Q1 2025 Liberty Global PLC Earnings Call

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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.

Good morning, ladies and gentlemen, and thank you for saying he by 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 express.

Written consent of Liberty Global is strictly prohibited.

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

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.

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, 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.

Today's presentation May include forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Including the company's expectations with respect to its outlook and future growth prospects and other information and statements that are not historical fact these.

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

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

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.

Mike Fries: Great. 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: And welcome everyone and thanks for joining our first quarter investor call there.

Mike Fries: There are a lot of ground to cover so I will jump right into prepared remarks of course after that we look forward to your questions. We're all get 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 are 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 EUR 2.1 billion of cash on hand and a further EUR 500 to 750 million of asset sales planned this year, continuing to be smart about capital allocation.

Mike Fries: 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 in our three core platforms Liberty Telecom everybody growth Liberty services firm.

Mike Fries: The takeaway from this call set 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 planned this year.

Speaker Change: <unk> to be smart about capital allocation. So let's go through it one by one beginning with Liberty Telecom on slide four.

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 is 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. We are 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: Where the value creation opportunity is substantial and the strategy is clear.

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

Mike Fries: Remember 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. But 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. The first is the finance and monetize network infrastructure, where we can do that and as we discussed the rationale for this varies by market, but we know fixed infrastructure in Europe is a highly sought after and valuable asset.

Mike Fries: Class, so 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.

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.

Mike Fries: Tate, bringing equity partners into the platform on highly accretive terms and.

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 telephonics position 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. 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 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. 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 ROE and made significant progress on our new strategic plan and you hear about that just in a moment.

Speaker Change: 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 €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 or 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 than this growing customer segment.

Mike Fries: hollandsnieuwe 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 upsell. In markets like the UK, we're growing ARPU with AI tools that dynamically and proactively address customer contracts and 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 BMO 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. 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 post-paid mobile across all of our markets, with the exception of Holland. These headwinds were offset by strong fixed ARPU growth nearly everywhere, reflecting price increases and the impact of the commercial initiatives I just referenced. 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 poo 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 Holland.

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 alt net 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 post-paid market remained relatively soft, with VMO2 impacted by B2B contract port outs, which are typically lower value, of course.

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: 2 million Greenfield homes are a significant growth opportunity remaining in the next fiber footprint overall, the UK postpaid market remain relatively soft.

Speaker Change: Zero two impacted by B to B contract port outs, which are typically lower value of course.

Mike Fries: 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. 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. I'm going to 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 3 to 5 EUR price reduction, and that helps them better align to KPN pricing. We've already seen some benefits to churn as customers migrate.

Speaker Change: Consumer net adds on the other hand improve year on year and encouragingly, we saw stable Oh, two churn dynamics and we continue 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.

Speaker Change: Supported in part by two 6% uptick in mobile postpaid ARPA that turning the 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 protocol as they go launch New front book offers with simplified tiers and.

Speaker Change: Between a three to five euro price reduction and that helps them better aligned to keep you in pricing.

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

Mike Fries: 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. 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. On 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.

Speaker Change: <unk> mobile net adds and how long were 29000 and that was driven by growth in <unk> and while the mobile market is generally 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.

Speaker Change: 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.

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.

Mike Fries: 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. 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 in 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.

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

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.

Speaker Change: One of the main reasons that we and 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: 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: That's beginning with how they work specifically.

Mike Fries: 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 he has correctly concluded that the Dutch market is driven by speed and price, not necessarily technology. We have the highest ARPUs 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 8 Gb 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 2 Gb speeds, which we'll accelerate.

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.

Speaker Change: I think he is correctly concluded that the Dutch market is driven by speed and price not necessarily technology, we have the highest <unk> 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: In a moment ago that 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 could get us to two gigs, which will accelerate and then finally, the team will reinvest and vote.

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 Steven 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.

Speaker Change: Funds. It goes core strengths and that includes 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 Marguerite and I are 100% supportive of Stephen and the team.

Speaker Change: 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 and this is especially important given the size of our portfolio at $3 3 billion.

Speaker Change: 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. 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 7 investments accounting for nearly 75% of the $3.3 billion fair market value today. 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.

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.

Speaker Change: We have line of sight on certain deals and I would remind you that our publicly listed stakes alone totaled $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.

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: You 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, 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.

Mike Fries: Now 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 3 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: 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 is Las Vegas Grand Prix now we're headed Ammonic. This weekend and I'm, telling you it's sold out for the double header on Saturday and Sunday and.

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 4 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: And 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 rates are and actually drive the Gen. Three Evo car during a two day track event at the Miami.

Speaker Change: Circuit and Youll see that content, which has already generated 300 million views across social media 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 for me on Liberty Services and our evolving corporate structure. As a reminder, Liberty Tech and Liberty Blume generate EUR 600 million of annual revenue and +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. 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 EUR 200 million annually after management fees.

Speaker Change: Our 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.

Speaker Change: Far from being a burden each of these platforms continues to pursue growth and efficiency initiatives that will create real equity value 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.

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.

Mike Fries: This is the number that analysts are valuing at approximately 14 times, resulting in a EUR 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, and even compared to some of our telco peers. 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. Stay tuned for more details about this in H2 of the year.

Speaker Change: Not only does the reduction in value not recognize the inherent equity value of Liberty Bloom and that really 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. It 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: Finally, just a reminder that our corporate cash, which totaled EUR 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. With that, Charlie, over to you.

Speaker Change: It's 60% in euros and is dedicated to supporting the strategic plans I just outlined.

Speaker Change: <unk> of course opportunistic share buybacks, which we've targeted at up to 10% of our shares in 2025 and 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 was 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.

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

Charlie: BMO two reported a return to revenue growth a 0.4% 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 zygote 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 <unk> sports 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 <unk>, 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. Turning to our cash walk, our consolidated cash balance sits at $2.1 billion at the end of Q1.

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 Telenet suggested EBITDA grew <unk>, 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 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: 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 Bracken: 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. 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.

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 continue to invest in our fixed and mobile networks and the elevated capex in Belgium, <unk> 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 25 at <unk>.

Charlie: It also sport five G and digital Capex of the circuit.

Charlie Bracken: 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. 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.

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.

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

Charlie Bracken: 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. Our activity at Telenet demonstrates our ability to remain agile with a new 8-year, €500 million term loan facility deployed at an attractive spread of around 300 basis points, and which was completed during the quarter.

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 M. O. Two we've now turned out all 20 twenty-seven maturities and this means we were 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.

Our activity of Telenet 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, and which was completed during the quarter.

Charlie Bracken: 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. Now, Mike has already discussed the new strategic plan of VodafoneZiggo, but 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. Now, beginning with the impact on 2025 guidance, we're lowering revenue guidance from broadly stable to low single-digit decline for 2025. 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.

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.

Now Mike has already discussed the new strategic plan a bit of a zika, but in the following slide on the 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.

Charlie: Beginning with the impact on 2025 guidance, we are lowering revenue guidance from broadly stable to low single digit decline for 2025 that was 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 or is it their base.

Charlie Bracken: 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 and adjusted EBITDA trends through to 2026, but with a moderating impact versus that in 2025. 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.

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

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

Charlie: 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.

Now turning to the midterm.

Charlie: 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: 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.

Charlie Bracken: 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 EUR 900 million a year. 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. Lastly, on leverage. Given the short-term pressure on adjusted EBITDA, we anticipate leverage will peak in 2026 and reduce thereafter. 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.

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

Charlie: 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.

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

Charlie: 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: Turning to our guidance for all our assets, having just talked through the updates of 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.

Charlie: Turning to our guidance for all of our assets I mean, just told through the update so but if it <unk>. We are reconfirming all the remaining guidance metrics of BMO to tell them that Liberty services corporate.

Charlie: 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 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 will 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.

Charlie: The question and answer session will be conducted electronically.

Charlie: 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.

Charlie: 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 Switch, you talked about market competition, alt nets, 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 Switch 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 U K, Nat cats, and specifically that kind of commentary.

Speaker Change: Around.

Speaker Change: The broadband additions.

Speaker Change: Tough 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.

Speaker Change: It's about market competition open edge nodes, I guess crossroads impacts as well.

Speaker Change: Could you provide some more color in terms of how much you assigned to each one of us 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 won't touch which in other.

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

Speaker Change: Okay. So if you're on mute I mean quarter one.

Lutz Schüler: So-

Mike Fries: Lutz, you have to unmute.

Lutz Schüler: I mean.

Mike Fries: There you go.

Lutz Schüler: Can you hear me? Can you hear me? Can you hear me?

Speaker Change: Can you hear me.

Speaker Change: Can you hear me.

Speaker Change: 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, GPL is used more by customers. Yeah. That's 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 customers. That means customers within minimum contracts can churn. That is number 2, and this is also driven by alt nets, 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. The good news is, we built this machine that we can target down to 60 households, and a retention offer with product and price.

Speaker Change: Yeah, Oh, sorry, sorry.

Speaker Change: So thank you for your question.

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

Speaker Change: So that's number one number two is.

Speaker Change: And the market is more competitive and you might have seen it right. So.

Speaker Change: Operator somewhat competitive push.

Speaker Change: Up to 300 pounds benefit on the table.

Speaker Change: To get the customer so that means customer within minimum contract Ken.

Speaker Change: Sure.

Speaker Change: So that was number two and this was also driven by alternate Astrakhan expect because of that.

Speaker Change: Could be challenging integration and the only thing that happened there.

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

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

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

Speaker Change: Down to 60 of households.

Speaker Change: Our retention of all with <unk>.

Speaker Change: Product them try it and now this machine learning.

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. So it takes time to optimize the machine from retention to prevention because the market clearly shifts because of OTS to prevention. Two things are making me more comfortable. One is

Speaker Change: The same thing for prevention.

Speaker Change: 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 to prevention, because the market clearly a shift because off GPL as to prevention.

Speaker Change: <unk>.

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

Lutz Schüler: That we were able to generate fixed service revenue growth of 1.9% before price rise.

Stephen van Rooyen: Right.

Stephen van Rooyen: 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.

Speaker Change: We see some slight improvement.

Speaker Change: From April onwards.

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

Speaker Change: We'll do it differently.

Speaker Change: Yes, I hope that gives some background.

Speaker Change: Yeah.

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

Speaker Change: Fantastic Thanks very much.

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

Speaker Change: Thank you.

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

Speaker Change: 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 take up 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 a cutting of our.

Speaker Change: The question is on the Netherlands actually I think it's impressive 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.

Speaker Change: The take up of the highest speeds within that Capex envelope.

Speaker Change: You said youre going to pay you are going to sell 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 has changed now between yourselves involved that you've got to pick a plan for the business that's unlocked.

Speaker Change: No 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 be 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 setups documentation and various things have been put in place and we are and we have a partner. So I think we're now aligned as partners and 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: And proceeds it will create but I think our purpose and intention is to use those proceeds.

Speaker Change: Absolutely.

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

Speaker Change: Doctors looking where we're 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 receive this question almost everywhere I go. Won't you have to build fiber? Won't you be building fiber?

Speaker Change: There's 120 million homes, currently being prepped and or rolling out DOCSIS in.

Speaker Change: In the U S and we're very closely aligned with charter and Comcast.

Speaker Change: Every element.

Speaker Change: The network rollout technologies E.

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

Speaker Change: Pretty good and you.

Speaker Change: Steve 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 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.

Speaker Change: Almost everywhere I go what you have to build fiber wont you be building fiber in and we're just waiting for that shoe to drop we will not be building 500 market DOCSIS four is the answer and we think it's the right one.

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 know Steven or Enrique want to add anything to that?

Speaker Change: I don't know Stephen RV gauge, one adding to that.

Speaker Change: Yeah.

Stephen van Rooyen: No, Mike, I think.

Michael: No Michael.

Lutz Schüler: No, I think that's pretty clear.

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

I think that's pretty clear.

Speaker Change: Sure.

Lutz Schüler: Sorry. Go ahead, Stephen. Go ahead.

Speaker Change: I'm Sorry go ahead go ahead, Steve 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.

Steve: I think Thats I think Thats as you said, that's that's pretty clear.

Steve: 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 and enough to do what we need to do to upgrade the network.

Steve: Okay.

Robert Grindle: Great to hear. Thanks, gents.

Robert Grindle: Thanks Brent.

Steve: Okay.

Mike Fries: Thanks, Robert.

Steve: Thanks, Alright.

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

Steve: 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's really just to focus a bit more in terms of VodafoneZiggo. I'd just be interested in terms of any commentary from Stephen van Rooyen in terms of what he's doing differently since he's 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? Given the weakening EBITDA trends and with leverage at VodafoneZiggo at 6x, 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>.

So just be interested in in terms of any commentary from Stephens on ROI and in terms of what he is doing differently since he's taken over and then also any first impressions, but also be specifically interested in terms of the customer response to the five euro.

Polo Tang: <unk> 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 up streaming of dividend to shareholders discussing the dividend.

Polo Tang: Faster way to Delever.

Polo Tang: <unk>.

Mike Fries: Well, multi-level question there. I think we feel like On the last one first, I'll hand it 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 that 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 last one first and I'll hand over to Stephen on the.

Polo Tang: The dividend to shareholders.

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

Polo Tang: Our working on should be sufficient to.

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 David.

Stephen van Rooyen: Yeah, thanks for the question, Polo. I think your cheat sheet is on page 6, so if you want to know what I've been doing with my time in the office, it's pretty much outlined on the page. 4 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, you need to do it. We've done that now.

David: 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.

David: Outlined on the page, we'll be blocks fixing the organization fixing where the organization operates.

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

David: 327.

David: <unk>.

Speaker Change: 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 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 <unk>.

Speaker Change: 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 they're 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 with the network is 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.

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.

Polo Tang: Thanks.

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. Yeah, thanks. 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 plate again. Just on the CapEx, can you give us an idea where the savings are to fund the DOCSIS 4.0 rollout? You're saying a sort of stable EUR 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, and maybe you said and I missed it, but it would be great to hear that. Just around 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 cannot think of a single telco that's really made money out of Champions League rights.

Steve Malcolm: Yeah, Yeah, Thanks, guys and I'll take a couple of I can relate to it.

Steve Malcolm: 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 just give us an idea where the savings are a problem. The DOCSIS full rollout, you're saying, it's sort of stable $900 million whats 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.

Steve Malcolm: I'm just sort of on the Opex savings.

Speaker Change: I'm curious clearly part of the EBITDA drop this champions League, Steven you're clearly going to come from our rich content environment. So I can't think of a single telco. That's really made money out of Champions League rights is there something that you need to iron ore.

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: Or something that you would give up fairly easily throw out improve EBITDA and 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. Money should free up from that part of the network envelope to move across to this. We're also through and going through a part of our IT and our IT infrastructure.

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 that.

Speaker Change: In the mix for the moment and physical sport it's a.

Speaker Change: <unk> and distinctive and valuable part of the Brian then 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 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 else it through and going through.

Speaker Change: A part of our.

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

Stephen van Rooyen: 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 gonna 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 gonna make a difference.

Speaker Change: To reinvest.

Speaker Change: Money in 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 said in this presentation, we see our way through to getting two gig 40 gig and eight 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 pretty rapid.

Speaker Change: Point and an important deployment in.

Speaker Change: In specific areas.

Speaker Change: Areas of the country, where we think it's going to make a difference so between that fixing the network within the envelope that we've got and getting off 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 where to go 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, but there's always some DOCSIS CapEx in there, so that's helping too.

Speaker Change: By the way there was yes, there was always a little bit of DOCSIS.

Speaker Change: 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.

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 <unk> 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, I think you're very clear that you're not going to build fiber.

Speaker Change: Hi, guys. Thanks for the questions.

Speaker Change: 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.

Speaker Change: Telefonica about one maybe two.

Speaker Change: 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.

Speaker Change: Be that through asset sales or what perhaps lowering the dividend payment.

Speaker Change: Just any broad brush commentary that you gave for it would be very helpful. There's obviously a bit of a surprise to see the tracheal pools.

Speaker Change: And then secondly on the network strategy.

Speaker Change: In the Netherlands, I think very clear that you're not going to build fiber, but I think there was some comments conference from yourself might recently that.

Joshua Mills: 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 alt nets longer term. Is that still something you'd be considering under the right conditions? Do you think the DOCSIS full strategy you're putting in place today will be enough to provide the speeds you need across the whole footprint long term? Thanks.

Speaker Change: You might be open to partnering with or doing deals where they open that is longer term is that still something that you'd be considering under the right conditions or do you think the DOCSIS full strategy youre, putting in place today will be enough to provide the speech you needs across the whole footprint long term. Thanks.

Mike Fries: Yes, thanks, Justin. On the network question, the answer is we do feel that DOCSIS 4.0 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, 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, Josh is on the network question.

Speaker Change: The answer is we do feel that DOCSIS four will give us what we need long term to be competitive.

Speaker Change: 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 or create 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.

Speaker Change: And telefonica.

Speaker Change: We really do.

Speaker Change: And may and are good partners. So.

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

Speaker Change: I respect the fact that new leadership, 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 1. There's lots of options remaining in this market. As Lutz Schüler and I mentioned, there's 7 million fiber homes already in our ecosystem that we control. We're the 2nd 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.

And a fresh perspective.

Speaker Change: We would also see some kind of.

Speaker Change:

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

Speaker Change: As.

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

Speaker Change: A positive way, but theres lots of to be really.

Excited about it in the U K and.

Speaker Change: We're going to keep.

Speaker Change: Figuring out how we create value for shareholders and they will be doing the same thing. So I would say, it's a very good dialogue I think.

Speaker Change: Very highly mark.

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

Mike Fries: He's come into this as a new sector. He's very quickly, I think, grasped the core aspects of our industry. 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: Sector and he's very quickly I think grasp the core app.

Speaker Change: 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: Later.

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

Speaker Change: You got it thank you.

Speaker Change: Our next question will go to the lineup Oelrich 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 sale, 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, or 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 are floating around on the difference between staying with HFC in going to a full fiber as the oil price and 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 our competitors. If I may just put in one clarification on the U K and that's cost side. 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.

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

Speaker Change: I think the leadership of Telefonica has I believe a suggested that they will have.

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 1 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.

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 the U K, that's probably a pretty good timeframe H two.

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 past per premise and what we know is that the cost per premise.

Speaker Change: In the Netherlands will be a very small fraction.

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

Speaker Change: 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?

The 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.

[Company Representative] (Liberty Global): 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 van Rooyen mentioned before.

Enrique: Hi, Mike I think that's pretty accurate the only thing I would just add is that we maintain our networks, our HFC networks and Netherlands in <unk>.

Operating companies.

Enrique: I have a pretty high level pretty current technology.

Enrique: Probably all of you know.

Enrique: Technology today is really highly highly highly connect.

Enrique: Connected to software.

Speaker Change: Automotive technology, so we feel pretty confident about the operating expenses.

Speaker Change: On DOCSIS not only books is for putting the continuation and expansion of DOCSIS, three one and Steven mentioned before.

Mike Fries: The other point I'll make.

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

[Company Representative] (Liberty Global): 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.

Speaker Change: This case that was I'd say the other point 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 jumping 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. 2 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, and what do you think you can do to elicit more interest and enhance the team values as well? Because that was clearly one of the things that Liberty did right on Formula One. How do you assess the competitive position? I know it's very different, but 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 and then on the far to both consumer and.

Speaker Change: Business services.

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

Speaker Change: Alex's, where ferrari and between the structure of the teams.

Where do you think the missteps in the past have been and what do you think you can do elicit more interest and enhance the team.

Speaker Change: 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.

Speaker Change: I know, it's a it's very different.

Speaker Change: 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.

Matthew Harrigan: Secondly, Mike, you've been very vocal about 5G has 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 into handsets, like Perplexity or even 8K or whatever makes people want to stream more on 5G mobile that would finally enable you and others to benefit from the rising tide on better monetization for the European consumer? Thank you.

Speaker Change: <unk> got a good 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 that complexity or even like eight.

K or whatever makes people want to see.

Speaker Change: Dream more.

On.

Speaker Change: <unk> mobile that would finally enable you and others to kind of a benefit from a rising tide.

Speaker Change: 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. 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 final point I would say.

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

Speaker Change: A 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: <unk> site, 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> facilitates into.

Mike Fries: These are all things that 5G facilitates in the B2B side of the equation, and 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 and it's table stakes long term. I think the real benefits will be in the enterprise side of the business, and that's really where I think long term, the opportunity resides. On the Formula E question, Formula One is a juggernaut. 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. It took Formula One 75 years to get to where it is.

Speaker Change: 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: Right.

Speaker Change: One is the juggernaut it is an incredible business.

Speaker Change: And I think the team.

Speaker Change: Out of the house, if you will has done a fantastic job.

Speaker Change: And to tell you that we're going to be Formula one someday would of course be ludacris were relatively small to forming 175 years to get to where it is.

Mike Fries: On the other hand, what I know is this, 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. This is really the exciting bit for me, is it is really compelling racing. That is the core reason anybody watches it and that we're invested in it. Yes, it has a sustainability component that is fantastic.

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

Speaker Change: There are only a handful of operations 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 around Monica and publish that.

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 car go faster watching.

Speaker Change: <unk>.

Speaker Change: Dozens of overtakes on the moniker track I mean this is really exciting for me is is really compelling racing and that is the core reason anybody who 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.

Mike Fries: 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. 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. It's really exciting where we're heading. 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: Yes, we have great manufacturers and really strong team ownership, but it is 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 many things they do better we're trying to attract a younger more diverse more.

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

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

Speaker Change: And I think rising tides here float all boats. So it's not a mutually exclusive it was zero some gain with that farm I think we both can thrive here.

Speaker Change: In this.

Speaker Change: Mobile 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. Your line is open.

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 Holland now. Just, I guess a question on the NetCo and just a super quick aside on Formula E. The NetCo, Telenet Chairman has obviously indicated an H2 strategic review to be communicated, there could obviously be some moves alongside that. Well, 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: Yes, 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 the net co.

Speaker Change: I mean.

Speaker Change: What test Chairman is obviously indicated an H two strategic review should 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.

Speaker Change: 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.

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

David Wright: I'm just wondering how comfortable you are kind of 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, do you guys have 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: You guys are running behind target and need to move a little quicker just on Formula E M.

Speaker Change: Yeah, I did noticed a fairly.

Speaker Change: Got a huge departure Mclaren, who prioritize 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.

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

Speaker Change: Compelling owners and I.

Speaker Change: I can't 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.

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: You will where he was going to allocate capital and I think some of it.

Speaker Change: That capital might have gotten a little smaller than you thought and he made some moves so anyway on the bigger issue around Nico.

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 an echo in that.

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

Mike Fries: There are unlikely to be significant developments in the rationalization of alt net for 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 <unk> 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: Indeed action, where it is.

Speaker Change: It will evaluate dose so that's where we sit.

Speaker Change: And I am still.

Speaker Change: Optimistic and alluded to act.

Speaker Change: Active and vibrant market.

Speaker Change: 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.

Speaker Change: We're closing doors.

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

Speaker Change: 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.

Mike Fries: Thank you.

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

Speaker Change: 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 Zico, you've obviously been facing some broadband customer losses that for a few quarters now and you've now decided to kind of react with a new strategy to reprice on the front book.

James Ratzer: Yes. Thank you very much indeed. Good afternoon, Mike Fries. 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. You've now decided to kind of 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, it would seem like some of the One Touch Switch 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.

Speaker Change: 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 switching effect is going to continue at least into Q2.

Speaker Change: At 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.

Speaker Change: I think it's premature.

Speaker Change: To address that and I think Lutz would say.

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

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

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

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

Speaker Change: Losses and in relation to the.

Speaker Change: Sort of plans and techniques. It looses referencing here now that we understand one touch which 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 and 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.

Speaker Change: 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.

Speaker Change: We didn't have a.

We have conviction around how to retain customers and grow the customer base for quite some time and we were sort of floating.

Speaker Change: Easy target.

Speaker Change: I think what Stephen's broad as a.

Speaker Change: It's more pointed and.

Speaker Change: Fear strategy about winning again, so that's always a good posture to have and I think I and Marguerite I believe are comfortable with the posture that there.

Speaker Change: 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 a customer a 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 to 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 through the course of the year.

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

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.

Mike Fries: I think that's time. Yeah, 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 time 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.

Speaker Change: 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 let me 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, 7% 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.

Speaker Change: 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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