Q1 2025 Liberty Global PLC Earnings Call

May 2, 2025

Thank you.

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Okay.

Operator: Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Liberty Global's Q1 2025 Investor Call. This call and the associated webcast are the property of Liberty Global. Any redistribution, retransmission, or rebroadcast of this call or webcast in any form, without the express written consent of Liberty Global is strictly prohibited. At this time, all participants are in a listen-only mode. Today's formal presentation materials can be found under the investor relations section of Liberty Global's website at libertyglobal.com. After today's formal presentation, instructions will be given for a question and answer session. Page 2 of the slides details the company's safe harbor statement regarding forward-looking statements.

Operator: Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Liberty Global's Q1 2025 Investor Call. This call and the associated webcast are the property of Liberty Global. Any redistribution, retransmission, or rebroadcast of this call or webcast in any form, without the express written consent of Liberty Global is strictly prohibited. At this time, all participants are in a listen-only mode. Today's formal presentation materials can be found under the investor relations section of Liberty Global's website at libertyglobal.com. After today's formal presentation, instructions will be given for a question and answer session. Page two of the slides details the company's safe harbor statement regarding forward-looking statements.

Good morning, ladies and gentlemen, and thank you for saying the bi.

Welcome to Liberty Global's first quarter 2025 investor call.

This call and the associated webcast are the property of Liberty global and any redistribution retransmission or rebroadcast of this call or webcast in any form without the expressed written consent of Liberty global is strictly prohibited.

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

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

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

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

Operator: Today's presentation may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the company's expectations with respect to its outlook and future growth prospects, and other information and statements that are not historical fact. These forward-looking statements involve certain risks that could cause actual results to differ materially from those expressed or implied by these statements. These risks include those detailed in Liberty Global's filings with the Securities and Exchange Commission, including its most recently filed Forms 10-Q and 10-K, as amended. Liberty Global disclaims any obligation to update any of these forward-looking statements to reflect any change in its expectations or in the conditions on which any such statement is based. I would now like to turn the call over to Mr. Mike Fries.

This presentation may include forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 <unk>.

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.

These risks include those detailed in Liberty Global's filings with the Securities and Exchange Commission, including its most recently filed forms 10-Q and 10-K as amended.

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

Mike Fries: I would now like to turn the call over to Mr. Mike Fries.

Mike Fries: Great, and welcome everyone. Thanks for joining our Q1 investor call. We've got a lot of ground to cover, so we'll jump right into prepared remarks. Of course, after that, we look forward to your questions, where I'll get members of our management team engaged as needed. Just a reminder that we'll be working off of slides today, which those of you on the webcast should be able to see now. At least we hope so. If not, they're always available on our website. I'll kick off on slide 3 with a few broad observations. As you'll remember, 15 months ago on this call, we outlined a strategic plan that was focused on creating value and just as importantly, finding ways to deliver that value to our shareholders.

Mike Fries: Great, and welcome everyone. Thanks for joining our Q1 investor call. We've got a lot of ground to cover, so we'll jump right into prepared remarks. Of course, after that, we look forward to your questions, where I'll get members of our management team engaged as needed. Just a reminder that we'll be working off of slides today, which those of you on the webcast should be able to see now. At least we hope so. If not, they're always available on our website. I'll kick off on slide three with a few broad observations. As you'll remember, 15 months ago on this call, we outlined a strategic plan that was focused on creating value and just as importantly, finding ways to deliver that value to our shareholders.

Mike Fries: And welcome everyone and thanks for joining our first quarter Investor call.

Mike Fries: There are a lot of ground to cover so we'll jump right into prepared remarks of course after that we look forward to your questions. We're all good members of our management team engaged as needed just to remind you that we'll be working off of slides today, which those of you on the webcast should be able to see now at least we hope show if not they're always available on our website. So I'll kick off on slide three with a few.

Mike Fries: Broad observations as Youll remember 15 months ago on this call we outlined a strategic plan that was focused on creating value and just as importantly, finding ways to deliver that value to our shareholders. The tax free spinoff of summarized this past November which continues to trade well in the Swiss market was the first big dividend.

Mike Fries: The tax-free spin-off of Sunrise this past November, which continues to trade well in the Swiss market, was the first big dividend from that plan, but not our only achievement. Just a few months ago on our year-end call, we reviewed progress across the balance of those strategic initiatives and presented the tactical steps we're taking now to create value on our three core platforms, Liberty Telecom, Liberty Growth, and Liberty Services. Now, the first takeaway from this call is that the team and I remain fully committed to those goals, and we're making solid progress across the board. That includes driving commercial momentum and network upgrades in our increasingly competitive telecom markets, optimizing our corporate structure and services platforms, and with $2.1 billion of cash on hand and a further $500 to 750 million of asset sales planned this year, continuing to be smart about capital allocation.

Mike Fries: From that plan.

Mike Fries: But not our only achievement just a few months ago on our year end call. We reviewed progress across the balance of those strategic initiatives and presented the tactical steps, we're taking now to create value in our three core platforms Liberty Telecom everybody growth Liberty services.

Mike Fries: The first takeaway from this call that the team and I remain fully committed to those goals and we're making solid progress across the board that includes driving commercial momentum and network upgrades in our increasingly competitive telecom markets optimizing our corporate structure and services platforms.

Mike Fries: And with to put $1 billion of cash on hand, and a further $500 million to $750 million of asset sales plan. This year.

Mike Fries: <unk> to be smart about capital allocation. So let's go through it one by one beginning with Liberty Telecom on slide four where the value creation opportunity is substantial and the strategy is clear.

Mike Fries: Let's go through it one by one. Beginning with Liberty Telecom on slide 4, where the value creation opportunity is substantial and the strategy is clear. Wherever and whenever possible, we intend to pursue transactions or opportunities that crystallize and deliver value to shareholders in the medium term. Remember, Sunrise, as part of Liberty Global, was valued at around 5.5 times EBITDA. As a standalone Swiss company, it's now trading at over 8 times EBITDA, or the equivalent of $11 per Liberty share. Basically equal to our current market cap. Sunrise is only 10% of our aggregate EBITDA. Now, we're not saying we can do that in every case, but there are multiple opportunities for value creation at the level of our operating companies, which still comprise 4 markets, 80 million connections, $22 billion of aggregate revenue, and $8 billion of aggregate EBITDA.

Mike Fries: Let's go through it one by one. Beginning with Liberty Telecom on slide four, where the value creation opportunity is substantial and the strategy is clear. Wherever and whenever possible, we intend to pursue transactions or opportunities that crystallize and deliver value to shareholders in the medium term. Remember, Sunrise, as part of Liberty Global, was valued at around 5.5 times EBITDA. As a standalone Swiss company, it's now trading at over 8 times EBITDA, or the equivalent of $11 per Liberty share. Basically equal to our current market cap. Sunrise is only 10% of our aggregate EBITDA. Now, we're not saying we can do that in every case, but there are multiple opportunities for value creation at the level of our operating companies, which still comprise four markets, 80 million connections, $22 billion of aggregate revenue, and $8 billion of aggregate EBITDA.

Mike Fries: And whenever possible, we intend to pursue transactions or opportunities that crystallize and deliver value to shareholders in the medium term.

Mike Fries: Sunrise as part of Liberty Global was valued at around five five times EBITDA as a standalone Swiss companies now trading at over eight times EBITDA or the equivalent of $11 per liberty share. So basically equal to our current market cap and Sunrise was only 10% of our aggregate EBITDA and we're not saying we can do that in every case.

Mike Fries: But there are multiple opportunities for value creation at the level of our operating companies, which still comprise four markets 80 million connections 22 billion of aggregate revenue and 8 billion of aggregate EBITDA.

Mike Fries: We have a lot to work with, and we're focused on three near-term tactical goals for Liberty Telecom. The first is to finance and monetize network infrastructure where we can do that. As we've discussed, the rationale for this varies by market. We know fixed infrastructure in Europe is a highly sought-after and valuable asset class. Where possible, we're seeking to raise capital at higher multiples, accelerate or strengthen network upgrades and rollouts, and create strategic platforms for market rationalization. That's exactly what we believe we're achieving in Belgium. The creation of our NetCo, which we call Wyre, has allowed us to develop an exclusive wholesale relationship with Orange. It's allowed us to secure attractive CapEx financing for our fiber upgrade, and it's allowed us to enter into strategic discussions with the incumbent Proximus around network sharing, which are progressing quite well, actually.

Mike Fries: So we have a lot to work with and we're focused on three near term tactical go for Liberty Telecom.

Mike Fries: First is the finance and monetize network infrastructure, where we can do that and as we've discussed the rationale for this varies by market, but we know fixed infrastructure in Europe is a highly sought after and valuable asset class, so where possible we're seeking to raise capital at higher multiples accelerate or strengthen network upgrades and rollouts.

Mike Fries: And create strategic platforms for market rationalization, that's exactly what we believe we're achieving in Belgium.

Mike Fries: Creation of our net co, which we call wire has allowed us to develop an exclusive wholesale relationship with Orange, it's allowed us to secure attractive capex financing for our fiber upgrades and it's allowed us to enter into strategic discussions with the incumbent proximity around network sharing which are progressing quite well actually and then ultimately it's going to allow us to.

Mike Fries: Ultimately, it's going to allow us to facilitate bringing equity partners into the platform on highly accretive terms. In Ireland, our fiber upgrade will reach 80% of our footprint by the end of this year and has already improved our competitiveness. It's allowed us to enter into wholesale arrangements with both Sky and Vodafone, generating new revenue streams, and it's reshaped the market in our favor. In the UK, we are confirming today that we have paused our NetCo plans at the VMO2 level in order to align with Telefónica's announced strategic review. At the same time, nexfibre has updated its plans and will now target 2.5 million fiber homes by year-end on a cumulative basis. Let me say first that we pride ourselves on being good partners, and we appreciate and understand Telefónica's position.

Tate, bringing equity partners into the platform on highly accretive terms.

Mike Fries: In Ireland, our fiber upgrade will reach 80% of our footprint by the end of this year and has already improved our competitiveness. It's allowed us to enter into wholesale arrangements with both sky and Vodafone generating new revenue streams and its reshape the market in our favor.

Mike Fries: In the U K, we are confirming today that we have paused our net co plans at the V. M O two level in order to align with Telefonica has announced strategic review at.

Mike Fries: At the same time next fiber has updated its plans and will now target $2 5 million fiber homes by year end on a cumulative basis.

Mike Fries: Let me say first that we pride ourselves on being good partners and we appreciate and understand telephone exposition undoubtedly we have more to say, but all of this as the year unfolds in the meantime, there are multiple ways to continue to strengthen <unk> competitive position in the U K our services already reached seven.

Mike Fries: Undoubtedly, we have more to say about all of this as the year unfolds. In the meantime, there are multiple ways to continue to strengthen VMO2's competitive position in the UK. Our services already reach 7 million fiber homes, and for reference, VMO2 achieved record sales and net adds last month on the nexfibre footprint. Stay tuned here. In the Netherlands, Stephen van Rooyen has made significant progress on a new strategic plan. You'll hear about that just in a moment. One element of that plan is a double down on DOCSIS 4.0 and the evolution of our broadband network, which resolves the outstanding question on some of your minds as to whether we need to build fiber in the Netherlands, and the answer is no.

Mike Fries: Fiber homes and for reference venmo to achieve record sales and net adds last month on the next fiber footprint. So stay tuned here.

Speaker Change: In the Netherlands Stevens, our ROI and have made significant progress on our new strategic plan and you hear about that just in a moment.

One element of that plan is to double down on DOCSIS, four <unk> and the evolution of our broadband network, which resolves the outstanding question on some of your minds as to whether we need to build fiber in the Netherlands and the answer is no.

Mike Fries: The second tactical goal on this slide is to organize our strategic and operating plans in a way that delivers long-term free cash flow growth and allows us to begin deleveraging over time. The Sunrise spin reaffirmed the fact that stable free cash flow and more modest leverage are catalysts for value creation. Charlie will have more to say about this in a moment, but we are constantly focused on the balance sheet of our operating companies, having refinanced all 2027 maturities in the last 12 months. We just, in this past quarter, extended a further EUR 500 million of Telenet's debt at rates in line with historical spreads. We're sensitive to the fact that our leverage in some cases is above our targets.

Speaker Change: The second tactical go on this slide is to organize our strategic and operating plans in a way that delivers long term free cash flow growth and allows us to begin deleveraging over time.

Speaker Change: The Sunrise spin reaffirm the fact that stable free cash flow and more modest leverage are catalysts for value creation that Charlie will have more to say about this in a moment, but we are constantly focused on the balance sheet of our operating companies, having refinanced all 2027 maturities in the last 12 months.

Speaker Change: And we've just been this past quarter extended a further 500 million euros of telenet debt at rates in line with historical spreads.

Speaker Change: Now we're sensitive to the fact that our leverage in some cases above our targets. It is why we've announced for example, the sale of our Dutch towers, and then we intend to use those proceeds to pay down debt.

Mike Fries: That is why we've announced, for example, the sale of our Dutch towers, and then we intend to use those proceeds to pay down debt. Finally, and perhaps most importantly, it's imperative that we continue to drive commercial momentum across our businesses. Every market is different, of course, but competitive intensity is increasing wherever we operate. This is the nature of our sector today. In addition to stabilizing our network strategies, we're finding across the footprint that three core things are working well. Wherever we operate, we are supporting customer acquisition with flanker brands that target different segments of the market. giffgaff is a strong complement to the O2 brand in the UK, and we've just launched a broadband proposition to this growing customer segment.

Speaker Change: Finally, and perhaps most importantly, it's imperative that we continue to drive commercial momentum across our businesses.

Speaker Change: Every market is different of course, a competitive intensity is increasing wherever we operate this is the nature of our sector today.

Speaker Change: In addition to stabilizing the network strategies, we're finding across the footprint that three core things are working well.

Speaker Change: We operate we are supporting customer acquisition with flanker brands at target different segments of the market.

Speaker Change: If gas is a strong complement to the <unk> brand in the U K and we've just launched a broadband proposition this growing customer segment.

Mike Fries: Holland, in the Netherlands, was just awarded the best mobile provider, and BASE in Belgium allows us to compete at the lower end of the market, as well as expand into the south, where we see great opportunity for mobile and broadband growth. In every market, we are hyper-focused on base management and retention. This includes things like strengthening the value of our loyalty programs to drive stickiness and support cross-sell and up-sell. In markets like the UK, we're growing ARPU with AI tools that dynamically and proactively address customer contracts churn. We're hardening our base with things like a 25% speed increase in Holland and check and smile service programs in Belgium. Lastly, we're sharpening our competitive positioning with new packaging and pricing. VMO2 just refreshed its mobile portfolio with better airtime rates and multi-SIM offerings.

Speaker Change: In the Netherlands, with just awarded the best mobile provider in base in Belgium allows us to compete at the lower end of the market as well as expand into the south where we see great opportunity for mobile and broadband growth.

Speaker Change: And every market we are hyper focused on base management and retention. This includes things like strengthening the value of our loyalty programs to drive stickiness and support cross sell and up sell in markets like the U K, we're growing <unk> with AI tools that dynamically and proactively address customer contracts insurance and.

Speaker Change: And we are hardening, our base with things like a 25% speed increase in Holland and checking smiles service programs in Belgium.

Speaker Change: And then lastly.

Speaker Change: We're sharpening our competitive positioning with new packaging and pricing vivo to just refreshed its mobile portfolio with better airtime rates in multistem offerings and as we'll discuss in a moment Vodafone Ziglar just lowered its front book to match KPN.

Mike Fries: As we'll discuss in a moment, VodafoneZiggo has just lowered its front book to match KPN. Now, many of these steps are laying the groundwork for greater reach, stronger sales, better retention, more ARPU, and higher quality of service, primarily over the medium term. While we do see green shoots in many markets today, competition for broadband and mobile customers remains intense. Generally, our Q1 subscriber and operating results on slide 5 reflect that. We saw stable broadband losses with a downtick in the UK, and we experienced weakness in postpaid mobile across all of our markets, with the exception of Holland. Now, these headwinds were offset by strong fixed ARPU growth nearly everywhere, reflecting price increases and the impact of the commercial initiatives I just referenced. Now turning to each market briefly.

Speaker Change: Now many of these steps are laying the groundwork for greater reach stronger sales better retention more our pool and high quality of service primarily over the medium term.

Speaker Change: While we do see green shoots in many markets today competition for broadband and mobile customers remains intense.

Speaker Change: Generally our Q1 subscriber in operating results on slide five reflect that we.

Speaker Change: We saw stable broadband losses with a downtick in the U K and we experienced weakness in postpaid mobile across all of our markets with the exception of all of these.

Speaker Change: These headwinds were offset by strong fixed ARPA growth nearly everywhere, reflecting price increases and the impact of the commercial initiatives I just referenced turning to each market briefly in the U K broadband net adds declined due to higher churn and higher overall market flux that was driven in part by one touch switched the new policy and aggressive.

Mike Fries: In the UK, broadband net adds declined due to higher churn and higher overall market flux. That was driven in part by One Touch Switch, the new policy, and aggressive Altnet offers. Lutz and the team are adapting the approach they're using to retention while continuing to focus on value with another quarter, as I said, of solid fixed ARPU growth. With over 2 million greenfield homes, there is significant growth opportunity remaining in the nexfibre footprint. Overall, the UK postpaid market remained relatively soft, with VMO2 impacted by B2B contract port outs, which are typically lower value, of course. Consumer net adds, on the other hand, improved year on year, and encouragingly, we saw stable O2 churn dynamics, and we continue to see giffgaff growth despite a competitive overall market with lots of MVNO activity.

Speaker Change: Net offers.

Speaker Change: And the team are adapting the approach they are using to retention while continue to focus on value with another quarter as I set a solid fixed ARPA growth.

Speaker Change: And with over 2 million Greenfield homes are a significant growth opportunity remaining in the next fiber footprint overall, the UK postpaid market remain relatively soft with BMO too impacted by B to B contract port outs, which are typically lower value of course.

Speaker Change: Consumer net adds on the other hand improve year on year and encouragingly, we saw stable Oh, two churn dynamics and we continued to see gift GAF growth. Despite a competitive overall market with lots of them you know activity, it's worth noting that mobile service revenue as reported by <unk> was up in the quarter year over year.

Mike Fries: It's worth noting that mobile service revenue, as reported by Virgin Media O2, was up in the quarter year over year. That was supported in part by a 2.6% uptick in mobile postpaid ARPU. Now turning to VodafoneZiggo, we continue to see an intensely competitive environment driven by promo offers from pretty much all the providers. We'll discuss in more detail in the next slide what we intend to do. In response to this, VodafoneZiggo launched new front book offers with simplified tiers and between a EUR 3 to 5 price reduction. That helps them better align to KPN pricing. We've already seen some benefits to churn as customers migrate. Postpaid mobile net adds in Holland were 29,000. That was driven by growth in B2B. While the mobile market is generally more rational than fixed, we still see lots of price competition in the no-frills segment.

Speaker Change: Important in part by a two 6% uptick in mobile postpaid ARPA.

Speaker Change: Turning to Vodafone zero, we continued to see an intensely competitive environment driven by promo offers from pretty much all of the providers, who will discuss in more detail in next slide what we intend to do but in response to this proposal to go launch New front book offers with simplified tiers and between a three to five year old price reduction and that helps them better aligned to KPN.

Speaker Change: Pricing.

Speaker Change: We've already seen some benefit to churn as customers migrate.

Speaker Change: Postpaid mobile net adds and how long were 29000 and that was driven by growth in <unk> and while the mobile market is generally a more rational than fixed we still see lots of price competition in the no frills segment in Belgium, we had a steady quarter compared to prior periods, where we continue to see traction with our base flanker brand in the south.

Mike Fries: In Belgium, we had a steady quarter compared to prior periods, where we continue to see traction with our BASE flanker brand in the south. The Telenet brand, we saw a successful Wi-Fi campaign during the quarter. We announced a price adjustment of around 3%, which took effect from April. The Belgium mobile market remains highly competitive, that's characterized by prolonged promotional activity and repriced offers from the main flanker brands. In response to this, we've successfully repositioned BASE as a counter to the launch of Digi, and that's driven improved performance in our flanker brand. Finally, the Irish broadband market is heating up around fiber, but we've seen churn improve as Virgin Media Ireland optimizes the customer retention process. During the quarter, we've also seen our wholesale growth through Sky and Vodafone starting to offset retail losses.

Speaker Change: Well ill tell that brand we saw successful Wi Fi campaign during the quarter, we announced a price adjustment of around 3%, which took effect from April the Belgian mobile market remains highly competitive.

Speaker Change: And that's characterized by prolonged promotional activity and re priced offers from the main flanker brands in response to this we successfully repositioned base as a counter to the launch of Digi and that's driven improved performance in our flanker brand and then finally, the Irish broadband market is heating up around fiber, but we've seen churn improve as Virgin media.

Speaker Change: Optimizes the customer retention process during the quarter. We've also seen our wholesale growth to sky and Vodafone starting to offset retail losses.

Mike Fries: Now, I'd like to spend a few moments on VodafoneZiggo. As you know, Stephen has been leading the charge for about six months. One of the main reasons that we and Vodafone hired Stephen was that we felt he could give us a clear-eyed assessment of the market, help us figure out VodafoneZiggo's true strengths and weaknesses, and then develop a plan to win again. That's exactly what he's done. On slide six, you'll see a very brief summary of the four key drivers he and the management team will use to regain commercial momentum in what is essentially a healthy three-player market. That's beginning with how they work. Specifically, that means simplifying processes, accelerating decision-making, and optimizing costs and efficiencies. This was long overdue and will also generate significant OpEx savings.

Speaker Change: Now, let me spend a few moments on Vodafone zero.

Speaker Change: As you know Stephen has been leading the charge for about six months one.

Speaker Change: One of the main reasons that we in Vodafone hired Steven was that we felt you could give us a clear eyed assessment of the market.

Speaker Change: Help us figure out Vodafone as it goes true strengths and weaknesses and develop a plan to win again and that's exactly what he's done.

Speaker Change: On slide six you'll see a very brief summary of the four key drivers he and the management team will use to regain commercial momentum in what is essentially a healthy three player market.

Speaker Change: Beginning with how they work.

Speaker Change: Specifically that means simplifying processes accelerating decision, making and optimizing costs and efficiencies. This was long overdue and will also generate significant opex savings second I think you correctly concluded that the Dutch market is driven by speed and price not necessarily technology we.

Mike Fries: Second, I think he has correctly concluded that the Dutch market is driven by speed and price, not necessarily technology. We have the highest ARPU in the market, so this is the right time to reposition pricing, which we've already started doing on the front book, as I just mentioned. Third, as I mentioned a moment ago, Dutch consumers value speed, price, and quality of service. On the fixed network, we're going to go all in on DOCSIS 4, which will take us to 8Gb speeds by the end of 2026 at a fraction of the cost to build fiber in this market. In the meantime, our current network configuration can get us to 2Gb, which we'll accelerate.

Mike Fries: Second, I think he has correctly concluded that the Dutch market is driven by speed and price, not necessarily technology. We have the highest ARPU in the market, so this is the right time to reposition pricing, which we've already started doing on the front book, as I just mentioned. Third, as I mentioned a moment ago, Dutch consumers value speed, price, and quality of service. On the fixed network, we're going to go all in on DOCSIS 4.0, which will take us to 8Gb speeds by the end of 2026 at a fraction of the cost to build fiber in this market. In the meantime, our current network configuration can get us to 2Gb, which we'll accelerate.

Speaker Change: And we have the highest rfps in the market. So this is the right time to reposition pricing, which you've already started doing on the front book as I just mentioned and then third.

Speaker Change: As I mentioned, a moment ago, Dutch consumers value speed price and quality of service and on the fixed network. We're gonna go all in on DOCSIS, four <unk>, which will take us to eight gig speeds by the end of 2026 at a fraction of the cost to build fiber in this market in the meantime, our current network configuration can get us to two gigs, which will accelerate and then finally the team we'll reinvest in.

Mike Fries: Finally, the team will reinvest in VodafoneZiggo's core strengths, and that includes strong brands, popular loyalty programs, and a large FMC base, as well as a unique sports platform. Charlie will walk through some of the financial implications of this plan, but Margherita and I are 100% supportive of Stephen and the team. It's time to reset in order to get back to growth. Turning to slide 7, over the last year or so, we've provided greater disclosure on our Liberty Growth portfolio. I think that's helped investors and analysts understand the nature and quality of our investments in tech, media, and content, and infrastructure. This is especially important given the size of our portfolio at $3.3 billion and its relative contribution to our share price today, roughly $10 per share on an $11 stock. The strategy with Liberty Growth is simple.

Mike Fries: Finally, the team will reinvest in VodafoneZiggo's core strengths, and that includes strong brands, popular loyalty programs, and a large FMC base, as well as a unique sports platform. Charlie will walk through some of the financial implications of this plan, but Margherita and I are 100% supportive of Stephen and the team. It's time to reset in order to get back to growth. Turning to slide seven, over the last year or so, we've provided greater disclosure on our Liberty Growth portfolio. I think that's helped investors and analysts understand the nature and quality of our investments in tech, media, and content, and infrastructure. This is especially important given the size of our portfolio at $3.3 billion and its relative contribution to our share price today, roughly $10 per share on an $11 stock. The strategy with Liberty Growth is simple.

Speaker Change: <unk> core strengths that include strong brands popular loyalty programs and a large F. M C base as well as unique sports platform of Charlie will walk through some of the financial implications of this plan, but Margaret and I are 100% supportive of Stephen and the team has time to reset in order to get back to growth.

Speaker Change: Now turning to slide seven over the last year or so do we have provided greater disclosure on our liberty growth portfolio. I think that has helped investors and analysts understand the nature and quality of our investments in tech media and content and infrastructure.

Speaker Change: Especially important given the size of our portfolio at $3 3 billion and its relative contribution to our share price today, roughly $10 per share on an $11 stock.

Speaker Change: Our strategy with Liberty growth is simple.

Mike Fries: We want to be in a position to rotate capital out of non-core and subscale assets and into higher return businesses or strategic Liberty Telecom opportunities. Tactically, we have committed to sell between $500 million to $750 million of assets this year. We have line of sight on certain deals, and I'd remind you that our publicly listed stakes alone total $550 million. Now, it's premature to disclose any potential investments into Liberty Telecom with those proceeds, but we have been quite busy at the Liberty Growth level. As a reminder, our portfolio is highly concentrated, with seven investments accounting for nearly 75% of the $3.3 billion fair market value today. Now you can see those $2.5 billion of investments listed on the bottom left of slide 8, along with the sequential change in fair market value this quarter.

Mike Fries: We want to be in a position to rotate capital out of non-core and subscale assets and into higher return businesses or strategic Liberty Telecom opportunities. Tactically, we have committed to sell between $500 to 750 million of assets this year. We have line of sight on certain deals, and I'd remind you that our publicly listed stakes alone total $550 million. Now, it's premature to disclose any potential investments into Liberty Telecom with those proceeds, but we have been quite busy at the Liberty Growth level. As a reminder, our portfolio is highly concentrated, with seven investments accounting for nearly 75% of the $3.3 billion fair market value today. Now you can see those $2.5 billion of investments listed on the bottom left of slide eight, along with the sequential change in fair market value this quarter.

Speaker Change: I want to be in a position to rotate capital out of noncore and subscale assets and into higher return businesses or strategic Liberty telecom opportunities.

Speaker Change: Tactically, we have committed to sell between $500 million to $750 million of assets. This year. We have line of sight on certain deals I would remind you that our publicly listed stakes alone totaled $550 million now is premature to disclose any potential investments into liberty telecom with those proceeds, but we have been quite busy at the liberty growth level.

Speaker Change: As a reminder, our portfolio is highly concentrated with seven investments accounting for nearly 75% of the $3 $3 billion of fair market value today.

Speaker Change: Can see those $2 5 billion of investments listed on the bottom left of slide eight.

Speaker Change: Along with the sequential change in fair market value this quarter.

Mike Fries: Now the changes quarter over quarter relate to increased investment, favorable FX movements, and increases in valuations. They total about $200 million for the entire portfolio just in the last three months. Now given our controlling interest in Formula E, we do now consolidate this investment, and we're excited about showing more regular updates. It's been a fantastic start to Season 11, with record viewership, particularly in the US, where our Mexico City race, for example, drew an audience 80% higher than F1's Las Vegas Grand Prix. Now we're headed to Monaco this weekend, and I'm telling you, it's sold out for the double header on Saturday and Sunday.

Speaker Change: The changes quarter over quarter relate to increased investment favorable FX movements and increases in valuations and they total about 200 million for the entire portfolio just in the last three months. Thank.

Speaker Change: And given our controlling interest in Formula E. We do now consolidate this investment and we're excited about showing more regular updates.

Speaker Change: Been a fantastic start to season 11 with record viewership, particularly in the U S, where our Mexico City race for example, do an audience, 80% higher than F. One Las Vegas Grand Prix now, we're headed to Monica This weekend and I'm, telling you. It is sold out for the double header on Saturday and Sunday and interestingly to tap into this growing popularity relaunch.

Mike Fries: Interestingly, to tap into this growing popularity, we launched a pretty interesting and unique sort of first in motorsports, where we brought 11 well-known personalities from sport, technology, and entertainment and gave them the unprecedented chance to prepare like a Formula E racer and actually drive the Gen3 Evo car during a 2-day track event at the Miami circuit. You'll see that content, which has already generated 300 million views across social media and in a feature-length documentary later this year. Last week, we launched a brand-new Formula E documentary on Amazon Prime, which goes behind the scenes with four drivers over the 2024 season. I encourage you to check it out just to get a feel for the racing and the personalities in the championship.

Mike Fries: Interestingly, to tap into this growing popularity, we launched a pretty interesting and unique sort of first in motorsports, where we brought 11 well-known personalities from sport, technology, and entertainment and gave them the unprecedented chance to prepare like a Formula E racer and actually drive the GEN3 Evo car during a two day track event at the Miami circuit. You'll see that content, which has already generated 300 million views across social media and in a feature-length documentary later this year. Last week, we launched a brand-new Formula E documentary on Amazon Prime, which goes behind the scenes with four drivers over the 2024 season. I encourage you to check it out just to get a feel for the racing and the personalities in the championship.

Speaker Change: <unk> are pretty interesting and unique.

First in Motorsports, where we brought 11, well known personalities from sport technology and entertainment and gave them the unprecedented chance to prepare like a formula E rates are and actually drive the Gen. Three Evo car during a two day track event at the Miami Circuit, and Youll see that content, which has already generated 300 million views across social media.

Speaker Change: And in a feature length documentary later this year.

Speaker Change: Also last week, we launched a brand new Formula E documentary on Amazon Prime which goes behind the scenes with four drivers over the 'twenty 'twenty four season I encourage you to check it out just to get a feel for the racing and the personalities in the championship and then finally, we're short 18 months away from the new Gen. Four car, which is now testing and delivering incredible power.

Mike Fries: Finally, we're a short 18 months away from the new Gen4 car, which is now testing and delivering incredible power, speed, and performance. Exciting things happening there. One more slide from me on Liberty Services and our evolving corporate structure. As a reminder, Liberty Tech and Liberty Blume generate $600 million of annual revenue and positive operating free cash flow. Far from being a burden, each of these platforms continues to pursue growth and efficiency initiatives that will create real equity value for shareholders. Liberty Blume, as you remember, provides a host of financial and back-office services.

Speaker Change: <unk> speed and performance, so exciting things happening there.

Speaker Change: One more slide for me on Liberty services, and our evolving corporate structure and as a reminder, the re tech and Liberty Bloom generate $600 million of annual revenue and positive operating free cash flow are far from being a burden. Each of these platforms continues to pursue growth and efficiency initiatives that will create real equity VAT.

Speaker Change: For shareholders.

Speaker Change: Every room as you remember provides a host of financial and back office services. Just went public with its first marketing campaign has already added coordinate journey 10, new non liberty clients to the roster.

Mike Fries: It just went public with its first marketing campaign and has already added, according to Charlie, 10 new non-Liberty clients to their roster. The balance of our corporate costs amount to about $200 million annually after management fees, and this is the number that analysts are valuing at approximately 14 times, resulting in a $10 reduction in our sum of the parts. Not only does the reduction in value not recognize the inherent equity value of Liberty Blume and Liberty Tech, it penalizes us in relation to other sectors like media and private equity, even compared to some of our telco peers. Now, we'll continue to make the case with analysts, but in the meantime, we are working on reducing these corporate costs through a combination of efficiencies and additional revenue generated from Liberty Telecom, Liberty Growth, and Liberty Services.

Speaker Change: The balance of our corporate cost amount to about $200 million annually. After management fees and this is the number that analysts are valuing at approximately 14 times, resulting in a $10 reduction in our some of the parts.

Speaker Change: Not only does the reduction in value not recognize the inherent equity value of Liberty Bloom and anybody tech it penalizes us in relation to other sectors like media and private equity even compared to some of our telco peers now we'll continue to make the case with analysts but in the meantime, we are working on reducing these corporate costs through a combination of efficiencies.

Speaker Change: And additional revenue generated from our re telecom would be growth will be services. So stay tuned for more details about this in the second half of the year and then finally, just a reminder, that our corporate cash which totaled $2 1 billion at the end of the quarter.

Mike Fries: Stay tuned for more details about this in H2 of the year. Finally, just a reminder that our corporate cash, which totaled $2.1 billion at the end of the quarter, sits 60% in euros and is dedicated to supporting the strategic plans I just outlined. This includes, of course, opportunistic share buybacks, which we have targeted at up to 10% of our shares in 2025. As always, I look forward to digging into greater detail during the Q&A, but with that, Charlie, over to you.

It's 60% in euros and is dedicated to supporting the strategic plans I. Just outlined this includes of course opportunistic share buybacks, which we have targeted at up to 10% of our shares in 2025.

Charlie: As always I look forward to digging into greater detail during the Q&A, but with that Charlie over to you.

Charlie Bracken: Thanks, Mike. The next slide sets out a summary of the quarterly revenue and EBITDA performance in our key markets. VMO2 reported a return to revenue growth of 0.4%, excluding nexfibre related construction revenues and handset revenues in Q1. Now, this is driven by a strong performance in consumer fixed revenues and improving momentum in the mobile service revenue segment. VodafoneZiggo reported a revenue decline of 2.6%, mainly driven by a decline in fixed revenues and lower handset sales, which was partially offset by continued growth in Ziggo Sport and B2B fixed revenues. Telenet reported a revenue increase of 2.7%, supported by higher programming revenues in the quarter and the continued benefit of the June 2024 price adjustment. In terms of Q1 adjusted EBITDA performance, VMO2's adjusted EBITDA grew 0.8%, excluding the impact of nexfibre, supported by core service revenue growth and cost efficiencies.

Thanks, Mike the next slide sets out a summary of our quarterly revenue and EBITDA performance in our key markets BMO.

Charlie: BMO two reported a return to revenue growth of <unk>, 4%, excluding next fiber related construction revenues in handset revenues in Q1. This.

Charlie: This was driven by strong performance in consumer fixed revenues and improving momentum in the mobile service revenue segment.

Charlie: But if a ziggurat reported a revenue decline of two 6%, mainly driven by a decline in fixed revenues and lower handset sales, which was partially offset by continued growth in zynga sport and b to be fixed revenues.

Charlie: Telenet reported a revenue increase of two 7% supported by higher programming revenues in the quarter and the continued benefit of the June towards Rooney for price adjustments.

Charlie: In terms of Q1, adjusted EBITDA performance BMO two's adjusted EBITDA grew 8%, excluding the impact of next fiber supported by core service revenue growth and cost efficiencies.

Charlie Bracken: VodafoneZiggo's adjusted EBITDA declined 8% in the quarter, impacted by the decline in the fixed business, increased UEFA programming costs, and higher labor costs related to the collective labor agreement. Telenet's adjusted EBITDA grew 0.8%, supported by lower network costs and other cost control measures, which were partially offset by higher programming costs and wage inflation. The next slide provides an update on the key metrics of our capital allocation model. Starting on the top left of the slide, in Q1, we saw cash flow generation in line with our expectations. As has been the case in previous years, Q1 is typically a modest cash outflow quarter, given the timing of interest payments on our debt stack and with limited cash distributions for the JVs, which tends to come in Q4.

Charlie: But if a zika is adjusted EBITDA declined 8% in the quarter impacted by the decline in the fixed business increased joy for programming costs and higher labor costs related to the collective labor agreement.

Charlie: And tell him. It's adjusted EBITDA grew 8% supported by lower network costs and other cost control measures, which were partially offset by higher programming costs and wage inflation.

Charlie: The next slide provides an update on the key metrics of our capital allocation model.

Charlie: On the top left of the slide in Q1, we saw cash flow generation in line with our expectations.

Charlie: It hasn't been the case in previous years Q1 is typically a modest cash outflow quarter, given the timing of interest payments on our debt stack and with limited cash distributions from the JV, which tends to come in Q4.

Charlie Bracken: Turning to our cash walk, our consolidated cash balance sits at $2.1 billion at the end of Q1. From our closing Q4 balance, we saw modest outflows in the quarter related to investments in the Liberty Growth portfolio and the execution of our share buyback program. Moving to Liberty Growth, the fair market value of our Liberty Growth portfolio increased by around $150 million during the quarter. This was primarily driven by the increase in dollar terms of our largely euro-denominated investments, as well as new investments in AtlasEdge and nexfibre. Finally, looking at our CapEx trends, we continue to invest in our fixed and mobile networks, and the elevated CapEx in Belgium and Ireland reflects the continued commitment to roll out fiber networks in those markets.

Charlie: Turning to our cash walk a consolidated cash balance sits at $2 $1 billion at the end of Q1 from a closing Q4 balance we saw modest outflows in the quarter related to investments in the liberty growth portfolio on the execution of our share buyback program.

Charlie: Moving to Liberty growth the fair market value of our Liberty gross portfolio increased by around $150 million. During the quarter. This was primarily driven by the increase in dollar terms of largely euro denominated investments as well as new investments in <unk> and next fiber.

Charlie: Finally, looking at our Capex trends, we continued to invest in our fixed and mobile networks and the antibodies would be capex in Belgium and reflects the continued commitment to rollout fiber networks in those markets now as a reminder, I'd tell them that the step up in Capex was suppose an additional 375000 homes passed by year end 'twenty five at Wawa and <unk>.

Charlie Bracken: Now, as a reminder, at Telenet, the step-up in CapEx will support an additional 375,000 homes passed by year-end at 2025 at Wyre, and will also support 5G and digital CapEx at the ServCo. We expect CapEx intensity at ServCo to decline in 2026 as we complete the major investments in the mobile network in 2025. Wyre CapEx will also be fully debt-financed through its own CapEx facility, which means there's no equity requirement from either Liberty Global or Telenet. Overall, we remain confident in our ability to remain in line with our capital intensity targets across the OpCos as we set out in the guidance we announced at Q4 results. Turning to our treasury update, we maintain a strong balance sheet position with our debt split equally between bank debt and bonds.

Charlie: It also supports <unk> and digital Capex of the circuit.

Charlie: We expect Capex intensity serve code to decline in 2026, as we complete the major investments and a move on that work in 2025.

Charlie: What capex will also be fully debt financed through its own capex facility, which means there's no equity requirement from other Liberty Global autonomous.

Overall, we remain confident in our ability to remain in line with our capital intensity targets across the op Cos as we set out in the guidance, we announced our Q4 results.

Charlie: Turning to our Treasury update we maintain a strong balance sheet position without that split equally between bank debt and bonds.

Charlie Bracken: Our variable bank debt is fixed using swaps, which are independent of the debt, allowing us to refinance the credit spreads on our near-term maturities, but also benefit from the full term of the swaps. We maintain a cost of debt of around 45%, with an average life on our debt of approximately 5 years. In general, we look to manage our debt maturities so that there are no material refinancing commitments in the next 3 years. Following the successful refinancing of VMO2, we've now turned out all 2027 maturities, and this means we're able to remain opportunistic and flexible in our financing approach. We intend to remain proactive in terms of pushing out the existing maturities and extending the average life of our debt.

Charlie Bracken: Our variable bank debt is fixed using swaps, which are independent of the debt, allowing us to refinance the credit spreads on our near-term maturities, but also benefit from the full term of the swaps. We maintain a cost of debt of around 45%, with an average life on our debt of approximately five years. In general, we look to manage our debt maturities so that there are no material refinancing commitments in the next three years. Following the successful refinancing of VMO2, we've now turned out all 2027 maturities, and this means we're able to remain opportunistic and flexible in our financing approach. We intend to remain proactive in terms of pushing out the existing maturities and extending the average life of our debt.

Charlie: Variable bank debt is fixed using swaps, which are independent of the debt, allowing us to refinance the credit spreads in our near term maturities, but also benefit from the full term of the swaps.

Charlie: We maintain our cost of debt of around 45% with an average life from a depth of approximately five years now in general we look to manage our debt maturities. So that there are no material refinancing commitments in the next three years.

Charlie: Following the successful refinancing of BMO two we've now turned out all 2020 maturities and this means we were able to remain opportunistic and flexible in our financing approach.

Charlie: We intend to remain proactive in terms of pushing out the existing maturities and extending the average life of our debt.

Charlie Bracken: Our activity at Telenet demonstrates our ability to remain agile with a new 8-year, EUR 500 million term loan facility deployed at an attractive spread of around 300 basis points, and which was completed during the quarter. As a reminder, we also secured commitments for a EUR 500 million CapEx facility for Wyre, beginning as a standalone capital structure to support the fiber rollout. Mike has already discussed the new strategic plan of VodafoneZiggo. In the following slide, I'm going to walk through both the near-term financial implications of the plan on the 2025 guidance and also give some color on the midterm financial implications and actions that we are taking to help return the business to our 4 to 5x long-term leverage target. Beginning with the impact on 2025 guidance, we're lowering revenue guidance from broadly stable to low single-digit decline for 2025.

Charlie Bracken: Our activity at Telenet demonstrates our ability to remain agile with a new eight-year, EUR 500 million term loan facility deployed at an attractive spread of around 300 basis points, and which was completed during the quarter. As a reminder, we also secured commitments for a EUR 500 million CapEx facility for Wyre, beginning as a standalone capital structure to support the fiber rollout. Mike has already discussed the new strategic plan of VodafoneZiggo. In the following slide, I'm going to walk through both the near-term financial implications of the plan on the 2025 guidance and also give some color on the midterm financial implications and actions that we are taking to help return the business to our 4x to 5x long-term leverage target. Beginning with the impact on 2025 guidance, we're lowering revenue guidance from broadly stable to low single-digit decline for 2025.

Charlie: Our activity to tell them that demonstrates our ability to remain agile with a new eight year 500 million Euro term loan facility deployed an attractive spread of around 300 basis points, which was completed during the quarter and.

Charlie: And as a reminder, we also secure commitments for a 500 million in Euro Capex facility for war, beginning as a standalone capital structure to support the fiber rollout.

Speaker Change: Now Mike has already discussed the new strategic plan a bit of a zika, but in the following slide I'm going to walk through both the near term financial implications of the time on the 2025 guidance and also give some color on the mid term financial implications and actions that we're taking to help return the business to a four to five times long term leverage target now.

Speaker Change: Beginning with the impact on 2025 guidance, we are lowering revenue guidance from broadly stable to low single digit decline for 2025 hours, Mike laid out in his remarks. This is principally driven by more aggressive retention activity across the market and the flow through of lower from both pricing and the right pricing and the ZIP code base.

Charlie Bracken: Now, as Mike laid out in his remarks, this is principally driven by more aggressive retention activity across the market and the flow-through of lower front-book pricing and the right pricing of the Ziggo base. Adjusted EBITDA is now expected to be down mid to high single digits in 2025, impacted by this migration process. Capital intensity will remain at 20% to 22% of sales, in line with the guidance given in February. Adjusted free cash flow and shareholder distributions will be lower at a range of EUR 200 to 250 million versus the EUR 300 million we previously guided to, reflecting the impact of this lower adjusted EBITDA guidance. Now turning to the midterm, we expect that the flow-through from the front book pricing will continue to impact revenue on adjusted EBITDA trends through to 2026, but with a moderating impact versus that in 2025.

Speaker Change: Adjusted EBITDA is now expected to be down mid to high single digits in 2025 impacted by this migration process.

Speaker Change: Couple of intensity will remain at 20% to 22% of sales in line with the guidance given in February and.

Speaker Change: And adjusted free cash flow to show the distributions will be lower at a range of 200 to 200 for 2 million euros versus the 300 million, we previously guided to reflecting the impact of this lower adjusted EBITDA guidance.

Speaker Change: Now turning to the midterm.

Speaker Change: We expect the flow through from the front book pricing will continue to impact revenue and adjusted EBITDA trends through to 2026, but with a moderating impact most of the stuff in 2025.

Charlie Bracken: We believe that the series of commercial and network actions that we are taking will stabilize and then reduce the declines that we've been seeing in fixed subscriber customers. As Mike discussed, we're accelerating our DOCSIS 4 strategy in the Netherlands, not only to 8 gig speeds from 2026, but also strong interim steps, including 4 gig. We aim to do this largely within the historic CapEx envelope of VodafoneZiggo of around $900 million a year. Now whilst there'll be an impact of the new strategic plan in 2025 and 2026, we're aiming to position the business to deliver a return to growth in the midterm, probably around 2027, whilst maintaining a broadly stable free cash flow profile through this transition period. Now lastly, on leverage. Given the short-term pressure on adjusted EBITDA, we anticipate leverage will peak in 2026 and reduce thereafter.

Charlie Bracken: We believe that the series of commercial and network actions that we are taking will stabilize and then reduce the declines that we've been seeing in fixed subscriber customers. As Mike discussed, we're accelerating our DOCSIS 4.0 Strategy in the Netherlands, not only to 8 gig speeds from 2026, but also strong interim steps, including 4 Gig. We aim to do this largely within the historic CapEx envelope of VodafoneZiggo of around $900 million a year. Now whilst there'll be an impact of the new strategic plan in 2025 and 2026, we're aiming to position the business to deliver a return to growth in the midterm, probably around 2027, whilst maintaining a broadly stable free cash flow profile through this transition period. Now lastly, on leverage. Given the short-term pressure on adjusted EBITDA, we anticipate leverage will peak in 2026 and reduce thereafter.

Speaker Change: We believe that the series of commercial and network actions that we're taking will stabilize and then reduce the declines that we've been seeing in fixed subscriber customers.

Speaker Change: And as Mike discussed we are accelerating our DOCSIS four <unk> strategy in the items not only to eight gig speeds from 2026, but also strong interim steps, including full gig. We aim to do this largely within the historic Capex envelope, but depends ago of around 900 million in a year.

Speaker Change: Now whilst there'll be an impact of the new strategic plan in 2025, and 2026, we're aiming to position the business to deliver a return to growth in the midterm.

Speaker Change: I believe around 2027, whilst maintaining a broadly stable free cash flow profile through this transition period.

Speaker Change: Now lastly on leverage given the short term pressure on adjusted EBITDA, We anticipate leverage will peak in 2026 and reduced thereafter, given this increase in short term leverage we're accelerating non core asset sales starting with Vodafone as it goes tower assets I mean, we use the proceeds from these sales towards paying down debt.

Charlie Bracken: Given this increase in short-term leverage, we're accelerating non-core asset sales, starting with VodafoneZiggo's tower assets, and we will use the proceeds from these sales towards paying down debt. Turning to our guidance for all our assets. Having just talked through the updates for VodafoneZiggo, we are reconfirming all the remaining guidance metrics of VMO2, Telenet, Liberty Services, and Corporate. That concludes our prepared remarks for Q1, and I would like to hand over to the operator for Q&A.

Speaker Change: Turning to our guidance for all of our assets I mean, just talk through the update so Vodafone Zynga. We are reconfirming all the remaining guidance metrics of BMO to tell them that Liberty services corporate.

Speaker Change: And that concludes our prepared remarks for Q1, and I would like to hand over to the operator for Q&A.

Operator: The question and answer session will be conducted electronically. If you would like to ask a question, please do so by pressing the star or asterisk key, followed by the digit 1 on your phone. In order to accommodate everyone, we request that you ask only one question. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. We'll pause for just a moment to give everyone an opportunity to join the queue. Our first question will come from the line of Carl Murdock-Smith with Citigroup. Your line is open.

Operator: The question and answer session will be conducted electronically. If you would like to ask a question, please do so by pressing the star or asterisk key, followed by the digit one on your phone. In order to accommodate everyone, we request that you ask only one question. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. We'll pause for just a moment to give everyone an opportunity to join the queue. Our first question will come from the line of Carl Murdock-Smith with Citigroup. Your line is open.

Speaker Change: The question and answer session will be conducted electronically.

Speaker Change: If you would like to ask a question. Please do so by pressing the star or asterisk P. Followed by the digit one on your phone in order to accommodate everyone. We request that you ask only one question is youre using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment well pause for just a moment.

Speaker Change: To give everyone an opportunity to join the queue.

Speaker Change: Our first question will come from the line of Carl Murdock Smith with Citigroup. Your line is open.

Carl Murdock-Smith: That's brilliant. Thank you very much. I wanted to ask on the UK net adds, and specifically the kind of commentary around the broadband additions and tough market conditions. I was wondering if you could provide a bit more color on that topic. You talked about One Touch Switching, you talked about market competition, Altnet, and also, I guess, price rise impact as well. Could you provide some more color in terms of how much you assign to each one? I suppose you're talking about One Touch Switching is interesting given that it was also in place last quarter, but we didn't seem to see the same impact last quarter. What are you seeing through the quarter as well? Thank you.

Speaker Change: That's perfect. Thank you very much I wanted to ask him to the UK net ads and specifically that kind of commentary.

Speaker Change: Arounds.

Speaker Change: The broadband additions.

Speaker Change: Market conditions I was wondering if you could provide a bit more color on that topic. I mean, you talked about one one touch switching he talks about market competition old national sorry, I guess crossroads impacts as well.

Speaker Change: Could you provide some more color in terms of how much you assigned to each one unless because you're talking about one touch switching is interesting given that it was also in place last quarter, but we didn't seem to see the same impact last quarter. So what are you seeing through the quarter as well. Thank you.

Mike Fries: Yeah. Thanks, Carl. Look, we're not going to get into much more detail and breaking it down between One Touch Switch and other factors. Lutz, why don't you try to address what you're comfortable sharing, and we'll go from there.

Scott: Yeah. Thanks, Scott we're.

Speaker Change: We're not going to get into much more detail and breaking it down between one type of switch and other.

Lutz: Other other factors, but Lutz why don't you try to address what youre comfortable sharing and we'll go from there.

Lutz: Okay. So you're on mute I mean quarter one.

Lutz Schüler: So-

Mike Fries: Lutz, you might be on mute.

Lutz Schüler: I mean.

Mike Fries: There you go.

Lutz Schüler: Can you hear me?

Lutz: Can you hear me.

Speaker Change: Hey, Jeremy.

Lutz: Yeah Yeah.

Mike Fries: Yeah.

Lutz Schüler: Yeah. Sorry. Carl, thank you for your question. What is actually happening is that, of course, quarter-over-quarter, OTS is used more by customers. Yeah. That is number 1. Number 2 is that the market is more competitive, and you might have seen it, right? Operators, some competitors put up to GBP 300 benefit on the table to get the customer. That means customers within minimum contracts can churn. That is number 2, and this is also driven by Altnet, as you can expect, because they are in a pretty challenging situation, and the only thing they have is the networks and price. That's it. We are impacted by that. Now, the good news is, we built this machine that we can target down to 60 households, a retention offer with product and price.

Lutz Schüler: Yeah. Sorry. Carl, thank you for your question. What is actually happening is that, of course, quarter-over-quarter, OTS is used more by customers. Yeah. That is number one. Number two is that the market is more competitive, and you might have seen it, right? Operators, some competitors put up to GBP 300 benefit on the table to get the customer. That means customers within minimum contracts can churn. That is number two, and this is also driven by Altnet, as you can expect, because they are in a pretty challenging situation, and the only thing they have is the networks and price. That's it. We are impacted by that. Now, the good news is, we built this machine that we can target down to 60 households, a retention offer with product and price.

Lutz: Yeah, Oh, sorry, sorry.

Lutz: So thank you for your question.

Lutz: So what is actually happening that's of course part of our quarter GPL F is used more by customer.

Lutz: So that's number one number two is.

Lutz:

Lutz: The market is more competitive and you might have seen it right. So.

Speaker Change: Operator somewhat compared to coach.

Speaker Change: Up to 300 pounds benefits on the table to get the customer so that means customer within minimum contract.

Speaker Change: Sure.

Speaker Change: So that was number two and this was also driven by organic as you kind of expect because of that.

Speaker Change: Clearly a challenging integration and the only thing that happened.

Speaker Change: The networks and price that's it.

Speaker Change: And so we are impacted by that now the good news is.

Ryan: I am Ryan rebuilt this machine that we can target.

Speaker Change: <unk> 60 of households.

Ryan: Our retention of ours.

Ryan: Product them try it and now this machine.

Lutz Schüler: Now this machine is learning the same thing for prevention, right? We are running 100,000 campaigns with machine learning and AI at the same time. It takes time to optimize the machine from retention to prevention because the market clearly shifts because of GPLS to prevention. Two things are making me more comfortable. One is that we were able to generate six service revenue growth of 1.9% before price rise. Price rise impact is kicking in in Q2. Second, we see now some slight improvements from April onwards. We don't expect that to stay because our machine will deal differently with it. Yeah, I hope that gives some background.

Ryan: The same thing for prevention right and we are running 100000 campaigns with machine learning AI at the same time and so it takes time to optimize the machine from retention through prevention, because the market clearly a shift because of U S.

Ryan: To prevention.

Ryan: What.

Ryan: Two things are making me more comfortable one is that we are a we were able to generate service revenues rose one 9% before price right impact kicking in in Q2 and second we.

Ryan: We see some slight improvement.

Ryan: From April onwards.

Ryan: So we don't expect that to stay because our machine.

Ryan: We'll deal differently.

Ryan: Yeah, I hope that give some background.

Ryan: Yeah.

Carl Murdock-Smith: That's fantastic. Thank you very much.

Ryan: Fantastic Thanks very much.

Operator: Thank you. Our next question will go to the line of Robert Grindle with Deutsche Bank.

Ryan: Thank you.

Our next question will go to the line of Robert Grindle with Deutsche Bank. Your line is open.

Ryan: Yeah.

Robert Grindle: Hi there. Thanks so much. That was an exciting hour or so. The question is on the Netherlands, actually. I think it's impressive that you can do the DOCSIS upgrades within the existing CapEx envelope. Just to be clear, is there an assumption about CPE costs and takeup of the higher speeds within that CapEx envelope? You said you're going to sell towers in the Netherlands to reduce debt a bit. You've said that before, a few years ago, if I'm not mistaken. Is there something that's changed now between yourselves and VOD that you've got a bigger plan for the business that's unlocked this new ambition? Thank you.

Robert Grindle: Yeah, Hi, guys. Thanks, so much that was cutting out.

Ryan: The question is on the Netherlands actually I think it's.

Ryan: That you can do the DOCSIS upgrades within the existing Capex envelope.

Speaker Change: Just to be clear is there an assumption about CPE cost.

Ryan: Take up of the highest speeds within that Capex envelope.

Speaker Change: You said youre going to pay you youre going to cell towers in the Netherlands to reduce that a bit.

Speaker Change: You've said that before a few years ago, if I'm not mistaken.

Speaker Change: Something that's changed now between yourselves involved that you've got to pick a time for the business. That's unlocked this new ambition. Thank you.

Speaker Change: Okay.

Mike Fries: On the towers, it takes time to get a tower co set up, lots of documentation and various things have to put in place. We have a partner. I think we're now aligned as partners that this is a good time to go ahead and take that step, which is, you know, I mean, reviewed many of them. It's complicated and takes time. I think we're fortunately very aligned on that, and you can figure out the value and proceeds it will create. I think our purpose and intention is to use those proceeds to absolutely pay down debt, which seems like the right thing to do, especially in light of this revised guidance. On DOCSIS, look, we're committed to the strategy and the technology. The good news is we're not alone.

Speaker Change: On the towers.

Speaker Change: It takes time to get a tower co setup sponsor documentation and various things have been put in place and we are and we have a partner. So I think were now aligned as partners that this is a good time to go ahead and take that step, which as you know.

Speaker Change: It is complicated and takes time, so so I think we're.

Speaker Change: Fortunately very aligned on that and you can figure out the value.

Speaker Change: Proceeds that will create but I think our purpose and intention is to use those proceeds.

Speaker Change: To absolutely pay.

Speaker Change: Pay down debt, which seems like the right thing to do especially in light of this revised guidance.

Speaker Change: On DOCSIS.

Speaker Change: <unk> committed to the to the strategy and the technology. The good news is we're not alone.

Mike Fries: I think there's 120 million homes currently being prepped and/or rolling out DOCSIS in the US. We're very closely aligned with Charter and Comcast on every element of the network rollout, the technology, the CPE. I think our numbers, while they will continue to be refined and improved, are pretty good. Stephen can talk about the impact that we'll have from a marketing point of view to have these types of speeds. It's time to put a line in the sand or draw a line in the sand, and it's clear to us that this is the right technology for this market. That, in my opinion, should take a little bit of a CapEx overhang off the story because I have received this question almost everywhere I go. Won't you have to build fiber? Won't you be building fiber?

Speaker Change: I think theres, a 120 million homes currently being scrapped and or rolling out DOCSIS in <unk> in the U S and we're very closely aligned with charter and Comcast.

Speaker Change: Element.

Speaker Change: The network rollout the technology the CE.

Speaker Change: So I think our numbers, while they will continue to be refined and improved.

Speaker Change: Are pretty good and you.

Speaker Change: Steven can talk about the impact that will have from a marketing point of view to have these types of speeds.

Speaker Change: But.

Speaker Change: In a line in the sand to draw a line in the sand and it's clear to US that this is the right technology for this market.

Speaker Change: In my opinion should take a little bit of a capex overhang off the story because I.

Speaker Change: We see almost everywhere I go what you have to build fiber wont you be building fiber and we're just waiting for that shoe to drop we will not be building 500 market Dr.

Mike Fries: We're just waiting for that shoe to drop. We will not be building fiber in this market. DOCSIS 4 is the answer, and we think it's the right one. I don't know, Stephen or Enrique, do you want to add anything to that?

Mike Fries: We're just waiting for that shoe to drop. We will not be building fiber in this market. DOCSIS 4.0. Is the answer, and we think it's the right one. I don't know, Stephen or Enrique, do you want to add anything to that?

Speaker Change: <unk> four is the answer and we think it's the right one.

Speaker Change: Stephen are on vacation when adding to that.

Stephen van Rooyen: No, Mike, I think that's-

Mike Fries: No Mike.

Enrique: No, I think that's pretty clear.

Enrique Rodriguez: No, I think that's pretty clear.

Speaker Change: So I think that's pretty clear.

Speaker Change: Hey, Greg.

Stephen van Rooyen: I think that's pretty, yeah.

Enrique: Sorry. Go ahead, Stephen. Go ahead.

Enrique Rodriguez: Sorry. Go ahead, Stephen. Go ahead.

Speaker Change: Sorry go ahead go ahead go ahead.

Stephen van Rooyen: No, I think that's as you say, that's pretty clear. We're committed to that roadmap, and the question was specifically about the CapEx envelope. We feel pretty comfortable that we've got enough room in that to do what we need to do to upgrade the network.

Speaker Change: But I think Thats I think Thats as you said, that's that's pretty clear.

We're committed to that roadmap and the question was specifically about the the Capex envelope, we feel pretty comfortable that we've got enough room and enough to do what we need to do to upgrade the network.

Speaker Change: Yeah.

Robert Grindle: Great to hear. Thanks, gents.

Brent: Great. Thanks, Brent.

Mike Fries: Thanks, Robert.

Brent: Thanks, Alright.

Operator: Thank you. Our next question will go to the line of Polo Tang with UBS. Your line is open.

Brent: Thank you.

Speaker Change: Our next question will go to the line of Polo Tang with UBS. Your line is open.

Polo Tang: Thanks for taking the question. It is really just to focus a bit more in terms of VodafoneZiggo. I would just be interested in terms of any commentary from Stephen van Rooyen in terms of what he is doing differently since he has taken over, and then also any first impressions. Also be specifically interested in terms of the customer response to the EUR 5 price cut in terms of broadband. Has this resulted in any improvement in terms of net adds for Q2? Just given the weakening EBITDA trends and with leverage at VodafoneZiggo at 6 times, does it make sense to continue upstreaming a dividend to shareholders? Is cutting the dividend not the faster way to delever VodafoneZiggo? Thanks.

Polo Tang: Thanks for taking the question, it's really just to focus a bit more in terms of <unk>.

Polo Tang: So just be interested in terms of any commentary from Stephens I Ryan.

Polo Tang: <unk> of what he is doing differently since he's taken over and then also.

Polo Tang: First impressions, but also be specifically interested in terms of the customer response to the five euro.

Polo Tang: Price cut in terms of broadband has this resulted in any improvement in terms of net adds for Q2, and then just given the weakening EBITDA trends and with leverage at <unk> six times does it make sense to continue upstream being a dividend to shareholders is cutting the dividend.

Polo Tang: The faster way to Delever.

Polo Tang: Thanks.

Mike Fries: Well, multi-level question there. I think we feel like on the last one first, I'll hand over to Stephen on the dividend to shareholders. That's our current guidance. We'll obviously evaluate that as the year goes on. We think the tower proceeds as well as other non-core asset sales, which we are working on, should be sufficient to delever the business to where it needs to be at this stage, especially given the strategy we're undertaking and the midterm growth prospects that we see. We'll evaluate that, Polo, as the year goes on, but that's our current position. Stephen?

Speaker Change: Well multi level question there I think we feel like the on the last one first and I'll hand over to Stephen on the.

Stephen: The dividend to shareholders.

Stephen: That's our current guidance, we'll obviously evaluate that as the year goes on we think that the tower proceeds as well as other noncore asset sales, which we have.

Stephen: Our working on should be sufficient to.

Stephen: Delever the business to where it needs to be at this stage, especially given the strategy. We are undertaking in the midterm growth prospects that we see so well evaluate that polo as year goes on but that's that's our current position Steven.

Stephen van Rooyen: Yeah, thanks for the question, Polo. I think your cheat sheet is on page six. If you want to know what I've been doing with my time in the office, it's pretty much outlined on the page. Four big blocks: fixing the organization, fixing the way the organization operates, looking at the cost savings that I think are overdue which we plan to deliver this year through 2027. I think necessarily we've moved to realign our pricing. Our pricing was out of kilter with the marketplace. One of the biggest purchase reasons is price. Biggest reason for leaving is price. You need to sort that out. You just need to grasp that, and you need to do it. We've done that now.

Speaker Change: Yeah. Thanks for the question Pablo I think you change it is on page six sorry, if you want to know what I've been doing my time in the office, it's pretty much.

Speaker Change: Outlined on the page four big blocks fixing the organization fixing why the organization operates.

Speaker Change: Looking at the cost savings that I think are overdue, which are which we plan to deliver this year through.

Speaker Change: Through 'twenty seven.

Speaker Change: Oh, I think necessarily we've moved to realign our pricing our pricing was out of kilter with the marketplace. One of the biggest purchase reasons is price biggest reason for leaving his price. So you need to sort that out and you just need to grasp that you need to do it and we've done that now we did that actually.

Stephen van Rooyen: We did that actually earlier in Q1, and as we've said in the financials, you'll feel that effect of that now, and you'll feel it through the rest of the year. It's the right thing to do because at the heart of what two and three are all about is arresting the decline, about stopping the descaling. That's what this strategy is designed to do. Embracing three different brands that operate in three different market segments, the value end, and then you've got premium mobile and premium broadband, and making sure they're positioned pretty well, investing behind them to make sure they're pretty positioned well to take share in those markets. As Mike said, taking the risk off the table, the overhang on what the right thing to do with the network is.

Speaker Change: Earlier in Q1, and as we said in our financials, you'll feel that effect of that now and you'll feel it through the rest of the year, but it's the right thing to do because at the heart.

Speaker Change: Of what two and three are all about is arresting the decline about stopping the <unk> scaling that's what the strategy is designed to do embracing three different brands that operate in three different market segments. The value and then you've got premium mobile and premium broadband.

Speaker Change: And making sure that position pretty well investing behind them to make sure that pretty positioned well to take share in those markets.

Speaker Change: As Mike said, taking the risk off the table the overhang on what the right thing to do the network is I'm hardly convinced we have conviction that pursuing the DOCSIS upgrade path and giving us the speeds we need.

Stephen van Rooyen: I'm highly convinced, we have got conviction that pursuing the DOCSIS upgrade path and giving us the speeds we need in that marketplace is the right thing for us to do. We've got some differentiators. We've got a loyalty plan, which I'm very excited about. I think we've only seen the tip of what we can do with that, helping offset some of the risk that we have in long tenure backbone customers by investing more in there. As I see FMC, I see a lot of opportunity and a lot of upside to push that harder and further into the base than where we are today. The plan now is to commit to that, is to just roll up the sleeves, align the team, the new operating model behind doing that and deliver it. Thanks.

Speaker Change: In that marketplace is the right thing for us to do and then we got some differentiate us and we've got a loyalty plan, which I'm very excited about I think we've only seen.

Speaker Change: The tip of what we can do without.

Speaker Change: Helping offset some of the risks that we have in long tenure back book customers by investing more in there and then as I see FMC I see a lot of opportunity and a lot of upside to push that harder and further into the base than where we are today.

Speaker Change: And the plan now is to commit to that is to just roll up the sleeves.

Speaker Change: Align the team the new operating model behind doing that and deliver it.

Speaker Change: Yeah.

Speaker Change: Thanks.

Operator: Thank you. Our next question will go to the line of Steve Malcolm with Redburn. Steve, your line is open.

Speaker Change: Thank you.

Speaker Change: Our next question will come from the line of Steve Malcolm with Redburn, Steve Your line is open.

Steve Malcolm: Yeah. Thanks guys. I'll take a couple if I can, related on VodafoneZiggo again. Stephen, I guess you're going to have to step up to the plate again. Just on the CapEx, can you guys give us an idea where the savings are to fund the DOCSIS rollout? You're saying a sort of stable $900 million. What's coming out to fund that? Also how long until you get the whole network upgraded, a rough sort of idea of the timeframe. Maybe you said it and I missed it'd be great to hear that. Just sort of on the OpEx savings, I'm curious that clearly part of the EBITDA downdraft is Champions League. Stephen, you clearly come from a rich content environment at Sky. I can't think of a single telco that's really made money out of Champions League rights.

Speaker Change: Yeah, Yeah, Thanks, Doug I'll take a couple of I can relate to it.

Speaker Change: I'll go again, Stephen I guess youre going to have to step up to try to get just on the Capex can you guys give us an idea where that is.

Speaker Change: Savings are a problem the DOCSIS four rollout, you're saying that's sort of a stable $900 million whats.

Speaker Change: What's coming out from that and also how long until you get the whole network upgrade at a rough sort of idea of the timeframe and maybe you said it I missed it but it'd be great to hear that I'm, just sort of on the Opex savings.

Speaker Change: I'm curious clearly part of the EBITDA drop this champions League Stephen you clearly get a couple of our rich content environment I can't think of a single telco. That's what do you make money out of Champions League rights is there something that you need to own or something that you would give up fairly easily throw out improve EBITDA and a couple of years time. Thanks a lot.

Steve Malcolm: Is this something that you need to own or something that you would give up fairly easily to try and improve the EBITDA in a couple of years' time? Thanks a lot.

Speaker Change: Okay.

Stephen van Rooyen: Three questions in there. Thanks for the questions. Let me deal with the last one first. I think it's sort of too early to call what our plan with UEFA is. You'll notice, I made an intervention, upon joining about monetizing it more and better, and I think we made a statement that started flowing through. I expect that there's more opportunity for me there. In the mix for the moment, and for Ziggo Sport, it's a discrete and distinctive and valuable part of the brand and the proposition. I'm pretty happy with that. On the CapEx, we're getting through the bulk of the mobile network upgrade plan, so money should free up from that part of the network envelope to move across to this.

Speaker Change: Three questions and then thanks for the questions.

Speaker Change: So let me deal with the last one first.

Speaker Change: I think it's sort of too early to call what our plan with <unk>.

Speaker Change: Youll notice.

Speaker Change: Maiden intervention.

Speaker Change: Joining about monetizing it more and better and I think we made a statement that.

Speaker Change: Sorry, it's flowing through I expect that there's more opportunity for me.

Speaker Change: In the mix for the moment and physical sport, it's a discrete and distinctive and valuable part of the Brian in the proposition, So I'm pretty I'm pretty happy with that.

Speaker Change: On the Capex with through we're getting through the bulk of the.

Speaker Change: The mobile network upgrade plan, so money should free up from that part of the network.

Speaker Change: Our envelope to move across to today's where I'll sit through and going through.

Stephen van Rooyen: We're also through and going through a part of our IT and our IT infrastructure. That should start paying us some dividends, which allows us to reinvest money in the network upgrade and stay within the envelope that we've guided. In terms of rolling out the network, I'm not going to give you specifics about that other than, as we've said in this presentation, we see our way through to getting 2 gig, 4 gig and 8 gig in parts of the country through the next 18 months, which considering where we were and what the overhang was on us building fiber, is a pretty rapid deployment and an important deployment, in specifically areas of the country where we think it's going to make a difference.

Speaker Change: Part of our.

Speaker Change: A part of our I T and our it infrastructure so that should start paying out some dividends, which allows us to.

Speaker Change: To reinvest.

Speaker Change: In the network upgrade and stay within the envelope that we've guided.

Speaker Change: In terms of rolling out the network I'm not going to give you specifics about that other than as we've said in the presentation, we see our way through to getting two gig 40 gig and AKG in parts of the country through the next 18 months, which considering where we were and what the overhang was on US building fiber is pretty rapid.

Speaker Change: Deployment and an important deployment.

Speaker Change: In specific.

Speaker Change: Areas of the country, where we think it's going to make a difference so between not fixing the network within the envelope that we've got and getting our front book pricing right and getting our brands in the right place and well positioned and marketing correctly.

Stephen van Rooyen: Between that, fixing the network within the envelope that we've got, and getting our front book pricing right, and getting our brands in the right place, and well-positioned and marketing correctly, I feel pretty good about the path we're on. Thanks for the question.

Speaker Change: I think I feel pretty good about our competitive about popcorn.

Speaker Change: Thanks for the question.

Mike Fries: Yeah. By the way, there was always a little bit of DOCSIS in the original CapEx envelope to begin with. It was always our base case. We weren't talking about it as much because we didn't have the same conviction as we have right now. There's always some DOCSIS CapEx in there, so that's helping too.

Speaker Change: By the way there yet.

Speaker Change: Yes, there was always a little bit of DOCSIS.

Speaker Change: The original Capex envelope to begin with it was always.

Speaker Change: Our base case, we werent.

Speaker Change: Talking about it as much because we weren't didn't have the same conviction as we have right now, but there's always some doctors capex in there so that's helping too.

Steve Malcolm: Okay. Thanks a lot.

Speaker Change: Okay. Thanks, a lot.

Operator: Thank you.

Speaker Change: Thank you.

Steve Malcolm: Yep.

Speaker Change: Yeah.

Operator: The next question will go to the line of Joshua Mills with BNP Paribas. Your line is open.

Speaker Change: The next question will go to the line of Joshua Mills with BNP Paribas. Your line is open.

Joshua Mills: Hi guys. Thanks for the questions. I understand you probably can't give too much detail on this one, but maybe if you'd be able to give us some color on the kind of conversations you're talking to Telefónica about on VMO2, that would be helpful. How do they see the asset? How do you see the asset? Is it still a priority longer term that you can reduce leverage at this entity, be that through asset sales or perhaps from lowering the dividend payment? Just any broad brush commentary there you could give would be very helpful. There's obviously a bit of a surprise today to see the NetCo deal paused. Secondly, on the network strategy in the Netherlands.

Joshua Mills: Hi, guys. Thanks for the questions.

Joshua Mills: I understand you probably can't give too much detail on this one but maybe if you gave them to give us some color on the kind of conversations youre talking.

Joshua Mills: Telefonica about one maybe two that'd be helpful. How do they see the asset how do you see the assets is it still a priority longer term that you can reduce leverage at defense T. B.

Joshua Mills: Be that through asset sales or what perhaps lowering the dividend payment.

Joshua Mills: Broadbrush commentary that you gave for would be probably helpful. There's obviously I believe is probably start to see the tracheal pools.

Joshua Mills: And then secondly on the network strategy.

Joshua Mills: I think you're very clear that you're not going to build fiber. I think there were some comments at a conference from yourself, Mike, recently that you may be open to partnering with or doing deals with the Altnet longer term. Is that still something you'd be considering under the right conditions? Do you think the DOCSIS 4.0 strategy you're putting in place today will be enough to provide the speeds you need across the whole footprint long term? Thanks.

Joshua Mills: So I think you're pretty clear that you're not going to build fiber, but I think there was some comments conference from yourself might recently that.

Joshua Mills: You might be open to partnering with or doing deals where they opened that is longer term is that still something that you'd be considering under the right conditions or do you think the docs. It's full strategy you are putting in place today will be enough to provide the speeds you needs across the whole footprint long time. Thanks.

Mike Fries: Yes. Thanks, Joshua. On the network question, the answer is we do feel that DOCSIS 4 will give us what we need long term to be competitive. Having said that, we will always remain opportunistic about other network strategies or opportunities to either accelerate our access to high speed or higher speed broadband or create value. We rarely say never, but I think the core plan today is as we've described it, and we're pretty bullish about that plan. On Telefónica, we really do and are good partners. We've had a very long and successful partnership with Telefónica. I respect the fact that the new leadership needs time to figure out where their priorities are and where they want to put their capital and effort and where they see the biggest benefits and upside for their shareholders. I'm respectful of that.

Speaker Change: Yeah, Thanks, Doug just on the <unk>.

Joshua Mills: <unk> question.

Speaker Change: The answer is we do feel that DOCSIS four will give us what we need long term to be competitive having said that we will always remain opportunistic about other network strategies or opportunities to either accelerate our access to high speed or higher speed broadband or <unk> or <unk>.

Value so.

Speaker Change: We really say never but I think the core plan today is as we've described it and we're pretty bullish about that plant on telefonica.

Speaker Change: We really do.

Speaker Change: And may and are good partners, so and.

Speaker Change: And we've had a very long and successful partnership with Telefonica.

Speaker Change: I respect the fact that the new leadership in each time to figure out where their priorities are and where they want to.

Speaker Change: But their capital and effort and where they see the biggest benefit and upside for their shareholders. So I'm respectful of that if I were to reverse the tables and if we were coming in with a fresh perspective or or or.

Mike Fries: If I were to reverse the tables and if we were coming in with a fresh perspective or developing a fresh perspective, we would also seek some kind of understanding. That's point one. There's lots of options remaining in this market. As Lutz and I mentioned, there's 7 million fiber homes already in our ecosystem that we control. We're the second-largest network in this country, 18 million homes. The engine is churning in a positive way. There's lots to be really, I think, excited about in the UK. We're going to keep figuring out how we create value for shareholders, and they'll be doing the same thing. I would say it's a very good dialogue. I think very highly of Mark.

Speaker Change: And a fresh perspective.

Speaker Change: We would also see some kind of.

Speaker Change: Understand so that's 0.1, there's lots of options remaining in this market.

Speaker Change: Lutz and I mentioned, there are 7 million fiber homes already in our ecosystem that we can control. We're the second largest network in this country 18 million homes.

Speaker Change: And the engine is churning.

Speaker Change: So theres lots of to be really I think excited about is in the U K and we're going to keep you.

Speaker Change: Going out.

Speaker Change: Are you for shareholders and they'll be doing the same thing. So I would say, it's a very good dialogue I think.

Speaker Change: Very highly of it mark.

Mike Fries: He's come into this as a new sector, and he's very quickly, I think, grasped the core aspects of our industry, and we're going to give them the time they need to figure it out. That's really all I would add to that.

Speaker Change: You know he has come into this as a new <unk>.

Speaker Change: Sector and he's very quickly I think grasp the core aspects of our of our industry and we're going to give them. The time they need to figure. It out that's really all I would I would add to that.

Joshua Mills: Great. Thanks.

Speaker Change: Alright. Thanks.

Mike Fries: Operator? You got it.

Speaker Change: Operator.

Operator: Thank you. Our next question will go to the line of Ulrich Rathe with Bernstein Society Generale Group. Your line is open.

Speaker Change: Got it thank you.

Speaker Change: Our next question will go to the line of Rick race with Bernstein at Society Generale Group.

Speaker Change: Your line is open.

Ulrich Rathe: Thanks very much. On the Netherlands, I wanted to ask, one of the sort of arguments that is floating around on the difference between staying with HFC and going to full fiber is that the operating costs on the cable option, even with the higher speeds that DOCSIS 4.0 offers, will be structurally higher in the long term and that this is a competitive issue. How do you think about that element of it, the higher operating costs and potential margin impact relative to competitors? If I may just put in one clarification on the UK, NetCo said, please. Is there a timescale to this pause? Is this something that you would expect to be talking to us again in 6 months or the next 2 years? Is there any sense of when this pause might end? Thank you.

Ulrich Rathe: Thanks very much. On the Netherlands, I wanted to ask, one of the sort of arguments that is floating around on the difference between staying with HFC and going to full fiber is that the operating costs on the cable option, even with the higher speeds that DOCSIS 4.0 offers, will be structurally higher in the long term and that this is a competitive issue. How do you think about that element of it, the higher operating costs and potential margin impact relative to competitors? If I may just put in one clarification on the UK, NetCo said, please. Is there a timescale to this pause? Is this something that you would expect to be talking to us again in six months or the next two years? Is there any sense of when this pause might end? Thank you.

Speaker Change: Thanks, very much so on the Netherlands I wanted to ask.

Speaker Change:

Speaker Change: One of the sort of arguments that is floating around on the difference between staying with HFC in going to a full fiber is that the operating costs on the cable option, even with the higher speeds the DOCSIS four for us.

Speaker Change: Well the structurally higher in the long term and that this is a competitive issue. How do you think about that element of it.

Speaker Change: The higher operating costs and potential margin impact relative to competitors. If I may just put in one clarification on the U K and that's coincided please.

Speaker Change: Is there a time schedule. This pause is this something that you would expect to be talking to us again in six months or or go to.

Speaker Change: The next two years or is there any sense of when this sort of this pause and thank you.

Mike Fries: I think the leadership of Telefónica has, I believe, suggested that they will have views on their strategic plan in H2 of this year. Just to the extent that this will have an impact on our own strategies and opportunities in the UK, that's probably a pretty good timeframe, H2. On the OpEx question, as I think we've mentioned many times before, there are a handful of things that drive the decision between, let's say, fiber and DOCSIS. The number one issue is the cost per premise. What we know is that the cost per premise in the Netherlands will be a very small fraction of the build cost for fiber. It almost dwarfs any potential, and I would use the word potential, long-term OpEx efficiencies from consolidating networks and consuming less power and the things that fiber can provide.

I think the leadership of Telefonica has.

Speaker Change: Belize.

Speaker Change: <unk> suggested that they will have.

Speaker Change: Views on their strategic plan in the second half of.

Speaker Change: This year, so just to the extent that this will have an impact on our own strategies and opportunities in UK, that's probably a pretty good timeframe HQ.

Speaker Change: On the Opex question.

Speaker Change: I think we've mentioned many times before there are a handful of things that drive the decision between let's say fiber and DOCSIS and the number one issue is the cost per premise and what we know is that the cost per premise in the Netherlands will be a very small fraction.

Speaker Change: Of the build cost for fiber and so it almost dwarfs any potential and I would use the word potential long term opex efficiencies.

Speaker Change: <unk> networks, and consuming less power and the things that fiber can provide.

Mike Fries: The cost to build, in our opinion, in the Dutch market is prohibitive, whereas we can get where we need to be with a very small fraction of that expense with DOCSIS. We really don't even get ourselves to the OpEx efficiency question because it's relatively small in the scheme of the overall capital decision and capital allocation decisions we're looking at. I don't know if, Enrique, you want to add anything to that?

Speaker Change: Cost to build in our opinion in the Dutch market is prohibited.

Speaker Change: Whereas we can get where we need to be with a very small fraction of that expense with DOCSIS. So we really don't even get ourselves to the opex efficiency question, because it's relatively small in the scheme of the overall capital decision and capital allocation decisions. We're looking at I don't know if Enrique you want to add.

Speaker Change: Anything to that.

Enrique: Mike, I think that's pretty accurate. The only thing I would just add is that we maintain our networks, our HFC networks in Netherlands and in all our operating companies at a pretty high level, pretty current technology. As probably all of you know, the HFC technology today is really highly connected to software, cloud, all modern technology. We feel pretty confident about the operating expenses on DOCSIS, not only DOCSIS 4.0, but in the continuation and expansion of DOCSIS 3.1 that Stephen mentioned before.

Enrique Rodriguez: Mike, I think that's pretty accurate. The only thing I would just add is that we maintain our networks, our HFC networks in Netherlands and in all our operating companies at a pretty high level, pretty current technology. As probably all of you know, the HFC technology today is really highly connected to software, cloud, all modern technology. We feel pretty confident about the operating expenses on DOCSIS, not only DOCSIS 4.0, but in the continuation and expansion of DOCSIS 3.1 that Stephen mentioned before.

Speaker Change: Hi, Mike I think that's pretty accurate the only thing I would just add is that we maintain our networks, our HFC networks in Netherlands.

Speaker Change: Operating companies.

Speaker Change: At a pretty high level pretty current technology.

Speaker Change: Probably all of you know.

Speaker Change: Technology today is really highly highly highly connected to a software cloud automotive technology. So we feel pretty confident about the operating expenses on DOCSIS not only boxes for putting the continuation and expansion of DOCSIS, three one and Steven mentioned before.

Mike Fries: The other point I'll make on in-.

Speaker Change: The other point I'll make on in better cohort of I'm, sorry, DOCSIS and in this case.

Enrique: Very clear. I'm sorry.

Enrique Rodriguez: Very clear. I'm sorry.

Mike Fries: support of DOCSIS in this case. I was going to say, the other point I'll make in support of DOCSIS on this case is that connection costs and CPE and these types of issues are really equally important in any fiber decision. I think the ability to stay with a single network here and execute against a single technology and to do so with less disruption to customers is another benefit.

Mike Fries: Support of DOCSIS in this case. I was going to say, the other point I'll make in support of DOCSIS on this case is that connection costs and CPE and these types of issues are really equally important in any fiber decision. I think the ability to stay with a single network here and execute against a single technology and to do so with less disruption to customers is another benefit.

Speaker Change: Therefore, I'll make in support of DOCSIS on this case is.

Speaker Change: That.

Speaker Change: Connection cost in CPE and these types of.

Speaker Change: Issues are really the equally important in any fiber decision and so I think that.

Speaker Change: The ability to stay with a single network here and execute against a single technology and to do so with less disruption to customers.

Speaker Change: Another benefit.

Ulrich Rathe: Very clear. Thank you. Sorry for butting in there. Thank you.

Speaker Change: Very clear thank you sorry for parking in there. Thank you.

Operator: Thank you. Our next question will go to the line of Matthew Harrigan with The Benchmark Company. Your line is open.

Speaker Change: Thank you.

Speaker Change: Our next question will go to the line of Matthew Harrigan with Benchmark Company. Your line is open.

Matthew Harrigan: Thank you. Two questions, one on Formula E and then on 5G, both consumer and Business services. When that other Liberty bought Formula One, it was pretty apparent that some of the practices under Ecclestone weren't optimal on social media, promotion, sponsorship, et cetera, imbalances with Ferrari and between the structure of the teams. What do you think the missteps in the past have been, what do you think you can do to elicit more interest and enhance the team values as well? That was clearly one of the things that Liberty did right on Formula One. How do you assess kind of the competitive position? I know it's very different, but kind of Formula E relative to Formula One in terms of the very long-term potential.

Speaker Change: Well. Thank you two questions one on Formula E. I meant on a far to both consumer and.

Business services.

Speaker Change: Other Liberty bought Formula one it was pretty apparent in some of the practices under eccleston weren't optimal on social media promotional sponsorship et cetera.

Speaker Change: Imbalances, where ferrari and between the structure of the teams.

Speaker Change: Where do you think the missteps in the past have been and where do you think you can do elicit more interest and enhance the team.

All of us as well because that was clearly one of the things that liberty.

Speaker Change: Did right on Formula one.

Speaker Change: And how do you yourselves kind of the competitive position.

I know, it's a it's very different but.

Kind of Formula E relative to Formula one in terms of the very long term potential and then secondly, mark you've been very vocal about five.

Matthew Harrigan: Secondly, Mike, you've been very vocal about 5G's kind of been table stakes on the consumer side, very difficult to monetize, disappointing in the US as well, whereas network slicing, you've got a lot of opportunities on the business services side. Is there anything happening with better integration of AI and the handsets, say Perplexity or even like 8K or whatever makes people want to stream more on 5G mobile that would finally enable you and others to kind of benefit from the rising tide on better monetization for the European consumer? Thank you.

Speaker Change: She has kind of been table stakes on the consumer side very difficult to monetize disappointing in the U S as well, whereas <unk>. So you've got a lot of opportunities on the business services side, but is there anything happening with better integration with AI and the handsets. So it reflects a D or even like eight.

Speaker Change: K or whatever makes people want to stream more on on fire T. Mobile that would finally enable you and others to try to benefit from a rising tide on better monetization for the European consumer. Thank you.

Mike Fries: Thanks, Matt. On the 5G point, I would say there are two versions of 5G, and pretty much everybody, with the exception of a handful of operators, maybe one in the US and a handful of operators in Europe, are operating under the less robust version of that. The second and more robust version, 5G SA, is in our sights. We're all anxious and working towards getting our networks to 5G SA, stand-alone 5G, which has many benefits, operating benefits, even some cost benefits, but also could lead to the kind of things you're describing on the consumer side. I'll also tell you that almost every operator will agree, I think, that the main revenue-generating benefits of 5G will be in the enterprise area. The ability to slice networks, the ability to have mobile private networks, the ability to provide solutions on the edge.

Speaker Change: Thanks, Matt on the <unk>.

Speaker Change: <unk> point I would say.

Speaker Change: Yeah.

Speaker Change: There are two versions of <unk> and pretty much everybody with the exception of a handful of operators may be one in the U S and a handful of operators in Europe are operating under the.

Speaker Change: The less robust version of that so the second and more robust version five GSA is in our sights, we're all anxious and working towards getting our networks. If on GSA Standalone <unk>, which has many benefits operating benefits you had some cost benefits, but also could lead to the kind of things you are describing on the.

Speaker Change: Consumer side, but I'll also tell you that almost every operator will agree I think that the main revenue generating benefits of <unk> will be in the enterprise area the ability to slice networks the ability to have mobile private networks the ability to provide solutions on the age. These are all things that <unk> facilitate.

Mike Fries: These are all things that 5G facilitates in the B2B side of the equation. That is real. Those applications are real. Yeah, we're optimistic that over time, as we all get to 5G stand-alone, which is the true 5G, that that will open up opportunities in the consumer space. It's kind of table stakes long term. I think the real benefits will be in the enterprise side of the business. That's really where I think long term, the opportunity resides. On the Formula E question, look, Formula One, judge or not, it is an incredible business. I think the team on the other side of the house, if you will, has done a fantastic job. To tell you that we're going to be Formula One someday would of course, be ludicrous. We're relatively small.

Speaker Change: In the B to B side of the equation and that is real those applications are real.

Speaker Change: So yeah, we're optimistic that over time as we all get to <unk> stand alone, which is the true <unk>.

Speaker Change: But that will open up opportunities in the consumer space and.

Speaker Change: It's kind of table stakes or long term, but I think the real benefits will be in the enterprise side of the business and that's really where we're I think long term the opportunity resides.

Speaker Change: On the <unk> question.

Speaker Change: One is the juggernaut. It is an incredible business and I think the team we have a shot at.

Speaker Change: The house, if you will has done a fantastic job.

Speaker Change: And can tell you that we're going to be Formula One Sunday would of course be ludicrous were relatively small took forming 175 years to get to where it is.

Mike Fries: It took Formula One 75 years to get to where it is. On the other hand, what I know is this, and that is there are only a handful of global racing championships around the world. We are lucky to own one. Secondly, we own one that, no pun intended, is a rocket ship. Every car we bring out goes faster and faster. It won't be long before we're as fast as a Formula One car around Monaco, I can promise you that. We're doing it without slicks and without the aero packages and things like that. Just focus on the racing, because that's really where I get excited, watching the cars go faster, watching dozens of overtakes on the Monaco track.

Speaker Change: On the other hand, what I know is this and that is okay.

Speaker Change: There are only a handful of operation champion shipped around the world. We are lucky to own one secondly, we own one that no pun intended as a rocket ship. It has every car, we bring alcohols faster and faster it won't be long before we're as fast as a formula one car round Monaco and punished.

Speaker Change: And we're doing it without <unk> and without the Aero packages and things like that so just focus on the racing because thats really where I get excited watching the cars go faster watching.

Speaker Change: Dozens of overtakes on the Monaco track I mean, this is really exciting for me is really compelling racing and that is the core reason anybody watches it and that we're invested in it yes. It has a sustainability component that is fantastic. Yes, we have lots of sponsors who are excited to be part of this and we're excited to.

Mike Fries: I mean, this is really the exciting bit for me is it is really compelling racing, and that is the core reason anybody watches it and that we're invested in it. Yes, it has a sustainability component that is fantastic. Yes, we have lots of sponsors who are excited to be part of this, and we're excited to have them. Yes, we have great manufacturers and really strong team ownership, but it's early days, and the nice thing is we're in these early days at relatively low cost. I think there's nowhere to go but up. We're not trying to be Formula One per se. Many things we do better, many things they do better. We're trying to attract a younger, more diverse audience. We're trying to change the nature of racing, and I think we're well on our way.

Speaker Change: Have them.

Speaker Change: Yes, we have great manufacturers and really strong team ownership, but it's early days and the nice thing is we're in.

Speaker Change: These early days at relatively low cost. So I think there is nowhere to go but up.

Speaker Change: But we're not trying to be formula one per se I mean amazing should do better.

Speaker Change: He thinks they do better we're trying to attract a younger more diverse.

Speaker Change: Audience, we're trying to change the nature of embracing it and I think we're well on our way so it's really exciting.

Mike Fries: It's really exciting where we're heading, and I think rising tides here float all boats. It's not a mutually exclusive zero-sum game with F1. I think we both can thrive here in this global racing marketplace.

Speaker Change: Really exciting where we're heading and.

Speaker Change: And I think rising tides here float all boats.

Speaker Change: It's not a mutually exclusive it was zero some gain with that fine, but I think we both can thrive here.

Speaker Change: In this.

Speaker Change: Global racing marketplaces.

Matthew Harrigan: Thanks, Mike. Congratulations on Sunrise. That really worked out well.

Speaker Change: Thanks, a lot congratulations on Sunrise really worked out well.

Mike Fries: Thanks, Matt.

Speaker Change: Thanks, Matt.

Operator: Thank you. Our next question will go to the line of David Wright with Bank of America.

Speaker Change: Thank you.

Speaker Change: Our next question will go to the line of David Wright with Bank of America. Your line is open.

David Wright: Yeah. Hi, guys. I think we've covered hollandsnieuwe now. Just I guess a question on the NetCo and just a super quick aside on Formula E. The NetCo, Telefónica's Chairman has obviously indicated an H2 strategic review to be communicated, and then there could obviously be some moves alongside that. That means you kind of have to wait a little, and I'm just wondering how comfortable you guys are waiting, because one of the objectives of NetCo was always to provide a vehicle to potentially consolidate the UK. UK competition is hitting you guys very hard now. It's hitting everyone very hard. I think the general view is the sooner that consolidation comes, the better. Of course, it speeds up your time to market, and you've obviously just brought back the nexfibre targets a little bit.

David Wright: Yeah, Hi, guys.

Speaker Change: I think we've covered Holland.

Speaker Change: So just I guess a question on the net covenant just a super quick I saw it on formulary, but then that co.

Speaker Change: I mean, you know what test Chairman is obviously indicated an H two strategic review to be communicated and.

Speaker Change: Then that could obviously be some moves alongside that.

Speaker Change: But that means you kind of have to wait a little and I'm. Just wondering how comfortable you guys are waiting because one of the objectives of NAPCO was always to provide a vehicle to potentially consolidate the U K.

U K competition is hitting you guys very hard now it's hitting everyone very hard so I think the general view is the sooner that consolidation comes about and of course it speeds up your time to market and you've obviously just brought.

Speaker Change: But the next fiber.

David Wright: I'm just wondering how comfortable you are sitting on the sidelines when arguably you guys are running behind target and need to move a little quicker. Just on Formula E, I did notice the fairly huge departure of McLaren, who prioritized Formula One. That is obviously a marquee brand. I'm just wondering, was there any opportunity to keep them involved or even bring them back? That seemed like quite a big loss for the branding of the sport, or maybe I'm wrong on that. Thanks.

Speaker Change: It gets a little bit so I'm just wondering how comfortable you are kind of sitting on the sidelines when arguably.

Speaker Change: You guys are running behind target and need to move a little quicker just on Formula E M.

Speaker Change: I did notice the Sally.

Speaker Change: Got a huge departure Mclaren, who prioritized formula one.

Speaker Change: That is obviously a marquee brand.

Speaker Change: I'm just wondering do you guys have any opportunity to sort of was there any opportunity to keep them involved or even bring them back that seemed like quite a big loss.

For the sort of for the branding of the sport or maybe I'm wrong on that thanks.

Mike Fries: Well, I think you're touching on the nature of the sport, which is, there's flux and it's fluid. McLaren has been a great race team owner for quite some time, but they're not a manufacturer, so there's no McLaren engines. It's not like Porsche or Jaguar. McLaren is really a brand that owns a racing team. We think, while that's a loss, no question, and we love Zak and I think Zak loves us, that we will be able to fill that slot with compelling owners. I can't speak about here, but we're well underway to making that happen. Yeah, it's certainly a loss, but he had to manage his own business and he's got sponsors and financial questions he has to answer. I don't think he doesn't like Formula E.

Speaker Change: Well I think youre touching on the nature of the sport, which is.

Speaker Change: There is flux and it's fluid.

Speaker Change: <unk> has been a great.

Speaker Change: Reis owner race team owner for quite some time, but they are not a manufacturer. So there is no Mclaren engines, there's it's not as it's not like Porsche or Jaguar Mclaren is really a brand that owns a racing team and so we think thats a loss no question and we live Zac and exact loves us that we will be able to fill that slot with.

Speaker Change: Compelling owners and.

Speaker Change: Speak about here, but we're well underway to making that happen. So yes, it's certainly a loss, but he had to manage his own business. He has got.

Speaker Change: The sponsors and financial.

Speaker Change: Questions, Yes to answer so I don't think it was he doesn't like for me I think he had to choose if.

Mike Fries: I think he had to choose, if you will, where he was going to allocate capital, and I think some of that capital might have gotten a little smaller than he thought, and he made some moves. Anyway, on the bigger issue around NetCo, I would say the following. Yes, the market is evolving and certainly it would be potentially better to be front and center with our original plans. However, nothing prevents us from entering into strategic dialogue with operators around things like consolidation. I'll remind you that the Upp acquisition we did earlier in the year was done by nexfibre and VMO2. We didn't have a NetCo in that instance. We still have a very large broadband base. We have an 18 million home network, or 16 wholly owned.

Speaker Change: If you will where he was going to allocate capital and I think.

Speaker Change: Some of that capital might have gotten a little smaller than you thought.

Speaker Change: And he made some moves so anyway on the bigger issue around Nicole.

Speaker Change: I would say the following.

Speaker Change: Yes, the market is.

Speaker Change: Evolving and certainly it would be.

Speaker Change: Potentially better to have to be front and center with our original plans. However, nothing prevents us from entering into strategic dialogue with operators around things like consolidation I'll remind you that the <unk> acquisition. We did earlier in the year was done by next fiber and BMO to so we didn't have a net <unk>.

Speaker Change: That instance, and we still have a very large broadband base. We have an 18 million home network are 16 wholly owned.

Mike Fries: There are unlikely to be significant developments in the rationalization of Altnet fiber in this market that we aren't part of in some way. I do believe that Telefónica would answer that question similarly, which is we will stay opportunistic, and we will take action if things are presented to us that require immediate action, where at least we'll evaluate those. That's where we sit. I'm still optimistic. I know Lutz is, too. It's an active and vibrant market and we're a major player in it, and I think while we're pausing the specific NetCo stake sale, we are by no means shutting down our strategic brains here and/or closing doors.

Speaker Change: There are unlikely to be significant developments in the rationalization of ultra extra fiber in this market that we arent part of in some way and I do believe that Telefonica would answer that question. Similarly, which is we will stay opportunistic and we will take action if things are presented to us that require.

Speaker Change: Our immediate action.

Speaker Change: Yes.

Speaker Change: So that's where we sit.

Speaker Change: And I'm still locked up.

Speaker Change: Domestic and alluded to it.

Speaker Change: Active and vibrant market and we're a major player in it and I think while we are pausing the specific nikko stake sale, we are by no mean shutting down.

Speaker Change: Our strategic brains here and closing doors.

David Wright: Okay, thanks for taking the questions, Mike.

Mike Fries: Okay. Thanks for taking the questions Mike.

Operator: Thank you. Our last question will go to the line of James Ratzer with New Street Research. Your line is open.

Speaker Change: Thank you.

Speaker Change: Our last question will go to the line of James <unk> with New Street Research. Your line is open.

James Ratzer: Yes, sir. Thank you very much indeed, and good afternoon, Mike. I just had one question, please. If I look at VodafoneZiggo, you've obviously been facing some broadband customer losses there for a few quarters now, and you've now decided to react with a new strategy to reprice on the front book. If I look at the UK, you've now just had 44,000 broadband losses this quarter. If that were to continue as well, and it would seem like some of the One Touch Switching effect is going to continue at least into Q2. At some point, do you need to consider a similar type of strategic shift on pricing in the UK as well? Thank you.

James: Yes. Thank you very much indeed, and yeah. Good afternoon, Mike I just had one question. Please would you say if I look at Vodafone Zika, you've obviously been facing some broadband customer losses that.

James: For a few quarters now and you've now decided to kind of react with a new strategy to reprice on the front book and if I look at the U K, you've not just had 44000 broadband losses. This quarter I mean, if that were to continue as well and then it seemed like some of the one touch switching.

James: Effect is going to continue at least into Q2.

Speaker Change: Some point do you need to consider a similar type of strategic shift on pricing in the U K as well. Thank you.

Mike Fries: I think it's premature to address that, and I think Lutz would say, and I think our partners would agree, that we'll be agile as the year unfolds. We're still adding customers in our nexfibre marketplace. We think that accelerates. That's a consistent quarterly net add in the 2-plus million homes where we are now penetrating greenfield markets, if you will. We think that is a significant driver of growth for us, and we'll have to monitor the losses and in relation to the sort of plans and techniques that Lutz was referencing here are now that we understand One Touch Switch, we are preparing to address that in a much more effective and proactive way. Let's see how things unfold.

James: I think it's premature.

James: To address that and I think Lutz would say.

James: And I think our partners would agree that we will be agile as the year unfolds.

James: We have we're still adding customers in our next fiber marketplace, we think that accelerates.

James: That's a consistent quarterly net add in the two plus million homes, where we are now penetrating greenfield.

James: Markets. If you will and so we think that is a significant driver of growth for us and we will have to monitor that.

James: Losses and in relation to the sort.

James: Sort of plans and techniques. It loosens referencing here now that we understand one touch switch we are preparing to address that in a much more effective and proactive way so let's see how things unfold.

Mike Fries: I think the move in the Dutch market was also probably long overdue in the sense that we do have the highest ARPU there, that we didn't have conviction around how to retain customers or grow the customer base for quite some time. We were sort of floating an easy target. I think what Stephen's brought is a much more pointed and fierce strategy about winning again. That's always a good posture to have, and I think I and Margherita, I believe, are comfortable with the posture that they're putting forward, and let's see how those results unfold. We're optimistic.

James: And I think the move in the Dutch market was also probably long overdue in the sense that we do have the highest <unk> there that we.

James: We didn't have a.

James: Could we have conviction around how to retain customers and grow the customer base for quite some time, we were sort of floating and easy target.

James: Think what Stevens brought us a much more pointed and fear strategy about winning again, so that's always a good posture to have and I think.

Speaker Change: And Marguerite I believe are comfortable with the posture that they're putting forward and let's see how those results unfold. So we're optimistic.

James Ratzer: Got it. Thank you. Does that mean you feel that you can probably get back to a kind of customer stability in the UK without having to make major changes to the front book pricing?

Speaker Change: Got it. Thank you. So does that mean you feel that you can probably get back to kind of customer stability in the U K without having to make major changes to the front book pricing.

Mike Fries: At this point, yes. That's what we're anticipating through the course of the year. That's correct. We've been growing fixed ARPU every quarter. I think, 8 or 10 quarters in a row, we've had a nice uptick in fixed ARPU. Certainly that's our budget for the rest of the year is to continue doing that.

Speaker Change: At this point, yes.

Speaker Change: That's what we're anticipating for the course of the year.

Speaker Change: And we've been growing fixed <unk> and.

Speaker Change: Every quarter.

Speaker Change: I think.

Speaker Change: 810 quarters in a row, we have been had we had a nice tick uptick in fixed <unk>. So certainly that's our budget for the rest of the year is to continue doing that.

James Ratzer: Got it. Thank you very much.

Speaker Change: Got it. Thank you very much I think Thats time, yes, you got.

Mike Fries: I think that's time. You got it, James. I think that's time. Listen, as always, we appreciate you engaging with us, taking the time to be on the call with us. Lots of data, lots of information. We're always here to support you, answer any questions you have. It's important to us that you get to what you need to understand the story and the stock and the valuation. I'll just simply say we as a team are completely aligned, completely focused on our strategy here, and you can hold us accountable to all the things on those slides because we're working on them 24/7, and we look forward to keeping you posted on that. We'll speak to you soon. Thanks very much.

Speaker Change: James I think Thats, Todd listen as always.

Speaker Change: I appreciate you engaging with us taking the time to call with us lots of data lots of information. So we're always here to support you and answer any questions. You have it is important to us that you.

Speaker Change: You get to what you need to understand the story and the stock valuation.

Speaker Change: Just simply say, we as a team are completely aligned completely focused on arent on our strategy here and you can hold us accountable to all the things on that on those slides because we're working on them 24, seven and we look forward to keeping you posted on that so we'll speak to you soon thanks very much.

Operator: Ladies and gentlemen, this concludes Liberty Global's Q1 2025 investor call. As a reminder, a replay of the call will be available in the investor relations section of Liberty Global's website. There you can also find a copy of today's presentation materials.

Speaker Change: Ladies and gentlemen, this concludes Liberty Global's first quarter 2025, Investor call. As a reminder, a replay of the call will be available in the Investor Relations section of Liberty Global's website. There you can also find a copy of today's presentation materials.

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Q1 2025 Liberty Global PLC Earnings Call

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