Q1 2021 Liberty Global PLC Earnings Call

May 6, 2021

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Please standby good day, everyone, you're holding for Liberty Global's first quarter 2021 Investor call. Thank you for your patience the investor call will begin shortly.

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The formal presentation materials can be found under the the Investor Relations section of Liberty Globals website at Liberty Global Dot Com.

After today's formal presentation instructions will be given for a question and answer session page two of the slides details of the companies Safe Harbor statement regarding forward looking statements.

Today's presentation May include forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, including the company's expectations with respect to its outlook and future growth prospects and other information and statements that are not historical fact these.

These forward looking statements involve certain risks that could cause actual results to differ materially from those expressed or implied by these statements. These risks include those detailed and Liberty Globals filings with the Securities and Exchange Commission, including its most recently filed forms 10-Q and 10.

K as amended.

Liberty Global disclaims any obligation to update any of these forward looking statements to reflect any change and its expectations or and the conditions on which any such statement is based.

I would now like to turn the call over to Mister freeze.

Great. Thanks, operator, and Hello, everyone and hope you're doing well and we as always appreciate you joining or two of results call today and try and I'm Gonna run through what we hope for some abbreviated remarks, leaving a bit more time for your questions and I've got pretty much the entire team on the call and I'll get them involved and needed I'm gonna kick it off on the slide for of.

For your phone and the long with some key headlines for the first quarter of before I do that let me just say that we continue to remain focused on our employees and customers first and foremost give me what remains of pre challenging period and your as it relates to COVID-19, although we seen infections and all of our markets coming down for the level of vaccination programs and the account and and have some.

Our track records and so far is outstanding on achieving fixed mobile synergies those who have followed us with no debt and as we sit here today as the future synergy MPV over $12 billion, and Switzerland, and the U K.

Perhaps most importantly, when you combine market, leading talent product innovation and convergence our fixed mobile champions have the strength of the competitive strength and drive long term financial and operating growth and then finally, the combination of scale synergies and the strength opens up a whole range of strategic options and areas like Khan.

<unk> ventures, our new financing mechanisms of infrastructure.

Tell anyone on this call what's happening in the infrastructure and network space you are all watching it.

I have said many times that we're in a great position to take advantage of that whether that's by monetizing tower assets tapping and a new capital sources to leverage our own networks are generating new revenue stream and I'll get into that a bit more and the next slide.

The last headline here relates to our current 1 billion of our buyback program, which has been progressing at a pretty rapid pace you may have noticed.

We spent around the $450 million in the first four months of the year really just to take advantage of the value gap and our stock, especially with the growth, we're delivering and the pending transactions and the U K and I expect we'll have more to say about that on the second quarter earnings call of slide five just runs through the logic and rationale of the Virgin Media O two combination through the land.

I, just walked through scale and synergies strength and strategic Optionality. So first we're creating the clear number two operator and the market after BT with 42 million fixed and mobile subs 11 billion pounds of revenue and nearly 4 billion pounds of EBITDA and we're also combining two best in class infrastructures, including the large.

<unk> and most admired mobile platform with 40% of the market and the Uk's fastest broadband network serving over half the country with one gig speeds by year and by the way our broadband and pay TV market share is also about 40% on the verge and footprint.

The synergies of the deal are the largest I've seen amounting to an NPV of $6 2 billion pounds or around 540 million pounds and an annual basis I think it's important to remind everyone that 80% of the synergies or cost driven and should be achieved and roughly three years and that assumes of 700 million pounds integration cost.

And perhaps giving us to access the new sources of capital I'm really attractive terms and will quickly explore strategies to maintain our significant speed advantage of our existing 15 million homes and a new technologies like doctors for and even STS onto our existing Ducks I think we're all excited about the option to you which from meaningfully more attractive as of <unk>.

<unk> face model champion any of this market and.

Clearly our confidence and those fixed network strategies is emboldened by Virgin Media recent performance and you can see on slide six Q1 with another strong quarter for her to media with our best revenue performance and over two years and that was driven by record low broadband churn strong top line growth and beat a b and new FMT bundles custom.

Customer additions also if you'll revenue despite the price of announcement, which is typically of tough order for us by the way, we actually added 31000, new customers and registered our fourth street corner of customer of <unk> and R. B a new markets.

Broadband is a great story here and the UK with of four fold increase you over your net broadband ads and fact over the last four quarters. This is of great Stat Virgin media added over 170000, new broadband subs and the U K and the for quarters prior to that that number was 20000 and that is.

A lot of significant drivers behind this acceleration, including the launch of intelligent Wifi too.

Acceleration of and FMC bundles of Lodge of five G January and sustained investments and give you the network expansion digital transformation and customer service all of which are instrumental components and establishing a stronger and nimbler business for the future is all of those really well for the JV without too.

Now and with the Charles by seven that summarizes some of the key operating highlights for Liberty Global on a consolidated basis and then for the big for off goes verge of media Sunrise UPC Telenet and put in for a zygote moving left and right I think it provides a good perspective on each business is evolving side by side and I could probably.

10, 20 minutes on it but instead of I'm gonna spend about two and a half and I'll start with three general comments about the group.

First of all of you just scan the the AD date at the top of the current first rely and you'll see a lot of green arrows, pointing up and that reflects strong improve of year over year and customer broadband and postpaid mobile growth across our pop coast. So it's not just Virgin media, that's accelerating it's happening pretty much across the board.

And you'll also notice that we've ramped up our one and get networks with Switzerland, and Belgium, now, reaching 100 per cent of customers with the one gig offering and the UK expect to be at 100% and Holland and 80 per cent by the end of this year. So when we show discharged early 22, those numbers will all read at or around 100 per cent, none of our peers can say that.

And finally of common of fix of all the converges ratios, which continue their steady rise of about 150 to three and the basis points.

Belgium, and holler now at or above 45 per cent and Switzerland 55 per cent of that reflects hi, convergent of sunrise, but only 25% of it upc's of large untapped cross-sell opportunities and and Switzerland, and and the U K.

The <unk> talking about marriage immediate and I'm, just going to add a few quick comments and some of the financial date of first a quick explanation of of the <unk> decline of 4% because.

And this was impacted negatively by three things and the one only one month the price rise contribution that was in March of her to the headwinds of end of the contract and annual best tariff actions. If we talk about every quarter and number three and decline and other revenue my phone usage of pay per view and then an EBITDA, which is down and what by nine per cent I think it's important to point out at the figure include any of the <unk>.

1% drag for merger related charges associated with the joint venture. So those costs were excluded EBITDA lost would of been closer to one per cent. Those same caused by the way how about two per cent drag on operating cash will grow.

Turning to Switzerland briefly the new summarize upc's off to a great start Andre and the gene delivered of strong queue on the $56 and broadband and postpaid mobile AD. That's up 50 per cent year over year and that was fueled by sales momentum of course, both brands and record M. P S and both Sunrise and UPC.

And they also ruled that you may of notice of commercial day, one offer to new and existing customers that call together more Wow, that's a program that rewards existing customers with benefits like the free Sam and discounted sports and security package essentially similar to what of Dunbar, because my call and and then motivates new and cross sell customers with giveaway of like laptops, iPad and Tvs and the reaction so far.

Far as the very strong.

And you can expect regular updates on the integration process and switched from which at this day, just going really well the first positive synergies materialized last month and you might have noticed that the head count restructuring was just announced.

Financially revenue as far as the flat and the quarter with EBITDA down seven three per cent and operating free cash flow down 6.2 per cent, but those numbers include about $11 million and 20 million respectively of what we call cost to capture those of the cost of the capture synergies for the organic result, if you will was better and Charlie will cover of those numbers at the moment.

Telling it also had a strong order with robust operational performance of the broadband and mobile, adding 9000 broadband subs and 15000 posts the mobile subs and they also grew fixed RV of one per cent as customers migrated of higher tier broadband and multi play packages and look it fixed mobile convergence continues to be has always been the main focus of.

Tell them and they had 19000 do converge customers and the quarter and they've launched and new innovative fix Mobil package they call one and read about.

Charlie is gonna cover of financials between three and five per cent EBITDA and whoever you have go till and it's off to a good start to of the year and then lastly, the Vodafone zygote kind of mixed quarter to be fair, we continue to feel a bit of pressure on broadband but.

But at the same time fixed up who was at 4% and postpaid mobile stuffed with straw and you ruin of the team have really leaned into a number of programs to drive broadband growth, including smart Wifi and broadband speed increases across the entire of customer base and they're also on track of the just mentioned the double to give you the footprint to about 80 per cent.

By the end of the year, and then nationwide coverage and early 22.

On the mobile Fries convergence continues to deliver low mold, Sharon, which helped drive 51000 postpaid ads and the quarter and push fix my whole convergence penetration up to 45 per cent. So it's good to see what of on the table deliver another good financial quarter with revenue of 2% help my double digit P. The growth and their 11th consecutive court.

<unk> of positive EBITDA growth with three per cent and Q1 and that's despite COVID-19 impacts so wrapping it up a strong corner of for US operationally with continued momentum and customer broadband and mobile growth and all guidance confirmed our.

And our strategy the Bill FMT champions and core market is weeks away from our biggest milestone yet with the completion of the Virgin O two deal and Meanwhile, the benefits of fish mobile convergence continue to materialize around scale synergies competitive and strength and strategic Optionality and we remain committed.

To our leopard free cash flow of growth by and this year anchored around a steady buyback program and seek to take advantage of but we all fields of meaningful value gap and the stock so with that Charlie over to you.

And I'm starting to the side type of returning to revenue growth the groups of revenue growth and put two per cent of the first quarter. Despite continued to street shoes, and the pandemic and cutting of the groups right by and estimated 60 basis points with drugs for Dumbly related to you and your reductions and running.

Operations with more substantial mogul businesses and Jude groups of impact from the quota and we sort of nine but and do a drug and Switzerland. The trends continue to improve within the language those pieces of.

We used to of headwinds of England, and dollars, and Belgium, and $60 million and the Netherlands, the 1.8% growth would benefit of zig of represented eight consecutive causes of too gross with strength for foods Christmas consumer and be to be segments of the quota.

And the next lot of of you provide details or just the debit and when it comes to the couch as soon as his way of the results.

This is my strong revenue performance verge of media and P. D. A to kind of 1.9% due to pre Mujik coast, the ketchup and as previously how much of the ongoing investments and due to the wound customer kind of onshoring moving to increase the operating expenses.

And the benefits of these initiatives continue to to realize twins would improve and the second half of the year.

And Switzerland of seven per cent headline decline as explained predominantly by impacts you COVID-19 and $11 million of coast. The ketchup with the first and and do started the material Rosemary for homeless.

More established conversed assets deliberate of very strong performance the tone of groceries benefited from the acceleration of Priggery rights and the prior year period I was like sporting events of opposed and March 2020, and that's and and <unk>, what I'm wind and Q2.

Focusing now and O S. Yeah, well, despite the head with the $30 million of comes the ketchup. The consolidated group delivered five per cent gross.

The strong results crew. So you can on the Belgium of predominantly due to the idiot phasing a couple of the projects.

And the Netherlands, Chief 17, and a half the sent you and your grows with cup of intensity of 19% kind of makes the sales and and ospf much of about 27% with aspirations for for the digital assistants efficiencies. The sponge have you competed the synergy program.

Focusing on of cool Liberty global perform as much of the free cash luck, we delivered and $93 million of free cash for in queue. Despite the phasing of interest payments for doberman before the and the first of the causes of the.

We are on track for a full year of guns of $1.35 billion, which represents 26% here and the address with credit accelerating even more and a portion of basis as the aggressive he retired and I'll smoke.

Turning to a couple of allocation dashboard, we ended the coolers with nearly $3 billion of cash having allocated for $147 million to buybacks across the first two months of the year, representing nearly half of the current 1 billion dollar authorization.

Moving until I read the cross off hopefully and we continue to of bright known Turner fully hedged credit silos.

And UPC credit cool, we refinanced the sunrise acquisition debt, reducing the cost of debt to for two per cent securing $18 million of annualized interested savings going for it.

These and I was he could of the issuance of sustainability link notes with embedded commitments for improved energy efficiency and the use of renewables.

Finally, we value of of benches pool party with $2.5 billion, reflecting the full color on one of the one 9.9% snake and on T V. The stuck up and value of all Univision snake for the announced module Televisa and the partial monetization of of skills investment.

To conclude we continue to of debate to bring the best products to our customers and a convergence strategy is delivering.

Put in a strong stance of the we are responding a bunch of media got improving ebbing out of <unk> low single digit decline to pull the staples and so small change, but it shows investors have the best sense of the underlying trends as we seek to close the oh too much for the second quarter.

We can for the all of the previously announced guns metrics and with that operates out of its the questions.

Thank you.

The question and answer session will be conducted the electronically if you would like to ask a question. Please do so I pressing the star are Astra key fall by digital one on your phone and.

In order to accommodate everyone. We request that you ask only one question.

If you argue with a speaker phone. Please mixture of your new function is turned off to allow your signal to reach our equipment will pause for just a moment to give everyone and opportunity to join the queue.

And our first question will come from Polo tank with you B S.

Yeah, Hi, thanks for taking the question.

Yeah, Hi, Thanks for taking the question. So I just want to come back to you of comments about the strategic Optionality and the U K Uhm. So can you maybe give the show latest thoughts in terms of our cable wholesale and the potential five O J P and the U K. So where are you want talks with potential partners and are you <unk>.

And the cope with your financial partners for strategic Partners and then also could you maybe talk about your 50 per cent stake and cornerstone and is the strategic or or non core.

Okay.

Sure type of the with and I I can't get into too much detail on for.

And we're talking to and who we're not talking to and you can you can respect that I will say, though that the opportunity from our point of view looks very real today. If you look at the 2.6 million home debt, where we built already of lightning.

And if you go for the vast majority of those are fiber.

We have great experience and construction of fiber we have the ready made operating platform to go out and build fiber and so you know our ability to ramp up quickly and have you know behind it Ah brand and of product and.

And of bundle to go out and penetrate with is pretty attractive so I'm not gonna get into the specific today, except to say that would be.

Gearing up if you will to present that opportunity to the cancel strategic and financial partners to expand our footprint of.

Of course, if we did that and then the question. We have the App is well are we going to exploit that opportunity ourselves and leave it for Virgin Hello, or will we provide a hold.

Wholesale access and that is you know and negotiation and in some respects, but your partner and what the best return to both the core business as well, let's do the investors. If we had some so it's it's it's ongoing it you know the cost of to build have come down our ability and effectiveness of buildings gone up you know or not.

<unk> of the markets and where we will build is terrific. So I think the 7 million homes and you know or for the artist for the the construction of if you will but who and when and where and why I think we're gonna keep that to ourselves for now except for you should expect it to be a fiber build that verge of media is likely to be.

The core customer of that network and the wholesale access to that network will be and commercial negotiation, but but likely just to ensure that for getting great utilization because while we may be able to for penetrate 30 per cent and we've shown that over and over again on our 2.6 million homes and we both lightning and if you got the 40 50 50 per cent Ben.

Detrition on that new construction and that's obviously a better return for everybody. So stay too I guess as well and I can say and then.

What what's your second question policy.

It was back to cable wholesale the ultra your cornerstone tower joint venture and cause I have to say that's part of your and I think at the perimeter of of your UK business day, how did you take that that and cable wholesale I think we'll look of will address that when the transaction closes you know and we'll sit down and look at that tower asset strategical.

<unk>.

Obviously, we're in a position to if we wanted to monetize of that's J V. You should assume that there's a possibility we would look at that favorably. So let's wait for the transaction clothes, you know with the decision you'd like the make jointly with our partners Telefonica, but we're obviously in a position.

To monetize of that if if we felt that was the appropriate and and the other needed or wanted to get the capital out to do some of the strategic thing so.

Thanks.

And you got a.

Thank you. Our next question will come from David Wright with Bank of America.

Well, thank you very much for taking the.

Thank you very much for taking the call the the the questions and I guess, it's just the simple fall along from.

Some of the question before I think you'll you'll car and then like build right till cell of lightning is instead of looking at for them to fall from the top informed of Tonight before and 50000 per out of them I think that's why you've been running and wife, possibly indicated you could you could continue and do you think of as an opportunity with your current <unk>.

<unk> to write that one right Uhm mind, you think there's an opportunity to kind of do what the T Day, then and global down and you know with with the capital behind it from one of the source code to to do a lot of all night into.

1 million problem, though.

And I think there is and I'll just the I'll, let boots provide a little color on that I'll have to say that the four to 500000 homes.

Was a a balance between you know what our capacity was and what our desire to generate free cash flow is so I think we were trying to optimize the bill Luth has always been banging on the table. The Bill Moore, but we were saying well we can't be of more we should be of more of of time, but let's try to optimize the financial results as well, but look for one.

To address the the bill capacity.

Yeah. So I mean, you you you could pet compare the bit with open the reach US well now they are currently using the <unk> predominantly P. I E alright, and using Golenbock.

And at the moment, we we have this old and the the percentage of below 20 per cent and the opportunities to go up to 40 50 per cent of <unk>. So you can expect that this is one of the eager to accelerate the machine and second we have prepared the machine.

For for for the scaling meaning at that hour popping up kind of ran the additional and please and the weight off my colleagues and also we can.

The thought of the more region of the approach. So we know where the seven <unk> home for all we know how to scale of the machine and we will absolutely take more usage more use out of P. A a and if Mike set decor right. We have to get the financial construct right the pop and everything right and then also per.

The and agreement with all of your Tricia or the 10 o'clock.

May I just the original question what since we've obviously, we're obviously talking that about the lightning and for stroke is it and your mind just total to <unk> for the whole filing uhm the existing.

And cable for paint and <unk>.

Well, we <unk>, we have obviously considered that and I think we will continue to look at that as a possibility, but premature to discuss that today and obviously it could be utilized in that regard it would depend on the number of factors and and what sort of.

Partnership and and benefits, we would get from doing something of that nature. So it's premature I think to get into that but it's obviously of theoretical possibility.

You know as I mentioned, the 2.6 million homes are largely fiber anyway, and we've already built and the existing homes and you know the the.

And this thing.

13 million homes that we that are HFC are also if we chose to I either easily upgraded the doctors for of fiber or potentially could be made accessible on the <unk> on the wholesale regime, just premature to think that throughout the the main focus today is to get the Virgin footprint extended to be the you know the number one broadband.

Platform and that market place for for the foreseeable future not forever and we have a great opportunity to do that and then.

Based on the conversation with this out here so.

Thank you for image.

Mhm.

And moving on to Michael Bishop with Goldman Sachs.

Thanks very much.

Great. Thanks, very much just a question on Switzerland. So we saw the the sort of big Bang launch of of the new tariffs from the beginning of March powers.

And just elaborates and a little bit more on the medium term strategy with regards to the combined Sunrise business, mainly from the perspective of <unk> are you still I guess.

During the instead of all the Sunrise strategy, which as you and I I unlocked the low chat and the market three promotions to try and drive more of of natural balance and market shares and the market given what Swisscom house or are you thinking more.

Uhm around and it was essentially more of price inflation. So just wondering yeah essentially sales price of stretches volume debase some of the <unk>. Thanks.

Andre and handle that.

Okay, Yeah, I can and of course, yeah, Thanks, Mike and for the for the question. So I think what day I've seen and this was market is that the promotional activities have been quite and tense. Nevertheless on both ends of the Sunrise business and on the <unk>.

P C business, we could the lately benefit from it in terms of the share of additions and that has contributed to the stabilization of of the top of evolution of the combined business. So overall I think.

And while that isn't quite heated market. We're currently rozzer benefiting from the situation and then suffering from it and going forward of course of what is the most important to us is and.

It would drive for more convergence that sort of convergence, we create more stability and to our customer base and create all of the mall put your energy for cross and upsetting additional services. So that is really the the <unk>. The strategy do we want to push you in terms of fries aggressiveness I mean, it's not about really about us and but in reality the price of the <unk>.

And the market is really salt and.

Was quite aggressive price points on moving and on fixed and we will have lots of competition from them as they will benefit from the growing five of penetration and Switzerland, but we think that we are well prepared was the conversion strategy, the we executing which temporary and he will give us an edge as we have for the benefit of the fixed and mobile.

Product and it sits on the age of see footprint and has a speed of thought it. So overall I think that will be of Greg U M change I think towards more convergence and <unk>.

And the and the market number one and number two I think the price of aggression is unlikely to further accelerate but potentially rather too soft and the over the midterm.

Great. Thanks very much.

And our next question comes from James Ratter, with New Street Research.

Yes. Good morning, everybody. Thank you very much indeed, how the question just regarding the trend and you'll see and U K all too at the moment <unk> got rid of of drag from some of the of calm effects of at the moment, but presumably some of those will stop.

The lap over the next few quarters and and we have the price rise and you just put through and Marsh. So you know is that in mind, just thinking about how we should think about the phasing around <unk>.

The next two to three quarters. Please.

Mitchell and got that all I can like put them yeah for sure go ahead and.

And I can I can so so and <unk>, it's Mike said.

The opera down for per cent drive of.

That and Q1 20, we fully benefited from the price rise and queue for 2019.

Which is not the case now with the the price rise half the other <unk> materialized from coast of much on the work and Q1. So therefore, we would get the entire benefit out of it and you to so that is one driver. The other driver if if you set and of contact notification average that's terrified of.

A vacation and now this is something which will continue.

The overall impact and.

Much less than we have planned for an estimated for the rocket.

The top of it however, it is still existing and.

And then right that is.

The the pressure the ex because there should market is still the quiet you too and.

And while the best book, a price and it's very rational everybody's too and price rise, but part of the at the.

<unk> Lola the different prices with also get the direct which I don't expect to change and then we had and the boxing you then like the what's the Big book thing of it and.

My other can theory, which what's the one time of so so therefore I think the opposite of development going forward. It it's a bit more positive remember and two two that'd be passed the the <unk>.

<unk> content for customer so definitely that will no help.

And for what.

I don't I don't want to come up with except the number of but but the I P.

Think we want to save money for it.

And did you hear me can kind of start to get back towards the stable off of your trend by the end of the the yeah. Please.

Yeah, I mean, the this it's always the balance between volume and the bedroom right and what the market is offering and I mean, you have seen that we have created and huge customer addition to the ninth of a customer of distance compared to two one.

20, <unk> 18th of time for most of the growth is coming out of the acquisition and.

And so so that is the oldest of balancing act and I think it would simply what the serious too now predict what will happen until the end of the the.

But I think it's fair to say that this quarter and outlier should be and out in terms of yeah. How negative. It is you should see something like this again and the balance of the year.

Yeah, and I think what I also want to mention if that with the.

Oh, Oh, almost negative quarter I think if you compared with competition I think it's one of the best.

How cute development and the market.

Credit Thanks, guys.

Mhm.

And moving on to Robert Grendel with Deutsche Bank.

Thank you.

But for the UK, if that's okay, Mike I I think you're leaving of from the earlier ounce of that you prefer and organic and build scenario and the U K.

And have the experience and knowledge for that the ZIP says you can scale, but but as it tempting of total to supercharge the national opportunity for broadband posto, too bye wholesaling off and on that or even to buy and existing player.

Who is the living outside of your own footprint. Thank you.

Well you know loss of it.

We will look at all options to accelerate in advance of particular strategy and the the the ideas you describe I really need the incremental steps, we could take to accelerate or and or improve upon a core plan, which is you know.

Utilize the expertise we have the brand and the product and the penetration capabilities, we have to expand the reach of the network, while taking advantage of what we know to be a lot of capital of excess capital really looking for business opportunities like this and potentially strategic partners.

Locally who would join with the benefits being not just acceleration of vergence growth because we've proven with the 2.6 million homes that we've already built we can and will penetrate you know very well and and grow the customer base and that new territory, but also the benefits that come from perhaps for me right.

And that project and getting you know being stronger financially the benefits to a bit of be business, which could be material with a lot of good things that occur if we're able to pull this off and you know look and I don't want it implied to anybody here on the call that this is something for sure you should be thinking into your your for your plans right now it's too early and J V isn't even close yet and I'm sitting.

The thing that it's it's an obvious opportunity that comes from having the scale and you know the the the benefits of synergies and other aspects of the J V that we will and should be evaluated.

And we think there are lots of opportunities to do that with or without financial and strategic partners and and the tastes of with obviously that needed to better and packed financially and from the museum with capital and even without and we think it's of great ironic proving that on lightning. So we'll see how it unfolds and and the things that you describe woodbine out and that's are utilizing.

<unk> that those are sort of incremental steps that may or may not be accretive to the core strategy, which is you know you need to control your own destiny, and this and the and the space and I think that there are.

Angle and if those other things can help realize that goal will take a look at it.

Great that out for a lot. Thanks, Mike.

Mhm.

And our next question and come from Jeffrey from other check with pivotal research.

Good morning, guys I wanted to focus on the the strong UK day to subscribe results.

You've put of a nice during the results together and.

And how much of that is just churn dropping sort of the dramatically just hoping soon and the U S around COVID-19 for increased gross connect activity.

I guess for you to talk about the sustainability of these results and then have you seen any material pick up and consumer interest and being sold to the highest the day the packages. Thanks.

<unk>.

Yeah, So like I said before that a <unk> physician up by 18 per cent.

So this is almost making up for the entire number so it's not so much try and driven it is and tie the acquisition driven and this is simply we think the question of demand for Ohio to beat that you said and also our day to to get this realization.

Program is really taking off so the digital channel share is half the increased from 41 for the country, 51% and so the the dream machine is running yeah and I'm sure. The though it was three per cent better so yeah.

And that's all it so mine of from 14th.

524, P and got too, but and does this also success because.

Right for you we have increased prices. So the the the price increase quarter of a year ago or 18 months ago, except the worse than most of the 20 per cent true alright. So so so it's better of from from both regards but but if you look at the exact number it it comes from acquisition and.

And the speech Metro and these days if you set so.

Average consumer speed is 180 for MC now I think coming from the last 475, and it's all a quantum friend and I mean, it takes care of right.

At home at the moment homeschooling, Homeworking, and then all kinds of payment of streaming right and.

That helped the and maybe for your question maybe to your question Jeffrey is it sustainable. So I mean, we have commercial momentum actually speak uhm. So so so of <unk> that is good and we want to keep that.

And obviously when you look to the next quarter and that was indeed the quarter that has highly benefited from the start of the pandemic alright. So I'll remember you couldn't a.

Sean onto the open the reach network for at some point of time because of the missing for your technicians and the field. So so.

I think don't make the mistake and and expect the same number of the crux of quarters, but in general <unk>. The amount the speed of fur commercial momentum is there and I think overall as an industry, albeit in the <unk>. We also need to find solutions for chipset and alright, I need the the cynic and the shortage of three all and all.

But but.

The the demand for speed and the commercial more of a comes up to the to do that.

Great. Thank you.

Thank you. Our next question comes from Steve Malcolm with Red burnt.

<unk> <unk> <unk>.

Yeah, you get off the the and guys I'll I'll try and sneak into of I can the second one very quick one just and slides 16, and he talks about the lower cost of of using passive and restart your access from the P. T. Thanks, Underplayed and saving can you just give us some details and so the the overall economic decision there because obviously there's ongoing <unk>.

And it'll cost of the <unk> be considered and also you know as you consider increasing the scope of P. I a from the 20 per cent of the 40 to 50 per cent does that impact where you decide to build you know given the availability of P. I of course, the your case of <unk>, just some extra color on the sort of moving parts of that decision of Rohan future Bill would be great and then just pulling up the boots his previous call.

And so just a quick one obviously of it it was very good to the price draws the line without any major chart and packed sometimes of trying to the like you know as of the new bills of a higher bills hit customers accounts and it should we expect so itself the cute too and did you see saw the increase turn on that price fries hitting their of times. Thanks a lot.

You want to take the second one first and it's.

Yeah, So you're absolutely right Uhm do you see a bit more true alright roughly.

Lucky you see <unk> off the true and when you you really sent out the letters and want the and the bill kicks in and so therefore, we will see a bit of.

For the true and all of that and Q too and I think on on your question, where where are we intending to to build I mean, we we absolutely take the commercials into account alright, so if it.

More expensive to to pay for it P. A a and then we put the <unk>. If it's cheaper we never H P. A a and oh of over or a collection of the the 7 million homes.

More link to the how easy and general is it to access for how far is it from our network. The the is it is it entirely cities with the already with verge of media and therefore, it's easier to penetrate and it's it's left the question.

How much P. A a are we able to use one of them.

Because of what what would you say you Gotta know for sure I believe goes to somewhere around 50 D over 50 per cent at some point.

The collection of our plans.

The will be come and increasingly the larger part of the bill the overtime.

Yeah, I mean, the only on we absolutely no right. Yeah, I mean, Openreach is publishing where P. A a is is available and.

And then obviously you you take it the the <unk> to the end of tape side and and therefore right. The number of we have plenty of if there's something like 45 per cent let's.

Let's see right and we are currently of ramping it up and it's coming from 18 per cent and but definitely an opportunity and it goes both ways right and one hand slide you can connect faster and cheaper on the other hang tight and they'll be with me at all additional homes a bit more far away from the network and therefore.

That'd be all for a bit more expensive.

Okay, just to be clear what what did you say you can go to 40 or 50 per cent. That's that's the function of you becoming more familiar with the processes and just the way it works and and when you're way out of the cost I mean, when you when you compare 392592 and average is the the 390 doesn't include the rental costs, presumably the Patriot openreach for access of those ducks and.

<unk>.

But remember the of five nothing about it includes some P. I a right and the first quarter. We were about 20 per cent out of something like that so if there is some P a build and and that but it will definitely be of benefit to the overall cost for promise and of the tech will just be you know as we go sneak by Street town by town, we make those decisions the optimal way for the overall.

Project.

Okay, So you're gonna have any overtime.

And the machine, it's already scaling right. So we are operating at 80 cause and it's not the only of question of how quick the can we say it scared of the machine like we had ultra of doing a new housing formations. We are doing infield. So there's still and parts of a four to five kind of light.

Think the every year, where you cannot Tuesday, and when you look at the 7 million there. It's it's naturally more and more the ability of it P. A S and Kyle Yeah, Yeah, Smart new <unk>, New build network extension, yeah and the monument.

Okay. Thank you.

Yep.

And moving on to Nick while with Society General.

All the guys are you well it was the question my please on the <unk> the subs of sliding of it.

Fast and again this court and <unk> the the analog switch off so you can how about the <unk> the pricing and speed can you just tell us. What your aims are please with the mood of from say go in terms of subs and was to you and to try and stabilize and what could you use to do that what would you go for pricing instead.

And I also try and quantify just on the on the side of the bills and the U K how much do you think you could exploit ukase uhm Super deduction on tax as well is that something that applies to all of the bill of just part of it maybe you could help us with lots of it. Thank you.

Yeah, maybe the room home compensate you able to put a day goes on the call. So I'll, let him work through and answer on both of them and they go strategy around broadband because of the seas.

And then Billy and that strategy Uhm and on the the taxes this and I'm not entirely sure I'm I'm with you on exactly what you're referring to but obviously the broadband right issue is very helpful for us and tons of new construction and fiber and we're always looking to reduce that bill if you will which seems to us to be.

We might have other ways of produce and that bill by the way beyond just five of so we're always focused on on that particular types of impact of tried you of any day I don't have to ask the question, Yeah, and I would just say the other part is the accelerated allowance is 125 per cent does apply to the build and yes. It would have a positive impact I think it's too early to quantify cause it and pay depend on the build right any of the <unk>.

Depending on the learning more about Oh two's tax profile, but can you give them. The other two the attacks per there will be some incremental cash flow savings generated from the new accelerated loans.

I <unk> I <unk> I mean, the tackle the Vodafone sick of question.

Yes of course, and thank you for that day and final question and <unk> I.

I think I heard a few questions condoning somebody and my bold and until the the value and the and the strategy. So let me start with the strategy pause and you see what kind of of solid quarter of the guys who goes even the growth and we've had the quite consistently uhm. So what I'd like to say the plan is working and we've had from the start of the J V for years ago.

And we will focus only fix mobile convergence and and that is still the cornerstone of just trying to go on the furniture fixed mobile is working for US we've seen the reduction and turn on the mobile side of the 980 80 per cent and on the fixed side of about 55 zero per cent Uhm and that's what made me stable combined with much higher net promoter.

Of course, so and you also have the doesn't gonna be more value old price is definitely gonna be a valued briggs and Stratton uhm, hence the things that we are doing and you said you talked about the and it looks which of them. So we have the need complete the the and let's get your of quite quite a bit of work to take 1.2 million customers of the analog signal and.

And moving out of the digital.

<unk> It gives the customer of best the next day little side, and that's very important and gives us and the ability to increase the network capacity, but in the and in that sense has allowed of sexually go through the COVID-19 period way of a much more much higher demand from our customers without any problems and a lot.

Out of this two frames of upgrade the fixed speeds by 40 per cent on the average in April which we have done to our entire base and no additional cost and also the failure doesn't big yard and we are lunch and he knew smart and Wifi booster and the and and the new and improved and.

Really focusing on improving the Wifi coverage and the house the in house experience from our customers and and I'm, just having a much higher and P. S of about 20 points for says they're going to our customers and the last thing on the Super important micro and he spoke about the the digging it coverage today, we covered on and 40 per cent of the country with gig and it.

And it works and will be 80 per cent by the end of the year and that will be 100 per cent by next year and today by the way that's already 500, Meg to 600 Meg of course, the whole country somewhere and a good place if you compare the K P M and we're definitely playing the value came first of the other players and the market, who will probably a bit more of price.

Great and thank you.

And we'll take a question from James Ratcliff with Evercore ISI.

Great. Thank you.

Two if I could first of all you know.

The continued strong performance on the <unk> and so how can you just talk about what your market share is and what share of of the potential location you try to connect to or past close by so so what the what the outside opportunity of essentially there and and second and it takes a lot of of convergence where would that 25 per cent.

And the U K once you close the transaction and can you talk about how you are going to integrate the customers who might be oh, two and a mobile Virgin media fixed line together and and can I get the on the same plant. Thanks.

And James on the <unk>. The question, it's unclear, whether you're asking of generic question or a specific question around of particular market, but you know I can just tell you K and more generically.

Yeah, I can tell you more generically that you know the beat of the opportunity for us across the board.

Continues to be and you know.

Perhaps the most exciting one of the most exciting thing that's that's occurring here many operations with double digit PTB revenue growth and the U K in particular with the dark fiber with Soho and to me penetration range I think our overall luge correct me if I'm wrong I think our overall market share of be to be in the UK, it's less than 10 per cent something like that so there's.

Yeah, the massive opportunity to drive B, B and the U K with this combined business platform and.

And we've seen that same opportunity and all of the market. So watch that space and you know we'll start to highlight be to be more than just the comment as it relates to revenue because for us as we as we upgrade networks as we extend networks and the be the be element here and particular, Soho and to me, which is the growth driver and every country, but also you know.

Lutz is the number one provider of of backhaul and dark fiber in the U K F. I G rules out and and that's gonna be of continued source of revenue as well. So it's all good news I think on the day to be front, and with mobile and joining us and the UK with mobile that's obviously going to create another accelerator in terms of mine.

The amount of care for the numbers that.

The second of all of them.

This is get the most of the address of the market, but at the battle of covers both of them and hold on the north of 30 per cent of market share of quite a bit north of thank you and we're around 10 and most of the of the market's growing fast so Switzerland of the UK big opportunity as we say at the cellar Ah so of products to the.

Sort of a customer so her current customers and that's something which has been proven and the vet of luck. So we agree with you with the very strong growth.

Leave it for us.

That you wanted to ask for you I mean the market share.

Yeah. So so for us I mean, the Soho market share to be precise it's at the moment and UK of 10 got five per cent, so pretty much what Mike and Charlie with thing and we are growing rapidly. If if you and all right. So we have increased the customer base, 28% of your and your and the revenue 17th of time.

Right and I mean, we have and also I think and Germany, if I'm up mistake and why do we had at the end of 40 per cent market share. So so huge opportunity on fix more of our converging.

Well I mean, what we are going to do with the joint venture I think we we only can decide really off the company. The one at you know and but obviously, having access to 33 million and move our customers and on the other home kind of having the opportunity to of.

And <unk>.

<unk> G a move of network and.

Into the the media with the different Brian right I mean, <unk> more about operates more of the low end of the market.

The tip it could be used for the second set of <unk> and the whole smoke y O. Two of has the highest the options of discuss and cutting the household so so and it it goes without saying that this will help us to accelerate the the fix more of a congrats customer base and the Germans, how we're going to do it except me and stay with.

And we were this close that day off the off the code.

Thank you.

And our next question comes for of Matthew Harrigan with benchmark.

Oh, thank you.

Oh, Thank you one really down and the week question on the presentation of the kind of a day of those question. If you will if you look at the 516 and it looks like the project lightning the penetration rate suddenly spike from 30 per cent of 35 per cent and the last quarter I mean, that's that's the real normally.

The channel it just <unk> put up or down by my one or two is that accurate and does that and for that despite the good customer number you have some press the pressure on your legacy footprint and then the more or less dabbles question and.

Is <unk> you to the extent of <unk>, you're still need the market's is getting very aggressive and technology policy I'm going up for.

So you'd like you'd like me for like a I know you're on the golf your.

The final matrix, but still we were quadplay average are becoming more and more relevant to that I don't think you've got too much throughout the exposure I guess the luminoso the N L. P. A J V is and what can I can I can pick up and is there anything that and.

221, and check policy that you said, you really affects the economy or actually affect you directly ex.

Well I'll, let the looser dig into the 30 to 35 per cent question and I'll take on the dumbest question quickly uhm.

And that's and I think and principal amount when you step back we are generally align with the E. U on most if not all of their basic policy initiatives whether that.

And the initiatives around consolidation around you know how the manage the address big Tech and I don't see really any.

Red flags for us on the horizon I seen mostly positive developments on the horizon, especially if you look at the local regulate regulation I mean for example of calm I think is taking in a very positive of position and the posture is very favorable for us around and network development and infrastructure investment and things of that nature. So the country by the time for Ya.

Basis for really focused on those things things and impact of our business more concretely today, and then and abroad.

Basis, you know I don't see anything in the near term and he named and medium term of on the more of a regulatory horizon. If you will that's gonna impact us leg of it but probably impact of positively.

Not that we are we believe the tech Big Tech drives our business and the other hand, and we also understand where the regulars are coming from on that I think it's of non event for us for the most part and we don't get into that debate kind of stay on the sidelines of it but there's nothing that ICM horizon net.

Particularly problematic you know we were dealing with the quality of issue from time to time from place to place, but we address that publicly and that's more of of near term issue that we think we can manage quite effectively so I don't see anything on the horizon that concerns and let's do you want to address the penetration rate the perfect layout.

I I think I'm right. The one of the very early quahog has been addressing the area, where we could get to substantially higher penetration. So therefore, we we don't have and all of a business case. The the the 36 per cent, you're referring to the we work with 30 per cent.

Having set that I mean, we we still currently we achieve the 30% and.

And our she didn't sets for us have over yeah, very limited access to prospect.

The reason why I say that is that more and more we use the ultra our digital tape machine to sell more of lightning and we apply more data and that and artificial intelligence and and we think that it's the way to to for the increase lightning and so we don't have a change of of guidance, yet, but what we see currently how.

We are able to the so lightning substitute to be and what kind of intelligence. We we can apply here is.

Okay, alright problems.

Thanks Bye. Thanks for you got it I think that's it operator, if I'm not mistaken unless they've got something else and the kubrick or.

And we can wrap it up.

Right. So the the always we appreciate you joining us today and I'll I'll, just say a few things and if needed here of the number one.

Stay tuned because the transaction and the UK. We believe is imminent of course subject to see and they approval, but we believe and and it and a matter of weeks really.

And that's the big moment, that's the big moment for a number of reasons one because it is and itself a fantastic transaction for our shareholders for our customers for the UK market as a whole, but also because it means we will have essentially completed the conversion of our for largest markets and the fixed mobile champions and at that point and you can really start to drive the operational and.

Strategic plan, but also the narrative the the key narrative that's critical for telling our story about and we're we're taking these businesses and how we're going to create value and the second main point just leave you with what you already picked up here I think is momentum is in our favor here of the tailwind of real in terms of broadband and takes more of a convergence and it's driven by innovation by.

All of the things we've talked about but you know and we certainly feel good about that momentum and you know and believe that momentum the sustainable for the reason for you discuss it and the last one and I'll make is converting free cash flow guidance.

What point you know three 5 billion up 25 per cent of more than 25 per cent and you know not to be lost there. We are we looking for the castle per share more than free castle itself and so from our perspective, you can do the math of free cash flow per share story for us and we think is even more relevant and something that we pay and.

Tension too so the other three big headlines I guess to leave you with and we appreciate you joining us on the car will speak to you after the second quarter take care of everybody today well.

Thank you ladies and gentlemen, this concludes Liberty global first quarter of 2021 Investor call. As a reminder of replay of the call will be available and the Investor Relations section of Liberty Global website.

There you can also find the copy of today's presentation materials.

[music].

Good morning, ladies and gentlemen, and thank you for standing by welcome to Liberty Global first 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 and.

The form without the expressed written consent of Liberty global is strictly prohibited.

At this time all participants are in a listen only mode.

Today's formal presentation materials can be found under the Investor Relations section of Liberty Global's website at Liberty Global Dot Com.

After today's formal presentation instructions will be given for a question and answer session.

Two of the slides details the company's the safe Harbor statement regarding forward looking statements.

These forward looking statements involve certain risks that could cause actual results to differ materially from those expressed or implied by these statements. These risks include those detailed in Liberty Global's filings with the Securities and Exchange Commission, including its most recently filed forms 10-Q and 10.

And as amended.

Liberty Global disclaims any obligation to update any of these forward looking statements to reflect any change and its expectations.

And the conditions on which any such statement is based.

I would now like to turn the call over to Mr. Friese.

Great. Thanks, operator, and Hello, everyone and hope you're doing well and we as always appreciate you joining our Q1 results call today, Troy and I are going to run through what we hope for some abbreviated remarks, even a bit more time for your questions and I've got pretty much the entire team on the call and I'll get them involved as needed on the kick it off on slide four.

If youre following along with some key headlines for the first quarter and before I do that let me just say that we continue to remain focused on our employees and customers first and foremost here and what remains of pre challenging period and you're as it relates to COVID-19, although we've seen infections and all of our markets coming down from peak levels vaccination programs and the company has.

And I'll start as you probably noticed and as a result travel restrictions and protocols are still pretty tight in Europe and that is.

Despite the pandemic related challenges, we're very encouraged by the operational progress we made during the first quarter of 'twenty one the commercial momentum we experienced throughout most of last year as Jay writing for the new here.

Q1, we added nearly 40000, new customers compared to the loss of 20000 last year and over 225000 broadband and global large use that's up over 60% from the same period and 2020 on a consolidated basis. We grew revenue the grew operating free cash flow and that's despite COVID-19 impacts and some merger of synergy related costs and Charlie.

It is true and result, we're confirming our free cash flow guidance today, which despite continued investments and future grill, we expect to be up over 25%. This year, the 135 billion and that's regardless of when the Virgin media transaction closes.

Obviously, completing that JV will be a major milestone for us and <unk>.

Technically the transaction is still under review by the CMA, but as you would've seen the provisionally cleared the deal last month without remedies. So we're still expecting of June close once that happens we will have created fixed mobile champions in all of our core operating markets and whether the BOP. The mobile assets like we did and Belgium, Switzerland or why do we joined forces.

And with the number of mobile operator, like we get the hollander, reducing the U K the benefits of fixed mobile convergence are powerful and they're supportive of what I've started to call. The for assays for lack of a better term and that means scale synergies strength, particularly competitive strength and strategic Optionality, Let me walk through these quickly for.

And the scale perspective, these deals make us the number one number two telecom operator, and every market and just about every product so beyond the benefits of convergence and nationwide customer base, we gain the ability to shape the ecosystem from a regulatory competitive and structural point of view and you just can't tell you how important that's going to be going forward.

As we discussed often the synergies and these combinations are substantial and <unk>.

Represent of built in value of accelerator for us our track record. So far is outstanding of achieving fixed mobile synergies those will follow this with no debt and as we sit here today is the future synergy NPV over $12 billion, and Switzerland, and the U K.

Perhaps most importantly, when you combine market, leading talent and product innovation and convergence.

The fixed mobile champions have the strength of competitive strength to drive long term financial and operating growth and then finally, the combination of scale synergies and the strength opened up a whole range of strategic options and areas like contact or ventures, our new financing mechanisms or infrastructure.

Anyone on this call, what's happening and the infrastructure and network space Youre watching it and I <unk>.

I've said many times that we're in a great position to take advantage of that one of that by monetizing tower assets tapping and a new capital sources to leverage our own networks, we're generating new revenue streams and I'll get into that a bit more of the next slide the.

The last headline here relate to our current 1 billion of our buyback program, which has been progressing at a pretty rapid pace you may have noticed.

We spent around $450 million in the first four months of the year really just to take advantage of the value gap and our stock, especially with the growth, we're delivering and the pending transaction and the U K. The next step one of a more say about that on the second quarter earnings call of slide five just runs through the logic and rationale of the Virgin media <unk> combination and do the land.

As I, just walked through scale synergies strength and strategic Optionality. So first we're creating the clear number two operator and the market. After BT for 42 million fixed and mobile subs 11 billion pounds of revenue and nearly 4 billion pounds of EBITDA and we're also combining two best in class infrastructures, including the large.

Synergies of the deal are the largest IFC amounting to an NPV of $6 2 billion pounds of around 540 million pounds and an annual basis I think it's important to remind everyone that 80% of the synergies or cost driven and should be achieved and roughly three years and that assumes the 700 million pounds integration cost.

I'll also add the these numbers have been debt it multiple times by both Virgin and <unk> and Green teams working together, so we really hit the ground running on synergies by the way. This is of great momentum congratulate our very own Lutz schuler and as anticipated the appointment to the CEO role upon closing of the as you. All know Lutz has been the liberty for over 10 years now most of that time Bill.

And our highly successful German business that we sold the Vodafone for 12 times, EBITDA and Egencia and reinvigorating growth of Virgin Media, which you may not know if you spent the 10 years prior to joining us working for Telefonica and there Jim and bubble of business. So he is uniquely qualified in terms of fixed mobile convergence transformation the value creation and of course he has a terrific.

The knowledge base of both shareholders.

The balance of the leadership team, including incoming CFO partition of cold the answers from the <unk> have been selected and we will be announced as soon as we get final clearance.

So of Virgin media, and <unk> will start out with real advantages, including a winning team strong product offerings to premium brands, the best connectivity and entertainment bundles and the market and the opportunity to create the Uk's first fully converged and digital platform the.

The last one I'll dwell dressing and relates to a question. Many of you ask us and we often address proactively and referring to the strategic Optionality. The JV will have on day, one to both expand upgrade and monetize is fixed infrastructure.

We've already talked publicly about the opportunity to extend Virgin one gig network to an additional 7 million homes, allowing us to tap into new revenue streams like wholesale of course, retail convergence and BBB and perhaps giving us access to new sources of capital I'm really attractive terms and will quickly explore strategies to maintain our significant speed advantage on Brexit.

The 15 million homes, using new technologies like doctors for and even STS pond to our existing docs I think we're all excited about the occupancy which from meaningfully more attractive as a combined fixed mobile champion the of this market.

Clearly our confidence in those fixed network strategies is embolden by Virgin Media's recent performance and you can see on slide six Q1 was another strong quarter for Virgin media with our best revenue performance and over two years and that was driven by record low broadband churn and strong topline growth of <unk> and new FMC bundles.

Customer additions also fueled revenue despite the price announcement, which is typically a tough quarter for us by the way, we actually added 31000, new customers and registered our fourth straight quarter of customer growth and our <unk> markets.

Broadband is a great story here and the U K with a fourfold increase year over year net broadband adds and in fact over the last four quarters. This is of great debt Virgin media added over 170000, new broadband subs and the UK and the four quarters prior to that that number was 20.

And there's a lot of significant drivers behind this acceleration, including the launch of intelligent Wi Fi, so acceleration and FMC bundles. The launch of <unk> of January and sustained investments and gigabit network expansion digital transformation and customer service all of which are instrumental components and establishing a.

<unk> and Nimbler business for the future. This all bodes really well for the JV without too.

Now and with the chart on slide seven that summarizes some of the key operating highlights for Liberty Global on a consolidated basis, and then for the big for Opco Virgin Media, Sunrise, and UPC, Telenet, and Vodafone and <unk> moving left to right I think it provides a good perspective on each business is evolving side by side and I could probably.

Spend 20 minutes on it but instead of going to spend about two and a half and I'll start with three general comments about the group for us.

Of all of you just scan the net add data at the top of the chart first three lines, you'll see a lot of green arrows, pointing up and that reflects strong improvement year over year and customer broadband and postpaid mobile growth across our op cost. So it's not just Virgin media, that's accelerating its happening pretty much across the board.

Youll also notice that we've ramped up our one gig networks with Switzerland, and Belgium, now, reaching the 100% of customers with the one gig offering and the U K expected to be at 100% and Holland and 80% by the end of this year. So when we show. This chart early 'twenty two those numbers will all readout of around 100% none of our peers can say that.

And finally, a comment of fixed mobile convergence ratios, which continue their steady rise of about 150 to 300 basis points.

The Belgium, and Holland are now at or above, 45% and Switzerland as the 55% of that reflects high convergence of sunrise, but only 25% of UPC. So large.

<unk> cross sell opportunities and Switzerland and in the UK.

And I have already talked about Virgin media and I'm, just kind of add a few quick comments on some of the financial data first a quick explanation of the ARPA decline of 4%. This was impacted negatively by three things number one only one month of price rise contribution that was in March and two the headwinds of end of contract and annual best tariff actions, which we talk about every quarter.

And number three and decline and other revenue lifestyle usage and pay per view and then on EBITDA, which is down one 9% I think it's important to point out that the figure includes and nearly 1% drag from merger related charges associated with the joint venture. So those costs were excluded the EBITDA loss would have been closer to 1% those same costs by the way had about.

The 2% drag on operating free cash flow growth.

Turning to Switzerland briefly the new summarize UPC is off to a great start Andre and the team delivered a strong Q1 with 56000 broadband and postpaid mobile ads and that's up 50% year over year and that was fueled by sales momentum across both brands and record EPS at both Sunrise and UPC.

And they also ruled that you may have noticed the commercial day, one offered to new and existing customers. That's called together more Wow, that's a program that rewards existing customers with benefits like free and discounted sports and security package essentially similar to what <unk> done in markets like Holland, and then motivate new and cross sell customers with giveaway of like laptops, ipads and Tvs and the reaction so far as the.

And very strong and.

And you can expect regular updates on the integration process, and Switzerland, which at this stage is going really well the first positive synergies materialized last month and you might've noticed that the head count restructuring was just announced for.

Naturally revenue was largely flat in the quarter with EBITDA down seven 3% and operating free cash flow down six 2%, but those numbers include about $11 million and $20 million, respectively of what we call cost to capture those of the cost of capture synergies for the organic result, if you will was better and Charlie will cover those numbers at the moment.

Telenet also had a strong quarter with robust operational performance of both broadband and mobile, adding 9000 broadband subs and 15000 postpaid mobile subs. They also grew of fixed ARPA of 1% as customers migrated to higher tier broadband and multi play of packages.

And the fixed mobile convergence continues to be as always been the main focus of telling them. They added 19000, new converged customers in the quarter and they've launched and new innovative fixed mobile package they call one and read about.

Charlie is going to cover our financials, but with three and 5% EBITDA and <unk> growth till and hats off to a good start of the year and then lastly, the Vodafone and <unk> had a mixed quarter to be fair, we continue to feel a bit of pressure on broadband.

At the same time fixed are of who was up 4% and postpaid mobile subs were strong you rune and the team have really leaned into a number of programs to drive broadband growth, including smart Wifi and broadband speed increases across the entire customer base. They are also on track and they just mentioned and double the gigabit footprint to about 80%.

The end of the year and and nationwide coverage and early 'twenty two.

On the mobile front convergence continued to deliver low mobile churn, which helped drive 61000 postpaid adds and the quarter and push fixed mobile convergence penetration up to 45%. So it's good to see Vodafone and <unk> will deliver another good financial quarter with revenue up 2% helped by double digit BTB growth and the 11th consecutive quarter.

Order of positive EBITDA growth was 3% and Q1 and that's despite COVID-19 impacts so wrapping it up a strong quarter for us operationally with continued momentum and customer broadband and mobile growth and all guidance confirmed our.

And our strategy to build FMC champions and core markets is weeks away from our biggest milestone yet with the completion of the Virgin to deal and Meanwhile, the benefits of fixed mobile convergence continued to materialize around scale and synergies competitive strength and strategic Optionality and we remain committed to.

And so our levered free cash flow growth plan. This year anchored around a steady buyback program and seek to take advantage of but we all fields of meaningful value GAAP and the stock so with that Charlie over to you.

And I'm starting on the slide titled returning to revenue growth. The groups saw revenue growth of 2% and the first quarter. Despite continued restrictions and the pandemic impacting our gross rent and est.

Makes it 60 basis points with drugs, presumably related to year on year reductions and Remy.

Our operations with more substantial metal businesses, and Jude greater impact from the quarter and we saw a 9 million the dragon and Switzerland. The trends continued to improve with underlying results positive.

We estimate of headwinds of $8 million, and Belgium, and $16 million in the Netherlands, the one 8% growth with better kind of Zynga represented eight consecutive quarters of top line growth with strong performance across both consumer and <unk> segments and the quarter.

And the next slide we provide details of our adjusted EBITDA for cost to capture synergies weighted results.

Despite strong revenue performance Virgin media EBITDA declined one 9% due to pre merger cost of the capture and as previously highlighted the ongoing investments in digital and customer kind of onshoring, leading to increased operating expenses.

As the benefits of these initiatives continue to materialize trends would improve and the second half of the year.

And Switzerland of 7% headline decline is explained predominantly by impacts from COVID-19 and the $11 million of cost of catch up with the first synergies starting to materialize from April onwards.

And more established conversion assets delivered a very strong performance the ton of that growth rates benefited from the acceleration of programming rights and the prior year period as lot of sporting events, who paused in March 2020, and Thats an impact the will unwind in Q2.

Focusing now on the FCS where despite the headwind of $30 million of course, the catch up the consolidated group delivered 5% growth.

The strong results across the U can on the Belgium were predominantly due to the phasing of capital projects.

And the Netherlands, Chief 17, 5% year on year growth with capital intensity of 19% Capex to sales and I know.

And the FCS margin of about 27% with aspirations for further digital systems efficiencies, despite having completed the synergy program.

Focusing on our core Liberty global performance metric of free cash flow, we delivered $93 million of free cash flow and Q1, despite the phasing of interest payments predominantly fully and the first and third quarters of the year.

We are on track for our full year guidance of $1 three 5 billion.

Which represents 26% year on year growth with growth accelerating even more on a per share basis as we aggressively retire rostock.

Turning to our capital allocation dashboard, we ended the quarter with nearly $3 billion of cash having allocated $447 million to buybacks across the first two months of the year, representing nearly half of our current $1 billion authorization.

Moving to the language across our portfolio, we continue to operate long tenor of fully hedged credit silos.

And our UPC credit pool, we refinanced the sunrise acquisition debt, reducing our cost of debt to four 2% secure and $18 million of annualized interest savings going forward.

These efforts included the issuance of sustainability linked notes with embedded commitments for improved energy efficiency and the use of renewables.

Finally, we value our venture portfolio of $2 $5 billion, reflecting the full color on one of the 9% stake in ITV.

The step up and value of our Univision state for the announced module kind of visa and the partial monetization of our skills investments.

So to conclude we continue to of debate to bring the best products of our customers and our convergence strategy is delivering.

Following a strong start for the year, we are refining of Virgin media got improving our EBITDA outlook for <unk>.

Low single digit declines of broadly stable, so small change, but it shows the investors have the best sense of the underlying trends as we seek to close the goto merger and the second quarter.

We can tell the all of the previously announced guidance metrics and with that operator over to questions.

Thank you.

The question and answer session will be conducted electronically.

We'd like to ask a question. Please do so by pressing the star for Us.

The Astra key followed by a detailed one on your phone and order to accommodate everyone. We request that you ask only one question.

If you argue the speaker phone. Please mixture of your mute function is turned off to allow your signal to reach our equipment, we'll pause for just a moment to give everyone an opportunity to join the queue.

And our first question will come from Polo Tang with UBS.

Yeah, Hi, thanks for taking the question.

And I just wanted to come back to your comments about strategic Optionality and the U K. So can you maybe give us your latest thoughts in terms of cable wholesale and the potential fiber JV and the U K. So we're argue and talks with potential partners and are you mean, the talk with your financial partners or strategic partners and then.

Also can you maybe talk about your 50% stake and cornerstone and is the strategic or for non core.

Yeah.

Sure Hi, Paula.

Listen I can't get into too much detail on who we're talking to and who we're not talking to you can think and respect that I will say, though that the opportunity from our point of view looks very real.

Today, if you look at the $2 6 million homes, and we've built already of lightning.

As we go for the vast majority of those of fiber.

And we have great experience and construction of fiber, we have a ready made operating.

Platform to go out and build fiber and so our ability to ramp up quickly and have behind it the brand and our product and of bundle to go out and penetrate with its pretty attractive so I'm.

And not going to get into specific today, except to say that we are gearing up if you will too.

Present that opportunity to potential strategic and financial partners to expand our footprint of course, the if we did that.

And then the question we have to ask is where are we going to exploit that opportunity ourselves and leave it for Virgin below or will we provide.

Wholesale access and that is in negotiation and in some respects, but the partner.

And what the best return to both the core business as well as two investors if we had zone.

So it's a it's ongoing at the <unk>.

To build that come down our ability and the effectiveness of building has gone up.

Our knowledge of the markets and where we would build is terrific. So I think the 7 million homes.

And the artist for the construction if you will.

But who and when and where and why I think we're going to keep that to ourselves for now.

And you should expect it to be a fiber build that Virgin media is likely to be the key.

Core customer of that network and that wholesale access to that network will be of commercial negotiation.

But likely just to ensure that we're getting great utilization, because while we may be able to penetrate 30% and we've shown that over and over again on our $2 6 million homes, we built of lightning.

If you've got the $40 $50, 50% penetration on that new construction and Thats, obviously, a better return for everybody. So stay tuned I guess as well and I can say and then.

What was your second question Carlos.

It was back to the cable wholesale the wholesale your cornerstone.

Our joint venture.

Because I have to say that's part of your I think of the perimeter of your U K business day.

Would you think about that and cable wholesale I think we'll look and we'll address that when the transaction closes we will sit down and look at debt tower asset strategically.

Obviously, we're in a position to if we wanted to monetize it at the JV.

And you should assume debt there is possibility we would look at that favorably. So let's wait for the transaction to close at the decision we would likely make jointly with our partners Telefonica, but we're obviously in a position to.

And monetize that if we felt it was appropriate.

The appropriate and the other needed or wanted to get the capital out to do some of the strategic things so.

Thanks.

You bet.

Thank you. Our next question will come from David Wright with Bank of America.

Yes, thank you very much for taking the.

Thank you very much for technical.

The question and I guess, it's just the last little follow along.

From the question before I think your current run rate build rates will sell of lightning is instead of looking at for them to fall off and breaks out and formed it Tonight before 50000 per annum I think that's why you've been running and why you've possibly indicated you could we could continue do you think there is an opportunity with your cash.

And our results.

To raise that run rate, Mike do you think there's an opportunity to kind of do what the key data and double down and with.

With the capital behind it from what other source.

The lot room nights into one.

The 1 million per annum.

Thanks.

There is and I'll, just let I'll, let lutz provide a little color on that I'll simply say that the four to 500000 homes.

Was a balance between what our capacity was and what our desire to generate free cash flow and so I think we were trying to optimize the <unk>.

Bill Lucia has always been banging on the table to build more but we are saying well we can do more we should be able over time, but let's try to optimize the financial results as well, but moved why don't you address the build capacity.

Yeah, So I mean.

And you can.

Impair the bit with Openreach as well and now they are currently using tried and true.

The PAA using Dell and dock.

And at the moment.

We have this one the.

The percentage below 20% and the opportunity is to go up to 40 50 per kind of thought. So you can expect that this is one of the eager to accelerate the machine and second we have prepared the machine for.

For for about scaling, meaning that our pop up.

Kind of ramp additional and.

<unk> and <unk>.

All of my colleagues and also.

And we can.

The other more region of the approach so we know where the 7 million of homes, all we know how to scale the machine.

We will absolutely take more usage more use out of PAA and <unk>.

Mike said before right, we have to get the financial construct right. The partnering right and then ultimately obviously and the agreement with all of our future share on the telephone.

Mike just other and it.

Additional question and answers. We've obviously, we're obviously talking now about the lightning and infrastructure is it in your minds of tool to consider the whole filing.

The existing cable footprint. Thank you.

Well, we have obviously considered that and I think we will continue to look at that as the.

The ability, but premature to discuss that today.

And obviously it could be utilized in that regard it would depend on the number of factors and what sort of <unk>.

Partnership and and benefits, we would get from doing something of that nature. So it's premature I think to get into that but it's obviously a theoretical possibility.

As I mentioned, the $2 6 million homes are largely fiber anyway, and we've already built and the existing homes the exist.

The 13 million homes that we that our HFC or also if we chose to.

And either easily upgraded DOCSIS for of fiber or potentially could be made accessible on the host on the wholesale regime, just premature to think that through I think the main focus today is to get the Virgin footprint extended to be the you know the number one and broadband platform and that marketplace for for.

And the foreseeable future that forever.

And we have a great opportunity to do that.

Based on the conversation and decided years.

Thank you very much.

Mhm.

And moving on to Michael Bishop with Goldman Sachs.

Thanks very much.

Okay.

Great. Thanks, very much just a question on Switzerland.

We saw the the sort of big Bang.

One of the new tariffs from the beginning of March.

Okay and just.

Elaborates, a little bit more on the medium term strategy with regards to the combined Sunrise business, mainly from the perspective of are you still I guess.

Assuming the sort of all the Sunrise strategy, which has unlocked the low churn and the market through the promotions to try and drive more of a natural balance and market shares and the market given what swisscom has or are you thinking more.

And around <unk>.

The <unk> more price inflation, and so just wondering essentially sales price versus volume debate some of the stress test. Thanks.

Andre and I handle net.

Yes, I can of course.

Thanks, Michael for the question. So I think what we have seen and the Swiss market is that the promotional activities have been quite intense. Nevertheless on both ends of the Sunrise business and <unk>.

<unk> business.

And lately and benefit from it in terms of the share of additions.

And that has contributed to the stabilization of the topline evolution of the combined business. So overall I think.

And while there isn't quite heated market, where currently rozzer benefiting from the situation and then suffering from mix going forward of course of what is most important to us.

And we drive for more convergence there.

And through convergence and create more stability and to our customer base and create more opportunities for cross and Upselling additional and.

Services. So that is really the key of the strategy that we want to pursue in terms of price aggressiveness I mean, its not about really both of us but in reality the price aggressor and the market is really sold.

And quite aggressive price points on mobile and on fixed and we will have lots of competition from the MSA will benefit from the growing fiber penetration.

Switzerland, but we are seeing that we are well prepared with the conversion strategy that we're executing.

<unk> temporarily would give us and edge as we have the benefit of the fixed mobile and.

Product and that sits on the HFC footprint and has a speed advantage. So overall.

I think there will be of great deal.

Change I think towards more converging.

And the market number one and number two I think of the price aggression is unlikely to further accelerate but potentially relative to soften the over the midterm.

Great. Thanks very much.

And our next question comes from James <unk> with New Street Research.

Hi.

Yes, good morning, everybody and thank you very much indeed had a question just regarding the trends of <unk> and <unk>.

U K at the moment, you don't see it got a little bit of drag from some of these of calm.

And so at the moment, but presumably some of the Ace will start from.

Over the next few quarters and then we have the price right and you just put through in March. So you know, there's not and mind just thinking about how we should think about the phasing around op who for.

The next two to three quarters. Please.

Look you have got that alright.

Sure go ahead, and Hi, Ken.

Okay.

So Mike it's.

And as Mike said.

And the op.

And you're down 4% drive us.

And that in Q1 'twenty.

Fully benefited from the price rise in Q4 2019.

Which is not the case now the.

The price rise and have started to materialize from first of March on the work in Q1, and so therefore, we will get the entire benefit out of it in Q2.

So that is one driver and the other dry.

Ivor.

And as you said and of contract and identification average price character of the vacation.

This is something which will continue.

The overall impact is.

<unk>.

And then we have planned for an estimated for the Rockies.

The top of it however, it is still existing.

And then.

True.

That is.

The pressure the exit of this should market.

And the quiet.

And while the back book price that gets very rationale and everybody's doing price rise, but all of the.

Okay.

The lower acquisition prices with lots of bits of direct which I don't expect to change and then we had.

And the boxing events, right and what's the big books and music.

Why are the game theory, which.

What's the one time and so therefore, I think the opposite of development going forward, it's a bit more positive remember in Q2 that would be past the small.

<unk>.

The content for our customers so.

Definitely that will now help us.

But going for what.

I don't I don't want to come up with exact numbers, but I think we won't stay of months.

Can you give me kind of start to get back towards the stable trend by the end of the year. Please.

Okay. Yeah. I mean this is it's always the balance between volume and revenue right and what the market is offering and I mean, you have seen debt we have created.

Huge customer addition for the customer additions compared to Q1.

The 20 are up 18%. So most of the growth is coming out of the acquisition and.

So that is always the balancing act and I think it would simply what the serious to now predict what will happen until the end of.

This year.

And I think it's fair to say that this quarter is an outlier shouldn't be and outlook.

And so yes, how negative it is you should see something like this again and the balance of the year.

Yeah, and I think what I also want to mention is that with the <unk>.

Our most negative quarter I think if you compare it with the competition I think it's one of the best option.

Future developments and the market.

Got it thanks guys.

Mhm.

And moving on to Robert Grindle with Deutsche Bank.

Okay.

Yeah.

Thank you Mike.

Back to the U K, if that's okay, Mike I think you're leading us from the earlier ounce of that you prefer and organic unbilled scenario and the U K and.

And have the experience and knowledge for that of lets says you can scale, but is it tempting of total to supercharge the national opportunity for broadband.

Per store to buy wholesaling off and all of that or even to buy and existing player.

Who is building outside of your own footprint. Thank you.

Well.

You know us right.

We'll look at all options to accelerate and advance the particular strategy.

And the the idea as you described by reading the incremental steps, you could take to accelerate or and or improve upon our core plan, which is.

You know utilize the expertise we have the brand and the product and the penetration capabilities, we have to expand the reach of the network.

Taking advantage of what we know to be a lot of capital of excess capital really looking for.

The business opportunities like this and potentially strategic partners locally who would join.

With the benefits being not just acceleration of vergence growth because we've proven with the $2 6 million homes that we've already built we can and will penetrate.

And really well and and grow the customer base and net new territory, but also the benefits that come from perhaps the b rating that project and getting being stronger financially the benefits to our beat of <unk> business, which could be material with a lot of good things that occur if we're able to pull this off and look and I don't want the implied to anybody here on the call.

And there's something for sure you should be baking into your plans right now it's too early and our JV is and even closed yet I'm simply saying that.

It's an obvious opportunity that comes from having the scale and the.

The benefits of synergies and other aspects of the JV that we will and should be evaluating.

And we think there are lots of opportunities to do that with or without financial and strategic partners and.

The case of with obviously that means that the better impact financially and from the of using less capital and even without and we think it's of great IRR, we've proven that on lightning. So.

We'll see how it unfolds.

And the things that you described were by and Alt match of utilizing net debt loads are sort of incremental steps.

And it may or may not be accretive to the core strategy, which as you know you need to control your own destiny and this and this and this space and I think that's where our main goal and if those other things can help.

Realize that goal will take a look up.

Great. Thanks, Mike.

Mhm.

And our next question will come from Jeffrey <unk>, the check with pivotal research.

Okay.

Yes.

Good morning, guys I wanted to focus on the strong U K data subscriber results.

You've put up a nice string of results together.

How much of that is just churn dropping sort of dramatically just hoping you see and the U S around COVID-19 versus increased gross connect activity.

And you could talk about the sustainability of these results and then have you seen any material pick up and consumer interest and being up sold to the higher speed data packages.

Net.

Yeah.

So.

Before that.

Acquisition up by 18%.

So this is all more making up for the and play a number so.

Not so much churn driven it is entirely acquisition driven.

And this is simply we think the question of demand for higher speeds as he said and also.

And our digital Digitalization program is really taking off so the digital channel share has increased from 41% to 51 per cent.

And so the the machine.

Machine is running.

And onshore.

And though it was a.

3% better.

So the minor from 14 debt.

The five to 40 and got true, but and this also success the call.

And we have increased prices so the price increase quarter of.

The year ago, or 18 months ago exactly what's then.

For 20% share right. So so it's better from from both regard, but if you look at the exact number of it it comes from acquisition and the speed.

Speed metrics and these days.

And as you said so.

The average consumer speed of 180 for Mike now I think coming from the last quarter on the current bill.

Five and it's all the quantum trend and I mean, it's clear right at home at the moment homeschooling Homeworking and.

And then also entertainment streaming right.

Yes.

For your question maybe to your question Geoffrey is it sustainable and.

And so I mean, we have commercial momentum as we speak.

And so that is good and we want to keep that.

And obviously when you look through the next quarter that was indeed the quarter debt has highly benefited from the start of the pandemic alright, well remember you couldnt.

True onto the Openreach network for some point of time because of all of the missing piece of technicians and the field.

And so so.

I think don't make the mistake and and expect the same number of the across the quarters.

And in general.

Demand for fitness their commercial momentum is there and I think overall as an industry. Obviously right. We also need to find solutions for of chipsets and.

Right I mean, that's the silicon shortage is real and all.

But the.

The demand for speed and the commercial and the construction.

Great. Thank you.

Thank you. Our next question comes from Steve Malcolm with Redburn.

Okay. Okay.

Yes, good afternoon, guys I'll try and sneak in two if I can second.

And second one very quick one just on slide 16, you talked about the lower cost of using passive infrastructure assets from D. T think tender price savings can you just.

Give us some details and so the overall economic decision there because obviously, there's ongoing rental cost of bt's be considered and.

Also as you consider increasing the scope of PAA from the 20% for the 40%, 50% does that impact where you decide to build given the availability of PAA of course, the U K just some extra color on the sort of moving parts of that decision around future build would be great and then just pulling up and looks as previous comments. So just a quick one obviously the.

It was very good through the price drives the land without any major churn impact sometimes of the charter to the lag.

The new builds of the higher bills, the customers' accounts and should we.

We expect slightly softer Q2, as you see sort of the increased churn on that price for all of us hitting the hurricanes. Thanks a lot.

And you might take the second one first and it's.

Yeah. So.

You're absolutely right.

See a bit more true right roughly you see two thirds of the true and.

When you read the sent out the letters and one third and the bill kicks in and so.

Therefore, we will see a bit of.

All of the true and all of that in Q2.

And I think on your question, where where are we intending to build and I mean.

We absolutely take the commercial into accounts right. So if it's.

More expensive to pay for PAA than we built of withheld.

Cheaper, we leverage P. A a and our overall of the selection of the 7 million homes.

The more leading to the.

How easy and general is it two access of how far is it from our network.

And is it is it entirely cities with the.

The already with Virgin media, and therefore, it's easier to penetrate and.

And that's the question.

How much.

Are we able to use of domo.

Is it when you say you are right.

And I believe goes to somewhere around 50 D over 50% and at some point.

The collection of our plans.

But we will become an increasingly larger part of the build over time.

Yeah.

And we absolutely no right and I mean, the Openreach is publishing where PAA is.

Available.

And then obviously you'd take a beat the heck out to the end of the tape side and therefore, the number we are planning for something like 45 per cent.

But let's see right. We are currently ramping it up coming from 18% and.

But definitely an opportunity and it goes both ways right of one hand side you can.

Can connect faster and cheaper on the other hand tied obviously and all additional homes a bit more.

More far away from the network and therefore, the ultimate more expensive too.

Okay, but just to be clear when you say you can go to 40 or 50 per cent.

And of you, becoming more familiar with the processes and just the way it works and when you weigh up the costs I mean, when you when you compare 390 592 and average is that the 390. It doesn't include the rental cost, presumably you're going to pay for openreach for access of those ducts and poles.

But remember the five.

<unk>, some PAA right and the first quarter, we were about 20% of something like that so there is some PAA built out of that but it will definitely be.

The benefit to the overall cost per premise and.

As I said, we'll just be as we go.

<unk> Street by Street town by town, we make those decisions of the optimal way for the overall project.

Okay.

And over time.

And the machine is already scaling right. So we are operating at 80, because and it's not the only a question of how quickly can we get the machine.

We had ultra doing.

New housing formations, we are doing infill so there's still the.

And part of a four to 500 Lightning does every year.

You cannot use.

And when you look at the $7 million there.

Naturally more of.

More of the ability of <unk>.

Yeah Yeah.

Build network extension and monitor them.

Okay. Thank you.

Yes.

And moving on to Nick Lyall with Society Generale.

And I'll tell you well it was a question Mike. Please on the Vodafone Zig of the subs of sliding a bit faster again this quarter and you've now got the.

And the analog switch off so you can have other because the.

The pricing will speak can you just tell us what your aims are pleased with food of from zero in terms of subs numbers do you interest try and stabilize and what could you use to do that or would you go for pricing and instead.

Could I also try and quantify just on the.

On the fiber build and the U K how much do you think you could exploit the U k's super deduction on tax as well or is that something that applies to all of the build of just part of and maybe you could help us with lots of it. Thank you.

Yeah, maybe your own home count the CEO, but the particulars on the call so I'll let him.

The work through and answer on Vodafone and <unk> strategy around broadband because obviously EPS.

And then building that strategy and.

And on the the taxes listen I'm not entirely sure.

With you on exactly what you're referring to but obviously the broadband rate issue is.

Very helpful for us in terms of new construction and fiber and we're always looking to reduce that bill if you will which seems to us to be we might have other ways of reducing that bill by the way beyond just fiber. So we're always focused on that particular tax impact of Charlie.

Did you of any of that on that tax question, Yes, I would just say the other part is the accelerated allowances of 125% does apply to the build and yes. It would have a positive impact I think it's too early to quantify because it kind of depend on the build rate and the vaca dependent on learning with more of <unk> tax profile, but can you give them the ots of tax payer there will be some incremental cash flow.

Moving is generated from the new et.

The accelerated allowance.

I really think I can tackle the Vodafone and so good question.

Yes of course, and thank you for that for the question.

And I think I heard a few questions. Good morning, some of the my broadband from the the value and the strategy.

So let me start with the strength you pause as you see we've had a solid quarter with revenue growth EBITDA growth and we've had the quite consistently.

And so what I'd like to say that our plan is working and we've had from the startup of the JV.

For years ago.

And we will focus on fixed mobile convergence and.

And that is still the cornerstone of the strategy going forward. So fixed mobile is working for US we've seen a reduction in churn on the mobile side of about eight zero, 80% and on the fixed side of about 55% and that's remained stable combined with much higher net promoter scores.

And you also asked it wasn't going to be more value oil price is definitely going to be a value driven strategy.

And hence the things that we are doing as you said you talked about the it looks for each of them. So.

And so we haven't completed the and looks for chunk and are quite.

And quite quite a bit of work to take $1 2 million customers of the analog signal and moving more to digital.

Why is it gives the customer a better and experience.

The oil side, and that's very important and gives us the ability to increase the network capacity.

And the in depth and has allowed us to actually go through the COVID-19 period weighted much more much higher demand from our customers without any problems.

Just to frame the upgrade the fixed speeds by 40% on average in April which we have done to our.

And tire base and no additional cost.

And also the value driven things arent and we are launching new smart Wi Fi boosters and.

The new and improved and really focusing on improving the Wi Fi coverage and the how's the in house experience from our customers and.

And that is driving the much higher NPS of about 20 points versus regular customers and then last but not least super important Mike.

And you spoke about the gigabit coverage today, we cover of about 40% of the country with gigabit.

And it works and will be 80% by the end of the year and that will be 100% by next year and today by the way that's already 500 Meg to fix in the bag.

Of course, the whole country. So we are and a good place if you compare with the KPN and we're definitely playing the value came from.

The other players and the market, who are probably a bit more price driven.

Great. Thank you.

And we'll take a question from James Ratcliffe with Evercore ISI.

Great. Thank you.

Two if I could.

The first of all.

Continued strong performance on the <unk> in Soho and can you just talk about what your market share is and what share of the potential locations, you're either connect two or past close by thoughts of what with the other.

The opportunity potentially there and second on fixed mobile convergence.

And where will that 25% and the U K.

Once you close the transaction and can you talk about how you are going to integrate the.

Customers, who might be Oh, two and.

Global Virgin media fixed line together and get the one.

And the same plan thanks.

And James on the BTB of question and it's unclear whether youre asking of generic question or a specific question around a particular market.

But I can just tell U K and boy generically yes.

And I can tell you more generically that.

The beta the opportunity for us across the board.

10 years to be perhaps.

Perhaps the most exciting one of the most exciting things that's occurring here.

Many operations with double digit revenue growth and the UK and particular with the dark fiber with Soho and SME penetration rates I think our overall Lutz correct me if I'm wrong I think our overall market share of <unk> to be in the UK is less than 10% of something like that so there's a massive opportunity to drive b to b and the U K with this.

And business platform and we've seen that same opportunity and all of the markets. So watch that space and you know we'll start to highlight be to be more than just a comment as it relates to revenue because for us as we as we upgrade networks as we extend networks the <unk>.

<unk> element here and particular, Soho and to me, which is the growth driver and every country, but also loses the number one provider of backhaul and dark fiber in the U K as <unk> rolls out and and that's gonna be of continued source of revenue as well. So it's all good news I think on the BW front and with mobile.

Joining us and the UK with mobile and that's obviously going to create another accelerator in terms of China.

And the numbers that the.

The second one of a day.

This is a guesstimate of the addressable market, but if the Benelux countries, Belgium, and Holland, and the north of 30% market share of quite a bit north I think you would.

And we're around 10 and most of the other markets growing fast so the Switzerland, and the U K big opportunity as we see it the seller of Soho product to the.

Total customer service product to customers and Thats, something which has been proven and the Benelux and we agree with you with the very strong growth.

Labor for us.

So if you wanted to ask Lee I mean, the market share.

Yeah, so for us I mean, the Soho market share to be precise at the moment.

K attempt at 5%, so pretty much what Mike and Charlie with thing and we are growing rapidly if you and all right. So we have increased the customer base of 28% year on year and the revenue of 17% Alright, and I mean, we have.

And also I think and Germany, if I'm not mistaken and glad we had at the and 40% market share.

And our huge opportunity.

The fixed mobile convergence.

Well I mean, what we are going to do with the joint venture I think.

And we only can decide really after company day one.

No.

But obviously.

And having access to and 30.

And 33 million mobile customers and.

And on the other hand client, having the opportunity to sell in.

Like for like T Mobile network.

Into the media was the different Brian, but I mean, the mobile operates more at the low.

And of the market. So typically the youth for the second the comp and the whole smoke Y O. Two has the highest the objects of first the cutting the household.

And it goes without saying that this will help us to accelerate the fixed mobile converged customer base and the joint venture and how we're going to do it exactly.

And stay with us and we will disclose scrap the after after the close.

Thank you.

And our next question comes from Matthew Harrigan with benchmark.

Oh, thank you.

Hello, and thank you, one really down and the weak question on the presentation and then kind of of Davos question. If you will if you look at slide 16, and it looks like the profit.

And widening the penetration rates suddenly spike from 30% of 35% and the last quarter I mean, that's that's the real normally I kind of like just moving.

Up or down by one or two.

Is that accurate and does that and for that despite the good customer number you had some price pressure on your legacy footprint and the other.

Q1 2021 Liberty Global PLC Earnings Call

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