Telenet the we with the substantial build local this not while up a our open plan announced is utility network excited structural on, announced future. an Netco/ServCo. to data network

owns to As when network, about complicated will own together, is reminder, back And in they Telenet Fluvius deal Fluvius structure. X/X of which the it finalized, fairly and Telenet's create already of would and, NetCo a that Telenet's a leases high a which a market rates, NetCo Telenet's will utilization a as share, very network And fiber-to-the-premise make upgrade start they which attractive will low-cost largely it capital overlay. with indicate, with the self-funding. HFC because Telenet to

the looking partners. fiber-to-the-premise in advantage his a NetCo their an Flanders the position Swisscom's garner but its this want secures that to This Switzerland its view, multiple with broadband this there, for provider fortify clear to expand it. an last hybrid fiber to and a That'll over wholesale from even where we and in and of an most build revenue we've call be strategy optimizing talked Telenet. opportunity team the and earnings our stake bit market. will you leading network a in current to blend as be for it's It our financial about X, some pursue higher industrial on In if spend solution. extensively capital access John means And dig of So should need publicly, addressed further. week, increasingly deal our the or DOCSIS we when accretive

shouldn't any anywhere. product So disadvantage be we at

in VodafoneZiggo by Of gigaspeed the footprint with advantage reaching course, KPN or year-end. wholesale revenue But which a accelerating, has develop then fiber speed. this pure emphasis finally, NetCo rather see activity competitive a geared a maintains we're do lead on its own coverage to unlikely capacity we and structure plan. The management Netherlands, of approach overbuild here. an model market pursue hybrid means fiber strong prompted is And focused XX% response share also upgrades to DOCSIS and current with a in than over broadband the towards on

at partners base me Let be and and they done team. the here also extremely plenty management on KPN work total more say our but metric, it outperformed about know operating time of Vodafone just and right. in this I well. every And they've customer VodafoneZiggo there's to with get in have financial to Year-to-date, confidence this market

that's of Q&A. me. in these it address for to So any happy be we'd Obviously, topics

all creation think about put, simply for us. I it's value

stable significant and term. ways company-specific exiting as and riding venture all super of doubling half return agile like mergers potential. the and feel X in FMC down targeting FMC long over solid like and Now Switzerland And accretive buybacks, scale-driven pursuing champions. secular in and those you we've growth FMC platforms been allocating investments opportunistically we've and capital to know, well, I each been years, prioritizing flow are national cash tailwinds remaining above-average And free as build last markets over with smart premiums markets in the budgeting our the at

fired the we're I'll turn up, where super over we're is to So up, team fired At and you, excited about headed. I'm point, it this Charlie.

Charles Bracken

supported broadband year-on-year fixed by X.X% environment basis and driven by customer was year-on-year UPC remained in X% financial of stable guidance. revenue growth, in BXB driven Telenet fixed In revenue. growth of slow revenue saw for full [Technical X.X% data Thanks, growth from by normalized quarter third and X.X%. of growth strong by basic third achieved hardware of declining within revenue This from ARPU increased Mike. joint flat consolidated more markets pro continued from its with Samsung in impact year and mix Sunrise handset service as growth installation fixed wholesale. a the services growth. growth activity increase handset and decline by stable Virgin revenue revenue by with upgrade remains forma due competitive. highlighting growth high-capacity revenue This subscribers continued activity to consumer trend the revenue is U.K. to by and change revenue, was video rebased as which Consumer offset year-on-year Difficulty] the QX, line the market a delivered VodafoneZiggo And all a a despite growth modest volumes the with down basis in mobile of mobile well on the driven COVID up of on by positive tenth increased operation, fueled less on continued flat affected was revenue market the BXB channel in distribution revenue continued the was positive phasing quarter and launches X.X% Belgium, I'm in This of of year-on-year X.X% total in encouraging an service predominantly fixed venture, in by our saw following Breaking delivered Walking lower revenue X.X% increased given Media sequentially impacts Apple. on an activity rebased fixed-line in a offset revenue lower partly by an mix. by year-on-year increase track to COVID a IFRS strong we subsided. by across broadly through OX perspective. to ARPU. mainly deliver U.K. mobile consecutive a represented revenue starting revenue quarter where trends revenues mobile, in X%

in QX. of group the EBITDA, adjusted rebased returned X% to to growth Moving

OpEx Virgin prior OX costs Media IFRS we X.X% Switzerland. on highlight to an including of basis, pro cost with to million. quarters, by EBITDA transaction-adjusted declined capture $XX with to capture forma As for continue

first increased QX As to slowed trading period costs. of ahead half, with driven and marketing sales relative higher the programming being strong and with slowdown flagged, activity the the by peak levels, increased growth EBITDA expenses

Telenet In a EBITDA decline marketing addition, the related QX contributed. and comparison X.X% new tariffs, in expense. also to small increased in as a in previous reported investments seasonality digital with the the more faced product spend and development tougher FMC operating with coupled some year

post-lockdown increased for capture to of despite phasing spend, Telenet strong, the end of line costs rate. in of to increase synergy UPC period. control And as driven X.X% the to in the under Now early adjusted X% continued growth EBITDA from this, in has levels growth by guidance million trends positive full Sunrise costs, capture. year Netherlands, including in the the cost to being posted keeping was a its X.X%, second we quarter, EBITDA highlighted benefited execution, while a the $X adjusted costs low marketing grew growth including with and upper quarter. X% EBITDA Strong top

to next slide. the Turning

You of additions. adjusted should flow. less operating referring use ceased EBITDA to we'll free of we've term to cash that note the the term QX, In this, be P&E as place

nor reported effectively any cash term doesn't operating And meaning it impact impact previously statements. does this our as forward-looking flow. holds Now therefore, same and amounts, the it free really

million costs in we tight benefit this CapEx capture venture on and QX the driven XX% driven continues to declined X% million. does earlier. And P&E a PPE with fixed will remain joint growth venture. of CapEx Swiss we the by higher in by some by by well, infrastructure, strong a CapEx cost from growth is in and market discipline in group as due by a we invest this in to broader less million $XX the a about elevated talked CapEx EBITDA joint driven guidance in at performance. quarter transaction-adjusted adjusted cost the saw XG discipline at X% to by the timing $XX show impacts, Telenet EBITDA being weighing adjusted primarily continued will despite EBITDA quarter $XX additions less the earlier. the which the grew P&E investments, again EBITDA CapEx about the grew in fourth Media level, and of Virgin VodafoneZiggo IFRS X.X% QX. less whilst capture Now rebound the in quarter. trend growth XX% step-up of EBITDA capture, This line to timing favorable in adjusted the additions, additions pro in OX P&E quarter as declined forma driven talked and despite

to cash Turning flow. free

As achieved adjusted in driven by of adjusted billion cash over just flow $X of less we've QX year-to-date year-to-date, free the growth additions. EBITDA P&E

distribution of In next and OX $X.X addition, this $X.XX XXXX. from back Media XXXX at shareholder an new by new slide give quarter, buyback an on To a refined the also our and billion is versus on guidance represents see underlying year spend. VodafoneZiggo is stock. guidance of uplift of free we've can along over activity, generating cash supported for on This you Virgin billion. disciplined worth XX% full this flow billion repurchased we decided update CapEx the to upgrade $X.XX efficiencies, our to target And with and focused

we our the position in last buyback firmly to are the announced We achieve year. target end $X.X quarter by billion of that

market Our Ventures Skillz. fair Ventures during portfolio. the offset and of the valuation ITV value portfolio at and AtlasEdge $X.X tech falls our But values in the has we a closing has see to largely relating some been fair market and deal quarter of by to this with continue billion, uplifts

around our very years at OpCo. long, position strong And balance X or with you our liquidity sheet $X.X maturities longer Finally, still arriving our remained billion. remain total should in every debt note that

execution as cash billion, capture. new driving Belgium continue conclude, and network have VodafoneZiggo guidance, U.K. we million. £XXX adjusted turning we've Ireland. at the the finally, venture operating markets at and before conclusion, cost the flat least Telenet EBITDA On shareholders, for the €XXX for to given positive across in XXXX evolving and and VodafoneZiggo in to momentum above flow So cash guidance $X.X to we're distributions joint our free to guiding and strategies also U.K. to our we refined growth FMC guidance to mentioned, And is and at guidance to for see to now million upgrading

We over buyback full year to billion our reaffirming to are and $X.XX upgrading 'XX our our framework. that, flow with free operator, adjusted guidance Thanks. questions. cash multiyear commitment And to

Operator

[Operator Instructions].

We from question Wlodarczak will Research. Jeffrey first from Pivotal our take

Jeffrey Wlodarczak

you're the of of quarters most X on think mean wanted that's, footprint row said, related continued the Xx the I of assume Lightning in speed fact sort And BT? positive consumers of about to you've on you higher-priced, your is U.K. of can that focus data BT. in had overbuilt talk strong the a the the for growth about higher-speed a rest. and to you're I I results. Can couple U.K. that's fiber-to-the-home I XX% both to I packages? you by doing footprint success in in how upselling talk also had you that the offering then

Michael Fries

by call talk -- BT we way, that, about we're U.K. that plugging time getting the is the into Look Sure. our convinced sound pretty strange every we're

take it Lutz, [indiscernible], There X? those you to So do Jeff. is. want

Lutz Schüler

Yes.

that from really fiber the we Openreach don't see So measure from don't we overbuild any but we yet. see carefully, that. material Obviously, impact

all-time an on is churn broadband low. fixed Our

the the moment happier. fixed for average But in obviously, of And drivers is with And good as -- churn and mobile that you now everything mean, said, this from couple so, lowers our XX% ourselves. do dramatically. ourselves, so keep mbit we and U.K. happier customers So OX, I XXX we And the yes? speed our to know the customers far, are right, so at here, having the a

beginning, at than and into base, to are the I cross Our we the have We upsell U.K. only customers say. -- is to and higher Xx our average.

building the a have from and our the at we customer, data product the machine forward. based and usage, digital So the on moment, cross are channel the collect dynamic going bundling upsell

I think So that watch space.

of be. convergence so of impact the XX%, material drove yet on And answer and is churn by better in We And service. and because because upsell complaints on are cross quick low and want down is all-time future. where now an we also more to we substantially no opportunity and

Operator

Barclays. from Patrick next question take We Maurice our will now from

Maurice Patrick

thoughts U.K. today pricing general the myCPI X%. Just through I on likely in they'll the pricing momentum BT your ARPU confirmed plus and mean U.K. put in in

that be increase X% So BT from an price year. could next

that in your desire of Just tariff the they can to when -- through of magnitude that sort to you to terms it, ARPU. customers take happens existing of and And converged launched just quite dilutive U.K., tariff. Often, you've it, linked the is price in thoughts put your increase. thing be VOLT your first

term terms in think accretive. do it how thoughts before that'll be of you Just near becomes dilutive

Michael Fries

approximates our answer as at we historically, our that. we don't it more going say of a in them just I'm less that increase measure. I have our customers. to price the let about question price not leave peers Lutz that or because announcing increases launched first to fixed advance not used talk generally what CPI a doing. essentially just We've are I'll will

But do. you may Our may or history mobile around that we're not leave We're going the reference on business does there. second to use good we to going question a Do guide VOLT, now. any what not be put want for CPI. Lutz? to out should information But

Lutz Schüler

Yes.

VOLT data is it the get higher when tier you next to migrate on the customer, we that next get So structured have you you being and bundle. an speed higher the way existing

decrease So not we we see with to. likelihood that therefore, referring that don't very we as And yes? there's the curve little you're ARPU, the customers -- will planning happening are speak. So that

Operator

We Akhil from will our JPMorgan. now next take Dattani question from

Akhil Dattani

it guess just market. maybe your around your could It's the earlier linked U.K. how elaborate just wholesale. you if to, Mike, with wonder thoughts fixed differs on I a and I your on two-part comments structure question by network starting

the ventures, Lightning. evaluating And options. touch scale Obviously, then that if kind determines So bit into scale what you really second It's really to the through are comment Or well. is any of independent And you're where that are future one. are the like InfraVia. just interesting of quick Germany that completely decisions with Project is on you just on do really timing-related thinking. discrete in market issues. could you you're to guess might of a you any to obviously wholesale you going obviously, said where and know Project I future those understand in way I'm the terms Lightning trying of ambition You wholesale? on what

into other as go Just very whether of player, understand into keen to the Germany a go attractions to you are markets, thoughts what too. could and why your fiber key

Michael Fries

Sure.

U.K., I'll On update upon remind at arrangement. everybody wholesale the on our And I that point. to wholesale mean, just question based not in upgrade the nothing there's to this decision any plant the existing was HFC

more is accretive. if it's be would view were accretive that our So there course, But even way. wholesale, of either

So take an -- with the far existing to the continues if that only current roll beyond additional will. be and made and it we not fiber the have perhaps be that. It's fast itself, were expansion footprint dependent on we determination might yet work, how That wholesale outcome. on something Lightning wholesale would to in work, the still how builds, We're you as An along. doing footprint. are overhang. network a upside if still more or doing do however, we of to we shouldn't in there of the

We XXX,XXX aggressive little way. So either be year might between homes. a XXX,XXX, more next

So build pace a out without -- measured continuing be measured It we're something could a at in more dramatic. wholesale. to

additional think buildout. mean sources. on the would everybody call kind financing financial looking there appreciate I know that want at that would the sources, implications to of of we'd are revenue we partners, I be

deal want around Ventures clearer So to there. I Charlie, on announcement Germany? bigger would more take a and we come are to work expansion, likely think, wholesale. done in with Nothing be you on that, to announce more the where the

Charles Bracken

a we've and think of I we see feel make it of building, how think efficiencies which from start. builds scale, than terms we'll a a that Germany think I platform opportunity, core a And that I fiber in us got across lower-cost a of have start a definitely more goes. Europe, builder in we stand-alone lot feel network attractive as lot perhaps to Germany we an how our interesting and about new of

Michael Fries

our that, reminder no for is look fiber, and A objective that no little competition. to to has Yes. market areas essentially where there's

a with, say, it's it to we'll how begin unfolds. targeted, and small So I'd very initiative see

Unidentified Analyst

Difficulty] the [Technical phone. on

number right million dividends get a think sense the next to And Charlie, the looks for like fair. rate. helpful representative a the was, relatively OX. What run from about from asking announced a year. year missed a a wondered that's million Virgin Obviously, me. payment, £XXX think it is it £XXX Virgin next about although on future, is of you've normalized do OX? I'm It conservative Just question us I you for just if but be to I dividend sorry. whether it'd

Charles Bracken

think know, year, that. intention our bit given what it give agree next synergies our us I it's pretty partners with that JV to But I for business. look, reinvest and as a to to a going early we'd growth would all some Xx. Well, EBITDA guidance leverage so I'm on about allow possibly recap is come to the as pass as general And principle, is us core to the significant the through, capital in would distribute or back expect you obviously

network a be as as other thing -- is to but good capture, we of accelerate, the fast a get accelerate will Liberty these do pace et think, money of which on how buildout, phasing also quickly point we the cetera. soon of to let's they of flow cash aspect kind think, cost the The to how absolute our and there, underlying free view, synergies cost I possible, the get we from

distributions give can to expect there But I Liberty think in a healthy some of distributions to the lot years. upcoming of ways Virgin X Global some guidance. from are I over Media pretty we probably levers. XX, definitive So mean terms

Polo Tang

It's Polo you Can Tang from hear me? UBS here.

Michael Fries

Polo. you, got We

Polo Tang

Switzerland great. André. Okay, have question on I just one for

commission. as are their the rollout pausing with Salt partnership by the given competition well Swisscom their So ruling as FTTH just

but UPC? the Sunrise So Swiss do how you impact think also market this will

Michael Fries

that? André, André. take be to mute, on might want you You

André Krause

me? Actually can hear you --

Michael Fries

we you have now. Yes,

André Krause

okay. All right. Oh,

for Sorry. and the the decision back to court thanks and also approach which Yes, that competition point -- their to have question, is multipoint been also they the Swisscom Yes, confirming latest network. starting building that is indeed, has rollout the Polo. Salt the their commission rethink on

that overbuilt moment, And course, it's is in is that We is would not footprint our the at better. window therefore, of better. to an such, probably faster say, sell expect and as our for the not increased that network opportunity lines paused. I to monetize to forever. us our yet But X-gig of of would infrastructure So of overbuild opportunity window our last

Operator

Lyall next will from We SocGen. now Mike question move to from our

Nick Lyall

I Nick I a just got so click, It's think. at SocGen.

on Fluvius, Mike, a please. Just question, quick

deal think could been through issue being mean think all you Slide of Global NetCos, it's on you about do run a think -- into when Liberty already and a bit future account on talk I assets that where being you how are reaction so just to you're complicated a there's complicated Telenet-Fluvius a about more you far? asset is unfair bit I about a talk potential potential in at why negative And as X an the talking the assets for what you you're taking Mike. you of do what inflation? thoughts the Just there's TBD? for X us looking as your to

Michael Fries

a on said, is it's we deal. think Yes. I job John Telenet as an I'll accretive nice Thanks, where fundamentally think, Fluvius Nick. the of transaction. did Listen, summarizing I repeat,

wondering for before probably was market there. That the and with the a was overhang think final. binding be it why waiting and final is announced one perhaps deal was could nonbinding I terms issue

that alt nets X from partners XX% I like with something waiting both in-market going information or XX% think fact said to Remind What independent, clearly more financial the you live surely utilization. partners the an most with that is interest self-funding will also understandably NetCo given have that utilization. it's partners begin if about be any. and this attract financial start they're quite for will implications,

they them attractive to their to itself. as I like or very willing have you to existing think, NetCo infrastructure investors and, licking usually a whenever say. an view, company the of from create structure, point looking a So chops, attractive gets extremely it NetCo Telenet cost It's

I be it's for Telenet. So positive think a outcome to going

decision right over long think Flanders. I term it's the the for

generally But positive long we're need I for think Telenet. perhaps out sorted long on term around and Voo questions things that, over business. other that to get related there's to the that transaction the -- will

stock pretty and iteration, great every is a for in mature And their much think this in I driving you if management the will, I and team he growth the is share growth job has doing market think where of largest structure John in market a transformation type and operating up I product. think speak no, that should it's more it's certainty are people where decision looking And be clarity, where or the And for that's why it or except is more the right We can't trading for it. think normal. to should plan. and them. about I positive we're

inside, So positive travel. have you a data sorted more obviously bit things the pretty these of but the on little get might we and about you, feel than we out, we why overhang direction are so have a

Nick Lyall

geared Slide to it of Nice. a can you update And as investigation in just towards was as about position the ACM there potential language Or in mention on there decision? maybe that ACM's sort X the that wholesale Is VodafoneZiggo some of the you're you on on well? Is purely any that? talk them? hearing well from that is when Liberty anything

Michael Fries

front No. type market's to responsive the -- Yes, around more with do And that NetCo/ServCo's I that's mentioned discussing That's ACM. to nothing still restructures. with VodafoneZiggo do go every just with the got foot KPN. outperforming the they're ACM. it the market. our says single of you because questions be TBD remarks because a trying down partners voluntary what great might we're to to That's nothing in be and position. right the in in is my management team meantime, if structure metric, In long-term got

on at to team. doing management they're be considering do shape, in might X we're as looking the we're that with should you But strategically great and over business they more think pretty and be I network. got everything It's years that doing. much regulatory positive they're around nothing today, the next the pretty picture. And what

Operator

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

Ulrich Rathe

U.K. footprint the to the back expansion in goes Question

of wondering a on about been question about of its of decision think in us And who rapidly makes rollout of hurdles? that? What that per to BT rate. you a much accelerating this post-merger the here run the is still You're some talking this such hold Is million homes complicated given for how ultimately time sort it this sort again, -- are Or and looking putting decision-maker already? year bit you've situation? fiber what at little bandwidth in you sort have. is how I'm X a time

Michael Fries

-- decision. as that's I decision. in it's I moving not do Well, It's an that decision. earlier, But there are said a believe, few parts complicated important a

other capital us So build essentially capital that structure it's require a and of the et comfortable factors would large commitment to the feel and all cetera. discussed, with sources we've wholesale,

a it's lightly. So not decision take we

wow, just parents. to Telefonica this on, experiment fiber quite We are that, opposite. on and highly the dividends and are we're flow which those we focused what the and into So trundling it's who CapEx well, thinking be damned, free is should be focused generating cash

want Having And be want thoughtful accretive things want financially partners. to attractive. strategically don't very you what and decision to of said about move capital needs what said that, doing. we to happen we're do, or earlier any us third-party so impacts That's It be it be that and to that's important nothing intensity. we So industrial CapEx an that be revenue that's also quickly. for that, us and careful beneficial that. those financing a wholesale could involve I might but and piece

the type that this decision we only to meantime, business way. looks clarity shareholders. on expanding the that the to our and smart It's In to we -- we're that great of a out certainly more we'll his need to be and you'll through overhang we less OX And It it its additional simply one have incremental the network soon it's decision are it, where the move the the and expand does from we all when what call Media be most it know. our competitive successful. on its and And point. excited It's say and we'll beyond created like. as I'll could team doing, issue. if So figure that value we'll things Virgin as about -- Lutz to steady-state there Any mustang, opportunity consider issue. Think network through about. is are first fiber get no and if today, that what about competitive be should synergies an of be upside. stock overlay decision. to not

Operator

from next from question We ISI. will James Evercore take Ratcliffe our

James Ratcliffe

are about those particularly And achieve or Talk or also, any about Switzerland the do looks there have talk that sense put just process. Cost for a estimates down. of issues chain- slow in reasonable process-related far ramp what little supply the U.K. you that pretty looking to are modest been in if has the there could like. bit integration the And any thus out you And whether far conservative? and thus

Michael Fries

or issue and Switzerland, give dive like Do on that answer we in. ahead, period, or front think, want to track. if in pretty figures, another these period are time a capture chain seeing quick I a we a And thing more capital, did on quickly you're as that in of I'll general CH to that guys and supply or any report in address smaller as guys well you capture respectively, to short to André. less Go it's spend but just let issues is on and pretty both and and Yes, number. us is of those one cost be that. XXX, how U.K. XXX a you track. achieve everything we're variability Cost will being seeing There

Lutz Schüler

start the U.K. I mean, I Yes, Yes. for

have X but impact. are ramping far, but foresee great will don't mean, impact convergence. us managing start, we and them there numbers, supply in out are very And obviously, chain you I -- in out So, so The have any we right, simply, right? of see that. things, there biggest You we our huge don't synergies front and -- right? we there. VOLT any us are One well, issues, see But is and

Second, obviously OX we customers will network over migrate, right, the onto time. Virgin Media

planned. invest to last mobile according our have as procurement they're on terms the we one of are restructuring XXX% synergies. of capacity in right, so capacity. might network And Number so And chunk into and are -- we And cost synergies, yes, your the the people the obviously costs, capture three to -- are is plan.

expect. on would said, really, line are maybe you Very So the dependent chain as Mike and sight we plan. of than good for less supply on

Michael Fries

André, Okay. anything to there? add

André Krause

you hear me? Can

Operator

We can hear you.

André Krause

also Switzerland, on we Thanks. Okay. terms of to want track in just I are No, of the case in synergy fully capture. add

of In heavy levels, similar 'XX again, then even it's by 'XX will synergies, coming slightly X to the fast. synergies, thereafter on almost costs And years down get 'XX very the but terms of coming in those driven and increasing as up that expected. the and be is shape

Operator

Bank. move from Grindle will We now Robert to Deutsche

Robert Grindle

important something missed Mike's why not and Ireland out Netherlands. I the to Switzerland in worried in comments but have and in opening you as NetCos rolled U.K. I'm

rules but coming global you getting tax And think tax back present, why the claiming markets some anything all to I'm not quite but on good briefly, are idea there think very which tax as changing affects not nuance is a global guys? I it's I at others. the the the then in down are U.S. you from time. line

Michael Fries

difference a Listen, things. Great. the is few

First of a at to all, you wholesale look vibrant begin to the market existence of have with.

only just particularly us, X Swisscom's then operators there open own if parties, as With utilize, see don't your be are whom to interested that to you're a going who a third network, lot might of and going extent, parties So in you're we all that to to in some network. being network, want Switzerland, X to having of network option. third robust see our up your including accessing

I In they XX% Orange using network. of the and quite else's continue would network few isn't access use the course, Belgium, where to a give number, somebody will think structure you are has, with just that can't number, as network, of I it of Switzerland network. the they'll Orange, Telenet obvious much and to a expectation somewhere and The and using So that good give is provides is the the the has that to be broadband as you order subs do wholesale U.K., anything, Telenet quite viable. customers, a U.K. today Ireland, on structure, obviously The market market opportunity particularly right? different, that example of

with anything, as in And market network with whether marketplace. Y is much It that the much talk market essentially do hope as the is what do you viability so So wholesale has Z to to it or your helps. to of do -- want begin the structure, the not -- the about Charlie, then has competitive question? second a or I with. position to X, you where Robert,

Charles Bracken

Yes.

call that I there's is think And reforms on transfer the bunch any you're in increasing And shift think, evolving often tax, Look, a multinationals we've there's use an is tax working on quite United impact they rules, the what and arms-length right speaking basis, to of around environment. always will pricing, obviously transfer basis. an pending we on been which clearly States. broadly have rules always pricing, on don't us. what new

you that. on House depending Biden it's you early as I us goes give So the the But comes to impact. for some too of on year just there were. guidance and/or where U.S., the at think through out, reforms what end the could In be definitive the

out Let's in that what of of kind just at. But do numbers see what out U.S. the and that are remember concept we GILTI. comes the are of largely it

our kind are the So of baked tax already U.S. really into numbers. laws the much future

So But I to think give through. when we'll are you you we yes, reforms update as far, the U.S. so have were. an go

Michael Fries

-- us Ireland, XX% global than above won't most that other that, of think any so rate impact market is already perhaps our which so. I also we're in small, since that rate in markets, relatively

Operator

take next Steve Redburn. we take Malcolm will We're from question last going to from our our -- question

Stephen Malcolm

on coming question -- Just back sort to a network. U.K. of

bit quite the in Your in U.K. slowed QX. build a rate

I think only XX,XXX. it's

-- of pressures? are the we behind the that that post previously. Anything want own? many of you options considering, XXX,XXX would you would rule of partners, going some also, great. some overall well was. whatever something great. at. the should You're in that expansion, to expansion give that be? I back financial, just holding options Just Was on finalize And your you mean, of us as do expansion supply Brexit, just kind that talked about plans? to seem issues, it that sort mix entirely to Is on of with throw inflationary it you're you color out why bring the be completely absolutely the Would whether might you back into It a the looking industrial, you're that the funding be we on Maybe

Michael Fries

is take Lutz, straightforward. answer question, which pretty second you the first question. can the Yes, I'll

about we excited we're third-party say It's a of financing X sight be necessarily to million-home it's all a focused that with would the and/or up and not and meaning "on safe think ticket, not that's line I wholesale. own," Telefonica funding big on. putting expansion pretty equity either to something no our capital

that. be other the deals There for infrastructure I like such on to industrial in interested a money add be you'll searching of who hand, bit a leverage put On that that. are as something partners like And this. there is bit quite of certainly, might business able model would in-country quite a

unlikely, think big X number. the check we I to isn't that'd look a were were the something So even times and at, highly be if it million

it's thanks of and So capital simple thoughtful is decision -- -- about opportunity me ensuring return roll -- time shareholders. own. a And reasons creative We but bit you, you not to your not you giving to on bank it's and I instinct just and is into we're be fully maximum taking my want on the think your that. one the correct, to for of a clarify

want how operate And this Lightning address Lutz, you we and instance, certainly question? operate so every instance. we how would that's that's in the to in

Lutz Schüler

Steve. right, is observation your Yes, Yes.

right? back Europe. I resources bit been is to to issues. A go to place, slower. pandemic a had light. challenge you bit after in the vendors that a get a we not some bit reason when supply chain fiber resource want shortage, have It's bit of from our for that of the mean We refer get The right, to

small short-term want tactical a we to to So stick -- stuff. broadly the before. same year term the rollout bit But than did we

QX. will you a hopefully at ramp see So

Stephen Malcolm

today? affecting mean of plans they'll happening. probably build builders, at if industry-wide most months, do that China of not And you X industry? within clearly think U.K. but mean Okay. problem think is fiber the are the combined looks I entire I an build issues the these one that's next I

Lutz Schüler

Yes.

you competitors, it's with also I an see can offers higher industry-wide And think from problem. getting that contractors prices. right, are

have we already relationship, X.X to have next long-term with more Now offer also a is a right? We to -- we year. So a do what our we built homes. partners million -- something said, as bit Mike ramp

ensured the issues to the so we have resources. bit there, little had on But how of a in And we way get QX.

problem. into went right. is But of we your just really administration, like not observation One the that. for big, stuff a strategic us, partners But --

-- you it and If long-term difficult. then cannot you perspective, if getting don't long-term is a partnership a offer

Michael Fries

looks questions on joining. more like it everybody no the Appreciate Okay, line.

is, few We I'll technical end, then, start. my repeat One that already too. and which late are are spoken essentially on a next some reemphasized I've our and as growth would, well the tailwinds significant years. U.K. of But the our exactly for they a will others few the case Switzerland, synergy several hoped both just on in Sorry things FMC secular drive behalf. execution, the as, issues of that had think progressing about important riding we as over champions I

I also of those markets, one today. one strategic about those, of good networks think every talked we've I in options around got

through and smart would strong continue perhaps Just flow. our a be the -- good, amount, free to be forward. that number going should then year understand in you our flow of cash just with per in project companies a free be to We of flow both want will is per means capital share other say cash dividends And cash and if from to is XXXX one out allocation figure. ability XX-plus allow think and huge I'll derive for making the reemphasize guidance leave growth percent flow story about operating free essentially we're our XX% part solid the willingness I free you and sure to a our years, us X next finally, share cash by important decisions, also the really long-term of And a shares fixed catalyst. reduce each to outstanding shares growth

flow updating cash ahead quarter on so and of Thanks and to you fourth everybody look share, much. that, per we're speak free the soon. forward So we to

Operator

and Third Ladies Global's Liberty Investor this concludes XXXX Call. Quarter gentlemen,

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