Q2 2021 Liberty Global PLC Earnings Call

[music].

Good morning, ladies and gentlemen, and thank you for standing by.

Welcome to Liberty Global second quarter, 2021, Investor call. This call and the associated webcast are the property of Liberty global and any redistribution retransmission or rebroadcast of this call or webcast and in any form without the express written consent of Liberty Global is strictly prohibited.

The 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.

2 of the slides details of the Companys Safe Harbor statement regarding.

Forward looking statements.

The 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.

Forward looking statements involve certain risks.

Risks that could cause actual results to differ materially from those expressed or implied by these statements. These risks include those detailed and Liberty Global and Liberty Globals filings with the security and the Exchange Commission, including its most recently filed forms 10-Q, and 10-K as amended Liberty Global disclaims any.

Ocean to update any of these forward looking statements to reflect any change and its expectations or and the conditions.

On which of any statement is based I would like now to turn the call over to Mr. Mike Fries.

Obligated to operator, and Hello, everyone as always we appreciate you joining us today for the Q2 results call and we've got a lot of ground to cover so I'll begin with some operating results and a deep dive into a couple of topics that I'm sure will be of interest you all and have to Charlie covers the financials, we will get right to your questions.

And I'll kick it off on slide 4 with 5 key.

Headlines that you capture of the broader narrative of the quarter and our value creation opportunity first of all of our goal of creating FMC champions in our core markets is working.

We made of very conscious and deliberate shift and our strategy for the 5 years ago, which saw exit subscale markets and premium multiples and concentrate.

Our resources into really for key countries, where we become fixed mobile champions.

I'm going to illustrate this more fully on the next slide, but despite reducing our geographic reach by 40% we increased aggregate revenue by 40% and now sort of a larger base of 85 million fixed and mobile subs and those FMC champions are dry.

Driving scale and growth supported by unrealized synergies of $12.6 billion from our last 2 deals and the UK and Switzerland, that's on an NPV basis and by the way given our ownership over $8 billion of that will accrue to our shareholders of <unk>.

Second the demand for fast and reliable connectivity and Europe continues to anchors.

Sentry, the wrong commercial momentum across our footprint I'll speak of the numbers and the second but we reported good revenue and subscriber growth and a standout quarter from Virgin video too.

Third we've talked quite a bit over the last year or so about our network strategy options yesterday, we made a big move and the U K announcing our plans to upgrade to fiber across our footprint.

<unk> to get at the moment, but.

The main takeaways that we have great options and every market and 1 size will not fit all here.

Answer the question Preemptively cable and DOCSIS will continue to play a big role even in markets, where we intend to upgrade of fiber and given our speed leadership today and had the investment in fiber rich HFC, we can approach.

This moment and and offensive posture with a clear focus on free cash flow and recruited returns on capital of fourth is becoming increasingly hard to ignore our ventures portfolio, which has been value of our third parties of $3 billion of about $5 per share.

And that's around 20% of our current stock price and Im getting very little is being <unk>.

Recognize today, we're going to continue to provide greater and greater transparency of our tech and content and infrastructure investment and a strategically aligned with the core operations and they also benefit from our unique track record and telecom and Treasury and M&A. We also announced that we're engaged in non binding negotiations with Iliad Polish subsidiary.

To sell UPC, Poland for $1.9 billion, that's about 9.3 times EBITDA, we don't normally announce these things, but Iliad was required to do so for other reasons and but I can tell you. These sorts of asset sales at the sorts of multiple should also help bridge the value gap and our stock and then speaking of our stock, we're making a big commitment today.

To put our money where our mouth is.

Rather the decide periodically how much and at what price, we're going to purchase shares we're announcing today, our commitment to buyback 10% of our market cap annually for 3 years, which means were adding $400 million to our current $1 billion program for the remainder of 2021.

And I just referenced.

And the transformation of our platform over the last 4 to 5 years and we've been trying to find a way to better illustrate the transition to and FMT champion and slide 5 does that I believe if you'd asked me 10 years ago. Do you think you could build a better stronger business by exiting half of your markets and concentrating all of your resources into a handful of.

The fully converged fixed mobile operations of probably would've said I don't know im not sure.

And when broadband competition intensified and cable consolidations slowed and the demand for broadband capacity and mobility skyrocket, we rapidly pivoted and there are much stronger and more valuable company today for it that involve for key steps.

And of course, we exited 5 subscale markets, like Germany, and Austria and premium multiples.

Mobile only players like of your telecom and Vodafone aggregate proceeds of our 25 billion and of these guys needed of fixed network solution of their markets on 1 hand, this validated the underlying private market value of our cable operations.

It's something we continue to demonstrate even today with the potential sale of Poland, but on the other hand that allowed us to focus resources on those markets, where we had a pathway to fixed mobile convergence by acquiring of emerging with mobile operators, specifically and Holland, Belgium, and Switzerland and of course, the U K, so even though we shrunk our geographic footprint by 40%.

With the concentration in 4 countries, we have 25 million more fixed and mobile subs and before $85 million and total and 40% more revenue 24 billion and total on an aggregate basis with a very balanced blend of fixed and mobile revenues.

And the benefits of that fixed mobile transformation of showing up and our results.

Solid quarter for our business is really across the board as you can see on slide 6 we.

And we delivered positive revenue growth across all for key markets. Charlie is going to work the details of that Vodafone and <unk> grew 3% Telenet and Virgin media grew 4% the latter representing just the 2 months.

Prior to the merger.

By the way for a good look at pro.

It was the financials of Virgin media for the second quarter and restated for prior periods take a look at their fixed income release, we can't provide that data and our GAAP presentation. This quarter, but we will do that going forward youll see that Virgin media and <unk> combined revenue was up slightly and the quarter and EBITDA was up 6% on the back of cost.

Control and commission savings and the mobile business and <unk>.

And so a good quarter for broadband and postpaid mobile net adds which totaled around 250000 and the quarter across the group on an aggregate basis and here on the top left we do show full quarter results for Virgin Media, <unk>, which added 22000 and fixed customer additions, our fifth straight quarter of customer growth.

By the way and that was supported by 36000 broadband net adds up 8% from Q2 last year and 65000 postpaid mobile apps.

You can see and the bottom left we continued to benefit from convergence with total fixed mobile convergence ratios up to over 40% in all operations.

<unk>.

And now sits above 40% for the addition of the <unk> subs, who subscribed the Virgin and Switzerland at 56%, which is clearly our medium term target for every market.

And the right hand side of the chart provides some operating highlights for each of the big for <unk> Im not going to go through all of this in detail the Virgin media and <unk> is off to a great start as of June.

First with record sales and the month and strong mobile as the team is working on some exciting commercial offers and his focus and driving the benefits of and expanding <unk> presence and the availability of 1 gig broadband across 100 per cent of the footprint by year end.

Sunrise and UPC continues to benefit from strong sales.

Sales momentum and the early rollout of FMC offers the 6000 broadband adds and 41000 postpaid mobile ads and the quarter the.

The integration and Switzerland is right on track in fact, the team just raise the synergy target by 50 million Swiss francs, which after cost of capture brings the NPV of synergies to $3.7 billion up and $3.1 billion.

Put up on the digital delivered its ninth consecutive quarter of revenue growth with fixed ARPA of increases and mobile postpaid adds and offsetting the loss of broadband subs and was the <unk> rolling out and 1 gig services rolling out there of the company is well positioned to deliver its 2021, EBITDA and free cash flow guidance, and finally tail and that continues to be our most innovative operator launching.

And another converged fixed mobile app for called 1 which helped the company deliver positive subscriber growth and video broadband and mobile for the quarter for each of our <unk> are performing well now let me switch gears to of subject on slide 7 and I know, you're all interested in and I'm sure by now <unk>.

And the announcement and read the press and analysts remarks about our decision to upgrade version.

And <unk> fixed network to fiber over the next 7 years or so.

Already have fiber of the premise to about 7% of our homes through the lightning build so we're talking about $14.3 million homes to be upgraded and the costs of about 100 pounds per premise and.

And lots of discussion around why are we doing this what does this mean for cash.

Cable and DOCSIS is this costs really that low and.

And let me start by reminding everyone that Virgin is today, the undisputed speed leader on $15.5 million homes across the U K.

Average customer speed of nearly 200 megabits per second with the balance of the market around 40, megabits or so so speed matters and the.

The U K and of course, that's why Bt's building fiber, but today, the only pass about 10% to 15% of our on our footprint, we believe and we will be offering 1 gig services to our entire footprint and 5 short months from now so using and Olympic analogy, we all have our eye and advancing to the 10 meter diving platform. If you will over the next 7 years with taking the speed.

Speed, but today, we're already standing on the 3 meter platform and the rest of the market and our view just as their toes and the water at the edge of the pool. It doesn't matter how fast BT gets to 1 gig and will.

And I always have an advantage, it's almost not a fair fight and all of that is attributable to cable and DOCSIS of which will be part of our network solution and the UK.

For a long time to come we're not decommissioning our cable network quite the contrary, we are simply expanding its capacity by pushing the fiber that's already there and the ground even closer to the customer and fact, that's why we can upgrade for a fraction of bt's costs already have fiber deep into the network and mostly urban markets and.

You can access through our own underground ducting that will require far less digging and thats the most expensive part.

And for the same reasons upgrade and the fiber is only marginally more expense of the DOCSIS for which is not the case and every market, but we made this decision pretty easy and the U K Mike.

And everyone else, we will incur cost of connected dropped for the home, but that will be of variable.

<unk> cost based upon demand over time, it's also important to point out. The these are gross capex cost. So they don't take into account the expected revenue uplift that could occur here you can see some of those economic benefits outlines of the right side of this chart.

Both dot just for and fiber to the premise will make our BDC and <unk> services more competitive that's clear but given.

Given the marketing halo around fiber and that seems to be building up and the U K and the benefits of symmetrical services to the enterprise market. We would argue that fiber probably has a slight advantage and will derive more value.

Similarly, while cable can do wholesale just look at telenet and the likelihood of deriving value from the 1 billion pound wholesale market and the U K.

If we chose to do it.

It is quite mature and busy is enhanced by an all fiber solutions and since we only cover half the country, it's safe to assume that wholesalers want to keep their technology platform simple and seamless across providers.

And of fiber solution does and of course and beyond those economic benefits of fiber to the premise and the UK also provides.

Greater confidence as we think through network expansion options beyond the steady lightning build today and we continue to evaluate debt opportunity to add an additional 7 million homes sort of of supercharge lightening. If you will and we're in good discussions with financial and strategic partners about what that might look like so stay tuned and now in light of the UK announcement.

And it's important to stress that there is no direct read across to cable or other markets for this decision because the truth is we have multiple paths to 10 gig and every market and we're evaluating the right path on a case by case basis of slide 8 lays out how we're thinking about it across the B approaches. The first of course is simply.

I think of assessing someone else's fiber network, allowing us to avoid the capex associated with the upgrade and providing some measure of market rationality of other than of pursuing the same approach of Sunrise has successfully done this and Switzerland with the Swisscom wholesale arrangements. The negatives are costs are also clear, though you're foregoing owner economics and your most important.

Important product broadband and youre somewhat exposed to fluctuations and wholesale rates among other issues.

Obviously DOCSIS for will be of transformational technology development when it arrives.

And it is a robust ecosystem of cable operators around the world, particularly in the U S supporting the innovation of the platform as we've seen in the transition.

As to the DOCSIS 3 and then the DOCSIS 3.1 the <unk>.

Costs are generally lower than of fiber solution as they build upon the existing platform before it and the rollout can be faster, but on the flip side DOCSIS does require a relatively substantial 1 time investment and the active and passive components of the network to enhance the spectrum.

From docs nasty and speed each time you upgrade the.

It's also not clear when the technology will be available for commercial exploitation, but we are part of a select group of operators working together to accelerate that timetable and then finally, while DOCSIS for will get us to 10 gig. There is no current roadmap beyond that for a forecast for what it will cost to get to stay 50 gig.

Fiber sales both of those future issues of course.

And then our announcement today makes clear building fiber to the premise of real and accretive option for us in certain markets I've already mentioned the clear path to 50 gig speeds the benefits of symmetrical services, especially the the BBB market and a significant opportunity that some markets offer around wholesale revenue for the price for that.

As higher costs, which vary significantly by market the decision about which path. We'll take always comes down to a few key questions and it is clear to us that we are likely to avail ourselves of all 3 options across our footprint and the varying degrees by market first of course is the competitive environment. What other operators are doing and are they building.

<unk> fiber how quickly second as I've, just mentioned is the relative capex costs associated with each option thats obvious.

The start to get interesting is around the economic benefits that accrue from 1 approach to the other specifically the positive impact on the BDC and BTB competitiveness, the size and attractiveness of the wholesale market as a provider or.

<unk> user and of course, the strategic and financial partnerships you conform to support the plan.

And that work is underway well underway and every market and you're probably familiar with Telenet has announced discussions of <unk> upgrade Flanders for fiber over time.

Ireland and looks a lot like the U K to us.

Switzerland is likely to be a hybrid approach and Holland is still in the early phases.

In analyzing the best plan, but of fiber deep DOCSIS for strategy might make the most sense there and.

And the and as we've done and the U K, we're going to be extremely focused on optimizing the medium term and longer term ability to compete grow and generate free cash flow as you'd make those decisions in every market now and my remarks on slide 9.

For the quick recap of how we intend to create value for shareholders from this point forward and it comes down to 3 core pillars. If you will first and foremost.

And our focus on maximizing the value of our fixed mobile operations of these of the Crown jewels of our business. We have worked hard to build scale and the number 1.

And number 2 player in each country. So we can shape markets radically innovate and make the important strategic decisions that are going to underpin growth for years to come how will we do that.

<unk> already seen and Holland, and Belgium, and helps when you have of near term catalysts of synergies to kick start growth and support cash flow longer term.

We also know that and increasingly competitive.

The market convergence is working and driving cross sell and upsell of reduces churn and make customers happier nobody debates at anymore. The key is to stay rational and pricing and put the real effort into seamless digital experiences of key customers coming back for more of.

The end game and every market is to generate distributable cash to the parent for free.

Cash flow dividends recaps whatever source, that's the metric that matters to us and thats the metric that will fuel our model now.

And now as we provide more visibility to our infrastructure and network strategies Youre going to see that these are largely offensive as of just gone through in many cases like the UK they come with significant strategic opportunities around the revenue streams.

We're financing and strategic partnerships hopefully also of re rating of our business and then lastly, we'll always look for ways to create demonstrable and transparent value either through asset sales like the potential sale of Poland and.

And possible public listening to the markets, where there is serious pent up demand for local telecom champions.

The second.

Second major pillar is becoming too big and too important to ignore and Thats of course, our growing ventures portfolio for the focused investment strategy around tech content and infrastructure and markets and services that are adjacent to our core operations, we continue to create value for.

And that's benefiting from some smart early venture capital deals such.

And just plume of skills are watching some larger positions like the ITV Univision of Formula E. Appreciate.

We're also excited about our move into infrastructure, where we have of real right to play.

And our track record of telecom financing and M&A.

All in all of the portfolio is valued at 3 billion, which I mentioned about $5 per share and is starting to realize cash returned as already.

And 400 million and to the parent and other.

And we've begun the process of monetizing hidden assets and our op goes like towers, and Holland, Belgium, and the U K and could add about $2 per share net.

Of adjustments in the op goes and that's not accounted for either of the ventures group, it's not and that portfolio or and our stock so what's.

The space and then the third pillar is our Levered equity model, which is unique and the European landscape and distinguishes us from mainstream telcos in Europe at the core of this strategy is the prudent use of leverage and our case for 2.5 times in the fixed rate currency hedged and siloed basis, and that creates the opportunity for recaps and greater equity appreciation.

Already returned know and understand that strategy, but we combine that with the strong stock buyback plan that just got stronger today with our commitment to repurchase 10% of our market cap annually for 3 years and again that needs, we're adding $400 million of this years $1 billion program only 3 quarters of which we've spent so far and we will seek the purchased 10%.

And you hours and 22 and 23, so that was a mouthful for me I know.

And let me turn it over to Charlie and then we will get straight to your questions and look forward to addressing all of those shortly Charlie over to you.

Thanks, Mike.

Starting by highlighting our strong performance in Q2, where we achieved revenue growth across all markets and consolidated.

And of the share of growth of 3.4%.

Now also as an element of the Covid recovery and areas like sports and broadcasting.

<unk> been very limited recovery and areas like roaming and <unk>.

We're seeing positive underlying growth across all of our businesses.

The U K grew 4.4%, which includes the roughly 2% benefit from premium sports with continued.

The strong conversions volumes and B to B performance driving growth.

Some of that also realized strong underlying growth in Q2, because of the near 4% growth rate does benefit from of $30 million year over year improvements and broadcast revenues.

And as we guided earlier, Switzerland has returned to revenue growth fueled by continued strong mobile volumes of <unk>.

The red moments in the consumer business that continues to stabilize through positive broadband supplement.

While the Vodafone Zika continues on the trend of strong financial growth posting of 3% year on year increase versus the prior year, which marks a milestone of 9 consecutive quarters of positive growth.

Q2 saw growth across all segments.

<unk>, including mobile on both the consumer and <unk> sides of the business as kind of of drugs abated.

And the next slide we provide details of our adjusted EBITDA growth.

Cost to capture synergies continued to weigh on results and the UK and Switzerland.

Virgin Media performed in line with the prior year, despite $8 million of pre merger costs.

Segment and capture and us.

Worth, noting that the recovery and premium sports revenues is offset by increased programming spend year on year given the credits that we received in Q2.2020.

The Swift performance continues to improve and of 3.1% decline is explained by $9 million of course, the capture and high growth and related investments and marketing.

Most of the <unk>.

Synergy benefits of limited and the quarter. Despite the recent MD&A migration back to our own network for those savings will become apparent and half 2.

Total net growth rate was suppressed due to the acceleration of prudently and Reits and the prior year period as large sporting events reported in the second quarter of 2020, the benefit of which.

Which was seen in the Q1 results.

The taken together total amount achieved net 2% first half year EBITDA growth.

And in the Netherlands of 2% EBITDA decline was expected given the estimated 21 of the euro impacts of Covid related temporary broadcast suspension and non recurring settlements in Q2 of 2020 sort.

And Sigma remains.

And for full year guidance.

Focusing now on the OFC F. We presented a year to date view of our performance illustrating the significant OFC of generation of our core businesses.

Despite the headwind of $58 million of cost of capture the consolidated group and of a 2.1% growth and the first half.

Entre of CF grew 2.3% and the first 5 months of the year.

Reached the milestone of $2.5 million lightning hubs and.

We continue to build efficiently and op cost per premise continues to trend lower delivery cost per home of 576 pounds and the quarter.

The Swiss team remained focused on the integration and.

You kind of significant cost and the first half to achieve longer term synergy realization the $41 million of half 1 cost the capture help lay the groundwork for future net migrations it integration and the alignment of the product roadmaps, including the debate, although ospf growth and Switzerland, what otherwise have been positive.

And.

And then could OSF declined around 1% whilst in the Netherlands OSF grew 1.6% for the first half as we continue to invest and the network and we remain on track to have upgraded 80% of our footprint to 1 gig speeds by the end of the year.

Focusing on our core Liberty global performance metric of free cash flow, we delivered 717 million.

Belgian free cash flow and half 1.

Our strong first half performance indicates we are on track for our full year guidance of 135 billion, which represents 26% year on year growth with growth accelerating on a per share basis, as we continued to aggressively retire rostock.

As of July we've returned nearly 80 million.

And share since the year end 2019.

And the next slide illustrates our year to date by the performance.

As you can see as of July we've repurchased $765 million of Liberty.

Mobile slope as we approach of our initial 1 billion total authorization.

As Mike announced with committed to repurchasing 10.

Of our market cap of the year over the next 3 years, which serves to increase the <unk> 'twenty or 'twenty, 1 and buybacks of around $1.4 billion.

Supported by our significant free cash flow and our corporate liquidity, which includes a cash balance of $4.1 billion as of quarter and.

A bunch of portfolio is currently valued at $3 billion.

Percentage of flex the full color on <unk>, and ITV which we completed in early Q2, and the continued monetization of our skills stake.

Net loss of about $80 million today.

During the quarter, we also announced the creation of Atlas and joint venture with digital colony utilizing our owned real estate to provide cloud providers streaming services.

Services and enterprises with high performance edge of network facilities through which they can distribute low latency applications and services, such as <unk> gaming Iot and edge compute.

We expect that transaction to close in Q3 of 2021.

To conclude we are executing our FMC strategy across all markets.

And with positive revenue growth across our markets synergies validates and the U K and upgraded and Switzerland.

And the U K, we're excited to announce the cost effective upgrades of full 5 of about 2028, and we're increasing our buyback program for 2021, whilst committing to repurchasing 10% of our market cap annually over the next 3 years.

Finally, we are confirming all guidance targets, noting Virgin media of to manage and we're not part of the merger clean team and as such are and the process of validating the combined business plan and with that operator, we'll take questions.

The question and answer session will be conducted electronically if you would like to ask a question. Please.

By pressing star or Asterix key followed by the digit 1 on your phone and order to accommodate everyone. We request that you ask only 1 question. If you are using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment.

We will pause for a moment to give an opportunity to join the queue.

All right. We'll go ahead and take our first question from David Wright with Bank of America.

Yeah.

Thank you very much for it and taking the questions day Mike.

And Mike I'm going to begin with something.

A little bit more careful if you don't mind.

The the equity of your stock is.

Lisa.

I'd say of disappointment and over the last few years you guys. Obviously reflected in some recent buybacks and no debt.

You and John are very frustrated with the common equity and the valuations given with.

And with managed to do all of these deals recently without equity.

And.

Being out of you having to justify the.

Big Capex spend and the U K 2 of market that is very focused on short term cash flow as etcetera. When you are confident and the long term value creation and that's exactly the I think the frustration the led alien zone as Avia and Neil This morning to basically say well I didn't need.

To deliver those short term cash flows when I know the rates along the value to be created and he's obviously made the move to buy the stock back in.

Do you ever find yourself sat around the table and you Charlie and and maybe John saying just you know why are we bothering with these equity capital markets. Why don't we just bought a lot of and we can lever up and we.

Right and that sounds we know best to create value. So just throwing that out of my Mike look to know your thoughts.

Okay.

And quite a curve ball.

But not what we expected to start the conversation with the thanks, David I appreciate the question.

And I understand the question.

And and surely every.

The entrepreneur CEO or chairman of the company that feels like it's achieving more than the market is recognizing wonders about those sorts of things why wouldn't we on the other hand, I think it's important to point out that we are in a way.

Buying out the public right when you buy of $1 billion for stock this year and you agree.

We can and better just another 10% of the market cap by the way not the market cap the share. So if the stock rises we're still spending.

And it cost about 10% of the shares and I saw 1 analyst say well that's the only $1 billion for every year that assumes the stock doesn't move it's the number of shares of stock doubles, we're still buying stock.

That 10.

Per cent. So we are in a sense doing what you're saying, but perhaps at a more measured way and perhaps in a less expensive way.

If you look back we have repurchased well over half of the company at varying prices, but generally prices that are less and today's price and for those shareholders, who believe and what youre doing it as a way of ensuring.

During that day right along with you.

And that slow go private if you will and if there's only 1 share remaining and when you own it and you've done well. So far we are in a sense doing the same thing, which is giving shareholders an opportunity the exit if they're frustrated and.

And understanding what we do.

About our business you know, we're confident and putting our capital and our free cash flow to work to buy those shares so and that's all I'll say at this point.

Those 2 businesses could ot's and if you look at Gilead and they have their own challenges and issues.

I don't think our shareholders would be thrilled if we put an offer out.

Out of 7 times EBITDA state of the company private I don't think they'd accepted so those are unique circumstances, where perhaps those businesses have their own challenges that warrant those kinds of multiples I think our business is worth more I think most of your host understand that and those who don't wear and the market every day buying stock.

No. It will take our next question from Robert Grindle with Deutsche Bank.

Okay.

Yes, hi, thanks, so much I was half expecting some guidance around the dividend from Virgin O..2 of the <unk> group free cash flow might be going but you've taken the the different approach like you mentioned.

And my back of which you've just been talking about and can you.

And give us some back.

Backgrounds and the thinking behind this is it because youre not sure you asked about the funding for fiber.

Supercharged project Lightning, whether to go alone or with someone else, whereas the some of the rationale behind the this approach. Thanks.

I think it's pretty straightforward Robert.

Yeah.

We have spent quite a bit of time, putting together, we believe of fixed mobile.

The group a bit of a group of fixed mobile businesses that are strong.

And have great cash flow prospects and great strategic and competitive positions.

And to your but also now have a very good handle on what the next 5 to 10 years of network and technology evolution means to those businesses and.

And we are increasingly confident about the value of those businesses and so.

It seems to us a good time to.

Put a stake and the ground and reinforce our commitment to the to the stock and the business.

You know as we know more and have a better a better understanding of what our future looks like so I'd say, it's it's not a defensive move quite the opposite it's an offensive decision to take advantage of what.

We only is and undervalued stock and to do and to show that confidence to investors of course by committing to a clear buyback strategy as opposed to and annual 1 where we let you know every 12 months of what we might or might not be doing secondly, I think it's helpful for investors.

<unk> when we can demonstrate our willingness to not just use free cash flow.

But also our cash balance and if our stock appreciates, which we fully expect it should.

We'll still buy back 10% of the of the.

Of the shares and if that requires us to utilize cash.

As opposed.

And what we free cash flow to do that then we will do that and that's also what I think of great statement of confidence plus it takes a bit of and overhang off.

As it relates to those investors, who feel like we should be deploying cash more quickly.

I can't see anything, but good news and the statement it's not defensive.

It's hopefully something.

And most investors appreciate.

Our next question comes from Mike Hill, the Tony with J P. Morgan.

Yeah, Hi, good morning, Thanks for taking the question maybe I can focus on the use of it. Please.

You mentioned Mike.

At the stage, the Virgin Media management, and human not part of the budget process, obviously, they've not been in the position to update to some of their plans I was just wondering if you could comment on when we might expect that do we expect the with the next quarter and they're gonna be a standalone event, where they'll give us an update so and how do we think about that and I guess more specific.

Clearly when we think about the U K.

There's a lot of moving parts as you outlined in your introduction.

What do you think of the biggest decisions and be the strict strategic things that needs to be thought through by the management team and I guess, the 1 that we think about the law is the wholesale strategy. So maybe you can give us any sort of color on how you think.

About wholesale for Liberty, So if the Virgin sorry, that'd be really interesting too.

Sure I'll take the first 1 of the Lutz is on all.

I'll ask him to address how the management team is coming together you know his the progress you've made and the organization and his commitment to the board of the joint venture.

<unk>, 2 and he'll feel we've got a really good handle on next year and the years to come because lots of good work is happening there I think the biggest decisions in the U K should be pretty self evident.

And I've kind of directly or indirectly mentioned some of those and of course, if we're as we commit to invest in fiber.

Fiber.

And the that and the balance of our footprint that isn't already fiber we want to be sure. We're focused on those things I listed on the right hand side of the slide.

Namely the ensuring that we're getting the benefit of that investment and our b to C and <unk> businesses first and foremost.

And also though that we are examining.

Communities to work with financial and strategic partners and potentially.

The wholesale partners to further monetize and utilize that investment, we're specifically and by design not being.

And concrete about those plans today, because there's lots of work to do and lots of options to consider but you.

You should assume that we are.

Looking at this purely from an economic and non offensive point of view and we believe there are opportunities to explore the economic benefits that should derive from this network investment beyond simply being more competitive and the beta b and B to C space.

And also have to look closely at our decisions going forward around network expansion.

As we've talked about on many calls and I think we're you know we're taking 1 step at a time. This is obviously a first step.

But I think going forward, we will look very quickly at the.

The potential too.

And we on the network beyond the current footprint and potentially do that with partners as well and an accretive way so lots of big decisions that I think.

Revolve around the network, but all of them and our mines.

And with the lens and you can.

You can bet that our partners at Telefonica and use the same lens.

What valued.

The expand create and what is the impact it will have on our cash flows and and dividends. So we're being very I would say thoughtful about this and we're going to make decisions and the best interest of all parties, including and mostly concluding shareholders loose you won't talk about the management team and how youre coming together on the broader strategic and operational.

Yeah sure sure.

We have full prior to <unk> and <unk>.

BMO true.

1 is integrated to close company second is cheap and accelerate the business momentum for us.

Transformed the company into digital and force find the right path.

And of course.

2 of the fixed network of extension.

And a number of warm.

We had really a jumpstart so we have the top 100 of the organization of nonsense of months.

We have been just sharing our plan for this year with our board yesterday. So obviously the board has to decide.

And the minute the bulk besides I think you would get the guidance, but I think what I can say is that this was very much in line with expectation for both shareholders.

We are working now on the new 3 years plan until.

And until October and after.

After that we'll get all the board approval and <unk>.

Sure the offline with you guys and also we have already re confirmed.

The team is able to get for the 540 million run rate synergies.

And we do this already because we spent quite a lot of time on.

And the pre merger activities.

And also so we built on a pretty strong foundation here.

The business momentum I think you've seen our momentum.

And Q2 numbers look look at our competitors look at what we are doing so we are approaching these integration with strong business momentum both across mobile and fixed digital I.

The thing is we shouldn't touch it now.

And I'm sure we will find some time and we will transform our business entirely into digital and and that's sort of expansion I mean, it's the right.

Mike Mike said it it's the <unk>.

Step, it's an offensive move when the business process and now we talk about finding the right solution.

<unk> for these additional 7 million homes find the right balance how to invest our capital.

And 250 and Forbes the capacity.

And find the right partner and modal.

And so a lot to do good stopped if momentum.

Back to you and Mike.

Okay. Thanks for this.

We'll go ahead and take our next question from Nick why all of the Society Generale.

Yes, good morning, everybody.

The good bunch of the wholesale strategy. Please Mike cause I mean, there's risks with this as well so.

And you're confident you can protect the high op of retail subs. If you were to do the have you sold through that yet obviously.

Could you share with us some thoughts from the U K business, Oman, and any any conversations with total what else coma and could I can I just clarify when you're talking about wholesale you are including the cable.

HFC network to wholesale as well or is it just the incremental fiber parts of the network. Thanks very much.

And that's a really good questions Nick and.

I'd love to dig to walk you through the.

The exhaustive amount of analysis that we've done.

And both the Liberty and the Virgin Media O 2 and telefonica levels around all of this but I prefer not to think it's safe to say that if we were to.

Look it does enter into any sort of wholesale provider.

Provider arrangements or consider that as a long term strategy than we would have thought through the impact on <unk>, the regulatory impact and.

And the best technology solutions to achieve that better to not get into.

Much detail today, and you know the announcement, there's plenty to 2.2 and digest for investors and we want to focus on explaining how we got there and how we will achieve that but but I think it's safe to say, we have lots of time to think through how we.

Exploit and monetize that commitment beyond.

To my benefits to our own business and I would just give us a little time to.

To finish those considerations.

Considerations and the and you will certainly have plenty and you talk about over the course of the next few quarters.

Sorry to be evasive, but I just think it's a slippery slope, we could get into a lot of detail that's probably not helpful. Here no understood. Thanks, Mike.

And you got it.

We'll take our next question from Steve Malcolm with Redburn.

Yeah. Good afternoon, guys just just on the U K fiber funds can you maybe just help us understand what is so unique about the UK network I should know the softer of million years doing this joke, but I honestly don't.

The build is such a low cost relative to other network, so and I guess sort of the second part is in euros.

And it's probably you're talking about I presume you don't think of any construction required and so what was it you can point of the fibers.

Directly and so all of the docs for the coal.

Customers and I guess alongside that the project Lightning experience hasnt been seamless and the last 6 years, so maybe what lessons of you.

You learn what confidence can you give us the the targets you set out yesterday aren't going to be the numbers you actually do that'd be great. Thanks.

Well, let you can you can prepare and ori henriques and a little bit more color on why the we believe the numbers.

To be of course accurate and as you point out.

Less expensive than our peers and let me just make a comment on project lightning.

We have been rebuilt 2 and a half million homes at this point I think the your reference to the you know.

Slippage goes back 5 years, maybe for you for quite a while ago.

Since that early moment and.

And I would describe it as very early moment, it had been and machine and we have been extremely effective consistent and predictable.

The execution of a net.

Network expansion in the U K, our returns and our penetration rates have been exactly what we said they would be and.

And our.

Our capital costs have come down consistently as we access PAA and we get smarter and better at it and.

And executing on this large construction project together with suppliers. So I don't think we have any I think we are as active and successful and predictable as.

And the U K market and you can just talk to the suppliers that we work with to confirm that our ability of our credibility or our ability to achieve this and Mike in my opinion is sound.

The sound and really not that questionable, but looser henriques and you're welcome to dive a little bit more into the detail around 100 pounds, if you'd like to.

Yeah.

And maybe if you saw the right yeah sure I'll just make a couple of comments.

First of all of the the the number is the obviously on average over quite a few different scenarios, but in the case of this.

This project the <unk>.

Majority of the.

Process actually uses of our existing docks and out of our existing.

5 of deep DOCSIS network allows us to really focus the upgrade capital.

Basically on the significant portion of the passive part of the network. There are of construction you're asking your question.

The is it because there's no construction cost of our construction cost, but it is significantly lower than when you're building brand new territory like we are doing in the.

In light of the end of the final point I'll make is debt.

The significant commonality between the <unk>.

All of the technology as well as the.

The the construction mechanisms between lightning and what we'll be doing.

And the substrate, so we're pretty confident.

The way that we understand the the process and that we will hit those targets.

The follow up Mike and I think you said the Openreach is net cost of about 10.

The percent of your of network with fiber can you, maybe just update us what youre seeing where they have passed with fiber you are seeing the 6 of a change and the sort of customer on boarding at all for the guy dynamics and those areas.

And what you can address that.

Yeah. So I mean, you've also seen a steep that the new.

New wholesale prices.

But announced and will kick in and for 1 gig debt to stand and 22 pounds today right. The fiber prices are very very high and we watch it very carefully but look at our net debt.

So we don't see and the impact at all at the moment well debt.

The.

No because we think that Ah right if the prices for higher speeds will go down a bit we would see EBIT more competition here, but the on the other hang tight like we have for no more than 40% of our fixed cost and most having lots of mobile with us and that will help us also portrait and protect our customers come true.

And the other point I'd make is.

We are already 1 gig.

Pretty much and we will be at the end of this year, 1 gig of capable across 100 per cent of our subscriber base.

And it isn't as if the T or any.

Openreach customer will be providing a superior product to us.

The states really a me too product and we're going to have the advantage of being there first.

Across the entirety of our footprint and we will be marketing aggressively both fixed and mobile products as well as 1 gig products well ahead of the vast majority of these operators because we're already there.

It is what our net.

When I said you know, it's not a fair fight because if BT is building to get to 1 gig we're already 1 gig.

And we're just basically further supercharging our networks for the next 10 years by ensuring that we will have symmetrical 10 gig when and if that market requires it so.

Hard to see us not being able to compete.

And with any activity from BT Openreach, given the fact that we're and so.

And so far ahead of them as we sit here today.

The 1 gig part of it.

And thank you.

We'll take our next question from Matthew Harrigan with benchmark.

Oh, thank you.

Another angle and on fiber 1 of your large U S peers.

Most of more of a parallel network topology approach and it sounds like what Youre doing all of the more complicated so you've seen the other Olympic analogy I hope it doesn't get the.

For the mobile twisty zone on the execution, because it sounds a little involved but the other thing.

And it was real interesting on your U S peer, what's even though they haven't Noah and homes passed I mean, they didn't even call out the cost of operating of simultaneously with over 1 million homes passed because the cost of fiber were so low, albeit less the less.

Plus and 5% capacity can you talk about the cost.

And fiber idea of sort of the dictum with some people as you're going to get about 30% reductions and consumer.

Such cost and related Capex, and then secondly on the ventures portfolio, you've got a couple of things that.

Alright.

The valuation of your carrying its probably pretty safe and saying you've got a couple.

The savings it would probably have a lot of sort of Kathy would type of appeal. If there was a flotation and something like Formula E. G as well as the edge computing and could you talk specifically about some of the possibilities around the formula E and whether it's the complement or displacements of formula 1. Thank you.

Sure Matt.

<unk>.

And I think I think Enrique wood wood.

Echo the comment that if the fiber network could easily and should reduce operating costs over the long haul I think it's important to point out, though and the U K, we're not decommissioning of the cable network, we're going to continue to utilize the DOCSIS 3.1 plant and it took us all the way the $2.2 gigabytes.

Things so we'll be at 2 gig pretty shortly here on the DOCSIS plant and we will continue to utilize that plant wherever and whenever necessary with the fiber really being and overlay as opposed to of replacement.

<unk>.

And of the coax network that were of the HFC component of.

Goodbye and anyway, and they'll share of tons of fiber to the for the cabinet. If you will but beyond that will keep the HFC network viable. So the cost will be there shouldn't it'll be cost savings long term and capex savings long term, but I think you have to remember that those annual costs and that you may not be credit seem to be and on the venture side, there's lots of assets within ventures.

Of the networks.

And that could easily find their way into the hands of other strategic owners Ipos et cetera, and we have at least 8 to 10 unicorns and the tech portfolio, which is about $800 million of the $3 billion and we have some relatively large businesses and the content portfolio. You mentioned, 1 formula E. But we have the stake in ITV.

We have a relatively low basis and all.

All 3 media and some other assets and so each of those have their own sort of storyline and opportunity and the formula E is doing terrific and its seventh season.

Coming back strong from Covid with some really exciting things happening with the car and the technology next.

Next year of got Mercedes Porsche and all the right the manufacturers getting behind it and the product just gets better and better.

With a with and I think we've got another 18 years of exclusivity with FIA on electric car racing. So it's going to be terrific to see how that platform evolves over of over the long.

Hall, and we're always looking at ways to help our portfolio of companies achieve their goals, whether that's true for locations or mergers or whatever of fundraising. So stay tuned we'll give you more information on those assets as they evolve.

And over time or are you more likely to have the mobile traffic on the on the HFC network and sort of the emergence of.

And also do some Cisco and others or is that kind of be on the on the fiber.

And that work if you don't mind My Al's group.

Well, we do backhaul today, and which can speak about that we provide quite a bit of backhaul services to almost all of the mobile operators and the U K, including will do so for O 2 typically utilizing fiber.

But I don't know if theres some other element to that and regain of loose you want it and you want to you can do it over both but generally speaking of the circuits are fiber.

Yes, the the mobile traffic is mostly on the part of that network and will continue to.

And for growing that direction.

There may be opportunistic cases.

We use the portion of the HFC net workload.

Really the F of the HFC that it's being the other issue.

Great. Thanks, Mike Thanks, and Richard.

Yeah.

Our next question comes from Andrew Beale with Arete research.

Hi.

Wonder if we can develop.

Cases, the discussion about longer some fiber cost savings and and Virgin.

And as you blow of or pool of Fiverr alongside the existing HFC network will come out.

I guess, you can choose what ease of each existing or new customers of our DOCSIS of fiber.

And then longer term you've got this opex saving when you switch.

And so so what is your thinking at the moment when you put all the new customers who.

Upgrade is on fiber or do you just do it for the customer seeking of certain high speed 2.

Or symmetrical or other services and then how many years off for you thinking it is that you actually switch of DOCSIS and and area.

Switch the previously passed with fiber.

I guess I'm, just really asking about the the pacing of variable capex replacement of the current.

It's dropped with fiber for us as the long term opex savings opportunity and what your thinking is not.

Yeah. It's it's the right question and I think it's little early for us to provide any guidance around.

And what percent of customers will require or want.

Fiber connection and the cost implications of of <unk>.

That yeah.

And you should assume we're working that through we have worked that through but for in terms of disclosing that if it gets a little premature.

And I don't the Henrique.

And we can't lose can chime in here I think the cable network.

And will exist for quite some time.

And it will provide us with a seamless ability to serve customers, who don't require either of the benefits of the fiber network of the speed and capacity of the fiber network. That's a nice luxury to have but we can get people up the 2 gigabytes.

On the existing.

Plant.

So that's the basic strategy you know as we get as we go and move forward here and there the idea of sort of further disclosure and Virgin media outreach plan. When it's developed maybe we will do that will take some time on 1 of our future quarterly calls and really dive deep ease a little a little early to do that for the public today, but.

I think you're on the right point in terms of what percent of customers will require a drop and the new CPE. How quickly will that happen you know and you can make your own assumptions about that we certainly have but I think it's too early for us to put that in and the public and the public debt.

I mean, that's go ahead Todd.

So first of all we are we are on the luxury.

Free position right that we can plan the migration predominantly customer demand driven and that means across the mother and wants to have ISP. Then we got 2 gigabyte per second.

And Mike said at the beginning today at Virgin media cost of months using 2 of net and it perfect.

And then as to the 2 gigabit per second right. So that will take some time that's number 1 number 2 we ask the luxury to have well in 1 area. You can have 1 home then on fiber and the next hole. We can have on DOCSIS 3.1 and so we're not forced to really migrate entire regions onto fiber.

And.

Number 3 obviously over time and.

We want to have the balanced approach to really use the capacity of the fiber network and balance with the 3.1 DOCSIS.

Isn't that right. So these are the factors and.

And.

I said earlier the biggest driver for us is not the cost saving with switching off the.

The network right when you sit on a corporate network and end of stories 80. Mac. Then you have to think about switch off when you sit and sit on the DOCSIS network and.

And today, we see easily we get to the 2 the 2 gigabit per second and then you you absolutely want to leverage both networks, what's driving it is the business opportunity.

Opportunities across consumer and.

And b to be huge growth opportunity and <unk> and <unk>.

Think about our market share is below 10%, we have and our factory network and the fiber net book.

Lots of things of possible and then the wholesale function.

So I think stay tuned on that.

Okay. Thank you.

Okay.

We'll take our next question from James Ratcliffe with Evercore ISI.

Hi, and 2 if I could first of all I noticed you boosted the synergy expectations and Switzerland, and there's also some additional costs to achieve how does that affect the time frame for for seeing the cost of achievers of Sarah.

And are just flipped positive in that market and secondly, just going back to the buyback.

Can you talk about the thought process around doing is as a percentage of market cap rather than say, a fixed dollar amount or free cash flow plus of given dollar amount because and this has the effect of the more stock goes up the more you'd be buying back.

Thanks.

Yeah, I'll take the buyback question, obviously and Andre if you want to prepare some thoughts around the Swiss question.

I want to make sure I'm fond of what your St. James and where were let me clarify what we're what we're committing to which is to repurchase 10 per cent of the shares outstanding.

The beginning of the year regardless of price.

You know over the next 24 months, so the amount of the buyback.

For the dollar amount of that spend will vary depending upon the price and that doesn't mean, we couldn't accelerate that if the price were.

For lower to perhaps take and anticipate 1 of your follow up questions.

But we would continue to commit to that if the price were higher and therefore seems to us that were you. The investors now will be able to incorporate into their thinking around.

And the stock price.

Growth and minimum of of 10% improvement and the share price. We hope based upon the buyback commitment. We've made so it seems to us to be and easier and more predictable.

And more beneficial approach to buyback and meaning that we're committing to that 10% number and.

And Glenn if it were a dollar figure hard to know what that impact would be right.

Got it.

Yeah Andre.

Yeah, well on your question does the higher synergy expectation and it has an impact on the timescale and I'll see the realization.

No it doesn't and so we actually have seen that some of.

And the assumptions that we have taken on the realization of moving customers over to own infrastructure from a whole bunch of infrastructure, where more conservatives and what we see is no realistic to achieve and the.

That does not really change the time frame and in fact.

<unk> seen some synergies coming in even a bit earlier, you've seen in the presentation of that.

Moving to.

And the Nbn migration being executed ahead of schedule and the overall I would say we are rather ahead of schedule and behind so no real change to the timescale.

Thank you.

Yes.

We'll go ahead and take Alberto's question from Oh go.

Yeah, and I'll go ahead of Brexit wasn't sure what's happening but.

Well go ahead and take our next question from Ulrich Rathe with Jefferies.

Thanks.

So I have a question and then probably the 2 lots of.

Does the the 5 of our upgrade plan.

Require in footprint and share gains and the consumer market and I understand the opportunities.

Beyond that but in terms of literally the day, the consumer market and is.

For the moment here that you think you can share the market share. Thank you.

Yeah.

Well I mean, we are currently winning market share right was the speed advantage and.

And we have not made any planning yet.

And then other kind of market share we are tending to win over the next 10 years and we haven't justifies the plan by a win of a market share and consumer right. I said early on we have just started now after committing the budget for 'twenty, 1 and 2.

And to come up with the 3 year plan.

And beyond and and then we are working on debt, but that are definitely an opportunity to keep.

Keep our customers and also to increase the share of wallet, so offshore power per home with our customer, which we if we keep winning market share as we do today.

Give us some time to figure.

Net debt.

Okay.

I would like to note that.

The call back to Mike Fries.

Okay. Thank listen I. Appreciate you are staying on with US I know, there's other calls happened and today and so you probably already on your way.

But the looking at for key takeaways from my point of view growth continues and our FMC champions and synergies are just now starting to show up so that's going to be a positive tailwind here and and in the medium term.

We're excited to start providing greater transparency around our network strategies with the UK being the first of those announcements.

And I can assure you we're looking at these things through and offensive and accretive lens and.

And we have the luxury of doing that because we have such of fiber rich network to begin with and a strong of broadband base as we sit here today pay attention of the ventures portfolio, it's growing in value and significance.

And we'll keep you posted on.

Of the Polish deal, which is just another reaffirmation of the private market value of our businesses and lastly, you know we're excited about the buyback commitment is the strong statement from us.

That's something you can take to the bank. If you will a year you know next this year and for the next 2 years and that's got to be useful for investors, who want to see us deploy capital in and.

And 1 of the most obvious places and that's our own share. So I. Appreciate you joining we'll speak to you soon and have a great August bye bye.

Ladies and gentlemen, this concludes the Liberty Liberty Global second quarter 2021, Investor call. As a reminder, a replay of the call will be available and the Investor Relations section of Liberty Global's website.

I also find a copy of today's presentation materials.

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Good morning, ladies and gentlemen, and thank you for standing by.

Welcome to Liberty Global second quarter 2020.

Cluster of 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.

1 of your relations section of Liberty Global's website at Liberty Global Dotcom.

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

2 of the slides details of the Companys Safe Harbor statement regarding forward looking statements.

Today's presentation May include forward looking statements within the meaning.

The inverse 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 forward looking statements involve certain risks that could cause actual results to differ materially from those expressed or implied by these statements.

And of course include those detailed and Liberty Global and Liberty Globals filings with the security and the Exchange Commission, including its most recently filed forms 10-Q, and 10-K as amended Liberty Global disclaims any obligation to update any of these forward looking statements to reflect any change and its expectations were and the.

And these returns.

And which any statement is based I would like now to turn the call over to Mr. Mike Fries.

Thanks, operator, and Hello, everyone as always we appreciate you joining us today for the.

The Q2 results call and we've got a lot of ground to cover so I'll begin with some operating results and a deep dive into a couple of topics that I'm sure will be of interest to you all and have to Charlie covers the financials and we'll get right to your questions.

And I'll kick it off on slide for now with 5 key headlines that should capture of the broader narrative of the quarter and our value creation.

And opportunity first of all of our goal of creating FMC champions in our core markets is working.

We made of very conscious and deliberate shift and our strategy for the 5 years ago, which sauce exit and subscale markets and premium multiples and concentrate our resources into really for key countries, where we become fixed mobile.

And so im going to illustrate.

The straight this more fully on the next slide, but despite reducing our geographic reach by 40% the increased aggregate revenue by 40% and now sort of a larger base of 85 million fixed and mobile subs and those FMC champions are driving scale and growth supported by unrealized synergies of.

The $12.6 billion from our last 2 deals and the UK and Switzerland, and Thats on an NPV basis and by the way given our ownership over $8 billion of that will accrue to our shareholders.

The second the demand for fast and reliable connectivity and Europe continues to anchor strong commercial momentum across our footprint I'll speak of the numbers and the second.

But we reported good revenue and subscriber growth and the standout quarter from Virgin video too.

Third we've talked quite a bit over the last year or so about our network strategy options yesterday, we made a big move and the U K announcing our plans to upgrade to fiber across our footprint I'll speak of that in a moment.

But the main takeaways that we have great options and every.

Every market and 1 size will not fit all here to.

Answer the question Preemptively cable and DOCSIS will continue to play a big role even in markets, where we intend to upgrade of fiber and given our speed leadership today and heavy investment in fiber rich HFC. We can approach this moment and and offensive posture with a clear focus on free cash flow.

Low and recruited returns on capital of <unk>.

Of course, it's becoming increasingly hard to ignore our ventures portfolio, which has been valued by third parties of $3 billion of about $5 per share.

And that's around 20% of our current stock price and Im guessing very little is being recognized today, we're going to continue to provide greater and greater transparency.

And of our tech content and infrastructure investments and the strategically aligned with the core operations and they also benefit from our unique track record and telecom and Treasury and M&A.

We also announced that we're engaged in non binding negotiations with Iliad Polish subsidiary to sell UPC, Poland for $1.9 billion, that's about 9.3 times EBITDA.

We don't normally announce these things, but Iliad was required to do so for other reasons and but I can tell you. These sorts of asset sales at these sorts of multiple should also help bridge the value gap and our stock and then speaking of our stock, we're making a big commitment today to put our money where our mouth is the rather than decide periodically how much.

And at what price, we're going to purchase shares we're announcing today, our commitment to buyback 10% of our market cap annually for 3 years, which means were adding $400 million to our current $1 billion program for the remainder of 2021.

And then I just referenced the transformation of our platform over the last 4 to 5 years and we've been trying.

And to find a way to better illustrate the transition to and FMC champion and slide 5 does that I believe if you'd asked me 10 years ago. Do you think you could build a better stronger business by exiting half of your markets and concentrating all of your resources into a handful of fully converged fixed mobile operations of probably would have said I don't know im not sure.

<unk> and broadband competition intensified and cable consolidations slowed and the demand for broadband capacity and mobility skyrocket, we rapidly pivoted and there are a much stronger and more valuable company today for it that involve for key steps first of course, we exited 5 subscale markets like Germany and Austria.

And premium multiples to.

For mobile only players like of Telecom and Vodafone aggregate proceeds were 25 billion and of these guys needed of fixed network solution of their markets and 1 hand. This validated the underlying private market value of our cable operations something we continue to demonstrate even today with the potential sale of Poland, but on the other hand.

And that allowed us to focus resources on those markets, where we had a pathway to fixed mobile convergence by acquiring of emerging with mobile operators, specifically and Holland, Belgium, Switzerland and of course, the U K, so even though we shrunk our geographic footprint by 40% with the concentration in 4 countries, we have $25 million more fixed and mobile.

Of the subs and before $85 million and total and 40% more revenue 24 billion and total on an aggregate basis with a very balanced blend of fixed and mobile revenues and.

And the benefits of that fixed mobile transformation of showing up and our results. It was a solid quarter for our business is really across the board as you can see on slide 6.

We delivered positive revenue growth across all for key markets. Charlie is going to work for the details of the Vodafone <unk> grew 3% Telenet and Virgin Media grew 4% the latter representing just the 2 months.

Prior to the merger.

By the way for a good look at pro forma financials of Virgin media for the second quarter and reach.

Restated for prior periods and take a look at their fixed income release, we can't provide that data and our GAAP presentation. This quarter, but we will do that going forward you will see that Virgin media and <unk> combined revenue was up slightly in the quarter and EBITDA was up 6% on the back of cost control and commission savings and the mobile business.

And so a good quarter for broadband.

<unk> and postpaid mobile net adds which totaled around 250000 and the quarter across the group on an aggregate basis.

And the top left we do show full quarter results for Virgin Media, and <unk>, which added 22000 and fixed customer additions, our fifth straight quarter of customer growth by the way and that was supported by 36000 broadband net adds up 8%.

Sent from Q2 last year and 65000 postpaid Mobile Act.

You can see on the bottom left we continued to benefit from convergence with total fixed mobile convergence ratios up to over 40% in all operations.

<unk> announced its above 40% with the addition of the <unk> subs, who subscribed the Virgin.

And Switzerland at 56%, which is clearly a medium term target for every market.

And the right hand side of the chart provides some operating highlights for each of the big for up goes Im not going to go through all of this detail the Virgin media and <unk> is off to a great start as of June 1st with record sales and the month and strong mobile and the team.

And is working on some exciting commercial offers and his focus and driving the benefits of and expanding <unk> presence and the availability of 1 gig broadband across 100% of the footprint by year end.

Sunrise and UPC continues to benefit from strong sales momentum and the early rollout of FMC offers with 6000 broadband adds and 41.

Postpaid mobile ads and the quarter the.

And the integration and Switzerland is right on track in fact, the team just raise the synergy target by $50 million of strengths, which after cost of capture brings the NPV of synergies to $3.7 billion up and $3.1 billion.

Political and digital delivered its ninth consecutive quarter of revenue growth with fixed ARPA of increases.

<unk> postpaid adds and offsetting the loss of broadband subs and was the <unk> rolling out and 1 gig services rolling out there of the company is well positioned to deliver its 2021, EBITDA and free cash flow guidance and finally telenet continues to be our most innovative operator launching yet another converged fixed mobile app for called 1 which helped the company deliver positive subscriber.

And more growth and video broadband and mobile for the quarter for each of our <unk> are performing well now let me switch gears to of subject on slide 7 and I know, you're all interested in and I'm sure by now you've seen the announcement and read the press and analysts remarks about our decision to upgrade Virgin media <unk> fixed network to fiber over the next 7 years or so.

Subscriber already have fiber of the premise to about 7% of our homes through the lightning build so we're talking about $14.3 million homes to be upgraded and the costs of about 100 pounds per premise and.

And lots of discussion around why are we doing this what does this mean for cable and DOCSIS is this costs really that low.

And let me start.

And we are finding everyone that Virgin is today, the undisputed speed leader on $15.5 million homes across the UK average customer speed and really of 200 megabits per second with the balance of the market around 40, megabits or so so speed matters and the U K and of course, that's why Bt's building fiber, but today the only pass about 10.

And the 15% of our on our footprint, we believe and we will be offering 1 gig services to our entire footprint and 5 short months from now so using the Olympic analogy, we all have our eye and advancing to the 10 meter diving platform. If you will over the next 7 years with 10 gigabit speed, but today, we're already standing on the 3 meter platform and the rest of the market.

Market and our view just as their toes and the water at the edge of the pool it doesn't matter how fast BT gets to 1 gig.

We'll always have an advantage, it's almost not a fair fight and all of that is attributable to the table and DOCSIS, which will be part of our network solution and the UK for a long kind of come we're not decommissioning our cable network quite the contrary.

We are simply expanding its capacity by pushing the fiber that's already there and the ground even closer to the customer and fact, that's why we can upgrade for a fraction of bt's costs already have fiber deep into the network and mostly urban markets and we have access to our own underground ducting that will require far less digging and thats the most expensive.

And for the same reasons upgrading the fiber is only marginally more expense of the DOCSIS for which is not the case and every market, but we made this decision pretty easy and the U K like everyone else, we will incur cost of connected dropped to the home, but that will be of variable cost based upon demand over time. It's also important to point out that these are gross capex costs. So.

And they don't take into account the expected revenue uplift that could occur here you can see some of those economic benefits outlines of the right side of this chart both.

Both dot just for and fiber to the premise will make our BDC and <unk> services more competitive that's clear, but given the marketing halo around fiber and that seems to be building up and the U K and the benefits of symmetrical.

Services to the enterprise market, we would argue that fiber probably has a slight advantage and will derive more value.

Similarly, while cable can do wholesale just look at telenet and the likelihood of deriving value from the 1 billion pound wholesale market and the U K, if we chose to do it.

And which is quite mature and busy is enhanced by an all fiber solutions and since we only.

Half of the country, it's safe to assume that wholesalers want to keep their technology platform simple and seamless across providers and of fiber solution does and of course and beyond those economic benefits of fiber to the premise and the U. K also provides greater confidence as we think through network expansion options beyond the steady lightning build today.

On the cover and we continue to evaluate debt opportunity to add an additional 7 million homes sort of of supercharge lightening. If you will and we're in good discussions with financial and strategic partners about what that might look like so stay tuned and now in light of the UK announcements I think it's important to stress that there is no direct read across to cable or other markets.

Day decision.

The truth is we have multiple paths to 10 gig and every market and we are evaluating the right path on a case by case basis of slide 8.

As out of how we're thinking about it across the <unk> approaches. The first of course is simply accessing someone else's fiber network, allowing us to avoid the capex associated with the upgrade.

<unk> and providing some measure of market rationality of others and are pursuing the same approach of Sunrise has successfully done this and Switzerland with the Swisscom wholesale arrangements. The negatives are costs are also clear, though you're foregoing owner economics and your most important product broadband and youre somewhat exposed of fluctuation and wholesale rates among other issues.

Obviously DOCSIS for will be of transformational technology development when it arrives and.

And it is a robust ecosystem of cable operators around the world, particularly in the U S. Supporting the innovation of the platform as we've seen and the transition from DOCSIS 2 to DOCSIS 3 and then the DOCSIS 3.1 and the costs are generally lower and of fiber.

Fiber solution as they build upon the existing platform before it and the rollout can be faster, but on the flip side.

DOCSIS does require a relatively substantial 1 time investment and the active and passive components of the network to enhance the spectrum capacity and speed. Each time you upgrade it's also not clear when the technology will be available for.

Initial exploitation, but we are part of the select group of operators working together to accelerate that timetable and then finally, while DOCSIS for will get us. The 10 gig. There is no current roadmap beyond that for a forecast for what it will cost to get to say 50 gig fiber sales both of those future issues of course.

And then our announcement today makes clear build.

<unk> fiber to the premise of real and accretive option for us in certain markets I've already mentioned the clear path to 50 gig speeds the benefits of symmetrical services, especially for the <unk> market and a significant opportunity that some markets offer around wholesale revenue for the price for that is higher from costs, which vary significantly by market the decision about which path, we'll take always comes.

For the few key questions.

Clear to us that we are likely to avail ourselves of all 3 options across our footprint and the varying degrees by market first of course is the competitive environment. What other operators are doing and are they building fiber how quickly second as I've. Just mentioned is the relative capex cost associated with each option.

And thats obvious.

We're starting to get interesting around the economic benefits that accrue from 1 approach to the other specifically the positive impact on the BDC and BTB competitiveness the <unk>.

<unk> and attractiveness of the wholesale market as a provider or a user and of course, the strategic and financial partnerships conform to support the plan I can share of that work is.

Comes down a well underway and every market and.

You're probably familiar with Telenet has announced discussions of <unk> upgrade Flanders to fiber overtime, Ireland looks a lot like the U K to us of <unk>.

<unk> is likely to be a hybrid approach and Holland is still in the early stages of analyzing the best plan, but of fiber deep DOCSIS for strategy might make the most sense there.

And the and as we've done and the U K, we're going to be extremely focused on optimizing the medium term and longer term ability to compete.

Grow and generate free cash flow as you'd make those decisions in every market now and my remarks on slide 9.

For the quick recap of how we intend to create value for shareholders from this point forward and it comes.

Comes down to 3 core pillars, if you will first and foremost.

And our focus of maximizing the value of our fixed mobile operations. These of the crown jewels of our business. We have worked hard to build scale and the number 1 and number 2 player in each country. So we can shape markets radically innovate and make the important strategic.

The decisions, they're going to underpin growth for years to come how will we do that.

<unk> already seen and Holland, and Belgium, and helps when you have of near term catalysts of synergies to kickstart growth and support cash flow longer term.

We also know that and increasingly competitive market convergence is working and drives cross selling upsell of reduces churn and the customers.

Year, nobody debates and anymore. The key is to stay rational and pricing and put the real effort into seamless digital experiences of heat customers coming back for more the.

The end game and every market and to generate distributable cash to the parent for free cash flow dividends recap whatever source, that's the metric that matters to us and thats the metric that.

That will fuel our model.

Now as we provide more visibility to our infrastructure and network strategies Youre going to see that these are largely offensive as of just gone through in many cases like the UK they come with significant strategic opportunities around the revenue streams network financing and strategic partnerships. Hopefully also a re rating of our business and then lastly.

<unk> and always look for ways to create demonstrable and transparent value either through asset sales like the potential sale of Poland and.

And possible public listening to and markets, where there is serious pent up demand for local telecom champions the.

The second major pillar is becoming too big and too important to ignore and Thats of course, our growing ventures portfolio.

For the focused investment strategy around tech content and infrastructure and markets and services that are adjacent to our core operations. We continue to create value whether thats benefiting from some smart early venture capital deals such as plume of skills are watching some larger positions like the ITV Univision of Formula E. Appreciate.

We're also excited about our move into infrastructure, where we have of real right to play.

Given our track record of telecom financing and M&A, all and all of the portfolio is valued at 3 billion, which I mentioned about $5 per share and is starting to realize cash returned has already returned $400 million for the parent by the way we've begun the process of monetizing hidden assets and our op.

Those like towers, and Holland, Belgium, and the U K and could add about $2 per share net of.

The adjustments in the op goes and that's not accounted for either of the ventures group, it's not and that portfolio or and our stock. So watch this space and then of the third pillar is our Levered equity model of which is unique and the European landscape.

Lance Cape and distinguishes us from mainstream telcos in Europe at the core of the strategy is the prudent use of leverage and our case for 2.5 times on the fixed rate currency hedged and siloed basis, and that creates the opportunity for recaps and greater equity appreciation you all know and understand that strategy, but we combine that with the strong stock buyback plan that Jessica.

Stronger today with our commitment to repurchase 10 per cent of our market cap annually for 3 years and again that means were adding $400 million for this year is $1 billion program only 3 quarters of which we've spent so far and we will seek to purchase 10% of the shares and 22 and 23. So that was a mouthful for me I know and.

Let me turn it over to Charlie.

Just gone and then we will get straight to your questions and look forward to addressing all of those shortly Charlie over to you.

Thanks, Mike.

The stocking by highlighting our strong performance in Q2, where we achieved revenue growth across all markets and consolidated revenue growth of 3.4%.

Now also the elements of the Covid recovery and areas like sports.

And broadcasting.

Has been very limited recovery and areas like roaming and.

And we're seeing positive underlying growth across all of our businesses the.

UK grew 4.4%, which includes the roughly 2% benefit from premium sports with continued strong conversion volumes and b to B performance driving growth.

Total debt also realized strong underline.

Underlying growth in Q2, because of the near 4% growth rate does benefit from of $30 million year over year improvements and broadcast revenues.

And as we guided earlier, Switzerland has returned to revenue growth fueled by continued strong mobile volumes DCP performance and our consumer business that continues to stabilize through positive broadband supplement.

Both Vodafone Zynga continues on the trend of strong financial growth posting of 3% year on year increase versus the prior year, which marks a milestone of 9 consecutive quarters of positive growth.

Q2 saw growth across all segments, including mobile on both the consumer and <unk> sides of the business as Covid drugs abated.

And the next slide we provide details of our adjusted EBITDA.

The cost to capture synergies continued to weigh on results and the UK and Switzerland.

Virgin Media performed in line with the prior year, despite $8 million of pre merger cost of the capture and it's worth noting that the recovery and premium sports revenues is offset by increased programming spend.

Yeah, given the credits that we received in Q2.2020.

The Swift performance continues to improve and a 3.1% decline is explained by $9 million of course, the capture and <unk>.

Other growth related investments and marketing and <unk>.

Synergy benefits of limited and the quarter. Despite the recent MBNA migration back to our own.

And year and as those savings will become apparent and half 2.

Tonnage growth rate was suppressed due to the acceleration of programming rights and the prior year period as large sporting events reported in the second quarter of 2020, the benefit of which we've seen in the Q1 results.

So taken together 10 of that achieved net 2% first half year EBITDA growth.

Net 1 and the Netherlands of 2% EBITDA decline was expected given the estimate of 21 million euro of impacts of Covid related temporary broadcast suspension and the nonrecurring settlement in Q2 of 2020.

And <unk> remains on track for full year guidance.

Focusing now on the OFC F. We presented a year to date view of our performance.

Illustrating the significant OFC of generation of our core businesses.

Despite the headwind of $58 million of cost of capture the consolidated group and of a 2.1% growth and the first half.

UK of FCS grew 2.3% and the first 5 months of the year and we reached the milestone of tuna Hoffman and lightning homes.

We continue to build efficiently and op cost per premise continues to trend lower delivery cost per home of 576 pounds and the quarter.

The Swiss team remains focused on the integration and incurred significant costs and the first half to achieve longer term synergy realization the $41 million of half 1 cost to capture.

<unk> helped lay the groundwork for future network migrations, it integration and the alignment of the product roadmaps, including the debate, although oses growth and Switzerland with otherwise have been positive.

And Belgium, Ospf declined around 1%, whilst in the Netherlands OFC after the 1.6% for the first half as we continue to invest and the network.

And we remain on track to have upgraded 80% of our footprint to 1 gig speeds by the end of the year.

Focusing on our core Liberty global performance metric of free cash flow, we delivered $717 million of free cash flow and half 1.

Our strong first half performance indicates we are on track for our full year guidance of $1.3 5.

But in.

Which represents 26% year on year growth with growth accelerating on a per share basis, as we continue to aggressively retire our stock.

As of July we've retired nearly 18 million shares since the year end 2019 and.

And the next slide illustrates our year to date by the performance.

And.

See as of July we repurchased $765 million.

Of Liberty Global scope as we approach our initial 1 billion total authorization.

As Mike announced with committed to repurchasing 10% of our market cap of the year over the next 3 years, which served to increase the <unk> 'twenty or 'twenty, 1 and buybacks of around $1.4 billion.

Supported by our significant free cash flow and our corporate liquidity, which includes a cash balance of $4.1 billion as of quarter and.

A bunch of portfolio is currently valued at $3 billion.

And which reflects the full color on 1 of the 19th which we completed in early Q2, and the continued monetization of our skills stake and we realized.

The <unk> million dollars per day.

During the quarter, we also announced the creation of Atlas and joint venture with digital colony utilizing our owned real estate to provide cloud providers streaming services and enterprises with high performance edge of network facilities through which they can distribute and low latency applications and services such as.

All of our AG gaming Iot and edge compute.

We expect that transaction to close in Q3 of 2021.

To conclude we are executing our FMC strategy across all markets with positive revenue growth of across our markets synergies of that as I sit and the U K and upgraded and Switzerland.

And the U K we're excited.

Pfizer announced of cost effective upgrades of full fiber by 2028, and we are increasing our buyback program for 2021, whilst committing to repurchasing 10% of our market cap annually over the next 3 years.

Finally, we are confirming all guidance targets, noting Virgin media of to manage and we're not part of the merger clean team and as such are and the process.

Starting to validating the combined business plan and with that operator, we'll take questions.

The question and answer session will be conducted electronically. If you would like to ask a question. Please do so by pressing star or <unk>, followed by the does the 1 on your phone and order to accommodate everyone. We request.

And that you ask only 1 question. If you are using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment.

We'll pause for a moment to give an opportunity to join the queue.

Okay.

All right. We'll go ahead and take our first question.

<unk> from David Wright with Bank of America.

Yeah.

Yeah.

Thank you very much for taking the questions.

Hey, Mike.

I'm going to begin with something.

Little bit more careful if you don't mind.

And the equity of your stock as Bina.

I'd say of disappoint.

Ointment now the glass CSC you guys.

Obviously reflected in some recent buyback for now the.

And you and John and I'm very frustrated with the Kalman equity net the valuations given.

And we've managed to do all of these deals recently without equity.

And right now and you're having to justify the space.

Big Capex spend and the U K to a market. That's very focused on short term cash flows et cetera. When you are confident and the long term value creation and that's exactly the I think the frustration the led alien zone as OPI nail. This morning to basically say well I don't need to deliver those short term cash flows and I know the raise.

And as long the value to be created and he's obviously made the move to buy the stock back in.

Do you ever find yourself sat around the table and you Charlie and and maybe John saying just you know why are we bothering with these equity capital markets why don't we just by the law and we can lever up and we can invest as we know best to.

So just throwing that out and then Mike look to know your thoughts.

Yeah.

And quite a curve ball.

But not what we expected to start the conversation with the thanks, David I appreciate the question.

And I understand the question and.

And surely every entrepreneur CEO of churn.

And create a company that feels like it's achieving more than the market is recognizing wonders about those sorts of things why wouldn't we on the other hand, I think it's important to point out debt we are in a way.

Buying out the public right when you buy $1 billion for stock this year and you agree to purchase another 10% of the market cap.

And not the market cap the share so if the stock rises we're still spending whatever it cost about 10% of the shares of so 1 analyst say well that's the only $1 billion for every year that assumes the stock doesn't move it's the number of shares of stock doubles, we're still buying stock.

That 10%. So we are in a sense doing what.

By the way, but perhaps in a more measured way and perhaps in a less expensive way.

And if you look back we have repurchased well over half of the company at varying prices, but generally prices that are less and today's price and for those shareholders, who believe and what youre doing it as a way of ensuring that they ride along with you.

And that slow go private if you will and if theres only 1 share remaining and when you own it and you've done well. So far we are in a sense doing the same thing, which is giving shareholders an opportunity to exit if they're frustrated and understanding what we do know about our business we're confident.

You are saying and putting our capital and our free cash flow to work to buy those shares so and that's all I'll say at this point.

Those 2 businesses and look at all piece and.

Look at Elia they have their own challenges and issues I don't think our shareholders would be thrilled if we put an offer out at 7 times EBITDA to take the company private.

And I think they'd accepted so those of unique circumstances, where perhaps those businesses have their own challenges that warrant those kinds of multiples I think our business is worth more I think most shareholders to understand that and those who don't wear and the market everyday buying stock.

And we'll take our next question from Robert Grindle with Deutsche Bank.

Okay.

Yes, hi, thanks, so much I was half expecting some guidance around the dividend from Virgin O..2 of the <unk> group free cash flow might be going but you've taken the the different approach by committing.

Buybacks, which you've just been talking about and can you.

And give us some back.

Backgrounds and the thinking behind this is it because youre not sure you asked about the funding for fiber.

Supercharged project Lightning, whether to go alone or with someone else or is the some of the rationale behind the this approach. Thanks.

And to hear but I think it's pretty straightforward Robert.

We have spent quite a bit of time, putting together, we believe of fixed mobile.

The group of a group of fixed mobile businesses that are strong.

And have great cash flow prospects and great strategic and competitive positions.

We also now have a very good handle on what the next 5 to 10 years of network and technology evolution means to those businesses and.

And we are increasingly confident about the value of those businesses and so it seems to us a good time to.

Put a stake and the ground and reinforce our commitment to the to the stock and the business.

As we know more and have a better a better understanding of what our future looks like so I'd say, it's it's not a defensive move quite the opposite it's an offensive decision to take advantage of what.

And leave is and undervalued.

Doc and to do and to show that confidence to investors of course by committing to a clear buyback strategy as opposed to and annual 1 where we let you know every 12 months of what we might or might not be doing secondly, I think it's helpful for investors.

<unk> when we can demonstrate our willingness to not just use free cash flow.

But also our cash balance and if our stock appreciates, which we fully expect it should.

We'll still buy back 10% of the of the of the shares and if that requires us to utilize cash.

As opposed.

Free cash flow to do that then we will do that and that's also I think of great statement of confidence plus it takes a bit of and overhang off.

And as it relates to those investors, who feel like we should be deploying cash more quickly.

I can't see anything, but good news and the statement it's not defensive.

It's hopefully something.

The just investors appreciate.

Our next question comes from Mike Hill, the Tony with J P. Morgan.

Yeah, Hi, good morning, Thanks for taking the question maybe I can focus on the use of it. Please.

You mentioned Mike.

And most of the Atmos.

Stage, the Virgin Media management team and not part of the budget process, obviously, they've not been in the position to update to some of their plans I was just wondering if you could comment on when we might expect that do we expect.

Expense over the next quarter and they're gonna be a standalone event, where they'll give us an update so you know how do we think about that and I guess more specific.

The key when we think about the U K.

There's a lot of moving parts as you outlined in your introduction.

And what you think of the biggest decisions and be the strict strategic things that need to be thought through by the management team and I guess, the 1 that we think about the law is the wholesale strategy. So maybe you can give us any sort of color on how you think.

And so for Liberty.

And so for Virgin sorry, that'd be great interest in too.

Sure I'll take the first 1 and then <unk>.

I'll ask him to address how the management teams coming together you know his the progress he has made and the organization and his commitment to the board of the joint venture.

About wholesale when he'll feel we've got a really good handle on next year and the years to come because lots of good work is happening there I think the biggest decisions in the U K should be pretty self evident.

And I've kind of directly or indirectly I mentioned some of those you know of course, if we're as we commit to and.

Invest in fiber.

For your for.

And the that and the balance of our footprint that isn't already fiber we want to be sure. We're focused on those things I listed on the right hand side of the slide <unk>.

Namely ensuring that we're getting the benefit of that investment and our b to C and <unk> businesses first and foremost.

Also though that we are examining.

The opportunities to work with financial and strategic partners and potentially.

The wholesale partners to further monetize and utilize net investment were.

We're specifically and by design not being.

Concrete about those plans today, because there's lots of work to do and lots of options to consider but.

5 of assume that we are.

Looking at this purely from an economic and and offensive point of view and we believe there are opportunities to explore the economic benefits that should derive from this network investment beyond simply being more competitive in the b to B and B to C space.

You should also have to look closely at our decisions going forward around network expansion.

And we've talked about on many calls and I think where we're taking 1 step at a time. This is obviously a first step.

But I think going forward, we will look very quickly at the.

And the potential too.

To expand the network beyond the current footprint and potentially do that with partners as well and an accretive way so lots of big decisions that I think.

The revolve around the network, but all of them and our mines.

Taken with the lens and you can.

You can bet that our partners of Telefonica and use the same lens of what valued.

Value does it create and what is the impact it will have on our cash flows and dividends. So we're being very I would say thoughtful about this and we're going to make decisions and the best interest of all parties, including and mostly concluding shareholders. Luke you want to talk about the management team and how youre coming together on the broader strategic and operational.

<unk> Yeah sure sure.

So we have 4 priorities and.

BMO tool.

1 is integrate true gross company.

And as Keith and accelerate the business momentum for.

Transformed the company into digital and force find the right.

And to the fixed network of extension.

Number 1.

And we had really a jumpstart so we have the top 100 of the organization of announced since the month and we.

Have been just sharing our plan for this year with our board yesterday. So obviously the board has to decide.

<unk> now and the minute. The board decides I think you would get the guidance, but I think what I can say is that this was very much in line with expectation for both shareholder.

We are working now on the new 3 years plan until October and after.

After that we'll get all the board approval and the.

Sure the outlined with you guys and also we have already re confirmed.

And that the team is able to get to the 540 million run rate synergies like when we do this already because we spent quite a lot of time on and.

The pre merger activities.

So we built on a pretty strong foundation here.

Business momentum I think you've seen our momentum right I mean, and Q2 numbers look look at our competitors look at what we are doing so we are approaching these integration with strong business momentum both across mobile and fixed digital.

I think it's a we shouldn't touch it now.

And I'm sure, we'll find some time and we will transform our business entirely into digital and that's sort of an expansion I mean, its the right Mike Mike said it it's the big step it's an offensive move when the business process and now we talk about finding the right solutions.

And for these additional 7 million homes find the right balance how to invest our capital into 5 G and for capacity.

And find the right partner and model and so a lot to do good stopped with the momentum.

Back to you and Mike.

Okay. Thanks, guys.

Solutions will go ahead and take our next question from Macquarie All of Society Generale.

Yeah morning, everybody could I got a bunch of the wholesale strategy. Please Mike I mean, there's risks with this as well so.

And you're confident you can protect the high of 2 retail subs. If you were to do the have you sold through that yet obviously.

But have you could you share with us some thoughts from the U K business online and any any conversations of Tau with Ofcom and could I can I just clarify when you're talking about the wholesale you are including the cable.

HFC network to wholesale as well or is it just the incremental fiber parts of the network. Thanks very much.

Look it doesn't really good questions Nick and.

I'd love to dig to walk you through the.

The exhaust is the amount of analysis that we've done and both the Liberty and the Virgin Media O 2 and telefonica levels around all of this but I prefer not to and think it's safe to say that if we were to.

And enter into any sort of wholesale provider.

Provider arrangements or consider that as a long term strategy than we would have thought through the impact on our Peru, the regulatory impact and.

And the best technology solutions to achieve that better to not get into.

Such detailed today and you know.

And the announcement, there's plenty to 2.2 and digest for investors and we want to focus on explaining how we got there and how we will achieve that but.

But I think it's safe to say, we have lots of time to think through how we are.

And exploit and monetize that commitment beyond.

To my benefits to our own business and I would just give us a little time to you know to.

To finish those.

The considerations and the and you will certainly have plenty to talk about over the course of the next few quarters.

Sorry to be evasive, but I just think it's a slippery slope, we could get into a lot of detail that's probably not helpful. Here no understood. Thanks, Mike.

And you got it.

We'll take our next question from Steve Malcolm with Redburn.

Yeah. Good afternoon, guys just just on the the U K fiber plans can you maybe just help us understand what is so unique about the UK network I should know the softer of million Euro is doing and as Joe, but I honestly don't.

Allows you to build such a low cost relative to other networks, so and I guess sort of the second part is in euros.

And it's probably talked about and I presume you don't think of any construction required and so what was it you completed the fibers.

Directly and school with docs for all of it.

Customers and I guess alongside that of the project Lightning experience hasn't been seamless and the last 6 years, so and what lessons of.

You learn what confidence can you give us the the targets you set out yesterday aren't going to be the numbers you actually do that'd be great. Thanks.

Well, let you can you can prepare and henrique a little bit more color on why the we believe the numbers.

To be of course accurate and as you point out.

Expensive than our peers and let me just make a comment on project lightning.

We have been rebuilt 2 and a half million homes at this point I think the you referenced to.

The slippage goes back 5 years, maybe for quite a while ago.

Since that early moment and.

Let's grab that it's very early moment, it had been and machine and we have been extremely effective consistent and predictable in our execution of our network expansion in the U K, our returns and our penetration rates have been exactly what we said they would be.

And our.

Our capital costs have come down consistently as we ask S. P. A a and we get smarter and better at it and.

And executing on this large construction project together with suppliers. So I don't think we have any I think we are as active and successful and predictable as <unk>.

And I would just say market and you can just talk to the suppliers that we work with to confirm that our ability of our credibility or ability to achieve this and Mike in my opinion is.

Sound and really not that questionable, but Lucerne henriques, and you're welcome to dive a little bit more into the detail around 100 pounds, if you'd like to.

Yeah.

And you'd be only of your stops right Yeah sure I'll just make a couple of comments.

First of all of the the the number is the obviously on average over you know quite of a few different scenarios, but in the case of this.

This project the <unk>.

Majority of the.

And the process actually uses of our existing box and all of our existing fiber.

5 of deep DOCSIS network allows us to really focus the upgrade capital.

Basically on the significant portion of the passive part of the network there are construction and you're asking your question.

Maybe the.

The because theres no construction cost of our construction costs, but it's significantly lower than when you were building a brand new territory like we are doing and the.

The light at the end of the final point I would make is that.

The significant commonality between both of the technology as well of the.

The construction mechanisms between lightning and what we'll be doing it.

And the substrate, so we're pretty confident.

The way that we understand the the process and that we will hit those targets.

The follow up Mike I think you said the Openreach is net cost of about 10.

And you know the per cent of your network with fiber can you, maybe just update us what youre seeing where they have passed with fiber are you seeing the cyclical change and the sort of customer onboarding and all of Florida dynamics and those areas.

Lutz you can address that.

Yeah. So I mean, you've also seen a steep that the new.

New wholesale prices.

Announced and will kick in and for 1 gig debt to stand and 22 pounds today right. The fiber prices are very very high and we watch it very carefully but look at our net debt.

So we don't see and impact at all at the moment will debt.

And stay the same no because we think that Ah right. If the prices for higher speeds will go down a bit we would see a bit more competition here, but the on the other hang tight like we have for no more than 40 per cent of our fixed customers, having lots of mobile with us and that will help all sorts of approach it and protect our customers from trung.

The other point I'd make is.

We are already 1 gig.

Pretty much and we'll be at the end of this year, 1 gig of capable across 100 per cent of our subscriber base.

And it isn't as if the T or any.

Openreach customer will be providing a superior product to us.

It's really a me too product and we're going to have the advantage of being there first.

Across the entirety of our footprint and we will be marketing aggressively both fixed and mobile products as well as 1 gig products well ahead of the vast majority of these operators because we're already there.

What I meant.

Said you know, it's not a fair fight because of BT is building to get to 1 gig we're already 1 gig.

And we're just basically further supercharging our networks for the next 10 years by ensuring that we will have symmetrical 10 gig when and if that market requires it so.

Hard to see us not being able to compete.

When I say any activity from BT openreach, given the fact that we're and so.

And so far ahead of them as we sit here today.

The 1 gig part of it.

And thank you.

We'll take our next question from Matthew Harrigan with benchmark.

Oh, thank you.

Another angle and on fiber 1 of your large U S peers.

Most of more of a parallel network topology of approach and it sounds like what Youre doing global more complicated so you've seen the other lumpy the analogy I hope it doesn't get the Simone Biles twist isn't on the execution because it sounds a little involved but the other thing and.

Oh interesting on the U S peer, what's even though they have annoying homes passed I mean, they didn't even call out the cost of operating of simultaneously with over 1 million homes passed because the cost of fiber were so low, albeit it was less.

For some 5% capacity can you talk about the cost.

It was real and fiber I know sort of the victim, but some people as you're going to get about 30% reductions and consumer touch cost and related Capex and then secondly on the ventures portfolio, you've got a couple of things of that.

Alright.

The valuation of your carrying is probably pretty safe and saying you've got a couple.

The savings it would probably have a lot of sort of Kathy would type of appeal. If there was the flotation something with Formula E. G as well as the computing could you talk specifically about some of the possibilities around formula E and whether it's the complement or displacements of formula 1. Thank you.

Sure Matt.

The thing.

I think I think Enrique wood.

The echoes of comment that if the fiber network could easily and should reduce operating costs over the long haul I think it's important to point out, though and the U K, we're not decommissioning of the cable network, we're going to continue to utilize the DOCSIS 3.1 plant and it took us all the way the 2.2 gigabyte.

Goodbye and so we'll be at 2 gig pretty shortly here on the DOCSIS plant and we will continue to utilize that plant wherever and whenever necessary with the fiber really being and overlay as opposed to of replacement.

<unk>.

And of the coax network that were of the HFC component of.

Anyway, they will share of tons of fiber to the for the cabinet. If you will but beyond that will keep the HFC network viable. So the cost will be there shouldn't be cost savings long term and capex savings long term, but I think you have to remember the those annual costs and as you may not be credit is going to be and on the venture side, there's lots of assets within ventures.

Or is.

That could easily find their way into the hands of other strategic owners of Ipos et cetera, we have at least 8 to 10 unicorns and the tech portfolio, which is about 800 million of the $3 billion and we have some relatively large businesses and the content portfolio. You mentioned, 1 formula eat, but we have the stake in ITV which.

Of the network relatively low basis and all.

Both the media and some other assets and so each of those have their own sort of storyline and opportunity and the formula E is doing terrific and its seventh season.

Coming back strong from Covid with some really exciting things happening with the car and the technology next.

We have of Who's got Mercedes Porsche Oh, the right now of manufacturers getting behind it and the product just gets better and better.

With the with it I think we've got another 18 years of exclusivity with FIA on electric car racing. So it's gonna be terrific to see how that platform evolves over and over the long.

Next year, we're always looking at ways to help our portfolio of companies achieve their goals, whether that's through for locations or mergers or whatever of fundraising. So stay tuned we'll give you more information on those assets as they evolve.

And over time or are you more likely to have the mobile traffic on the on the HFC network and some of the emergence of.

Hall and Newton.

And also do some Cisco and others or is that going to be on the on the fiber.

And that work if you don't mind My Al's group.

Well, we do backhaul today, and which can speak about that we provide quite a bit of backhaul services to almost all of the mobile operators and U K, including will do so for O 2 typically utilize and fiber.

But I don't know if theres some the other element to that and regain and Lutz you want if you want you can do it over both but generally speaking of the circuits are fiber.

Yes, the the mobile traffic is mostly on the program of work and we will continue to.

For growing that direction if there.

There may be optimistic of cases.

And which we use the portion of the HFC network, but it's really the F of HFC that it's being the other issue.

Great. Thanks, Mike Thanks for the Richard.

Yeah.

Our next question comes from Andrew Beale with Arete research.

Oh, Hi, I'm, just wondering if we can develop.

The discussion about longest time fly the cost savings and and Virgin.

And as you blow of all.

And the pool of Fiverr alongside the existing HFC network will correct.

I guess you can choose what are you sort of each existing or new customer of on DOCSIS for fiber.

And then the longer term you've got this opex saving when you switched.

Switch the docs itself.

So what is your thinking of the amendment, what do you put all the new customers who.

Upgraded on the fiber or do you just do it for the customer seeking of certain high speed.

Or symmetrical or other side of it services and then how many years off for you thinking it is that you'd actually switch of DOCSIS and and area.

The you previously passed with fiber.

I guess I'm, just really asking about the the pacing of variable capex for replacing the current strokes with fiber for us as the long term opex savings opportunity and what you're thinking of is not.

Yeah. It's it's the right question and I think it's little early for us to provide any guidance around.

What percent of customers will require or want of fiber connection and the cost implications of of that but you should assume we're working that through we have worked that through but for in terms of disclosing that I think it's a little premature.

I don't know Enrique and Lutz can chime in here I think the cable network.

<unk> will exist for quite some time.

And it will provide us with seamless the ability to serve customers, who don't require either of the benefits of the fiber network of the speed and capacity of the fiber network. That's a nice luxury to have but we can get people up the 2 gigabytes.

On the existing.

Net.

And so that's the basic strategy you know as we get as we go and move forward here and the the idea of sort of further disclosure and Virgin media owe choose plan when when it's developed maybe we'll do that will take some time on 1 of our future quarterly calls and really dive deep ease a little a little early to do that for the public today, but.

And.

The plant Youre on the right point in terms of of what percent of customers will require a drop and the new CPE and how quickly will that happen you know and you can make your own assumptions about that we certainly have but I think it's too early for us to put that in and the publix and the public debt.

I mean go ahead.

So first of all we are we are in the luxury.

The unique vision right that we can plan the migration predominantly customer demand driven and that means across the mother and wants to have ISP then to go up 2 gigabyte per second.

And Mike said at the beginning today of Virgin media across the months using 2 of net.

And it looks like.

And we put out as to the 2 gigabit per second right. So that will take some time that's number 1 number 2 we ask the luxury to have well in 1 area. We can have 1 home then on fiber and the next tool. We can have on DOCSIS 3.1 and so we are not forced to really migrate entire regions onto fiber.

And.

I think number 3 obviously over time.

We want to all of our balanced approach to really use the capacity of the fiber net book and balance with the $3.1 of.

And that's about right. So these are the factors and.

And as Mike said earlier right the biggest driver for office and not the cost saving with switching often.

The network right when you sit on a corporate network and and of stories 80 back then you have to think about the ritual when you sit and sit on the DOCSIS network and.

And today, we see easily and we get to the 2 the 2 gigabit per second and then you you absolutely want to leverage both networks, what's driving it is the business opportunity.

Pizza across consumer and the to be huge growth opportunity and to you and you think about our market share is below 10%. We have more of a 5 day network and the fiber network.

And lots of things of possible and then the wholesale channel so.

So I think stay tuned on that.

Okay. Thank you.

Yeah.

We'll take our next question for Mr. James Ratcliffe with Evercore ISI.

Alright, and 2 if I could first of all I noticed you the boosted the synergy expectations and Switzerland, and because of some additional cost to achieve how does that affect the timeframe for <unk> for seeing the cost of achievers of synergies.

And are just flipped positive in that market and secondly, just going back to the buyback.

Can you talk about the thought process around doing is as a percentage of market cap rather than say, a fixed dollar amount or free cash flow plus of given dollar amount because and this has the effect of the more stock goes up the more you'd be buying back.

Jack Thanks.

Yeah, I'll take the buyback question, obviously and.

Andre if you want to prepare some thoughts around the Swiss question.

I want to make sure I'm following what you are saying James.

Let me clarify what we're what we're committing to which is to repurchase 10% of the shares outstanding.

The beginning of the year regardless of price.

You know over the next 24 months, so the amount of the buyback.

For the dollar amount of that spend will vary depending upon the price and thats. It.

It doesn't mean, we couldn't accelerate that if the price were.

The lower to perhaps take and anticipate 1 of your follow up questions.

But we would continue to commit to that if the price were higher and therefore seems to us debt were.

<unk> now will be able to incorporate into their thinking around.

The stock price.

And growth and minimum of a 10% improvement and the share price. We hope based upon the buyback commitment. We've made so it seems to us to be and easier and more predictable.

And more beneficial approach to buyback and meaning that we're committing to that 10% number and.

If it were a dollar figure hard to know what that impact would be right.

Got it.

Yep.

Hey.

Yeah, well on your question does the higher synergy expectation has an impact on the timescale of realization.

No it doesn't and so we actually have seen that some of.

And the assumption that we have taken on the realization of moving customers over to own infrastructure from the old by infrastructure, where more conservatives and would be seeing is no realistic to achieve and.

That does not really change the timeframe and in fact.

And then some synergies coming and even a bit earlier, you've seen in the presentation of that.

Adding to the.

The Nbn migration being executed ahead of schedule and overall I would say we are kind of rather ahead of schedule them behind and so no real change to the timescale.

Thank you.

Yeah.

We'll go ahead and take our operators question from Gulfport.

And I'll go ahead of Brexit wasn't sure what's happening.

Well go ahead and take our next question from Ulrich Rathe with Jefferies.

Thanks.

Thanks, very much I have a question and then probably the 2 lots.

Does the the fiber.

Great plan.

Ah require and footprint share gains and the consumer market and I understand the opportunities.

Beyond that but in terms of literally the day that the consumer market.

And then.

And to hear that you think of them you can up the share the market share of thank you.

Yeah.

Well I mean, we are currently winning market share right was the speed advantage and.

And we have not made any plan and get.

And then other kind of market share and we are planning to win over the next 10 years, and we have and justifies the plan by a win of a market share and consumer.

And I said early on we have just started now after the call.

Omitting the budget for 'twenty, 1 and.

To come up with the 3 year plan.

And beyond and and then we are working on debt, but it's.

Definitely an opportunity to.

Keep our customers and also to increase our share of wallet, so offshore per home with our customer because if we keep winning market share to the SB do today.

And at some time to figure.

Net that off.

Okay.

I'd like to now pass.

The call back to Mike Fries.

Okay. Thank you listen I appreciate you.

Down with US I know, there's other calls happened and today and so you probably already on your way.

But looking at for key takeaways from my point of view growth continues and our FMC champions and synergies are just now starting to show up so that's going to be a positive tailwind here and and in the medium term.

We're excited to start providing greater transparency around our network strategies with the U K being the first of those announcements.

And I can assure you we're looking at these things through and offensive and accretive lens.

And we have the luxury of doing that because we have such of fiber rich network to begin with and a strong of broadband base as we sit here today pay attention to the venture portfolio, it's growing and value of significance.

And we will keep you posted on.

Steel, which you just another reaffirmation of the private market value of our businesses and lastly, you know we're excited about the buyback commitment at the strong statement from us.

I think that's something you can take to the bank if you will.

The next this year and for the next 2 years and Thats got to be useful for investors, who want to see us deploy capital in and.

And the poll the most obvious places and that is our own share. So I. Appreciate you joining we'll speak to you soon have a great August bye bye.

Ladies and gentlemen, this concludes Liberty and Liberty Global second quarter 2021, Investor call as a reminder of REIT.

Play of the call will be available and the Investor Relations section of Liberty Global's website.

And 1 of the also find a copy of today's presentation materials.