LBTYA - Earnings call transcript Q4 2020

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Operator

Good morning ladies and gentlemen and thank you for standing by. Welcome to Liberty Global’s fourth quarter 2020 investor call. This call and 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. At this time, all participants are in listen-only mode. Today’s formal presentation materials can be found under the Investor Relations section of Liberty Global’s website at libertyglobal.com. instructions given presentation, and a formal session. answer today’s will for be question After the the slides statement of X Page details statements. regarding company’s forward-looking Harbor Safe Today’s growth the not company’s meaning with respect that within Litigation forward-looking are outlook historical Act other expectations presentation and information its Private statements future Reform including the and Securities the XXXX, of to may include prospects fact. of statements and expressed differ or certain involve that cause materially risks from to those by These forward-looking statements implied actual could statements. these results those risks with and These filed its Liberty the Securities detailed XX-Q include in most Global’s and XX-K Forms including filings as amended. Exchange Commission, recent on Liberty to Global change or in update any any conditions statement to expectations reflect any based. is of which these such any obligation forward-looking its statements the disclaims in to I the would to call Mr. like turn now over Mike Fries.

Mike Fries

Thanks welcome today. you joining Operator us everyone. and Appreciate

connectivity have we’ve our our strong extraordinary and above on I rise my we downstream them line for cover for that in to be lucky to January you’ll get X involved which access the slides from be I’m is going of allowed are Charlie website, that upstream Average year-end Nobody this sure COVID-XX as on Q&A. and year and us the antibodies, our XXXX highlights. - I’m to in As so of but Families, so and meet immune robust and usual, customers. a of exceed forecasts call, which still to the including ground customers to some levels, on Then to lot lives schools, the and - can lucky role execs we’re was are this saw with emanated will length hopefully an unprecedented remarks, so upfront our of apologize us, I’ll begin effects play got critical small from traffic as the or the key measure, you those established available the all was reliance speak, XX% along. speaking businesses we XX%, stable follow Slide see, and the in year-ago of big going on but any quite internal employees By still and to doing and us XXXX, levels. all to pre-COVID. we nearly own in well. were some our and hospitals, the this to in was for

for the any our As attention with learned; example, operating putting work constant importance arrangements, people wellbeing. were first of with to crisis, lessons flexible and so many their communication,

the mile that accelerating We identified on It’s comes for from our customer also benefits attention. speeds, the flight the a strengths. quickly extra which more the low-cost to say fair experienced solidify our fastest our required experience more fixed access these factors to investments better position. to value customer data, reliable maps and as already among care most were the forward, played really was goodwill higher customers to moving plans. we’re that year, sales, also communities on to an We more puts deliver customer and digital and innovation our underlying road entertainment, for going that with the and there committed essential and and services, and We the customers bundles of the throughout we speed, significant quality mobile the competition, connectivity than the already

XXX,XXX, about numbers, projects, which launch I’ll growth. broadband customer most our net and XX,XXX saw year, our in mobile additions, our broadband but We important postpaid things, fixed of mobile at a perhaps With not increase happening table a which side X-Gig customer We on measures added significant XX,XXX connectivity the over to trend our this of new losses in a that financially. new and of and the with investments here. highlight operationally adds everywhere, just XXX,XXX of of one from and growth, the a There’s perhaps said, our all seen that stood fixed beginning last year. the threefold digital up I’ll throughout XXXX closures few subscriber talk journeys, year, key shop to customers despite transformation, reversing year us in right were You’ve commitment entertainment strong in was growth summary XXXX. surprisingly slide even for with the

example, operations growth key on behind This higher build in results; and drivers and particularly we our MPS, churn course reduced was provided Now these and where consistent that tailwind. footprint evident new BAU all territories. in the there of of saw delivered plenty U.K. for were a

bottom saw quarters began XX results, consistent Charlie improvement line delivered. also we add net continuing and that We ago. every take Switzerland quarter, the the sales in us through is financial turnaround the but will

expectations with year, COVID and impact out premium EBITDA and I’m sure, and, free me cash nearly mobile while for If positive cash year-over-year. standout free XX% we we time same number you of our The things the where $X.X operating exceeding was on net original for roaming, the like billion revenue generated sports flow, beat up this for at guidance you flow.

apparently stock for at math free to on arrive the our is share flow XXX you’ll from implied our yield discouraged and against the you, that can since shares see per doing You outstanding attractive. we’re do cash million that

leadership, the MPS there’s customer some the continued be and foundation here look more talk pretty are positive in most happier Swiss our to of the big team for integration, low already mobile closed the progress could led November, a with we at our you of second. box, and second our far of fixed in CEO At our transactions, broadband made growth of strides made got this when commercial been by strong who best this I launches We’ve platform delivered good and customer M&A I QX aware not again, rock and transformation and star and was results. and X-Gig, Sunrise. the on a best referenced the Wi-Fi, We’ve planning. time first saw Despite making here André XX of in Krause, with churn pandemic, quarters, Virgin our we’ve another Sunrise, in Moving that management higher you’re quarter product the about and just large additions two these. year, acquisition who from is will of and news record in in and role. UPC to commercial report Severina year. to in so its by advanced, sales operation Media Pascu, call--sorry, call. and on should our the in key momentum quarter have launched I’ll adds one those XX accelerate, QX particular more complements planning home quarter continues André net meantime The it Sunrise, a in quarters, the much in say from to performing working growth challenges we synergies related second turnaround the QX, our and have about UPC talking drive all day well Smart validated, includes of around in - and about advanced Swiss entertainment the been now that of COO to the

on May is do as announced OX between the of U.K., the a feel financially joint the Virgin about Switzerland, combination review track. we’ve approval. We’ve meantime reaffirms last positive Media today, this learned we really engaged a times in been heavily to Like regulatory operationally. and the to with and confidence just everything midyear happy venture in CMA I’m and right few report we the our Telefonica’s quite Turning that

accrue us. represent together synergies deals XX% of U.K. should on and and today’s that’s about which Swiss rate, the around at $XX NPB reported, basis, an As billion FX of to

record the a potential I’ll value on out point as integrations, of terms that we You Dutch on in good creation. our synergies. also pretty with of under-promising have math over-delivering can just and Belgian and that track do

noticed around year probably Ziggo X% synergies a cash with that all You’ve free operating planned. and expected billion EBITDA than achieved $X.X earlier growth Vodafone for XXXX of flow reported

how the growth case in, segue our on our mentioned to is very even the start two initiatives fixed very, I and to are earnings a great that more flow XXXX free are delivers a I’ll convergence with great stable important is mobile before us. all opportunities to commitment Ziggo factored As Vodafone strategic priorities. cash study call, for which last of

external to that for number teleco in Index and but on know to more, ethnicity, which and co-chair, I we we’ve so the and internal This currently last our leader. gender, Jones our years council our the can ramped our entire is we’ve five less committed access, generational but both first diversity, and sector. ability, been Dow we media we work year, First in already equity. equally existence where you are programs, tangible up will and extremely equity for of our proud hold focused already our work with purpose. programs bottom here others, line and time across I’m Liberty of and supporting communities our Global, of we’re ourselves we on company gender a some all, do DE&I culture broadband greater around Most the we that ESG fortunate in I’m three reflect global Sustainability our inclusion goals awareness that builds and have and pillars: and been LGBTQ, accountable equality in recognized the and turbocharges and the will established in

the which on we’re We’re S&P’s focused year. also announce other of XX% and squarely acknowledgements, net peers top of zero among we our will in many Measures, Performance this later Sustainability our like targets,

hit quickly on let Now other me key for priorities XXXX. five

the year, you’ll price progress customer or positive in expected as all, continued presentation, planning our additions, in momentum revenue of core see First to this growth each our and is rises, later in deliver announced of divisions. reflecting BXB markets

the assumes footnote throughout heroic - that in improvement modest, the a crisis COVID necessarily not year. Just

champion on accretive strategic XXXX two nearly even delivers year, I’m markets of a It will long do. Becoming or than mobile exciting markets we M&A for to $XX our one be billion growth. give that last certain and greater us Second, creation, drive busy value and our the front. the and scale number shape fixed stability equally competitive despite which us more also term in and will

back bigger Then on but to continue represent already optimize greater the in us in we’ll few that $X even last moment. year. $X slides, steal investments and billion a the share, growth. is factor come fourth, forecasting the through Charlie that Third, in transparency cash venture see year, about buyback detail with I’ll flow and in increase bring per cash in laser to free of share. that over in share, a $X believe at new greater free you this in I’ll take to repurchased assets billion the a we flow When XXXX we place for our should authorization buybacks will focused about increase free an commitment we’re cash $XX we’re our flow year headline, per which to XX% guidance a portfolio to a in

a just deeper in sequential slide, from highs performance in The and the you throughout adds, dig is last to on set in most product to each purpose line, with see supported import broadband adds year, growth customer improvement Now we straight up on new steady a improvement growth. again, I went Starting XX,XXX our the QX total almost stimulated can additions, with core our let’s the bit saw in X. the on XX,XXX after operational XXX,XXX and by and in year, innovations as acceleration negative broadband Fixed side-by-side significant growth. threefold measures in far quarter. from the customer quarter quarter and left-hand that customer said, side here lay the of QX, we out sequential visually clearly that Slide of

biggest fourth XXX,XXX and Now Lightning Media of growth drawing we was and quarter net nearly the over new the only biggest broadband to contributor this the even again added XX% last grabbed market, subs the from country. our all both broadband year, half market. BAU though Virgin in adds footprint, reach

and early level, we homes mobile twice you Lutz footprint of We’ll half reached doubled gigabit tailwind the are and year, X-Gig on matters with that the of The TVXXX, the more but are half of activated being subs record at December, be it XX%. today, seen only fixed percentage growth Those so low megabit X-Gig, X-Gig commercial can shore have for than the provide can sales today. slide the clear, digital under XG, drivers market. speed million balance increased reach, over to marketing are of and right brought our Wi-Fi. with a the of of time homes they’ve of in and throughout in significantly great course a in coverage bundles, higher subs products a middle for almost U.S. rollout the by rolled and churn. of the slide homes It’s X-Gig in BT X-Gig X-Gig footprint, gains our our at We’ve out his will we’ve subs days same They base fantastic up the would it’s still markets or broadband Back end the in just Virgin of and of are things the firing higher widen a centers our - be on of intelligent in you now movie XX% this we’re see matter number network services our we million is job. or most resilient X.X to to product Today, open the and at XXX% ever. management bunch we remaining and of to megabit just We million and the new U.K., know that call team but number market better So with that service To done together the broadband X middle XX seen before XXXX the Media. coming available traction gap sure, XXX,XXX many XXX XXX the and customers. for across see European the of the before. commercially BT now lead again. matters know like

better of QX. - left Now bottom represented base turning in the losses of XXX,XXX improvement slide, than in of to video and Total XX,XXX see the losses U.S. from the video on you QX in X.X% the the quickly just that’s last were than year can in XX% video around to meaningfully year fewer our XX,XXX

lot times. many a talked differences Europe between we’ve Now, the about U.S. the and

television, pressure fits now in on continue we roll mobile out know video for have we product where mentioned stronger of devices which of like linear most points, lower shows shifted a for continued out the an BXC eyeballs customers. momentum have our see by increases, component management, churn into less that, this year this a we continued widely call which the to actually never first more map free-to-air same our have should and price just box, more and product ARPU with improvement device has on which is The products. bundles this opinion fixed We strong a road for video entertainment new be XK you IP Apollo, which On app-centric broadcast a sector XX my I’ll slide and top the the is key all very so subs available time With and building inexpensive and allows time. we saying robust keeps and your close on we the been UI, in palm the up-sell MPS a platform and I’ve modest advanced market U.K., video chart the in in innovation, to TVXXX, has has that video largely latest XXXX. our us box traditional that business. on countries the

you so say our in, look data my on I’m end portfolio. and but just activity do continues further on of to but to I’ll quarter, expect course, availability perform we that a in an always for the we will highlights words, on you a already that a going mentioned; each - Lightning have on of provided words information. a the reduce you’re much interested of the really just including the economic for investments, of country handful year. remarks we a I Project few Lightning, which the for in the other throughout in assumes Project with brilliantly, I steady as know given footnote By need lockdowns, rest update Last way, Ventures improvement Now appendix, granularity. vaccines slow not with teaser

emerging tech thought the is Given detail share, really, X, content ventures that as a of might four that On in Slide and to of left, infrastructure, today, worth so a sort bit investments. spot, value buckets with resides total you’ll sports, we catch-all my markets the comprise and tech the the portfolio: I’ll starting our provide XX% two a over first the be verticals where that’s and quickly on per we the believe little you’ll in time portfolio these or portfolio. it spend $X more billion see on $X.X useful

dedicated ago we know, companies hasn’t augmented verticals products modest and will time today, focused Silicon looking team years some wavered, with small and that with advanced our the XX in remains and investing the we’re mid-stage in blue reality, tech and exploit - things or in operations. in very which to small on or early a sky at learning investments like that we in can about provide really team Denver services mostly Valley, during As cloud like began investments advertising. Historically or some machine gaming has infrastructure been goal

While balance. of unicorns. Wi-Fi for Europe, valuing began improve Plume as device a at supplier also billion gateways management. million. be under around we other our we that in why but the to home Smart team because a or don’t customer the strong is lot deals, portfolio to significant get of a $XX can the strategic brings we’re value include any the are have a value reach fact, principally portfolio we be be deliver based their have cash with in - year, XXXX The to and examples company arises company supplier, of asked around companies think invested with the we’re that value already slide. a there million, mobile stake amount. Today that’s listed portfolio; will nine Skillz, and and a million per but extend Comcast Plume and mobile worth corporate. smart have market million tech a publicly we will million XXXX, stake of we devices ventures or invested is the the me, $XXX us bets to host and couple business, in our in the here to move $XXX is in at that are when $XX either This is companies Like $XX working have four the return cap and we the to been they invested in today the $XXX that platform excludes of serve we invested nearly which these capital on no believes the fund as where that XX-plus number the distributor historically it our in team invested in that we monetize returns, potential $XXX that venture then U.S., previously many around with have is million currently times us, incredibly and was invested cash gaming trust returned out in example, We’ve examples large. There typically in in our which rolled continue largest consolidated really that good round, we that is for than million we currently million into and latest shown has ultimately positions this just a $XXX and in investor, relationship back vendor. in some we opportunity on anticipating role we’ve fewer funding made we has and $XX in just the

today. like our large E. stakes billion and our content bubble investments ITV, Formula AllXMedia, in in sports, represents second Lionsgate, companies $X.XX at This and includes The valued

we with balance with of around we out, and cost collar, hedged average time that and the £X.XX X% shares. thereabouts, our that ITV you when market we XX, may at in and did years closed any position in saying strategic of me and the right know, of have or front, out by in portend digits surprisingly that remains ago £X.XX. the anything have average XXp, the expire investor base may the close those dislocation of same at thing not lowering we’ll Not our position XX% most down unwinding companies, - costs the see. do. Currently smart As of position most up as long the just or seven we’re would mid-single at stock an and to as cost taking and question now soon, in our [indiscernible] the Lionsgate collars like was at not these will stock collared, hedged ITV acquired figured to advantage materially so fully preempt trades with and positions, we’re these we We at about let Monday begun a

and holds we why E, on for racing word have of of this which Mercedes now Porsche conservatively and series and $XXX later at us, towers, stake $X.X think connection can stake to real investor businesses that smartest in where more our our eight in business, in on resources Arabia. the briefly arguably and to table rolled value our With and in Saudi a operations, Just is own Historically to lots and we but we’ll about our positioned. immense you is be both into see a have party There’s only invested and a into and what future the quiet mention other for starting I’m racing [indiscernible] us infrastructure Formula like Xx driving real the like cabinets, they’re activities manufacturers separate infrastructure we’ve there value the I estate and we’re and EQT’s real investment at been we month in The is happening infrastructure expect ventures its believe is in have EdgeConneX, million, rapidly billion been is potential Europe. front. like is untapped taking thing season circling, moving happens. races a not the our which of things what of this electric, where to strategic yes, and transparent third pretty our focus I example, I’ll organizing series, seat quick from seventh primary appreciates forward. $XXX with necessary, EdgeConneX referring growing and acquisition which XX% here everyone for units certainly explain or don’t well return exciting investments we million away about

Let and A operationally a the you’ll strong start see year me recap. financially XXXX great and that. to -

mobile rewarding, big Charlie. are are investing third, the two excited and that Switzerland you, strategic shares and now; exactly FMC are fruits second, first, our how would: any of opportunistically right on year-end U.K. of our undervalued in we done we relative to at measure. to the buying seeing you and and markets, to questions, that almost liquidity first, champions obviously, which, Our your track, back fixed financially capital we combinations we’ve with invest $X work our that; ventures of billion both take in some over to building but signaled continue believe core and we are right in I’m

Charlie Bracken

Mike. Thanks

Underlying Turning decline be estimate consolidated revenue the impacted I’m X.X%. to and year. our the year, a on full believe resulting positive $XX we growth Revenue impacts have would million of million the in rate of around which full rebased revenue Stable. around that, X.X%. for decline for in seen around Without negatively saw growth of the by QX entitled, $XXX group group starting in to full year negative our Total page numbers, We X.X% QX, COVID a

only to by On the The it of less much in in pandemic the will was by but the impacted right-hand for last for was in largely you COVID did impact the sales to estimate to $X drag on by reduced however businesses, In in around the started million see impacted hit impacted downside sports around Handset million; the impact some was pandemic our of quarter. the three having quarters due BXB side we was a return million $XX COVID. million. revenues areas of first impacts QX, access five our while QX $XX in and key business to our the was QX, sports than around the QX QX. businesses broadcasting when page, There sales. contributed million not were estimate on it $X each general, as and QX, $XX we premium roaming

on BXB to or seen impact we date late Fortunately, charges either haven’t debt consumer and bad our a businesses. material on

of On next our EBITDA. slide, provide we the adjusted details

we growth, the which year adjusted For full our XXXX, in EBITDA line minus-X.X% with delivered was expectations.

from taxes, price synergies. a QX of to continued trends partially by was called to results QX gradually subscriber in contract XXXX. Virgin was costs to rebased related on-shoring accelerated growth we million declined QX, a $XX million increase Swiss in as $XX XXXX $XX our of rise in the to of of As with result in digitization of end well by out an XX% explained network some merger deferment growth. of investments, and The decline presentation, platforms and OX our in capture X.X% Media accelerated of QX of remaining the QX driven [indiscernible], custom drag and million versus difference other our improve This XXXX. costs [indiscernible] QX $X marketing, versus particularly million as impact content the from which did X%

While Sunrise’s [indiscernible] rebased the has standalone completion IFRS based around reporting year financials, not is on improved since X% full policy. the business historical growth reporting

operating growth million in which equivalent guidance digit to This is delivered despite $XX full free Turning of X% to growth. which to more is our with cost for X% capture, flow mid-single cash is we of of cash line growth. than flow, free year, the operating

positive Lightning, de-consolidated The cash declined flow. but joint cost Netherlands, have venture would OFCF and Switzerland, in intensity grew of capital which free to to [indiscernible] X% Our was $X.X delivering in XX.X% year-on-year, operating for returned in standout related XXXX of excluding XX.X% capex capture all markets billion growth or year-on-year. the Project

million or free as believe assumptions billion XXXX some of from drag growth flow, delivered cash versus ahead despite guidance. is XXXX generally and $X our we This currency $X.X cash $XXX reported our million XX% company compared telecom ourselves. to [indiscernible] headwinds and to we $X Turning results, capital such which a guidance of flow a working billion consolidated free

cash suppressed U.K. Lightning. million to related the was flow expenditures our $XXX Our further network by expansion, of Project capital

provide On XXXX our we entitled, the details expectations Outlook, of key assets page for going our forward.

we’ll key venture and flow, for consolidated grow consolidated fully a Vodafone guidance that midyear Telenet the free going our that provide we’ll cash be we At $X.XX expect OFCF we U.K. business and will year-end basis closes but deconsolidated U.K. contract will forward into guidance, a Given In at Ziggo EBITDA JV not billion based despite each return group capture [indiscernible], the XX% group growth to on level, and an expect already the for to than business end provide top expect growth. to on our standalone although assumption by joint guiding midyear. be unit. financials Ireland, only weigh cost adjusted increased line we to of of XXXX from impact synergies more and the which to that on

For we year, both the to metrics. digits full expect low across decline single [indiscernible] standalone

be to on spending growth and adjusted to over a that, [indiscernible] to range UPC-Sunrise the the Fr shareholders EBITDA to a increase our has million expect to Vodafone expect million. OFCF will to distributions X% and €XXX X% generate of year-over-year cash Telenet, decline continued our and million. cash million X% JV EBITDA €XXX growth low to that’s because there Dutch [indiscernible] business a in adjusted digit $XXX digit free also but to €XXX operation, underlying growth, we’re will $XXX Switzerland Operator, million think combined growth to we though for million, or to million questions. We of flow over return EBITDA costs X% and Ziggo, With decline, capture €XXX garnered expected business, synergies, revenue adjusted Belgian XXX single mid-single growth.

Operator

we’ll All is from instructions] It the take question excuse James Grindle Deutsche Bank. right, me, [Operator Robert Ratzer--pardon first with from to Robert--oh, me. be going

Robert Grindle

available the I really there, build access saw for, that you Okay, that Lightning that bit prognosis infrastructure a about take-up but you. May going? at me, are OX merger, three think. there? Is I the what years. mentioned not stats, waiting Is hanging Lightning Hi COVID how’s the think what’s strong slides moment. that’s the the in than the fire or ask or was pending you I passive U.K.? the previous and it the I Thank is you’re lower

Mike Fries

make detailed just then comments work more and you a I’ll Lutz, Well, answer. couple a can

There’s the at built five Yes. homes our have anything read XXX,XXX picture. XXX,XXX, about overall more Could years, per done financial Last did it. wouldn’t year, year. X.X or last always look into XXX,XXX you we built date. more? just If I to we’ve we we’ve optimizing and a few It’s million four our and Could homes so between and we considerably, there. news capital reducing few The we build. of we good have all thing, spend great of accelerate which £XXX, both could negative. the the pretty cost of is is more and below number PIA nothing built a course, really use a It’s the less? Probably. that, it we

here. merger the the closes, our great the the and down Certainly shape. today fixed we sit Our are the coverage penetration are venture so Lightning growing, we’re beyond opportunity when gig, and our Lutz? sits entire our in is strong, secondly we re-evaluate with leadership strong, picture to aggressively, really Project we some partners, remains build, when network and the networks is it our That’s Telefonica high, how of allowed accretively closes--sorry, U.K., around aggressively Lightning in path take this to to pace will ARPUs returns network will specifically the leaders Lightning Any in will joint as bring our time. our advantage in footprint ambition in expand and we’ll for other remain our color, we take ensure the network market the of real financial XX broader

Lutz Schüler

all, basically. it said You

top to for homes, also I XG, for base if review strategy runs account, [indiscernible] on I and the see more connect really only team, is pace also connecting said, Lightning deals, now you think thing obviously circuits, Vodafone, going the Telefonica. have the would it to one to as into together Mike expansion after is an add XG. with with stations two network think approval then I one closed you the take that We now big of acceleration both we the at here with so then and,

Robert Grindle

you. Thank

Operator

once again ask a star, one right, that to All question. is

the question star, two. by your is you find from queue may HSBC. Fangmann The question has you remove pressing with Christian If yourself answered, next from been

Christian Fangmann

in phasing of that have It back integration you years, the market XXXX in My guys. standalone. already around be Can a that a it Switzerland. good more Hi to on you can think more Thank color the and here, actually - synergies and I and bit few and mentioned next terms basis an question between give growth the great. a you maybe broadband nice. costs just on that I on in phasing model XXX we split also over you. Yes, broadly outcome question guidance speaking looks us capex would a opex at properly? underlying like or expect UPC what million. is the Fr

Mike Fries

Yes, André to to call the - extent. can I some is address ask on him

XXXX to quickly, XX tell capture. then nominal, pretty on Dutch careful the look maybe annual the you of of I’ll - going what providing than XXXX, the We’re that a that but is other to really XXXX, about so five I of ratably a later don’t I’ll André, not a is but or it’s It’s in conservative much million the number those much cost the based But it and range, sorts on being I are times XXXX revenues, be XX% cost think Belgian to and and against you up. synergies know, grows and four in something XXXX Fr model numbers, we’re obviously the in let model color or think little how expectations, relatively terms years. that it our know related, different savings about synergy revenue, I those Fr gate how base, XX/XX you much are wrap synergy time in synergy materially expected synergy that, frame, it’s in in XXX ramps view. cost million and like is the cost how it’s

André Krause

outlined it you well. think I Well,

we of of front-loaded. to pretty the I on tried cost course, be capture, think

of We are moving is the terms of the fast, coming as of we would [indiscernible], expect of synergy some going of integration is are progressing always a of capture quite going the well, on in and that trajectory. through, obviously revenue investments to of pointed synergies, total the ’XX, by they’re around the I through quickly bit some and done stuff end but the of as of mark cost course part go it. re-confirm the largest be Mike shape a should would how the run it’s question whereas out, first later opex I

Christian Fangmann

very you much. Thank

Operator

New from the All James right, Ratzer is Street Research. with question next

James Ratzer

you your much for thoughts thank me around return indeed. Yes, very Question from was really cash her.

if Firstly buyback the pace I noticed quarter, of the so should on we expecting logic seemed the that and any behind the be the year. I of was that first accelerated during in there half fourth pace buyback, was wondering to slow to of be this

shareholders, still timing further on cash potentially giving you’re year sheet, that around you. that you uses wondering that buyback, Thank current the well billion I of rate at this of being to give of capital. guidance Given with strong thoughts any or the the returned and if $X was rate run flow the of you’ll over end so other balance cash could

Mike Fries

QX. as is core our investment and capital generally, of we meaningful of There’s I’ve an do bought normal plan declined, end this course had. out might ramped year, We around of same markets, the with our bit in nothing I buybacks increased and at so and in so material number said, transactional last center. to remaining was the started or we remain continued a the announce we our in that related XXbX-X remain what that stock can’t announced, and a just year through said bit of the ventures. out time, what and of at we’ll of beyond were to other that jumping the you’ve we front a From capital, most that’s at point when the which else at stock pace, of occur amounts odd ideas this [indiscernible] our period, us the QX, of modest get having wanted the strategic where that information just opportunistic up think and to year, uses period And identify maybe any both looking in authorization, our year we would about require we perspective,

to in because I better should and financial me think and look at it second if operating look buying half up better. believe half continues our stock to us the more wouldn’t expect we ended dynamically, the situation first surprise we the you and than story

surprise in and available, things than be I more that, been see let’s how more the in shouldn’t how billion have quarter, see this full daily than the we’ve you, were $X but we Let’s we fourth evolve, evolve. but got James. spending can’t that things specific year

James Ratzer

Clear, Great, okay. you. thank

Operator

the Michael right, All question Bishop from next Sachs. with is Goldman

Michael Bishop

billion? is if question you’ll at about it the rate Fr on given going to cash Thanks sounds related, costs the spending if a think Ziggo like above Switzerland? take the underlying £XX the being a X.XX, for very obviously the that much. X.XX so growth million cash Switzerland, then of driving half U.K., which cash it could in a is Is higher closes, as be of assets, $X.X else I’d the probably down think like there very flow, the Thanks just want a should U.K. you forward, the for effectively flow as be Then should will we the XXX on to more and free that the Vodafone simplistically, couple million the the in the that step-up feels out and ask you’d U.K. and I Sunrise brings. we about modestly integration operating basis flow like together on forward-looking and but much. some least second call anything looks bit like to accretion distribution, driven quite guiding then try couple on you’re a cash deal by X.XX like largely and It in the flow then pull spend guide. you’ll the run things to

Mike Fries

Charlie? questions. Good

Charlie Bracken

cash Lightning also the because we saw a getting but Switzerland, we until out I so I I that in Again, and flow, cost Telenet guidance. free machine, the a message as we partly close that off cash quite wanted the point emphasize good cash and synergies the of U.K. flow good the as would made think cash we and to least through synergies, construction free you it’s and think - acceleration pretty could Mike We rightly those from got you monetize there’s deal, is materially the think performance, [indiscernible] continued on [indiscernible] that increase a also if flow more would The in the I in transaction, we’ve cash you’re are real lot growth think our would that some in we’re go [indiscernible] the of point acceleration right because that build. expect turnaround Lightning as operational In some of well Then see machine. as we Vodafone about strong free getting flow here. the more result particularly U.K. continued capture continued the conceptually, switch the in to [indiscernible]. we synergies, that’s capex not I based the

Mike Fries

growth obviously our said purchase Charlie were able even said given X, you’re pointed story, cash cap X, new free and the as basis, activity. figure XX% remarks, I looking just and as per a robust that flow it would per in free on is market so at by know, And rate then virtue cash my every just the would free the our buyback we if out, year, Michael, of integrated, you be a of share as to share strong, accelerate more which operating flow cash free basis, flow flow on underlying, of cash you already

Michael Bishop

also so outflow the I’m right, to you of on be deliver? right small the think half that your of up a synergies year the the--sorry, X.XX, the integration that than second effectively follow [indiscernible] will that U.K., in so cash net will I because Am be half Thanks. in more the the to just second

Mike Fries

Well--go ahead, Charlie.

Charlie Bracken

the actually a the free we’ll with close, of the look deal in to don’t when it what’s flow. give we so--and is that seasonality assumptions on because obviously of we we cash think guess lot close, close a that lot we insight don’t actually going updated know, we in the [indiscernible]. you going say, it’s assumption [indiscernible] close or the variables best about OX, way we cash was same at you because think -- have will flat, probably in it if I again, U.K., free is There’s broadly but our flow

Mike Fries

or be of whether the year, consolidate the the in interestingly then can we’ll deal little the be You’re Charlie clear just on different, I but distributing indicated, half year they Charlie, of provided overlay interestingly point to we be free baseline year entire was for because assuming the the the a which close, just a cash Media to fuzzy, top coming them won’t that cash meaningfully through the Virgin doesn’t folks think bit flow is second JV, give parent. back the guidance for and half that and as number the up

Michael, and think number, that way, you either it a makes look different not sense. at going you’re materially if to can I get

Michael Bishop

Thanks helpful. that’s lot. a Yes,

Operator

from next All is Lyall SocGen. right, Nick with question the

Nick Lyall

afternoon, everybody. Good

one Mike, I looks The bit [indiscernible] a on could. Just tricky. still Switzerland, if

Thanks. the Could on as changes? statement, think Switzerland you You cope new talked the changes, also book, think for point again front at terms about for plans and the price please? just discuss are you your discounts, doing of what in the plans price maybe so in I anything that can with is what well, in the brands company

Mike Fries

Go I let in Sure, you take fact it. don’t both those running André, ahead. since of you’re why

André Krause

book; yes, market Sunrise those lot for that of I overall, and is the businesses, would would UPC tension front there’s Yes, the I say say however, competitive, the sure. quite question. have independent offering. year, probably, for quite only on and Thanks not year in that competitive quarters three best operating we years very the still that seen the have the for last majorly but so a for QX showing is this a

not brands brands in to game, drive into. businesses Now decision have looking value are are we working Sunrise, while value the successfully the lot looking we of quite also and is out necessarily - combining on fixed our forward but creating In a regards actually what with Most consolidation, that so to mobile something haven’t quarters seen it’s [indiscernible]. course we for on that’s still we past but value, we a rather opportunity both more probably destroying of to the name operate taken customers two will final of us, likely convergence [indiscernible] of to those business, going for embrace couple the currently be. using probably and we’ll have combined brand

Nick Lyall

Okay, thanks much. very

Operator

of from Wright David question is Bank America. next The with

David Wright

say. should I morning, you. afternoon--good Thank good Yes,

the factor, those customer with lot is really that don’t activity or bring more service the of rise, pricing and and achievements the believe, a what as Just ramping I QX, so on price delay you come price think, I commercial respond? the right the KPIs of the has Lutz the Thanks. in commercial of could QX do you but to want the the momentum of think end more downplay I by you extent team, of base into Is and now, by a the U.K., early product? question guess do is how driven quality the to

Mike Fries

at then broadband began you say, building that increases. XX,XXX. year, look fourth more or quarter, of price third just not any think; have that XX,XXX; announcements an on I’d first may second so made trend as a David, and this It’s quarter been was let XX,XXX; XX,XXX, quarter, our that may view quarter, I’ll early bit undeniable is in regardless U.K. the adds, color, I the Lutz provide

don’t mentioned I that out in flush a As driving lots that, things why of you my more? and remarks, bit positive Lutz,

Lutz Schüler

put Yes, customer exactly. has to like reduced in management, on-shoring fixed so already churn huge sales. digital, together and back get convergence one, mobile strategy a out, has Mike and effort growth a of a increased sustainable this XXXX, in called innovation lot to base to We of led service, better

XXXX in obviously growth, a of but helped would received. We’ve the be was have customers here, - if add and so a the would well net very than rise, You’re flavor XXXX. price in in it Maybe still got lower, it’s numbers the the from of I’ll public, one, how higher bit however price give press you rational going. waiving right be reaction bit substantially would a we the has rise the done it

therefore seen We’re speeds, the and doing still if need and for and adds stuff, price it at you is higher so middle kids the in would especially higher in higher pandemic seems would obviously surprised QX, working the you adds increasing. When speeds be parents in that, homeschooling, that than that of moment, offering a broadband while we however net QX be have XX,XXX in I you have it adds the demand so we’re the not cannot positive have rise net QX. doing

David Wright

I you follow-on, speeds choppy higher the too. rises as COVID returning announcing from supported you effect? just made for in the the rationality, perhaps a price is Can feel by couple lagging competitors U.K. substantial have etc., fairly to some do on demand After commentary COVID, a ask market of also perhaps years, like U.K. the that more

Lutz Schüler

on in a next generation networks side, right, one the and think one. side I mobile investment on content fixed the have hand, well players Yes, all investments the side. XG the Sky on that’s big also big does so on

have needs BT Second, has some out, the I been means all so same. think think that usage done Vodafone rises has everybody, increased dramatically, price by obviously funding, and also therefore pointed that right? as X.X, Mike CPI-plus almost I

and think the well we price received however so dynamic. on also price in is price January, acquisition think I There so well, space, for announced you it right, have would as XX done and still today, their very for the is before. side, instance, as prices meg so the for, like I compare competition said the just if by in rise, higher year here lower, has that I say customer, this rational I on Sky rise development are prices, products

as We haven’t Media followed share. much so and that fair our Virgin we get

David Wright

Very you. good, thank

Mike Fries

but actually something that’s megabit, those stat. at the you as way, BT the is and get for offer Sky product, at, we’re Yes, attractive, more offer XX-meg want that that’s so we’re might faster on a by offering in people so prices meg customer more smarter that XX-meg a speeds, same the look might product, much lower are not and XXX or tiers, customer--target generally lower to focused even base, relevant broadband price per if our a

if even prices always faster, comparable. the We’re are

David Wright

you. Thank

Operator

next from Polo The Tang UBS. with question is

Polo Tang

questions. Yes, hi. Thanks for the taking

The Mike. is first one for

which about taking and as is terms referring Sky. question follow-up front of on You you things wholesale? a are guys for going Media well, a talked sense CEO comments? the you’re maybe can terms give at? obviously busy closer earlier of Sky to alongside in expansion, looking obviously scope Strong Were I see do you cable doing really completing of over U.K. knows very additional forward, the on doing bout Thanks. invest or strategic so maybe how just you’d cooperation some is XXXX, those the she that you areas you’d you so footprint example elaborate with us maybe just just could fiber And Dana you Sky, Sky in Virgin in be new maybe or for deal, that have

Mike Fries

those. take I’ll

it serve, they as worked this to known of we’re have us and with I long-term do. look her; consider dialog building her take couldn’t her in us, of evaluate in helps to wouldn’t we’re and great a hand, be just if respect be to an for Having it for a we strategic have that number give their She hear and over decision think and on surprise topics marketplace we’re--of think a market. this opportunities would quite and who her with then; who for very time have it’s Sky to approved, as what for marketplace. and very so each course unlikely I knows touch great strategic I rebuilding you you’re to obviously of and number it her or so I so us we to outstanding can’t somebody is of and well, a cases First no she she’ll other continue is who do anything happier to decades, or to she who’s does a reason to course our between now well, read deal here. Jeremy owner the some much for well, of Dana, careful, imagine, until we’re wouldn’t strategy around about and us as economics deliberate I be with proud know be in well said also me believe executive, to that, us. me all futures opportunity the reduce to or can close important her and and very the we’ll I with in happy was on seat costs good for knows She’s secure things and a things. but think Comcast two that in us business business in We are talk the options re-engage who a to anybody partner on

billion-plus would we M&A anything markets, those I buybacks, we core On strategic we’ve buckets wasn’t the go referring front, ventures side, said what the do. done through our three didn’t we’ve convergence, of--bigger, mobile last exactly five the bed markets, to where if allowing I have again, and specific, think to but core clearly billion I scale. In double-digit transactions something did $XX becoming done multiples markets have years, fixed a like at scale, and where we champion markets for us $XX down actually, exit in of markets we

the the in gives so merged, and all done right two we in creative. the I and we’ve would think - scale or depends exited, bought that we opportunistic the and either think number I player have now the we way it these or on we’ve done say, be, market cases to one markets thing,

strategically, in imagine evaluate high continue you’re to etc., two a markets me two in might those that yet our surprising example, assume we strategic their list. what and long-term incumbent, that you without and terms markets the player now at so to continued for might there’s different number XXXX right course footprint to to look position markets those you’re core we’re this could these markets of the for Poland of include. when relative done ended what you we the you and anything like. be fixed transformation future in It of that Ireland whether would should if The in each going If a in, those on mobile markets, opportunity, whatever that’s look even is haven’t

of creative are done and have opportunistic should extracting me towers reference space. you have property both other indirectly really indirectly, at job the us be team ventures is being assets we edge estate assume The his to infrastructure sit we in a and as Charlie excited as might that we thing we directly have ourselves, computing, are and fiber-based, opcos, about which heard we allowing surprisingly, that about joint from can and real Not the we’ve so infrastructure look future on got massive infrastructure. you great

compete us because We money what go value. is to those we is to us closely underlying not of invest significant the the to me busy and to us for referring know that know, to of base going opportunities something case on we’ll you that necessarily be are--you be that. that’s keep not amounts players working I’m to, those be exciting our there it’s plans, you and in looking would will networks but definitely would are big if XXXX. the [indiscernible], value to our know networks, We’re so and going though, monetize, at see there to in whatever accretive massive - and time, capital with partner, do, might we’ll ways to referring do, we Polo be creative to our but Anything for there’s be guidance, create raise

Polo Tang

Clear, thanks.

Operator

question Redburn. We’ll Steve take with the next from Malcolm

Steve Malcolm

question. for couple ones. Yes, I quite and can, go try good guys. if Thanks morning taking I’ll the a big they’re for

best financial the still I but group, guess the the amongst Ziggo, First paradoxically are just numbers in it’s on weakest. in the bringing Vodafone KPIs operational

five in right Obviously for you You’ve the on quarter, understand year. the to think fiber of just lap, stick to you couple over progress tariff to How number lost maybe years? KPN U.K. balance that Then help you your its the through swinging the you’ve in get the first up last flat? the modifications, XXXX? offer Do you. that best that. best just back build hear price, back as back we between particularly the rise, Can price the feel guess XX,XXX-odd through the got ramps RGs next the U.K., the there evolution you’ve of quarters. end us three, [indiscernible] the and through thoughts year? should get had four, Interested can price Thank to that you rise tariff of I about the begins volume

Mike Fries

U.K. it, Steve, all on you main Not Could you bit just repeat that, just slowly? quick were more the the portion. question. of a pretty moving

Steve Malcolm

evolution how I the through so just of to U.K. understand think ARPU wanted we Yes, should the XXXX. about

X% down I something you in think QX. were like

had best you [indiscernible], the end, half rise in the price impact price to the of the lap You second tariff rise, begin best QX skipped you through the year. tariff you back get

blurry terms Just number you to but is to in ARPU [indiscernible]. trying understand Thank of growth, the can you whether get that volume picture bit back a think stable you.

Mike Fries

the could Okay provide ARPU on two question, color I you want Lutz, tackle some too. that? give your to do cents

Lutz Schüler

so key the tailwind price you Yes, growth ARPU our get would good call us it again. to yourself so lever, give rise a the

[ph] USCN kick are hasn’t contributed we In revenue and than ADTN. into we plan, might are ADTN, on really some ADTN, on hand, to the [indiscernible] kicked ’XX. is in, into quite we XXXX, there therefore so shrink It a rather but to careful, think right, we XXXX. our more It less. On which ’XX in which other a average reaction customer have in coming loss so it depends lot little all [indiscernible] won’t be but will

Mike Fries

Charlie, XX% has and and in reach out assumed market market, getting the Clearly KPN always Dutch and we well. figured roughly it [indiscernible] here competitive think with a the about can have too, announcements team, it’s fiber, which just is a think In jump pretty new has to you The I and the been if I the and one now everywhere, gig be so million rollout products we’ve are case, aggressively, have marketing got X of will. the execution but been successful. this intense, breather, would synergies you homes made

already--I term reflects breather, over a three ability guidance confidence look in we will, KPN adds, of longer fair and as a at indicative very not They’ve their the metric. KPN necessarily look not it’s to it to of volume I in compare terms XXXX, terms which trend many incredible bit of comparison. in a an price in a marketplace, just is this years. just optimize at opportunity had the you year of them probably do, market the net mean, any next ’XX I pretty in if not if dynamically. the have to They’re you of think discernible think I to much--almost you relative

so strategy of team that, out Everybody color revenue back and say and any adds and year wouldn’t good a think EBITDA medium Charlie? net worse. on they’re the as one be should expect. flows. X%; mobile and management XXX,XXX competitive market, won’t X%, forever. KPN down But you had going place went term, grew have in the X% to we result what we comes this has broadband going good Any that I about a and KPN with was I their of not term, be ebbs operator, and for I punching, confidence indicative you’re XX, longer to nature a the and have back marketplace X.X%, had any think that’s they is

Charlie Bracken

noticed, go, actually on the their done say, up in know they’ve only but market The terrific concur the still think share group, thing a on job amongst of materially if best so moved lot said. I’d agree. everything with a doing perhaps of they’re I’d I execution, runway I’d BXB. to so Mike there’s and you’ve a BXB, very job I don’t they’ve great

Steve Malcolm

and you Okay, [indiscernible]. Can hear me? especially

Mike Fries

the [indiscernible]. think to Charlie, at decision Vodafone guidance I question, the give Yes, not was revenue

Steve Malcolm

you’re of Vodafone, so some the to that breather that and flexibility is to respond talking that because about situation? just getting

Charlie Bracken

be honest No, the thing. guidance with a world to is of revenue you, in easiest COVID not

the have whatever. pressure the [indiscernible]. quite I confidence and well lot see think a think impact and knows you’ll on because group, conservative, is company guidance, on I results. cash sports who good Management’s is very what’s he putting famously all performing more though flow some in we’d This

Steve Malcolm

Okay, thanks so guys. much,

Mike Fries

got You it.

we’re the can two? think at or take another I we Rick, or question mark here,

Rick Westerman

Last one.

Mike Fries

Okay.

Operator

question last Andrew with from Research. Arete is The Beale

Andrew Beale

you wider any business like that’s how a that business background a IPO local to highlight to Ziggo for not sort for thinking background guess actually, ask in XX% you just you given the to in broadly opportunity dividends, wanted there versus and about, dividends value outlook the back discussed able it’s around there. of appreciate Obviously the Vodafone about across there’s you’ve a come operations, ownership but around I so large Ziggo give group thought just and possible those Hi. from just results again, obviously talk but IPOs. you’ve be got the Holland, I you ongoing and your continues a your to I so of equity about you you more wider Vodafone but to won’t partner thinking. things just value wondering

Mike Fries

if invest rotation delay - look one, mostly can both and course of Listen ask there’s a other the partner, of where great occurring busy right and number and regulators because I nothing question, get good we Yes, stuff. is is on they there doing We they’re environment quite evolves. things My have you Potentially. a good of and to money, We guess business I a because many report. at each do see a how us, happening, fair got of bit are already BXC free infrastructure number occurring think: rotation not of a companies the candidate? it’s IPO that on return, now a three-player mostly Europe really products, it’s great tailwinds, in on you’ve bet be could if long they and and a regulatory, thing. this want a market depending profile, lot, and an it cash focused many market terms ways build-out, Is market think to one in just in in a flow share as and should like indicated. they has in you’ve and

want It’s who a there of term, sale and to look how lot force of things sector knows general and up of are nobody in in reason entrepreneurial, for prepared Longer more time, going mobile we’re because built-in profitable, a further to with to IPO, turning provisions the reason they’re consolidation party know, in see be our lot more these kind a and never period wouldn’t here, back. COVID to opportunity pointed documents been is nonetheless, would we grow, positive have and even for listing? a can years each is but that for products - of of can at I than resistant force would consumption possibly a because it year we’ll party is depressed six outlier Consumption course an a possibly. of--you partner was so already due Multiples more see. company, But one can we’re the we five there might what You great strategic in use, an a will who those good for have to - in pretty out an are not with years, We’ve bit sector, look help up. a our and like. peers. of nowhere do say it. to a

to interesting to XX getting going be it’s an and those We’re months. points, so

what’s a that’s right solid these to hit the for be particular that to the delivering with you parent, I’m the to markets, to business each achieved together come thrilled meaningful and assets park it a cash very us and outcome to actually and We’re as was and thought of the news. have partnership, ball Charlie position we’ll in likes decide really it’s achieve, it’s of say, can cash, going and out on, everything bank so almost. that’s But good all something we in

you’ll and a As an to something and you dividend activity we’re look anxious think happens. not tuned. to do. The at certainly next on partnership the that us, disrupting certainly impacting important let But months, that you flow keep business, I it story, free see your front we’ll stay having cash that’s that’s when our eyes ruffled, on it or or it, be XX bit our know piece

Mike Fries

this because remarks, momentum mostly into everyone It that I’ll momentum fortunate briefly. results, operating continue, going of We wasn’t planet, Appreciate it that enable really the there’s in and a is have we’re ventures through portfolio, QX. you continued with on indicator on in for everybody with consideration, through else one-off just thus our that mostly, The more a year was value, far Anyhow, it joining there’s mentioned opcos it seeing under businesses about. underlying and pretty our These as that’s investments. made lot Strategically, things. something sharing which talk my we that we’re focused is out there I believe are I be It’s we’re and the investments think something for to nothing smart XXXX, we’ve and positive and taken and could look. it be strong results a to there difficult minds, the feel call. close coming. a year financial operating right come give We really not and our have to a felt

we on value doing business making working financially the we’re but both we’ll see gap, Take in it the company. joining and we’re on soon. to As best ever, strategically your sure you us, care. to the be also investors value clear our where Appreciate the execute speak and to

Operator

concludes this call. Liberty Ladies Global’s fourth gentlemen, quarter XXXX and investor

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

Liberty Global (LBTYK) 16 Feb 212020 Q4 Earnings call transcript