Q1 2021 Liberty Global PLC Earnings Call

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Please stand by 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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Haitian materials can be found under 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 the companies Safe Harbor statement regarding forward looking statements.

Today's presentation May include forward looking statements within the meaning of the private security for 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 in its expectations or in 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 Hope, you're doing well and we has always appreciate you joining or two on results call today.

Other than I Gotta run through what we hope for some abbreviated remarks, moving a bit more time for your questions and I've got pretty much the entire team on a call and I'll get involved as needed I'm gonna keep it off on slide for if you're following along with some key headlines for the first quarter, but 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 in your as it relates to COVID-19, although we seen infections and all of our markets coming down for peak levels vaccination programs on the continent have slow stores, you've probably noticed that result travel restrictions and protocols are still pretty tight in Europe now. Despite these pandemic related challenges were very incur.

Page by the operational progress we made during the first quarter of 21, the commercial momentum we experienced throughout most of last year is J right into the new here in queue only out of nearly 40000, new customers compared to last on 20000 last year and over 225000 broadband and mobile or to use that stuff over 60 per cent from the same period and.

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

The last headline here relates to our current 1 billion, 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 GAAP on our stock, especially with the growth for delivering on the pending transaction in the U K next debt more to say about that on the second quarter earnings call on slide five just runs through the logic and rationale of the Virgin media to combination through the lens.

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

Just in most admired mobile platform with 40% on 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 Virgin footprint.

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

The new sources of capital I'm really attractive terms and will quickly explore strategies to maintain our significant speed advantage on our existing 15 million homes using new technologies like doctors for an even STS onto our existing Ducks I think we're all excited about the option to you which are meaningfully more attractive as a combine based on <unk>.

Any of this market.

Clearly our confidence in those fix network strategies is emboldened by Virgin Media recent performance and you can see on slide six Q1 with another strong quarter for her to mediate with our best revenue performance. It over two years and that was driven by record low broadband churn strong top line growth to be to be a new FMC bundles customer.

Customer additions also if you'll revenue despite the price announcement, which is typically a tough for for us by the way, we actually added 31000, new customers and registered are for straight quarter of customer gross and R. B a new markets.

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

A lot of significant drivers behind this acceleration included in the launch of intelligent Wifi too.

Acceleration that FMT bundles Lodge, a five G January and sustained investment in gigabit network expansion digital transformation in customer service, all of which are instrumental components and establishing a stronger and nimbler business for the future. This all bodes really well for the JV with O two.

Now and with a chance line seven that summarizes some of the key operating highlights for Liberty Global on a consolidated basis, and then for the big for <unk> Virgin Media Sunrise UPC, telling it and put in for a zygote moving left to 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 I'm gonna spend about two and a half and I'll start with three general comments about the group.

First of all if you just scan the day add date at the top of the chart first three line, you'll see a lot of green arrows, pointing up and that reflects strong improvement year over year, a customer broadband and postpaid mobile gross across our pop coast. So it's not just Virgin media, that's accelerating it's happening pretty much across the board.

You'll also notice that we've ramped up our one gig networks with Switzerland, and Belgium, now, reaching 100 per cent of customers with a one gig offering in the UK expect to be at 100 per cent in 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.

Then finally, a comment on baseball converges ratios, which continue their steady rise of about 150 to 300 basis points.

Belgium on holiday now at or above 45 per cent and Switzerland is at 55 per cent of that reflects hi, convergent at Sunrise, but only 25 per cent upc's, a large untapped cross-sell opportunities in Switzerland and in the U K.

That's already talking about Virgin media, So I'm just gonna add a few quick comments on some of the financial data first a quick explanation on the RP decline of for percent cause.

Cause it was impacted negatively by three things on the one only one month of price rise contribution that was in March number two the headwinds of end of contract an annual best tariff actually what we talk about every quarter number three a decline in other revenue my phone usage of pay per view than on EBITDA, which is down one for nine per cent I think it's important to point out that the figure include in the other one.

One per cent drag from merger related charges associated with the joint venture. So those costs were excluded EBITDA lost would've been closer to one per cent those same caused by the way how about two per cent drag on operating cash flow growth.

Turning to Switzerland briefly the new summarize upc's off to a great start Andre and Jim delivered a strong queue on with 56000 broadband and postpaid low will add 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 O Sunrise and UPC.

And they also ruled out you may have noticed the commercial day, one offer to new and existing customers. That's called together more Wow, that's a program that rewards existing customers with benefits like free Sam discounted sports and security package essentially similar to what we've done Mark as my color and then motivates new and cross sell customers with giveaway like laptops, iPad Tv's and the reaction so far.

<unk> has been very strong.

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

Financially revenue was fuzzy flat in 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 are the cost to capture synergies Jenny organic result, if you will was better Charlie will cover those numbers at the moment.

[noise] tell on that also had a strong order with robust operational performance in both broadband and mobile, adding 9000 broadband subs and 15000 posts a mobile subs. They also grew fixed our view one per cent as customers migrated a higher tier broadband multiplayer packages that look it fixed mobile convergence continues to be has always been the main focus on.

<unk>, they had 19000 do converge customers and a quarter and they've launched a new innovative fixed mobile package. They call one can read about.

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

At the same time fixed up who was at 4% can postpaid mobile shops, where straw you ruin on 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're also on track of they just mentioned a double to give you the footprint to about 80%.

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

On the mobile from convergence continues to deliver low low would churn, which helped drive 61000 postpaid ads in the quarter and push fix normal convergence penetration up to 45 per cent. So it's good to see what's up on the table deliver another good financial quarter with revenue of 2% helped by double digit P b gross and their 11th consecutive quarter.

For a positive EBITDA growth with three per cent in Q1, and that's despite COVID-19 impact so wrapping it up a strong corner for us operationally with continued momentum and customer broadband and mobile growth and all guidance confirmed our.

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

To a leopard free cash flow gross by on this year anchored around a steady buyback program that she can take advantage, but we all feels a meaningful value GAAP in the stock so with that Charlie over to you.

I'm starting on this line tied to returning to revenue gross the groups. So revenue gross and put two per cent of the first quarter. Despite continued to street choose the pandemic and putting a gross right by an estimated 60 basis points with drugs for don't really related to you and your reductions I'm ready.

Operations with more substantial mogul businesses and Jude greater impact from the cool water and we saw nobody's on drug in Switzerland, the trends continue to improve within the line results.

We just moving headwinds $8 million in Belgium is $60 million in the Netherlands, the 1.8% growth is better for me to go represented eight consecutive causes it took on gross with strength before Christmas consumer and <unk> <unk> <unk>.

On the next lot of you provide details or just the <unk> when it comes to capture soon it is weighted results.

This is my strong revenue performance Virgin Media M. P D a to kind of 1.9% due to pre Mujik Kosta ketchup and his previous you hold on to the ongoing investments in digital in customer kind of onshoring moving to increased operating expenses.

As the benefits for these initiatives continue to terrorize twins would improve in the second half of the year.

In Switzerland, seven per cent headline decline as explained predominantly by impaction, COVID-19 and $11 million with comes to catch up with the first thing to do starting to mature Rosemary for homeless.

More established <unk> delivered a very strong performance the tone of groceries benefited from the acceleration Priggery reitsma per year period, I was like sporting events would Tuesday March 2020, and that's in input what on wind in queue too.

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

The strong results gross you can on the Belgian will predominantly due to the idiot phasing a couple of projects.

The Netherlands, Chief 17.5% year on your gross with Caplin tends to 19% companies for sales and Ospf Mudgett about 27 per cent with aspirations for for the digital systems efficiencies sponge have you competed this synergy program.

Focusing on a cool Liberty global performance much for free cash like we delivered $93 million a free cash room in Q1, despite the phase you've interest payments for doberman before the and the first <unk> for the.

We are on track for for your guns at $1.35 billion, which represents 26 per cent year on year gross with gross accelerating even more on a parish on that basis I'd be aggressive he retired I'll smoke.

Turning to a cabin on vacation dashboard, we ended the coolers with nearly $3 billion in cash having allocated for $147 million to buybacks across the first few months of the year, representing nearly half of all kind of 1 billion dollar authorization.

Moving to leverage across on <unk> for you we continue to a bright low Turner fully hedged credit Sanchez.

UPC credit cool, we refinanced the sunrise acquisition debt, reducing on kosta debt to for two per cent securing $18 million vandalized interest anything's going for it.

These that was included the issuance of sustainability link notes with embedded commitments for improve energy efficiency and the use of renewables.

Finally, we value on benches pool party with $2.5 billion, reflecting the full color on one of on 9.9% sneaking on T V. The stuck on the value of all Univision Snake for me announced module kind of visa on the partial monetization of us skills investment.

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

Put it on a strong started for the we are responding on budget media guidance, improving on <unk> low single digit decline to boot disabled. 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 probably all other previously announced guns metrics and with that operator of its questions.

Thank you.

The question and answer session will be conducted 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 in order to accommodate everyone. We request that you ask only one question.

If you argue with a speaker phone. Please make sure your new function is turned off to allow your signal to reach our equipment will pause for just a moment to give everyone an 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 my question. So I just want to come back to your comments about strategic Optionality in the U K Uhm. So can you maybe give us your latest thoughts in terms of our cable wholesale and a potential five O J P. In the U K, So where are you on talks with potential partners and are you mean.

They told me to a financial partners for strategic partners and then also could you maybe talk about your 50 per cent steak and cornerstone and is this strategic or or non core.

Sure <unk>, that's it I I can't get into too much detail on what we're talking to and who we're not talking to 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.

<unk> already a lightning.

That'd be go for the vast majority of those are fiber we have great experience in construction of fiber we have a ready made operating platform to go out and build fiber and so on our ability to ramp up quickly and have you know behind it <unk>.

Grand in a product and a bundle to go out and penetrate with is pretty attractive so I'm not gonna get into specific today, except to say that we are gearing up if you will to present that opportunity to potential strategic and financial partners to expand our footprint of course, you can get that.

Then the question we have to ask you where are we going to exploit that opportunity ourselves and leave it for Virginia.

Oh, well we provide.

Wholesale access that is negotiation on in some respects, but your partner and what the best return to both the core business as well, let's do investors if we had some.

So it's it's it's ongoing at no cost to build have come down our ability and effectiveness of building has gone up you know our knowledge of the markets and where we will build is terrific. So I think those 7 million homes, you know or for the artist for the construction, if you will but who and when and where.

Why I think we're gonna keep that to ourselves for now except that you should expect it to be a fiber build that Virgin media is likely to be the core customer of that network on that wholesale access to that network will be it 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, we've shown that over and over again on our 2.6 million homes. We go with lightning if you've got to 40 50 50 per cent penetration on that new construction. That's obviously a better return for everybody. So so stay too I guess as well that can say and then.

What what's your second question color Sir.

It was back to cable wholesale but also your cornerstone tower joint venture on that cause I have to say that's part of your I think at the perimeter of your UK business day I, just take that that cable wholesale I think we'll look a little address that when the transaction closes you know, we'll sit down and look at that tower asset strategically.

<unk>.

Obviously, we're in a position to if we wanted to monetize it is 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 would like they make jointly with our partners Telefonica, but we're obviously in a position.

To monetize that if if we felt it was.

Appropriate in and the other needed or wanted to get the capital out to do some of these strategic thing so.

Thanks.

You got it.

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 technical the the the question and I guess, it's just a a simple fall along from.

The question before I think you'll you'll current one night build right till solid lightning is instead of looking at for them to fall from the top for me Tonight before going for 50000 per on on my fingers, why you've been running and wife, possibly indicated you could you could continue do you think there is an opportunity with your current <unk>.

<unk> to raise that one right on my do you think there's an opportunity to kind of.

You won't be T did and global down on you know with with the capital behind it from what other <unk> to do a lot will night into yeah 1 million per on them both.

Thanks, <unk> I think there is and I'll just <unk> 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 to build more but we were saying well we can do more we should be them all the time, but let's try to optimize the financial results as well, but look.

Why don't you address the the bill capacity.

Yeah. So I mean, you you you could pet competitive with Openreach us well now they are currently moving <unk> predominantly P. I E alright, using golenbock at the moment, we we have this on the the percentage that'd be low 20 per cent and.

The opportunities to go up to 40 50 per cent. So you can expect that this is one eager to accelerate the machine and second we have prepared for machine for for for the scaling meaning at that hour popping off kind of an additional.

<unk> and developed my colleagues and also we can.

Even thought of more region on approach. So we know where the seven <unk> home for all we know how to scale. The machine, we will absolutely take more usage more used on <unk> P. A a and if my pet decor right. We have to get the financial construct right Department on your right and then also.

P O P. P in agreement with all of your Tricia on it.

May I just other an additional question on it since we've obviously, we're obviously talking about the lightning in for stroke is it in your mind control to <unk> for the whole styling uhm the existing cable for paint <unk>.

Well, we we have obviously considered that and I think we will continue to look at that as a possibility, but premature to discuss that today.

Yeah, obviously it it could be utilized in that regard it would depend on a number of factors and on 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 a theoretical possibility.

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

<unk> 13 million homes that we that are HFC are also if we chose to I either easily upgraded the doctors for a fiber or potentially could be made accessible on the <unk> 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 <unk>.

For one broadband platform in that marketplace for for the foreseeable future that forever and we have a great opportunity to do that.

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 yeah. We saw the just sort of big Bang launch of of the new tariffs from the beginning of March for hours.

Could just elaborate so a little bit more on the medium term strategy with regards to that combines sunrise business, mainly from the perspective of Ah you still I guess.

Doing that sort of old Sunrise strategy, which is you know unlocked the low chat in the mall K three promotions to try and drive more of a natural balance and market share and the market given what Swisscom has oh are you thinking more.

Uhm around it is potentially more price inflation. So just wondering yeah essentially failed price expresses volume debase them on this justice. Thanks.

Andre on handle net.

Okay, Yeah I can of course, yeah. Thanks, Michael for the for the question. So I think what we have seen that this was market is that the promotional activities have been quite intense. Nevertheless on both ends on the sunrise business items. So you'll be C business, we could lately benefit from it in terms of for sure.

Of additions and that has contributed to the stabilization of the top line evolution of that combined business. So overall I think.

Well that is quite heated market. We're currently rozzer benefiting from the situation, but then suffering from <unk> going forward of course, what is the most important to us is.

Would you like more convergence, that's will convergence, we create more stability into our customer base and create on some more opportunity for cross on Upselling additional services. So that is really the the Kia strategy do we want to push you in terms of price aggressiveness I mean, it's not about really about us but in reality the price.

And the market is really sold was quite aggressive price points on move on and on fixed and we will have lots of competition from them as they will benefit from the growing five of penetration in Switzerland, but we think that we are well prepared was the convergence strategy will be executing which temporary will give us an edge as we have.

The benefit of the fixed mobile product that sits on the HFC footprint and has a speed up on it. So overall I think that will be a gradual change I think towards more convergence.

In the in the market number one and number two I think the price aggression is unlikely to further accelerate but potentially loves it too soft no for the midterm.

Great. Thanks very much.

And our next question comes from James Rats, or with New Street research.

I.

Yes. Good morning, everybody. Thank you very much indeed other questions just regarding the trends will C. N U K all too at the moment <unk>.

A drag from some of these off calm effects at the moment, but presumably somebody will stop.

For lap over the next few quarters and then we have the price rise you just put through in March. So you know we got in mind, just think about how we should think about the phasing around <unk>.

The next two to three quarters. Please.

Neutral address that or I can let them yeah for sure go ahead.

I can I can so so ah right, it's Mike said.

Opera down for per 10 drive us.

That in Q1, 20, we really benefited from a price rise in queue for 2019.

Which is not the case now the price rise half the other two materialized from coast of much on the web and Q1. So therefore, we would get the entire benefit out of it and you took so that is one driver. The other driver if if you set and a contract notification average best care for that.

Vacation now this is something which will continue.

The overall impact.

Much less than we have planned for an estimated for it though.

The top of it however, it is still existing.

And then right that is.

<unk> pressure the ex because there should market if it's still quiet you too.

While the best book, a price and it's very rational everybody's doing price drive, but <unk> <unk> <unk> <unk> <unk> Lola accurate different prices with ultimate the direct which I don't expect to change and then we had.

These boxing events like that with a big book thing and.

My other can fury, which what's the one time on so so therefore I think the option development going forward. It's it's a bit more positive remember in queue to that'd be passed a sports content for customer for so definitely that will no help I'm going for.

For what.

I don't I don't want to come up with a tech number but I think we won't statement is for.

Did you hear me can kind of start to get back towards <unk> stable, all new trend by the end of the year. Please.

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

Huge customer edition Tonight for a customer additions compared to two 120 are up 18 per cent. So most of the gross is coming out of acquisition and uhm. So so that it's always a balancing act and I I think it would be would be serious too now predict what would help him until the end of it.

This year.

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

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

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

How cute developments in the market.

Credit Thanks, guys.

Uh-huh.

And moving on to Robert Grendel with Deutsche Bank.

Thank you.

Back to the U K, if that's okay, Mike I I think you're leading up from the earlier answer that you prefer on organic <unk> scenario and the U K.

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

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

Well you know us.

We will look at all options to accelerate in advance a particular strategy and then the ideas you describe are really neat incremental steps, we could take to accelerate or <unk> or improve upon a core plan, which is you know.

Utilize the expertise we have the brand on 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 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 Turner.

Penetrate you know really well and and grow the customer base in that new territory, but also the benefits that come from perhaps for berating that project and getting you know being stronger financially the benefits to be to 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 at I don't want it implied to.

Anybody here on the call that this is something for sure you should be making into your your for your plans right now it's too early in our JV isn't even close yet I'm simply saying that it's it's an obvious opportunity that comes from having the scale and you know the the <unk> the benefits of synergies and other aspects. Other J V that we will it should be evaluate.

<unk>.

And we think there are lots of opportunities to do that with or without financial and strategic partners and in the case of with obviously that needed to better impact financially and from this evening with capital, but even without we think it's a great ironic proving that on lightning. So we'll see how it on fold and the things that you describe with buying all natural <unk>.

Ultimate that those are for incremental steps.

That may or may not be accretive to the core strategy, which is you know you need to control your own destiny in this in this in this space and I think that Sir on main goal. If those other things can help realize that goal will take a look it up.

Great. That's a lot thanks for <unk>.

Mhm.

And our next question on come from Jeffery for the check with pivotal research.

Yeah.

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

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

How much of that is just churn dropping sort of dramatically just something you see on 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 on consumer interest in being a soldier higher speed day the packages. Thanks.

<unk>.

Yeah, So like I said before that Oh exposition off by 18%.

So this is almost making up for the entire on number so.

Not so much to on driven it is entirely acquisition driven and this is simply we think a question on demand for I S. P. That you said and also our day to to get utilization program is really taking off for.

So the digital channel share. It has increased from 41 per cent 251 per cent.

Yeah. So the the dream machine is running yeah.

Uhm on sure on though it was three per cent better so yeah. So so minor from 14th.

Five to 14 got too but does this also success because.

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

And speech metrics and these days as you said so.

Average consumer speed is hundred 80 for MC now I think coming from the last 475, it's all quantum friend and I mean, you're right at home at the moment Homeschooling Homeworking and then also entertainment.

The streaming right.

That helped out and maybe for your question maybe to your question Jeffrey is it sustainable. So I mean, we have commercial momentum as we speak uhm. So so so that is good and we want to keep that.

Obviously, when you look to the next quarter that was indeed the quarter that has highly benefited from the start of the pandemic alright for remember you couldn't.

Sure on onto the open reach network for at some point in time to cancel on the missing for your technicians in the field. So so I think don't make the mistake and expect the same number of the corrupt the quarters.

But in general <unk> the amount for speed to stay on commercial momentum is there and I think overall as an industry. Obviously right. We also need to find solutions for a chipset and alright, I mean definitely silicon shortage of three on all but but.

The demand for speed and a commercial on that comes up with that.

Great. Thank you.

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

<unk> <unk> <unk>.

Yeah, you're good afternoon, guys I'll I'll try and sneak into if I can second one very quick one just on slide 16, you talked about the lower cost of using passive infrastructure access from D. T. Thanks, Underplaying saving can you just give us some details on so they they overall economic decision there because obviously there's ongoing rental.

Close to be to be considered and also you know as you consider increasing the scope of P. I a from the 20 per cent for the 40 to 50 per cent does that impact where you decide to build you know given the availability of P. I a across the UK to just just some extra color on on the sort of moving parts of that decision around future. Both would be great and then just pulling up for months his previous comment.

Just a quick one obviously that it was very good to the price strike land without any major churning packed sometimes to trying to like you know as as the new bills have a higher bills hit customers accounts. It should we expect slightly softer cute too as you see so I'll be increased turn on that price rise hitting their account. Thanks a lot.

You Wanna take the second one first day that's.

Yeah, So you're absolutely right you see a bit more to.

Lucky you see <unk> off the chair on when you you really sent out the letters and one third when the bill kicks in so therefore, we will see a bit it off for furniture on auto fat in queue 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's.

More expensive to to pay for a P. I E. Then we <unk> if it's cheaper you never H P. A a and our over or a collection of the 7 million homes.

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

How much P. A a are we able to use on on.

Cause it what what would you say you're getting real for I believe goes to somewhere around 50 D over 50 per cent at some point.

My recollection of our plans.

But will become an increasingly day, a larger part of the build overtime.

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

And then obviously you you take him to the <unk> to be on the safe side and and therefore right. The number we have plenty with is something like 100 per cent, but let's let's see right. We are currently ramping it up it's coming from 18 per cent and but definitely an opportunity, but it goes both ways right on one has.

Five you can connect faster and cheaper on the other hand tied up 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, but just to be clear what what did you say you can go to 40 or 50 per cent. That's that's a function of you becoming more familiar with the processes and just the way. It works on when you weigh it would cost I mean, when you when you compare 392592 on average you've got the 390 doesn't include the rental costs, presumably patriot openreach for access to those ducks.

<unk>.

But remember if I've got it.

<unk> some P. I a right in the first quarter, we were about 20 per cent day or something like that so there is some P. A build out of that but it will definitely be.

A benefit to the overall cost for price and is it said, we'll just be you know as we go sneak by Street town by town, we make those decisions optimal way for the overall project.

Okay. So yeah.

Overtime.

Emptied machine, it's already scaling alright. So we are operating at 80 per cent. It's not only a question of how quickly can we schedule machine like we had ultra bring new housing formations. We are doing infill. So this bill.

Uhm Pops of a four to 500 lightning bolt every year, where you cannot Tuesday, and when you look at the 7 million. There. It's it's naturally more more the ability of a P. A is Kyle yeah, yeah, smart, new but new Bill network extension.

Yeah, no one knew but yeah.

Okay. Thank you.

Yep.

And moving on to Nick while with Society General.

Oh, My Gosh How're you well it was a question my please on Vodafone Zigbee the subs a sliding a bit faster on again. This <unk> the analog switch off so you can how 'bout look again at that price and will speed can you just tell us what your name's on please include a free.

They go in terms of subs numbers do you want to try and stabilize on what could you use to do that when would you go for price instead.

Could I also try and quantify just on the on the five of built in the UK. How much do you think you could exploit ukase uhm super deduction on taxes as well is that something that applies to all of the bills are just part of it maybe you could help us with ultimate Thank you.

Yeah, maybe room home compensate you, but if a day goes on the call. So I'll, let him work do an answer on for the for them to go strategy around broadband cause embassies.

Mendelian that strategy uhm and on the the taxes listen 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 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 moving.

Might have other ways of reducing that bill by the way beyond just fiber. So we're always focused on on that particular tax impact Charlie do you have any day out on that tax question. Yeah. I would just say the other part is the accelerated allowance is 125 cents does apply to the build and yes. It would have a positive impact I think it's too early to quantify cause it day depend on the build right and even Katie depending.

On learning, but for about Oh, two's techs profile, but could you give them. The other two the tax payer there will be some incremental cash flow savings generated from the new accelerated allowance.

I <unk> I <unk> I mean tackle the vote for him to go question Okay.

Yeah of course, thank you for that time for the question.

I heard a few questions combining something for my Bill dance on the best value in the in the strategy. So let me start with the strike because as you see we've got a a solid quarter was everything goes even a gross and we've had them quite consistently uhm. So what I'd like to say that are on a plane is working and we've had from the start with a J V for years ago.

Uhm I will focus on fix mobile convergence and that is still the cornerstone on this tries you're going for which will fix mobile is working for us we've seen a reduction in turn on the mobile side of the 980 80 per cent and on the fixed sign of about 55 zero per cent uhm and that's remaining stable combined with much higher net from <unk>.

So you also on stage doesn't gonna be more value old price is definitely gonna be a valued drink from strategy. Hence the things that we are doing as you said you talked about the envelope switch on so we have a need completed the on looks scheduled quite quite a bit of work to take 1.2 million customers will see analogue signal and.

More for digital why it gives the customer best for an exchange Oh, sorry, that's very important he gives us the ability to increase the network capacity Buddy net and in that sense has allowed us actually go through the COVID-19 period way is much more much higher demand from our customers without any problems it allowed us to for.

<unk> upgrade to fix speeds by 40 per cent on average in April which we have done to our entire base at no additional cost and also Deville you driven things or did we are low checking new smart Wifi boosters, and the new and improved app really focusing on improving the Wifi covers in the house the in house.

Experience from our customers and I'm, just driving a much higher M. P. S. O 920 points first is negative on my customers and then lost been on the Super important minority spoke about T. Digging it coverage today, we covered on a 40 per cent of the country with digging it networks and will be 80 per cent by the end of the year and then.

Will be 100 per cent by next year and today by the way that's already 500, Meg can fix on the bag of course, the whole country. So we're in a good place if you compare it to K P N and we'll definitely playing the value chain first of all the players in the market, who will probably a bit more price.

Alright, well thank you.

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

Great. Thank you.

Two if I could first of all you know.

Continued strong performance on BTB in Soho can you just talk about what your market share is and what share of the potential locations, you're either connect to or pass close by so so what what the outside opportunity essentially there is and second on it takes mobile convergence, where would that 25 per cent b.

In the U K once you close the transaction and can you talk about how you were going to integrate the customers who might be Oh, two and mobile Virgin media fixed line together and can I get them on the phone plan. Thanks.

Uhm James on the B B a question, it's unclear whether you're asking a generic question or a specific question around a particular market, but I can just tell you came aboard generically.

Yeah, I can tell you more generically that you know the <unk> opportunity for us across the board.

Continues to be.

Perhaps the most exciting one on the most exciting thing that's that's occurring here many operations with double digit P to be revenue growth in the U K in particular with the dark fiber wood show hold on to me penetration rates I think our overall luge correct me if I'm wrong I think our overall market share be to be in the U K is less than 10 per cent something like that so there's.

Yeah massive opportunity to drive be to be in 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 a comment as it relates to revenue because for us as we as we upgrade networks as we extend networks. The B B element here in particular, Soho, It's me, which is a gross driver in every country, but also you know Lutz is the.

Number one provider of a back on dark fiber in the U K F. I G rules out and and that's gonna be a continued source of revenue as well. So it's all good news I think on the day to be Friday with mobile 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 just.

Hello this.

This is get the most of the address for market, but at the battle of coverage, Belgium on hold on the north for 30% market share is quite a bit north I think you would we're around 10 and most of the other markets growing fast so either switch from the UK big opportunity as we see it cellar Ah so a product for this.

Cause for a sofa for it to customers and that's totally which has been proven to the vet a leg. So we agree with you with a very strong growth.

Leave it for us.

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

Yeah. So so first I mean on the Soho market share to be precise it's at the moment in UK attempt at five per cent, so pretty much what Mike and Charlie with thing and we are growing rapidly if if you're in all right. So we have increased the customer base, 28% a year on year and for revenue 70 per cent.

And I mean, we have and also I think in Germany, if I'm not mistaken why do we we we had at the end of 40 per cent market share.

So so huge opportunity on fix mobile convergence.

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

I'm in.

<unk> G move on network.

Into the media with a different Brian right I mean, <unk> more about operates more on the low end of the market. So tip. It could be used for the second city cop in the whole smoke y O. Two has the highest options for it to show some cutting the household so so it it goes without saying that this will help us to access.

Hello, right the fix moga, congrats customer base and determine how we're going to do it exactly S day with US and we were this close after after after code.

Thank you.

And our next question comes from Matthew Harrigan with benchmark.

Oh, thank you.

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

I want just moving up or down by my one or two.

Is that accurate and does that in for that despite the good customer number you had some perhaps.

Yes, you're on your legacy footprint and then Memorialist Dabbles question is just you to this day after you're still on the market's is getting very aggressive on technology policy I'm going up on things like you can like be for like a I know you're on your final matrix, but still we were quadplay average are becoming more and more relevant to.

For that I don't think you've got too much throughout the exposure I guess that luminoso the N O P.

J V. As in one day I can I can pick up is there anything that attitude you on on on Tech call for you that you said you really affects the economy or actually affect you directly effects.

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

Listen I think in principle, Matt when you step back we are generally align with you on most if not all of their basic policy initiatives whether that.

Initiatives around consolidation around you know how to manage or a dress 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 local regulate regulation I mean for example off calm I think is taking a very positive.

A position in the posture is very favorable for us around in network development and infrastructure investment and things of that nature. So on a country by country basis, We're really focused on those things things that impact our business more concretely today and then on abroad.

Basis, you know I don't see anything in the near term, but he named Eddie medium term on the more regulatory horizon. If you will that's gonna impact us nugget, but probably impact us positively. It's not that we are you know we believe the tech Big Tech drives our business on the other hand, we also understand where they regulars are coming from on that I think it's a non.

<unk> for us for the most part we don't get into that debate kind of stay on the sidelines on it but there's nothing that ICM horizon net.

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

I I think I'm right one of the very early cohort has been addressing area, where we could get to substantially higher penetration. So therefore, we we don't have in our business case, we need the 36 per cent sure on it too. So we work with 30 per cent.

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

And our fields heads for us have over yeah, very limited access to prospect.

The reason why I say that is that more and more we use ultra on my digital pets machine to sell more lightning and we apply more day trend that an artificial intelligence and we think there is a way to to for the increase lightning. So so we don't change our guidance yet, but what we see currently how.

We are able to sell lightning substitute to be and what kind of intelligence. 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 in the queue recur.

Yeah, we can wrap it up.

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

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

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

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

All the things we've talked about but you know we certainly feel good about that momentum and you know believe that momentum is sustainable for the reasons. We've discussed today and the last one I'll make is confirming free cash flow guidance.

One 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 all we look at free castle per share more than free castle itself and so from our perspective, you can do the math a free cash flow per share story for US. We think is even more relevant and something that we pay it.

Tension too so those 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 everybody today well.

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

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

[music].

[music].

[music].

Good morning, ladies and gentlemen, and thank you for standing by welcome to Liberty Global's 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 in any form without.

The express 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 page two of the slides details the company's 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 in Liberty Global's 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 in its expectations or in 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 hope, you're doing well and we as always appreciate you joining on <unk> results call today, Charlie 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 a kick it off on slide four.

If youre following along with some key headlines for the first quarter, but before I do that let me just saying that we continue to remain focused on our employees and customers first and foremost Gary what remains a pretty challenging periods in your as it relates to COVID-19, although we've seen infections in all of our markets coming down from peak levels vaccination programs on the continent.

Low stars you, probably noticed and as result travel restrictions and protocols are still pretty tight in Europe now.

Despite these 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 right into the new here in Q1, we added nearly 40000, new customers compared to a loss of 20000 last year on over 225000 brought.

And in global large use that's up over 60% from the same period in 2020 on a consolidated basis. We grew revenue we grew operating free cash flow and that's despite COVID-19 impacts in some merger or synergy related costs that Charlie will walk us through as a result, we're confirming our free cash flow guidance today, which despite continued investments in future growth, we expect to be up over.

25% this year to 135 billion and that's regardless of when the Virgin media transaction closes.

Obviously, completing that JV will be a major milestone for us I mean technically the transaction is still under review by the CMA, but as you would've seen they provisionally cleared the deal last month without remedies. So we're still expecting a June closing once that happens we will have created fixed mobile champions in all of our core operating.

Markets and when we bought the mobile asset like we did in Belgium, Switzerland, or why do we joined forces with the number on mobile operator, like we did in Holland or we're doing in the UK the benefits of fixed mobile convergence are powerful and they're supportive of what I've started to call before 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 from a scale perspective. These deals make us the number one or number two telecom operator in every market in just about every product so beyond the benefits of convergence and nationwide customer reach we gained the ability to shape the ecosystem from a regulatory competitive and structural for.

I just can't tell you how important that is going to be going forward.

As we discussed often the synergies in these combinations are substantial a represent a built in value accelerator for us our track record. So far is outstanding on achieving fixed mobile synergies those who have followed us with no debt and as we sit here today, there is a future synergy NPV over $12 billion in Switzerland, and the U K.

Perhaps most importantly, when you combine market leading talent.

Innovation and convergence on.

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

Anyone on this call what's happening in the infrastructure network space Youre on watching it on it.

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

The last headline here relates to our current $1 billion 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 GAAP on our stock, especially with the growth we're delivering on the pending transaction in the U K next debt well more to say about that on the second quarter earnings call on slide five just runs through the logic and rationale of the Virgin Media O two combination through the land.

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

Just in most admired mobile platform with 40% on 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 Virgin footprint.

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

I'll also add that these numbers have been debt it multiple times by both Virgin Endo, two and clean team working together. So we really hit the ground running on synergies by the way. This is a great moment to congratulate our very own Lutz schuler on as anticipated appointment to the CEO role up on closing as you. All know Lutz has been on Liberty for over 10 years now most of that time build.

Our highly suggest with German business that we sold a Vodafone for 12 times EBITDA on it since in reinvigorating growth at Virgin Media, which you may not know as he spent 10 years prior to joining us working for Telefonica in there Jim and mobile business. So he is uniquely qualified in terms of fixed mobile convergence transformation value creation on the PRC is a terrific.

<unk> knowledge base on both shareholders.

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

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

The last one on drill dress here relates to a question. Many of you asked us and we often address proactively I'm, referring to the strategic Optionality. The JV will have on day, one to both expand upgrade and monetize its 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 in BBB, and perhaps giving us access to new sources of capital on really attractive terms and we will quickly explore strategies to maintain our significant speed advantage on Brexit.

15 million homes, using new technologies like DOCSIS for and even ex U S bond through our existing docs I think we're all excited about the options here, which are meaningfully more attractive as a combined fixed mobile champion in this market.

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

Broadband is a great story here in the U K with a fourfold increase year over year net broadband adds in fact over the last four quarters. This is a great stat Virgin media added over 170000, new broadband subs in the U K in the four quarters prior to that that number was 20000 and there's a lot of significant drivers.

Behind this acceleration, including the launch of intelligent Wi Fi to acceleration in FMC bundles. The launch of <unk> January and sustained investments in gigabit network expansion digital transformation and customer service all of which are instrumental components and establishing a stronger 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 is Virgin media Sunrise, UPC, Telenet and Vodafone Zynga 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 because it's been I'm going to spend about two and a half and I'll start with three general comments about the group first.

First of all if you just scan the net add data at the top of the chart. Firstly line, you'll see a lot of green arrows, pointing up and that reflects strong improvement year over year in 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.

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

And finally, a comment on fixed mobile convergent ratios, which continue their steady rise from about 150 to 300 basis points Bell.

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

Tapped cross sell opportunities and in Switzerland, and in the U K.

And I've already talked about Virgin media and I'm, just going to add a few quick comments on some of the financial data first a quick explanation on the ARPA decline of 4%.

Because it was impacted negatively by three things number one only one month of price rise contribution that was in March number two the headwinds of end of contract and annual best tariff actions, which we talk about every quarter and number three a decline in other revenue line phone usage and pay per view and then on EBITDA, which was down one 9% I think it's important to point out that the figure includes nearly one.

1% drag from merger related charges associated with the joint venture. So those costs were excluded EBITDA loss would have been closer to 1% those same costs by the way had about a 2% drag on operating free cash flow growth.

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

And they also rolled out you may have noticed the commercials they want offer to new and existing customers. That's called together more Wow, that's a program that rewards existing customers with benefits like free Sam and discounted sports on security package essentially similar to what we've done markets like Holland, and then motivate new and cross sell customers with giveaways like laptops, ipads and Tvs and the reaction so.

<unk> has been very strong.

And you can expect regular updates on the integration process in 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.

Nationally 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 or the cost to capture synergies for the organic result, if you will was better Charlie will cover those numbers in a moment.

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

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

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

At the same time fixed ARPA 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 as I just mentioned are double the gigabit footprint to about 80%.

By the end of the year on the nationwide coverage in early 'twenty two.

On the mobile front convergence continued to deliver low mobile churn, which helped drive 51000 postpaid adds in the quarter and push fixed mobile convergence penetration up to 45%. So it's good to see Vodafone Ziggy will deliver another good financial quarter with revenue up 2% helped by double digit <unk> growth and their 11th consecutive quarter.

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

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

So our levered free cash flow growth plan. This year anchored around a steady buyback program that seeks to take advantage, but we all fields of meaningful value gap on the stock so with that Charlie over to you.

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

You mentioned 60 basis points with drugs, presumably related to year on year reductions in revenue.

Our operations with more substantial metal businesses enjoyed greater impacts on the quarter on we saw a $9 million drug in Switzerland. The trends continued to improve with underlying results positive.

We have to have headwinds of $8 million in Belgium, and $16 million on the Netherlands, the one 8% growth with Vodafone Zika represented eight consecutive quarters of top line growth with strong performance across both consumer and <unk> segments in the quarter.

On the next slide we provide details on where adjusted EBITDA.

Cost to capture synergies weighted results.

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

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

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

Our more established conversion assets delivered a very strong performance for telenet gross rates benefited from the acceleration of programming rights in the prior year period I was low.

Thanks for your events, who paused in March 2020, and Thats, an impact that will unwind in Q2.

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

The strong results gross that you can on the Belgium was predominately due to the India phasing of capital projects.

Furthermore, <unk> achieved 17, 5% year on year gross with capital intensity of 19% Capex for sales.

CF margin above 27% with aspirations for further digital systems efficiencies, despite having completed the synergy program.

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

We're on track for our full year guidance of $1, three 5 billion, which represents 26% year on year gross with growth accelerating even more on a per share basis as we aggressively retire all smoke.

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 four months of the year, representing nearly half of our current $1 billion authorization.

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

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

These efforts included.

<unk> sustainability linked notes with embedded commitments for improved energy efficiency and the use of renewables.

Finally, we value our ventures portfolio at $2 $5 billion, reflecting the full color on one of our nine 9% stake in ITV the step up in value of our Univision Snape from the announced merger with Televisa and the partial monetization of our skills investments.

So to conclude we continue to a debate to bring the best products to other customers on our convergence strategy is delivering.

But on a strong start for the year, we are refining on Virgin media got improving on EBITDA outlook from <unk>.

Low single digit decline to broadly stable, it's a small change but it shows investors have the best sense of the underlying trends as we seek to close the merger in the second quarter.

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

Thank you.

The question and answer session will be conducted electronically.

I would like to ask a question. Please do so by pressing the star for Astra key followed by day one on your phone in order to accommodate everyone. We request that you ask only one question.

If you argue as a speaker phone. Please make sure. 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.

Yeah, Hi, thanks for taking the question.

I just wanted to come back to your comments about strategic Optionality in the U K. So can you maybe give us your latest thoughts in terms of cable wholesale on the potential fiber JV and the U K. So where are you on talks with potential partners are you mainly talking to your financial partners or strategic partners and then.

Also can you maybe talk about your 50% stake in cornerstone and is this strategic or 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 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 homes debt, where we built already on lightning.

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

We have great experience in construction of fiber we have already made operating.

Platform to go out and build fiber and so our ability to ramp up quickly and have behind it a brand and a product in a bundle to go out and penetrate with its pretty attractive so on.

I'm 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, if we did that.

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

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

And what the best return to both the core business as well as two investors if we add zone. So it's ongoing.

To bills have come down our ability and effectiveness that building has gone up.

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

Ours 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.

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 a commercial negotiation.

But 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 lightning, yes, you got to 40 50, 60% penetration on that new construction. That's obviously a better return for everybody. So so stay tuned I guess, that's all I can say and then.

What was your second question Carlos on.

It was back to cable wholesale but also your cornerstone tower joint venture.

I would say that as part of your I think at the perimeter of your UK business day.

Did you think about that on cable wholesale.

Well look I will 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 as a JV.

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

To monetize that if we felt it was appropriate.

Appropriate and the other needed or wanted to get the capital out to do some of these strategic thing so.

Thanks.

Got it.

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

Yes, thank you very much for taking it.

Thank you very much for technical.

Question I guess, it's just a simple follow along.

From the question before I think your current run rate build rates will sell on lightning is instead of looking at for on the Fontainebleau formed it might be for 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.

On results.

On to raise that run rate do you think there's an opportunity to kind of.

Do what <unk> did and double down on.

With the capital behind it from what other source to give a lot more right into a $1 million per annum.

Thanks.

There is and I'll just I'll, let me 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 is so I think we were trying to optimize the build loot 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.

You compare that with Openreach as well now they are currently using it for free.

Governments need.

I do think that one back.

At the moment.

We have only.

The percentage below 20% and the opportunity to go up to $4 50 per cent.

And expect that this is one lever to accelerate the machine and second.

We have prepared for me.

Shoot for.

For for about scaling, meaning that our pop up.

It kind of ramp additional.

<unk> and <unk>.

My colleagues and also.

We can.

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

We will absolutely take more usage more use out of PAA and as Mike said before right. We have to get the financial construct right partnering right and then ultimately obviously in agreement with our future shareholders.

Managers other on it.

Additional question on kids, we've obviously, we're obviously talking on about the lightening infrastructure is it in your mind just for to consider wholesaling.

The existing cable footprint. Thank you.

Well, we are we have obviously considered that and I think we will continue to look at that as a possibility, but premature to discuss that today.

Obviously, it could be utilized in that regard it would depend on a number of factors you know what sort of pause.

Partnership 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 that we've already built and the existing homes.

<unk> 13 million homes that we that our HFC or also if we chose to.

Either easily upgraded DOCSIS for 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 for number one broadband platform in that marketplace for for the.

The foreseeable future that forever.

And we have a great opportunity to do that.

Based on the conversation on decided years huh.

Thank you very much.

Mhm.

And moving on to Michael Bishop with Goldman Sachs.

Thanks very much.

Yeah.

Alright, thanks, very much just a question on Switzerland.

We saw the on the sort of big Bang launch of the new tariffs from the beginning of March.

Just elaborate 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.

Doing this sort of old Sunrise strategy, which is unlocked.

<unk> low churn in the market three promotions to try and drive more of a natural balance and market share is in the market given what swisscom has or are you thinking more on.

Around essentially more price inflation, so just wondering essentially.

Price versus volume debate some other stress test thanks.

Andre on handle net.

Yes, I can of course, yes.

Thanks, Michael for the question. So I think what we have seen in the Swiss market is that the promotional activities have been quite intense. Nevertheless on both ends on the Sunrise business and on the UPC business, we could immediately benefit from it in terms of share of additions.

That has contributed to the stabilization of the top line evolution of the combined business. So overall I think.

While there is a quite heated market. We're currently raws are benefiting from the situation for them.

On suffering from mix going forward of course, what is most important to us.

We drive more convergence.

Convergence, we create more stability into our customer base and create also more opportunity for cross and Upselling additional.

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

It was quite aggressive price points on mobile and on fixed and we will have larger competition from them as they will benefit from the growing fiber penetration.

Excellent, but we think that we are well prepared with the convergence strategy that we're executing which temporarily would give us an edge as we have for the benefit of the fixed mobile and.

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

I think there will be a gradual chi.

Change I think towards more converged.

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

Great. Thanks very much.

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

Hi.

Yes, good morning.

Great. Thank you very much indeed, I had a question just regarding the trends we're seeing in U K at the moment you don't see it got a little bit of drag from some of these awful calm effects at the moment, but presumably some of those will start.

To lap over the next few quarters and then we have the price rise that you just put through in March. So you know we've got in mind, just thinking about how we should think about the phasing around op, who for the next two to three quarters. Please.

Neutral on address that alright, yes.

Yes sure go ahead.

Okay.

So it's.

As Mike said.

On the op, you're down 4% drive us.

Debt in Q1 'twenty.

Really benefited from a price rise in Q4 2019.

Which is not the case now.

The price rise has started to materialize from March on work in Q1. So therefore, we would get the entire benefit out of it in Q2.

So that is one driver the other driver.

As you said end of contract notification average with Ericsson other vacation.

This is something which will continue.

The overall impact.

Much less.

Then we have planned for an equity method for the Rocky top of it. However, it is still existing and then.

Right that is.

The pressure the acquisition market is there.

Look quite good.

While the back book pricing, it's very rational everybody's doing price rise but.

A bit lower acquisition prices with other bits of direct which I don't expect to change and then we had a these boxing events like that was a big booking.

Why are they can fury, which.

What's the one time on so therefore, I think the optical development going forward, it's a bit more positive remember in Q2, well have to be passed.

<unk>.

Content for our customer so definitely that will help us.

I'm going for award.

I don't I don't want to come up with exact numbers, but I think we want to save money for it.

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

Yeah. I mean this is it's always a balance between volume and revenue right and what the market is offering and I mean.

Have seen debt we have created.

Huge customer addition line for customer additions compared to Q1.

<unk> are up 18% for most of the growth is coming out of acquisition.

And.

So that is always a balancing act and I think it would be would be curious to know predict what we'll have come on until the end of this.

But I think it's fair to say that this quarter is an outlier shouldn't be an outlier in terms of how negative. It is you should see something like this again in the balance of the year.

Yes, and I think what I also want to we mentioned this debt with the Oh.

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

Pure development in the market.

Got it thanks guys.

Uh-huh.

And moving on to Robert Grindle with Deutsche Bank.

Okay.

Thank you for.

For the U K, if that's okay, Mike I think youre, leading on from the earlier answer that you prefer on organic unbilled scenario in the U K.

And have the experience and knowledge for that let's says you can scale.

But is it tempting to supercharge for national opportunity for broadband per.

So to buy wholesaling off on Alt net or even to buy an existing player.

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

Well.

You know us we.

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

And the idea is you describe are really incremental steps, we could take to accelerate or improve upon our core plan, which is utilized.

Utilize the expertise we have the brand on the product on 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 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.

Really well and grow the customer base in that new territory, but also the benefits that come from perhaps re rating that project and hitting being stronger financially the benefits to our b to b business, which could be material with a lot of good things that occur if we're able to pull this off and look at I don't want to imply to anybody here on the call that this is.

Something for sure you should be baking into your plans right now it's too early in our JV hasn't even closed yet I'm simply saying that.

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

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.

In the case of with obviously that means it's better impact financially from that using less capital, but even without we think it's a great IRR, we've proven that on lightning so well.

We will see how it unfolds.

And the things that you described were buying Alt nets are utilizing net those are sort of incremental steps.

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

Realize that goal will take a look at it.

Great. Thanks, Mike.

Mhm.

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

Okay.

Yeah.

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.

Or that is just churn dropping dramatically just hoping you see in the U S around COVID-19 versus increased gross connect activity I guess, if you could talk about the sustainability of these results and then have you seen any material pick up in consumer interest and being up sold to higher speed data packages.

Net.

Yeah. So.

I've said before that our acquisition up by 18%.

So this is almost making up for the entire number so.

It's not so much churn driven it is entirely acquisition driven.

And this is simply we think question.

Demand for higher speeds and also our.

Our digital Digitalization program is really taking off so the digital channel share has increased from 41 per country 51 per cent and so the machine is running.

On churn.

Though it was.

3% better.

Yeah, So minor from 14 debt.

Five to 14 got true, but this.

Is this also a success because.

Right, we have increased prices, so the price increase quarter.

A year ago, or 18 months ago exactly worse than.

<unk> 20 per cent trunk right. So so it's better from from both regards but if you look at the exact number it it comes from acquisition and our speed.

Beat metric in these days.

You said so.

Average consumer speed is 180 for Mac now I think coming from the last quarter on there couldn't be five that's all quantum trend and I mean, you're right at home at the moment homeschooling Homeworking.

And then also entertainment streaming right.

Yes, I hope that maybe for your question maybe to your question Geoffrey is it sustainable.

So I mean, we have commercial momentum.

So that is good and we want to keep that.

Obviously, when you look through the next quarter that was indeed the quarter debt has highly benefited from the startup for pandemic right for remember you couldn't.

Sure on onto the Openreach network for at some point in time, because on the missing few technicians in the field.

So so.

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

But in general.

Demand for speed, if theyre commercial momentum is there and I think overall as an industry. Obviously right. We also need to find solutions for chipsets and right I mean, that's for silicon shortage as we all know.

But but.

The demand for speed and the commercial more on the construction.

Yeah.

Great. Thank you.

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

Okay great.

Okay.

Good afternoon, guys all upfront sneak in two if I can second one very quick one just on slide 16, you talked about the lower cost of using passive infrastructure access from BT.

<unk> savings can you just.

Give us some details until the day overall economic decision there because obviously, there's ongoing rental cost to bt's be considered on.

Also you know as you consider increasing the scope of <unk> from the 20 per cent for the 40 to 60 per cent does that impact where you decide to build given the availability of <unk> across 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 from the previous comments on just a quick one obviously.

It was very good to see the price drives line without any major churn impacts sometimes the churn can lag.

The new bills have a higher bills hit customers' accounts should we expect slightly softer Q2 as you see some increased churn on that price rise hitting their claims thanks a lot.

No I think the second one first day.

Yeah. So.

You're absolutely right.

See a bit more term right roughly two.

Sure.

The chart on.

When you they just.

At the letters and one third on the Bill kicks in so.

Therefore, we will see a bit of share on auto fab in Q2.

And I think on on your question, where where are we intending to build them I mean, we absolutely take the commercial into account for it.

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

Cheaper deleverage P. A a and our overall collection of the 7 million homes.

More leading to that.

How easy in general is it to access for how far is it from our network.

Is it is it entirely cities are we there already with Virgin media and therefore, it's easier to penetrate.

It's less the question.

How much.

Are we able to use on up.

Because when you think you got it right.

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

My recollection of our plans.

It will become an increasingly larger part of the build overtime.

Yeah.

We absolutely know right I mean, openreach is publishing where PAA.

Available.

And then obviously you you take it for the heck ought to be on the safe side.

And therefore, the number we are plenty with is something like 45 per cent.

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

But definitely an opportunity, but it goes both ways right on one hand side, you can connect faster and cheaper on the other hand tied obviously.

All additional homes.

More far away from the network and therefore slightly also a bit more expensive.

Okay, but just to be clear when you say you can go to 40 or 50%. That's a function of you becoming more familiar with the processes and just the way it works on.

When you weigh up the costs I mean, when you when you compare three months five months on average.

The $3. It doesn't include the rental costs, presumably you're going to pay for openreach for access of those ducts and poles.

But remember the five.

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

A benefit to the overall cost per premise.

And as I said, we'll just be.

Go sneak by Street town by town, we make those decisions on optimal way for the overall project.

Okay.

Overtime.

And the machine is already scaling right. So we are operating at 80, because then its not only a question of how quickly can we get on machine like we had ultra doing.

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

Part of a four to 500 Lightning does every year, where you cannot use.

And when you look at the 7 million there.

Naturally more.

More the ability of hydro.

Yeah.

Build network extension you monitor them.

Okay. Thank you.

Yep.

And moving on to Nick Lyall with Society Generale.

It was a question. Please on Vodafone zero for the subs are sliding a bit faster again this quarter moving now got the the analog switch off. So you can have other casino, but pricing will speak can you just tell us what your aims are pleased with free.

From zero in terms of subs numbers do you enter China stabilized on what could you use to do that or would you go for price instead.

And I also try and quantify just on.

On the fiber build on the U K how much do you think you could exploit you can.

<unk> Super deduction on tops as well is that something that applies to all of the build or just part of it maybe you could help us with lots of it. Thank you.

Yeah, maybe your own a home campus CEO, but if one day goes on the call. So I'll let him.

<unk> worked through and answer on Vodafone day go strategy around broadband because obviously he's.

And then building that strategy and on the taxes listen I'm not entirely share with you on exactly what you're referring to but obviously the broadband rate issue is.

Helpful for us in terms of new construction in 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 on that particular tax impact.

Charlie do you have any day out 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 it because it does depend on the build rate and advocated dependent on learning more about <unk> tax profile, but clearly given the otis attacks per year, there will be some incremental cash flow.

Savings generated from the new accelerated allowance.

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

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

I think I heard a few questions. Good morning, something about broadband from the book value and strategy.

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

So what I'd like to say that are on plan is working and we've had from the startup of the JV.

For years ago.

We will focus on fixed mobile convergence.

And that is still the cornerstone of the strategy going forward. So a 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 line of about 55 per cent and Thats remaining stable combined with much higher net promoter scores.

You also asked this isn't going to be more value oil price is definitely going to be a value driven strategy.

Hence the things that we are doing as you said you talked about Dan looks for children. So.

So we have a need complete again looks for chump quite.

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

One it gives the customer bets on exchange.

Gross side is very important it gives us the ability to increase the network capacity.

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

<unk> us to frame this upgrade the fixed speeds by 40% on average in April which we have done too.

Entire base at no additional cost.

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

The new and improved <unk>.

We're really focusing on improving the Wi Fi coverage and how is the in house experience from our customers and.

And that is driving a much higher NPS of about 20 points versus regular customers and then last but not least super important Michael when you spoke about dig a net coverage today, we cover about 40% of the country with gigabit.

Networks that will be 80% by the end of the year end debt will be 100% by next year and today by the way that's already 500, Meg to 600 Meg.

Of course, the whole country. So we're in a good place if you compare for KPN and we're definitely trying to value came from.

The other players in 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.

First of all.

Continued strong performance on <unk> and Soho 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 Basel, so what what the upside opportunity potentially there and second on fixed mobile convergence.

Where will that 25% in the U K.

Once you close the transaction and can you talk about how you were going to integrate the customers who might be oh, two and on.

Global Virgin media fixed line together and get them on.

On the same plan thanks.

And James on the <unk> question, it's unclear whether you are asking a generic question or a specific question around a particular market.

But I can just tell you came on board generically yes.

I can tell you more generically that.

The <unk> opportunity for us across the board.

10 years to be.

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

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

On business platform.

And we've seen that same opportunity in all other markets. So watch that space and we will 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> element here in particular, Soho and SME, which is a growth driver in every country, but also.

<unk> is the number one provider of backhaul on dark fiber in the U K as <unk> rolls out and that's going to be a continued source of revenue as well. So it's all good news I think on the BW fronting with mobile joining us in the UK with mobile that's obviously going to create another accelerator in terms of guidance.

On the capital numbers that day.

Okay.

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

We're around 10 and most of the other markets growing for us, So, Switzerland, and the U K big opportunity as we see it to sell our products.

Other customers Soho product customers.

Moving which has been proven in the Benelux. So we agree with you it's a very strong growth.

On a lever for us.

I wanted to ask I mean, the market share.

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

At the moment in UK, a 10, 5% so pretty much what Mike and Charlie with thing and we are growing rapidly as if you know right. So we have increased the customer base, 28% year on year end for revenue 70 per cent, alright, and I mean, we have.

And also I think in Germany, if I'm not mistaken right. We had at the end 40% market share.

So a huge opportunity on <unk>.

On fixed mobile convergence.

Well I mean, what we are going to do with the joint venture I think Oh, we only can decide really off the company day, one as you know.

But obviously, having access to 33 million mobile customers and on the other hand client, having the opportunity to sell in.

Right.

T Mobile network.

Into Virgin media with a different Brian I mean glad to mobile operates more at the low end of the market.

So tip it could be used for the thick and thin cotton the whole smoke y O. Two has the highest op here. So it's a trusted cutting the household.

So it goes without saying that this will help us to accelerate the free.

Congrats on customer base and determine how we are going to do it exactly.

Stay with us and we would disclose them after after COVID-19.

Thank you.

Okay.

And our next question comes from Matthew Harrigan with benchmark.

Thank you.

Oh, Thank you one really down on the week question on the presentation on that kind of a day out of those question.

If you will if you look at slide 16, it looks like project lightning that penetration rates suddenly spike from 30% to 35% for now.

Last quarter I mean, that's a real normally a trend line just move upward.

Up or down by one or two.

Is that accurate and does that infer that despite the good customer number you had some price pressure on your legacy footprint and other more or less Davos question.

You did expense you're still in EU markets is getting very aggressive on technology policy on.

Things like even like things like AI I know youre on your final metrics, but still we were quad play average are becoming more and more relevant to that I don't think you've got too much direct exposure I guess luminoso the MLP a J.

<unk>.

I can pick up but is there anything that attitude you on on Tech policy that you think you realized that the economy are actually affect you directly.

<unk>.

Well I'll, let lutz.

Dig into the 30% to 35% question on I'll take on the Donald's question quickly.

Listen I think in principle amount when you step back.

We are generally aligned with the EU on most if not all of their basic policy.

Initiatives, whether that's on the initiatives around consolidation.

Around.

You know how to manage or 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 local regulate regulation I mean for example off Com I think is taking a very positive.

<unk> and the posture is very favorable for us around network development and infrastructure investment and things of that nature. So on a country by country basis, we're really focused on those things.

Things that impact our business more concretely today, and then on a broad base.

Basis, you know I don't see anything in the near term, but they may not even the medium term on debt more regulatory horizon. If you will that's going to impact us negatively, but probably impact us positively.

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

Particularly problematic.

We're dealing with the Huawei issue from time to time from place to place, but we've addressed that publicly and that's more of a near term issue that we think we can manage quite effectively so I don't see anything on the horizon that concerns us Luke do you want to address the penetration rates for projects lay out.

I think I'm right one of the very early cohort have been addressing areas, where we could get to substantially higher penetration. So therefore, we don't happen on a business case really the 36% year over shrink too, but we work with 30 per cent.

Having said that I mean, we still currently we achieve these 30 per cent.

And our field sales force has over you have very limited access to prospect.

The reason why I say that is that more and more we use ultra or digital pets machine to sell more lightning and we apply more data on debt and artificial intelligence and.

We think there is a way to further increase lives.

We don't change our guidance, yet, but what we see currently how we're able to sell lightning substitute to be and what kind of intelligence, we can apply here.

It's looking very promising.

Thanks, Mike Thanks for you got it.

I think that's it operator up on that.

Mistaken unless they've got something else on the Q recur.

We can wrap it up.

Right.

Always we appreciate you joining us today.

I'll, just say a few things.

If needed here, but number one.

Stay tuned because the transaction in the UK. We believe is imminent of course subject to CMA approval, but we believe eminent in a matter of weeks really.

And that's a big moment that is a big moment for a number of reasons one because it is in 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 four largest markets into fixed mobile champions and at that point, we can really start to drive.

The operational and strategic plan, but also the narrative.

The narrative that's critical for telling our story about where were taking these businesses on how we're going to create value.

The second main point just to leave you with what you've already picked up here I think as momentum is in our favor here the tailwind of real in terms of broadband and fixed mobile convergence and it's driven by innovation by all the things we've talked about but we certainly feel good about that momentum and believe that momentum is sustainable for the reasons we've discussed it in.

The last point I'll make is converting free cash flow guidance.

1.35 billion up 25 per cent of more than 25% and you know not to be lost there.

While we look at free cash flow per share more than free cash flow itself and so from our perspective, you can do the math for free cash flow per share story for US. We think is even more relevant and something that we pay attention to so those are three big headlines I guess to leave you with and we appreciate you joining us on the call we'll speak to you after the second quarter take care everybody.

Stay well.

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

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