Q2 2025 Liberty Global PLC Earnings Call

Operator: Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Liberty Global's second quarter 2025 investor call. This call and the associated webcast are property of Liberty Global, and any redistribution, retransmission, or rebroadcast of this call or webcast in any form without 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 LibertyGlobal's website at LibertyGlobal.com. After today's formal presentation, instructions will be given for a question and answer session. Page two of the slides details the company's safe harbor statement regarding forward-looking statements.

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

Welcome to Liberty Global second quarter, 2025 industrial call.

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

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

Today's formal presentation, materials can be found under the investor relations section of Liberty Global's website at Liberty global.com after today's formal presentation, instructions will be given for a question and answer session.

Operator: Today's presentation may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the company's expectations with respect to its outlook and future growth prospects and other information and statements that are not historical fact. These forward-looking statements involve certain risks that could cause actual results to differ materially from those expressed or implied by these statements. These risks include those detailed in Liberty Global's filings with the Securities and Exchange Commission, including its most recently filed forms 10Q and 10K 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.

Operator: Today's presentation may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the company's expectations with respect to its outlook and future growth prospects and other information and statements that are not historical fact. These forward-looking statements involve certain risks that could cause actual results to differ materially from those expressed or implied by these statements. These risks include those detailed in Liberty Global's filings with the Securities and Exchange Commission, including its most recently filed forms, 10Q and 10K, 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.

Page 2 of the slides details the company's Safe Harbor statement regarding forward-looking statements. Today's presentation may include forward-looking statements within the meaning of the private Securities. Litigation Reform Act of 1995 including the company's expectations with respect to his Outlook and future growth prospects and other information and statements that are not historical fact. These forward-looking statements involve certain risks that could cause actual results to differ materially from those expressed or implied by these statements.

Mike Fries: All right. Thank you, operator. Hello, everyone. We appreciate you joining us today for our Q2 results call. Hope your summer's off to a great start wherever you may be. As you know by now, we try to keep these calls fairly consistent, which means I've got my key leadership team on here with me, and as soon as Charlie and I finish with the prepared remarks, we'll get right to your questions. We do speak from slides, and I'm going to get us started on slide 3 with some highlights, really, I think, the key messages from the quarter. The first point should not be a surprise to anyone on this call. When you cut through it all, this management team, this board, remain 100% focused on creating and delivering value for shareholders.

Mike Fries: All right. Thank you, operator. Hello, everyone. We appreciate you joining us today for our second quarter results call. Hope your summer's off to a great start, wherever you may be. As you know by now, we try to keep these calls fairly consistent, which means I've got my key leadership team on here with me. As soon as Charlie Bracken and I finish with the prepared remarks, we'll get right to your questions. We do speak from slides, and I'm going to get us started on slide three with some highlights. Really, I think the key messages from the quarter. The first point should not be a surprise to anyone on this call. When you cut through it all, this management team, this board, remain 100% focused on creating and delivering value for shareholders.

These risks include those detailed and delivery Global filings with the Securities and Exchange Commission. Including its most recently, filed, forms, 10, q, and 10K, 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 statements is based. I would now like to turn the call over to Mr. Mike freeze. All right, thank you, operator. Hello everyone. Uh, we appreciate you joining us today for our second quarter results, call hope your summer is off to a great start. Wherever you may be.

On slide 3 with some highlights, really? I think the key message is from the quarter.

Mike Fries: We do that through 3 core platforms: Liberty Telecom, Liberty Growth, and Liberty Services, beginning with Liberty Telecom, where our goal is to drive commercial momentum and unlock value for you as we did with our Swiss subsidiary, Sunrise. I'll come back to how we might do this at the end of my remarks, but let me first make some operational comments. I think the main takeaway here is that our markets remain highly competitive, with new entrants like Altnets in the UK and low-cost providers, typically MVNOs, impacting both gross ads and churn. In the face of these headwinds, our subscriber results are mixed, with some markets seeing improved churn in green shoots and others facing continued pressure in both sales and net ads.

Mike Fries: We do that through three core platforms: Liberty Telecom, Liberty Growth, and Liberty Services, beginning with Liberty Telecom, where our goal is to drive commercial momentum and unlock value for you, as we did with our Swiss subsidiary Sunrise. I'll come back to how we might do this at the end of my remarks, but let me first make some operational comments. I think the main takeaway here is that our markets remain highly competitive, with new entrants like Altnets in the U.K. and low-cost providers, typically MVNOs, impacting both gross adds and churn. In the face of these headwinds, our subscriber results are mixed, with some markets seeing improved churn and green shoots and others facing continued pressure in both sales and net adds. Despite these challenges, we're performing regionally well financially, delivering revenue and EBITDA in line with guidance expectations.

And the first point should not be a surprise to anyone on this call, when you cut through it, all this management team, this board remained 100% focused on creating and delivering value for shareholders. We do that through 3 core platforms, there'll be telecom, Liberty growth and Liberty Services. Beginning with Liberty, Telecom, where our goal is to drive commercial momentum and unlock value for you as we did with our Swiss subsidiary sunrise.

I'll come back to how we might do this at the end of my remarks, but let me first make some operational comments. I think the main takeaway here is that our markets remain highly competitive with new entrance like alt Nets in the UK.

And low-cost providers. Typically and the knossos impacting, both gross ads and churn.

Mike Fries: Despite these challenges, we're performing regionally well financially, delivering revenue and EBITDA in line with guidance expectations, that's helped in part by price increases and strong RPU results. Not surprisingly, every market is employing similar strategies to drive commercial momentum, using fixed mobile convergence, or FMC, and flanker brands to support mobile sales, AI-based retention and marketing tools to improve churn, and speed upgrades and loyalty programs to bolster NPS and harden the base. We're also committed to having the highest quality networks everywhere we operate, to that end, our fiber and 5G upgrade plans are on track. We've acquired Spectrum in the UK, which will be very beneficial, we recently expanded our footprint in the Netherlands.

Mike Fries: That's helped in part by price increases and strong ARPU results. Not surprisingly, every market is employing similar strategies to drive commercial momentum, using fixed mobile convergence, or FMC, and Flanker brands to support mobile sales, AI-based retention and marketing tools to improve churn, and speed upgrades and loyalty programs to bolster NPS and harden the base. We're also committed to having the highest quality networks everywhere we operate. To that end, our fiber and 5G upgrade plans are on track. We've acquired Spectrum in the U.K., which will be very beneficial, and we recently expanded our footprint in the Netherlands. We're also focused on monetizing these networks where and when we can. We have both tower and fiber transactions planned for the second half of the year to support growth and deleveraging. I'll talk about those. Moving to Liberty Growth, our strategy here also remains the same.

In the face of these, headwinds are subscriber results are mixed with some markets, seeing improved churn and green shoots and others. Facing continued pressure in both sales and net adds. Despite these challenges, we're performing regionally wealth, financially, delivering revenue and ebita in line with guidance expectations and that's helped in part by price increases and strong aroo results.

Not surprisingly, every Market is employing, similar strategies to drive commercial momentum. Using fixed mobile convergence or FMC, and flanker Brands to support Mobile sales AI, based retention and marketing tools to improve churn and speed, upgrades and loyalty programs to bolster NPS and Harden the base.

Mike Fries: We're also focused on monetizing these networks where and when we can. We have both tower and fiber transactions planned for H2 of the year to support growth and deleveraging. I'll talk about those. Now, moving to Liberty Growth, our strategy here also remains the same. Today, our portfolio is worth $3.4 billion, representing a small increase from Q1, primarily driven by additional investments and favorable FX movements. This is a highly concentrated group of assets, and I know we keep telling you that. I think it's important to remind folks. The top 6 investments comprise over 80% of the value here: 3 investments in media, 2 in infrastructure, and that's along with our tech portfolio. The goal moving forward is simple.

We're also committed to having the highest quality networks everywhere we operate. And to that end, our fiber and 5G upgrade plans are on track. We've acquired Spectrum in the UK, which will be very beneficial and we recently expanded our footprint in the Netherlands.

we're also focused on monetizing these networks where, and when we can,

And we have both Tower and fiber transactions planned for the second half of the year to support growth and deleveraging. I'll talk about those.

Now, moving to Liberty Group.

Mike Fries: Today, our portfolio is worth 3.4 billion, representing a small increase from Q1, primarily driven by additional investments and favorable FX movements. This is a highly concentrated group of assets. I know we keep telling you that. I think it's important to remind folks the top six investments comprise over 80% of the value here. Three investments in media, two in infrastructure, and that's along with our tech portfolio. The goal moving forward is simple. We want to rotate capital into higher-return investments in sectors that have tailwinds and, where appropriate, use some of that capital for creative transactions at Liberty Telecom, like we did with Sunrise. Our guidance for the year is to sell assets totaling 500 to 750 million. We believe this is achievable, but of course, we won't sacrifice price just to get to an end date.

our strategy here also Remains the Same

Today, our portfolios are valued at $3.4 billion, representing a small increase from Q1, primarily driven by additional investments and favorable FX movements.

And this is a highly concentrated group of assets. And that we keep telling you that I think it's important to remind, folks, the top 6 Investments comprise over 80% of the value here. 3 investments, in media to an infrastructure and that's along with our Tech portfolio.

Mike Fries: We want to rotate capital into higher-return investments in sectors that have tailwinds and, where appropriate, use some of that capital for creative transactions at Liberty Telecom like we did with Sunrise. Now, our guidance for the year is to sell assets totaling $500 million to 750 million. We believe this is achievable, but of course, we won't sacrifice price just to get to an end date. In other words, if it takes us into Q1, for example, that should be fine. Along those lines, we've exited our position in Vodafone, which netted around 10% to 15% of the goal. Happy to take questions about that. Now, jumping into a couple of updates, I could not be more excited about Formula E's progress this season. Our London race last weekend capped off an extraordinary year.

Mike Fries: In other words, if it takes us into Q1, for example, that should be fine. Along those lines, we've exited our position in Vodafone, which netted around 10% to 15% of the goal. Happy to take questions about that. Jumping into a couple of updates, I could not be more excited about Formula E's progress this season. Our London race last weekend capped off an extraordinary year. You may have seen that we just announced an extension to our exclusive license with the FIA, covering all-electric single-seater racing through 2053. 30 years is a lifetime in this sport, especially with the step changes we're seeing every two years in the speed and performance of these cars, as well as the growth in fans around the world, which now total 400 million.

The goal moving forward is simple. We want to rotate Capital into higher return investments in sectors that have tailwind and wear appropriate. Use some of that capital for a creative transactions at Liberty Telecom. Like we did with Sunrise. Now our guidance for the year is to sell assets. Tolling 500 to 750 million. We believe this is achievable, but of course we won't sacrifice price just to get to an end date. In other words, if it takes us into q1, for example, that should be fun on those lines. We have exited our position in Vodafone, which netted around 10 to 15% of the goal. Have you take questions about that?

Mike Fries: You may have seen that we just announced an extension to our exclusive license with the FIA covering all-electric single-seater racing through 2053. 30 years is a lifetime in this sport, especially with the step changes we're seeing every 2 years in the speed and performance of these cars, as well as the growth in fans around the world, which now total 400 million. Finishing up on Liberty Growth, our commitment to digital infrastructure continues to expand, both through investments in businesses like AtlasEdge and the value attributable to existing assets like EdgeConneX, a data center platform and one of our largest and most successful investments to date. I'll finish up on this slide with a few comments on our service platforms and corporate operating model.

Now, jumping into a couple of updates, I could not be more excited about formula ease progress this season. Our London race last weekend, capped off an extraordinary year,

And you may have seen it. We just announced an extension to our exclusive license with the FIA covering all electric single-seater racing through 2053.

Mike Fries: Finishing up on Liberty Growth, our commitment to digital infrastructure continues to expand, both through investments in businesses like Atlas Edge and the value attributable to existing assets like EdgeConnex, a data center platform and one of our largest and most successful investments to date. I'll finish up on this slide with a few comments on our service platforms and corporate operating model. Trust me, when analysts deduct $8 to $10 per share off your stock price for this stuff, it's worth a minute or two. I'll start with Liberty Bloom, which delivers a multitude of business solutions for 36 enterprise customers, over a third of which are external to the Liberty family.

30 years is a lifetime in this sport, especially with the step changes. We're seeing every 2 years in the Speed and Performance of these cars, as well as the growth in fans, around the world. Which now total 400 million, now finishing up on Liberty growth. Our commitment to digital infrastructure, continues to expand both through Investments and businesses like Atlas Edge and the value attributable to existing assets, like Edge, connects the data center platform in 1 of our largest and most successful Investments today. And I'll finish up on this slide.

Mike Fries: Trust me, when analysts deduct $8 to 10 per share off your stock price for this stuff, it's worth a minute or 2. I'll start with Liberty Blume, which delivers a multitude of business solutions for 36 enterprise customers, over a third of which are external to the Liberty family. This new division is on track to exceed $100 million of revenue and generate positive EBITDA this year. I'm excited about the organic and inorganic growth plans at Blume, which is a great example of how we're taking corporate capabilities and turning them into valuable enterprises. I can tell you Charlie's goal is to build a billion-dollar company here, to which I say, go get it. Similarly, our Liberty Tech platform generates $475 million in revenue and has been driving ever-increasing profitability over the last few years with sophisticated outsourcing arrangements.

Few comments on our service platforms and corporate operating model. Trust me when analysts deduct 8 to 10 dollars per share off your stock price for this stuff. It's worth a minute or 2

Mike Fries: This new division is on track to exceed $100 million of revenue and generate positive EBITDA this year. I am excited about the organic and inorganic growth plans at Liberty Bloom, which is a great example of how we are taking corporate capabilities and turning them into valuable enterprises. I can tell you Charlie Bracken's goal is to build a billion-dollar company here, to which I say, go get it. Similarly, our Liberty Tech platform generates $475 million in revenue and has been driving ever-increasing profitability over the last few years with sophisticated outsourcing arrangements. I think we have been updating you on these, but you may or may not have paid attention. These arrangements keep our team in control of IP and product development, but they reduce our cost to serve. There could be more of these types of deals down the road.

I'll start with Liberty Bloom, which delivers a multitude of business solutions for 36 enterprise customers, over a third of which are external to the Liberty family.

This new division is on track to exceed a 100 million of Revenue and generate positive evida this year. I'm excited about the organic and inorganic growth plans of Bloom which is a great example of how we're taking corporate capabilities and turning them into valuable Enterprises. I can tell you, Charlie's goal is to build a billion dollar company here to which I say go get it.

Mike Fries: I think we've been updating you on these, but you may or may not have paid attention. These arrangements keep our team in control of IP and product development, but they reduce our cost to serve. There could be more of these types of deals down the road. Perhaps most importantly, we've been acutely focused on our own net corporate costs. Our guidance for the year was to spend a bit less than $200 million when you'd add it all together, and we are today improving that guidance by at least $25 million as we begin to reshape our operating model. Now, this is really a good news story, and you should stay tuned for more information throughout the rest of the year. We're confident we can continue to optimize this number through both revenue generation and strategic reshaping.

Mike Fries: Perhaps most importantly, we have been acutely focused on our own net corporate costs. Our guidance for the year was to spend a bit less than $200 million when you add it all together, and we are today improving that guidance by at least $25 million as we begin to reshape our operating model. This is really a good news story, and you should stay tuned for more information throughout the rest of the year. We are confident we can continue to optimize this number through both revenue generation and strategic reshaping. Finally, at the end of the quarter, our cash balance is $1.9 billion. We bought back about 3% of our shares, and depending on asset sales, we expect that cash figure to be higher at the end of the year.

We've been acutely focused on our own net. Corporate costs—our guidance for the year—was to spend a bit less than $200 million.

Mike Fries: Finally, at the end of the quarter, our cash balance is $1.9 billion. We bought back about 3% of our shares, and depending on asset sales, we expect that cash figure to be higher at the end of the year. With that as background, I'm going to spend a few minutes double-clicking on our telecom business before handing it over to Charlie for the numbers. I'm on slide 4, which presents some key headlines for each operation, starting with Virgin Media O2, where we're really excited to be nearing the completion of our merger with Daisy, which will create a B2B powerhouse in the UK and the second-largest solutions provider to small and medium enterprises, with £1.4 billion of revenue and EBITDA of £150 million.

Mike Fries: With that as background, I am going to spend a few minutes double-clicking on our telecom business before handing over to Charlie Bracken for the numbers. I am on slide four, which presents some key headlines for each operation, starting with Virgin Media O2, where we are really excited to be nearing the completion of our merger with Daisy, which will create a B2B powerhouse in the UK and the second-largest solutions provider to small and medium enterprises, with £1.4 billion of revenue and EBITDA of £150 million. As with most of our deals, synergies are substantial, with an NPV of £600 million, including integration costs, and that is based on an annual run-rate savings estimate of around £70 million by 2030. This is a great deal. On the mobile front, Virgin Media O2 recently closed on the purchase of 80 megahertz of Spectrum from VodafoneZiggo.

When you'd add it all together, and we are today, improving that guidance by at least 25 million. As we begin to reshape our operating model. This is really a good new story and you should stay tuned for more information throughout the rest of the year. We're confident we can continue to optimize this number through both Revenue generation and strategic reshaping. Finally at the end of the quarter, our cash balance is 1.9 billion. We bought back about 3% of our shares and depending on asset sales, we expect that cash figure to be higher at the end of the year. So with that, as background, I'm going to spend a few minutes double clicking on our Telecom business before. Ending over to Charlie for the numbers. Now, I'm on slide 4 which presents some key headlines for each operation, starting with Virgin Media, 2.

Mike Fries: As with most of our deals, synergies are substantial with an NPV of GBP 600 million, including integration costs. That's based on an annual run-rate savings estimate of around GBP 70 million by 2030. This is a great deal. On the mobile front, VMO2 recently closed on the purchase of 80 MHz of Spectrum from VodafoneThree. That was following the completion of their merger and part of that deal. This brings our share of Spectrum in the market to 30%, which is really significant. It secures our competitive position in the mobile market for a very long time. Finally, Lutz Schüler and the team are hard at work driving commercial momentum, including a customer service transformation plan that has more than halved Virgin Media complaints year over year. That's an incredible achievement.

Where we're really excited to be nearing the completion of our merger with Daisy, which will create a B2B Powerhouse in the UK. And the second largest Solutions provider to small and medium Enterprises with 1.4 billion pounds of Revenue and IBA to have 150 million.

As with most of our deals, synergies are substantial with an MPV of 600 million pounds, including integration costs. And that's based on an annual run rate savings estimate of around 70 million pounds by 2030. So this is a great deal.

Mike Fries: That was following the completion of their merger and part of that deal. This brings our share of spectrum in the market to 30%, which is really significant. It secures our competitive position in the mobile market for a very long time. Finally, Lutz Schüler and the team are hard at work driving commercial momentum, including a customer service transformation plan that has more than halved Virgin Media O2 complaints year over year. That is an incredible achievement. Also, we have been working on product enhancements like data rollover on O2 premium plans and multi-sync capabilities for the Volt proposition. There is a lot of work going on here. I am sure there will be plenty of questions on the U.K. Let me move to VodafoneZiggo, where, as I mentioned, we are starting to see some green shoots as a result of management's strategic pivot in the market.

On the mobile front. DMO 2 recently closed in the purchase of 80 MHz of spectrum from Vodafone 3 and was following the completion of their merger and part of that deal.

And this brings our share of spectrum in the market to 30%.

Mike Fries: We've been working on product enhancements like data rollover on O2 premium plans and multi-SIM capabilities for the Volt proposition. There's a lot of work going on here. I'm sure there'll be plenty of questions on the UK. Let me move to VodafoneZiggo, where, as I mentioned, we're starting to see some green shoots as a result of management's strategic pivot in the market. I'll come back to this on the next slide. On the M&A front, the sale of our Dutch towers is progressing well, and we anticipate completion in H2 with proceeds likely to be used to deleverage the business. Finally, we announced a great deal with DELTA Fiber in the market that gives us access to another 600,000 homes, Greenfield homes, really, off-net in the south. That makes us a true nationwide operator.

Which is really significant it. Secures our competitive position in the mobile market for a very long time and then finally losing the team are hard at work. Driving commercial momentum, including a customer service transformation plan that is more than halfed Virgin Media complaints year-over-year that's incredible achievement.

Mike Fries: I will come back to this on the next slide. On the M&A front, the sale of our Dutch towers is progressing well, and we anticipate completion in the second half, with proceeds likely to be used to deleverage the business. Finally, we announced a great deal with Delta in the market. That gives us access to another 600,000 homes, Greenfield homes, really, off net in the south. That makes us a true nationwide operator. In Belgium, we continue to make good progress with Proximus on a fixed network sharing deal. I will touch on this in a moment. It is really shaping up to be a great example of regulators seeing the bigger picture on the need for infrastructure investment. Two more quick headlines here in the south of Belgium.

Mike Fries: In Belgium, we continue to make good progress with Proximus on a fixed network sharing deal. I'll touch on this in a moment. It's really shaping up to be a great example of regulators seeing the bigger picture on the need for infrastructure investment. Two more quick headlines here. In the south of Belgium, our launch of BASE over a year ago continues to perform well and unlocked 2 million Greenfield homes in that part of the country. After material investment in 5G over the last 3 years, I'm sure you've been following that, it was great to see Telenet recognized by the government as providing the best 5G coverage in Belgium, both indoor and outdoor. Well done, John, and the team.

Also, he's been working on product enhancements like data rollover on 02, premium plans and multi-sim capabilities for the vault proposition. It's a lot of work going on here. I'm sure there'll be plenty of questions on the UK. So let me move to Vodafone ziggo. Where, as I mentioned we're starting to see some green shoots. As a result of Management's, strategic pivot. In the market, I'll come back to this on the next slide on the m&a. Front the sale of our Dutch Towers is progressing well and we anticipate completion in the second half the proceeds likely to be used to deliver the business. And then finally, we announced a great deal with Delta in the market that gives us access to another 600,000 homes Greenfield homes, really offnet in the South, that makes us a true Nationwide operator.

In Belgium, we continue to make good progress with proximus on a fixed network sharing deal. I'll touch on this in a moment but it's really shaping up to be a great example of regulators, seeing the bigger picture on the need for infrastructure investment.

Mike Fries: Our launch of Base over a year ago continues to perform well and unlocked 2 million Greenfield homes in that part of the country. After a material investment in 5G over the last three years, I am sure you have been following that. It was great to see Telenet recognized by the government as providing the best 5G coverage in Belgium, both indoor and outdoor. Well done, John and the team. In Ireland, we are racing towards completion of our full fiber rollout with 80% coverage expected by year-end, with the balance built in the first half of next year. Both with DOCSIS and with fiber, we are the speed leader throughout the country. We recently launched Ireland's first 5-gigabit fiber broadband service. Importantly, we also just added our third wholesale fiber customer in this market.

Mike Fries: In Ireland, we're racing towards completion of our full fiber rollout with 80% coverage expected by year-end, with the balance built in H1 of next year. Both with DOCSIS and with fiber, we are the speed leader throughout the country. We recently launched Ireland's first 5-gigabit fiber broadband service. Importantly, we also just added our 3rd wholesale fiber customer in this market. After Sky and Vodafone, that helped to bring our utilization on the fiber network to 16%, which is great as we've just gotten started. Finally, we're picking up momentum in mobile in Ireland with the launch of our 15-for-life offer in May, an opportunity for us to be disruptive. Just 3 more slides before I hand it to Charlie.

2 more quick headlines here in the south of Belgium are launch of base over a year ago, continues to perform well and unlock 2 million Greenfield homes in that part of the country and after material investment in 5G, over the last 3 years, I'm sure you've been following that, it was great to see telnet recognized by the government as providing the best 5G coverage in Belgium, both indoor and outdoor. So well done, John on the team. And then in Ireland, we're racing towards completion of our full fibre rollout with 80% coverage expected by year. End with the balance billed, in the first half of next year,

Both with DOCSIS and with fiber, we are the speed leader throughout the country. We recently launched Ireland's first, 5 gigabit fibre broadband service

Mike Fries: After Sky and Vodafone, that helps to bring our utilization of the fiber network to 16%, which is great as we have just gotten started. Finally, we are picking up momentum in mobile in Ireland with the launch of our 15-for-life offer in May, an opportunity for us to be disruptive. Just three more slides before I hand it to Charlie. I want to be sure that we provide a bit more detail on two significant strategic developments in the Benelux region. Beginning in the Netherlands, on our last call, I think we outlined Steven and the management team's new strategic and operating plan for the Dutch market. The plan is organized here on slide five into four core initiatives. I will touch on each briefly. Suffice it to say, things are coming together well.

And importantly, we also just added our third wholesale Fiber customer in this market. So, after sky, and Vodafone that helped to bring our utilization of the fiber Network to 16%, which is great, as we've just gotten started. Then, finally, we're picking up momentum in Mobile in Ireland, with the launch of our 15, for life offer in May an opportunity for us to be disruptive.

Mike Fries: I want to be sure that we provide a bit more detail on 2 significant strategic developments in the Benelux region. Beginning in the Netherlands, where our last call, I think we outlined Steve and the management team's new strategic and operating plan for the Dutch market. The plan's organized here on slide 5 into 4 core initiatives. I'll touch on each briefly, suffice it to say things are coming together well. Beginning with the recent implementation of a more agile operating model, and that's been characterized by exactly what you'd think you'd see: simplified processes, accelerated decision-making, optimized costs. All of that will result in significant OPEX savings, but more importantly, a more competitive posture vis-à-vis KPN. Mostly, Steve has instilled a culture of winning and pride across the organization. That's exactly what we needed here. I love that.

Now okay, just 3 more slides before I hand it to Charlie. I want to be sure that we provide a bit more detail. On 2, significant strategic developments in the Benelux region, beginning in the Netherlands, where our last call, I think we outlined Steven and the management team's new strategic and operating plan for the Dutch Market.

The plans organized here on slide 5 into 4.

Mike Fries: Beginning with the recent implementation of a more agile operating model, that has been characterized by exactly what you would think you would see: simplified processes, accelerated decision-making, optimized costs. All of that will result in significant OPEX savings, but more importantly, a more competitive posture vis-à-vis KPN. Mostly, Steven has instilled a culture of winning and pride across the organization. That is exactly what we needed here. I love that. The second major initiative revolves around repositioning broadband pricing, which happened in April. After one month, really a one-month lag, May and June saw a 50% improvement in churn intent compared to April. That is supported by moving to a 24-month contract, but so far so good. Those are green shoots. Above all else, it was particularly important to finalize a clear network strategy in this market.

Core initiatives and I'll touch on each briefly spice that say things are coming together. Well, beginning with a recent implementation of a more agile operating model and that's been characterized by exactly what you'd think. You'd see, simplified processes accelerated decision, making optimized costs and all that will result in significant Opex savings but more importantly and more competitive posture Visa V kpn,

Mike Fries: Second major initiative revolves around repositioning broadband pricing, which happened in April. After 1 month, really a 1-month lag, May and June saw a 50% improvement in churn intent compared to April. That's supported by moving to a 24-month contract. So far, so good. Those are green shoots. Above all else, it was particularly important to finalize a clear network strategy in this market. Analysts have penalized us forever based on what I think is a false belief that we need to build fiber here. Let me be clear. The HFC network in Holland is incredibly robust today and capable of lightning-fast broadband speeds tomorrow. Perhaps to put a pin in it, we will maximize the 1 gig speeds we have today across the HFC footprint.

Mike Fries: Analysts have penalized us forever based on what I think is a false belief that we need to build fiber here. Let me be clear. The HFC network in Holland is incredibly robust today and capable of lightning-fast broadband speeds tomorrow. Perhaps to put a pin in it, we will maximize the one-gig speeds we have today across the HFC footprint. We will aggressively roll out two-gig speeds using the current DOCSIS 3.1 technology, and we will accelerate our upgrade of DOCSIS 4 with eight-gig speeds expected in 2026. It might also be worth reminding everyone that the cost of DOCSIS 4 in the Netherlands, including the 1.8-gig network upgrade, is 90% cheaper than building fiber. 90%. A pretty clear decision there. Lastly, the team is reinvesting in VodafoneZiggo's core strengths, in particular our brands, our loyalty programs, our FMC propositions.

Mike Fries: We will aggressively roll out 2 gig speeds using the current DOCSIS 3.1 technology. We will accelerate our upgrade of DOCSIS 4 with 8 gig speeds expected in 2026. It might also be worth reminding everyone that the cost of DOCSIS 4 in the Netherlands, including the 1.8 gig network upgrade, is 90% cheaper than building fiber. 90%. A pretty clear decision there. Lastly, the team is reinvesting in VodafoneZiggo's core strengths, in particular our brands, our loyalty programs, our FMC propositions. This has come to life with things like a new Wi-Fi guarantee, the relaunch of the Vodafone brand, and a renewed investment in our flanker brand. Hopefully, that gives you a slightly deeper understanding of the organic plans the team are busy rolling out, all of which have given us more optimism about 2026 and beyond in Holland.

Supported by moving to a 24-month contract but so far so good. Those are green shoots above all else. It was particularly important. The finalized, a clear Network strategy in this market analysts of penalize, us forever. Uh based on what I think is a false belief that we need to build fiber. Here let me be clear in the hfc network in Holland is incredibly robust today and capable of lightning fast Broadband, speeds tomorrow. So you know, perhaps to put a pin in it, we will maximize the 1 gig speeds we have today across the hfc footprint. We will aggressively roll out 2 gig speeds using the current Doc's, 3 to1 technology and we will accelerate our upgrade of Doc's 4. With 8 gig speeds expected in 2026.

It might also be worth reminding everyone that the cost of doctors 4 in the Netherlands, including the 1.8 gig Network upgrade is 90% cheaper than building fiber.

Mike Fries: This has come to life with things like a new Wi-Fi guarantee, the relaunch of the Vodafone brand, and a renewed investment in our Flanker brand. Hopefully, that gives you a slightly deeper understanding of the organic plans the team are busy rolling out, all of which have given us more optimism about 2026 and beyond in Holland. Next, just a quick update on Belgium, and in particular our discussions with Proximus to rationalize fixed networks. As a reminder, Proximus and FiberClar on one side, and Telenet and our netco, called Wire, on the other side, have made significant progress on an agreement to collaborate on the acceleration of fiber across Flanders. I know this has taken quite a while, but the teams have been working very closely with local regulators, the BCA and BIPT, really from the beginning.

Mike Fries: Next, just a quick update on Belgium. In particular, our discussions with Proximus to rationalize fixed networks. As a reminder, Proximus and Fiberklaar on one side and Telenet and our NetCo called Wyre on the other side have made significant progress on an agreement to collaborate on the acceleration of fiber across Flanders. Now, I know this has taken quite a while, but the teams have been working very closely with local regulators, the BCA and BIPT, really from the beginning. We expect that they will launch a market test of our arrangement in September, which is really good news. In fairness, this is a complicated deal. The right-hand side of this slide attempts to clarify for everyone what's going on here. To simplify, there are 4.1 million homes in Flanders and Brussels.

90%. So pretty clear decision there. And lastly, the team is reinvesting in Vodafone. Go's core strengths in particular are Brands our loyalty programs, our FMC propositions. This is come to life with things like a new Wi-Fi guarantee, the relaunch of the Vodafone brand, and A Renewed investment in our flanker brand. So hopefully that gives you a slightly deeper understanding of the organic plans. The team are busy rolling out all of, which have given us more optimism about 2026 and Beyond in Holland.

The next is a quick update on Belgium and in particular, our discussions with proximus terraz fixed networks as a reminder proximus and fiber clar on 1 side, and telinet and our netco called wire on the other side.

Mike Fries: We expect that they will launch a market test of our arrangement in September, which is really good news. In fairness, this is a complicated deal. The right-hand side of this slide attempts to clarify for everyone what's going on here. To simplify, there are 4.1 million homes in Flanders and Brussels. About 1.4 million of those homes, or roughly 35%, are in areas that we would consider dense and urban. In those territories, they're denoted in gray on the pie chart, both Proximus and Wire will continue to build fiber on their own and compete as we currently do. But in the balance of the market, represented here in different shades of green, we will collaborate, really for the benefit of consumers in the end.

Have made significant progress on an agreement to collaborate on the acceleration of fiber across Flanders. I know this is taking quite a while, but the teams have been working very closely with local Regulators. The BCA and bip really from the beginning. And we expect that they will launch a market test of our Arrangements in September, which is really good news.

Mike Fries: About 1.4 million of those homes, or roughly 35%, are in areas that we would consider dense and urban. In those territories, they're denoted in gray on the pie chart, both Proximus and Wyre will continue to build fiber on their own and compete as we currently do. In the balance of the market, represented here in different shades of green, we will collaborate, really for the benefit of consumers in the end. In the medium-dense territories, representing 2 million homes, or the lighter green on this chart, Wyre and Proximus will split the market up with Wyre building 60% or 1.2 million of those homes and Proximus building the remaining 40% or 800,000 fiber homes.

In fairness, this is a complicated deal. So the right hand side of this site to clarify for everyone, what's going on here? To simplify, there are 4.1 million homes, in Flanders and Brussels.

Mike Fries: In the medium-dense territories, representing 2 million homes, or the lighter green on this chart, Wire and Proximus will split the market up, with Wire building 60% or 1.2 million of those homes and Proximus building the remaining 40% or 800,000 fiber homes. Regardless of who builds where, and regardless of which territories, all parties will use the same network for distribution of their services, which means that Wire, for example, in those light green areas, will have 85% utilization of its fiber network and 100% market share of the wholesale business, again on those 1.2 million fiber homes. In addition, and this was a bonus, in the 700,000 homes that are considered rural, Proximus will use and migrate their customers to our existing HFC network. We're really excited about this transaction, which improves on what is already a great story in Belgium.

About 1.4 million of those homes are roughly 35% are in areas that we would consider dense and urban and in those territories they're denoted in Gray on the pie chart, both proximus and wire will continue to build fiber on their own and compete as we currently do. But in the balance of the market represented here in different shades of green, we will collaborate really for the benefit of consumers in the end.

Mike Fries: Regardless of who builds where, and regardless of which territories, all parties will use the same network for distribution of their services, which means that Wyre, for example, in those light green areas, will have 85% utilization of its fiber network and 100% market share of the wholesale business, again, on those 1.2 million fiber homes. In addition, and this was a bonus, in the 700,000 homes that are considered rural, Proximus will use and migrate their customers to our existing HFC network. We're really excited about this transaction, which improves on what is already a great story in Belgium. By the way, there are some additional value creation steps for us to take here, including creating unique capital structures for Wyre and Telenet, bringing new equity investors into Wyre, and driving free cash flow at Telenet, the ServCo, from 2026 as CapEx starts to decline.

In the medium dense, territories representing 2 million homes, or the lighter green on this chart? Why are in proximus will split the market up with wire building, 60% or 1.2 million of those homes and proximus building to remaining 40% or 800,000 fiber homes, but regardless of who builds where

And regardless of which territories, all parties will use the same network for distribution of their services. Which means that wire, for example, in those light green areas will have 85% utilization of its fiber Network and the 100% market share of the wholesale business again on those 1.2 million fiber homes.

In addition, and this was a bonus in the 700,000 homes that are considered rural proximus will use and migrate their customers to our existing hfc Network.

Mike Fries: By the way, there's some additional value creation steps for us to take here, including creating unique capital structures for Virgin Media O2 and Telenet, bringing new equity investors into Virgin Media O2, and driving free cash flow at Telenet, the Servco from 2026, as CapEx starts to decline. A lot of positive things in Belgium. I'll move to my last slide then. It's I guess number seven, I believe, which is really the main message I want to leave you with today. I started my remarks by repeating our mission, so to speak, and that's to create and deliver value to shareholders. Before we spun off Sunrise eight months ago, it was valued at around 5.5 times EBITDA as part of Liberty Global. Today, as a Swiss public company, Sunrise trades at 8 times EBITDA with an 8% dividend yield. Looked at it in a different way.

so we're really excited about this transaction, which improves on what is already a great story in Belgium

Mike Fries: A lot of positive things in Belgium. Let me move to my last slide. It's, I guess, number 7, I believe, which is really the main message I want to leave you with today. I started my remarks by repeating our mission, so to speak, and that's to create and deliver value to shareholders. Before we spun off Sunrise 8 months ago, it was valued at around 5.5 times EBITDA as part of Liberty Global. Today, as a Swiss public company, Sunrise trades at 8 times EBITDA with an 8% dividend yield. Looked at in a different way, prior to the spinoff, Sunrise represented about 20% of our proportionate EBITDA. Today, the market cap of Sunrise exceeds the market cap of Liberty Global, where the remaining 80% of that proportionate EBITDA resides, along with over $15 of cash and growth investments.

By the way, there's some additional value creation steps for us to take your including creating unique Capital structures for wire and telnet bringing new Equity investors into wire and driving free cash flow at telnet. The Surf Club from 2026 as capex starts to decline. So a lot of positive things in Belgium mood, my last slide. Then it's I guess number 7 I believe which is really the main message. I want to leave you with today.

I started my remarks by repeating our mission, so to speak, and that's to create and deliver value to shareholders before we spun off Sunrise 8 months ago, it was valued at around 5 and a half times, even though, as part of Liberty global,

Mike Fries: Prior to the spin-off, Sunrise represented about 20% of our proportionate EBITDA. Today, the market cap of Sunrise exceeds the market cap of Liberty Global, where the remaining 80% of that proportionate EBITDA resides, along with over $15 of cash and growth investments. Clearly, there is a big disconnect here, and we intend to bridge that gap. You're probably asking the question, how do we do that? How do we continue to unlock value? The simple answer is to continue separating out the parts. We're sharing with you today that we are currently working very hard on how and when we might be able to separate out the remaining operating assets from Liberty Global. The rationale here is straightforward. It shouldn't be surprising to anyone. As I just said, the opportunity to eliminate that conglomerate discount in our stock is substantial. We've shown we can do it.

Today as a Swiss public company Sunrise. Trades at 8 times ebita with an 8% dividend yield. Now looked at in a different way.

Prior to the spin-off Sunrise represented about 20% of our proportionate ibitta.

Mike Fries: Clearly, there is a big disconnect here, and we intend to bridge that gap. You're probably asking the question, how do we do that? How do we continue to unlock value? Well, the simple answer is to continue separating out the parts. We're sharing with you today that we are currently working very hard on how and when we might be able to separate out the remaining operating assets from Liberty Global. The rationale here is straightforward. It shouldn't be surprising to anyone. As I just said, the opportunity to eliminate that conglomerate discount in our stock is substantial. We've shown we can do it, and we have built-in advantages to achieve that others don't.

Today, the market cap of Sunrise exceeds the market cap of Liberty Global where the remaining 80% of that proportion of ibida resides along with over 15 of cash and growth Investments.

Clearly, there is a big disconnect here and we intend to bridge that Gap. Now, you're probably asking the question, how do we do that? How do we continue to unlock value? Well, the simple answer is to continue separating out the parts

So, we're sharing with you today that we are currently working.

As I just said, the opportunity to eliminate that conglomerate discount in our stock is substantial.

Mike Fries: We have built-in advantages to achieve that that others don't. Whether it's our siloed debt structure, or our tax position, or our Bermuda domicile, or our NASDAQ listing, we have a wide menu of options available to us, including spin-offs, tracking stocks, IPOs, etc. On the right-hand side of the slide, you'll see our portfolio of businesses and assets today, including Sunrise, which is now owned by all of us, Liberty shareholders. We believe that over time, each one of these businesses can be tracked, spun off, or listed, by the way, in multiple combinations. What's the timing here? This is where I need to be careful and not to be too vague, but we believe we can complete one or more of these transactions in the next 12 to 24 months.

Mike Fries: Whether it's our silo debt structure or our tax position or our Bermuda domicile or our NASDAQ listing, we have a wide menu of options available to us, including spinoffs, tracking stocks, IPOs, etc. On the right-hand side of this slide, you'll see our portfolio of businesses and assets today, including Sunrise, which is now owned by all of us, Liberty shareholders. We believe that over time, each one of these businesses can be tracked, spun off, or listed, by the way, in multiple combinations. Now, what's the timing here? This is where I need to be careful and not to be too vague, but we believe we can complete one or more of these transactions in the next 12 to 24 months. Rest assured, as we get closer to definitive plans, we will surely let you know what those are.

We've shown we can do it and we have built-in advantages to achieve that that others don't.

Whether it's our Silo debt structure or our tax position, or our Bermuda, docile, or our NASDAQ listing, we have a wide menu of options available to us.

Including spin-offs tracking stocks, IPOs Etc. On the right hand side of the slide, you'll see our portfolio of businesses and assets today, including Sunrise, which is now owned by all of us, Liberty shareholders,

Mike Fries: But rest assured, as we get closer to definitive plans, we will surely let you know what those are. It is also important to say that these transactions are not dependent on any M&A, and that includes our joint venture markets. You can read into what I am saying there. We do not need to consolidate to get these things done. The key takeaway is that the strategy illustrated here will not change. Our goal is to use all means available to reduce and essentially eliminate the discount in our stock. I am confident that we can do that. Charlie, over to you.

We believe that over time each 1 of these businesses can be tracked, spun off or listed by the way in multiple combinations. Now What's the timing here? And this is where I need to be careful and not to be too vague but we believe we can complete 1 or more of these transactions in the next 12 to 24 months.

Mike Fries: It's also important to say that these transactions are not dependent on any M&A. That includes our joint venture markets. You can read into what I am saying there. We do not need to consolidate to get these things done. The key takeaway is that the strategy illustrated here will not change. Our goal is to use all means available to reduce and essentially eliminate the discount in our stock. I am confident that we can do that. Charlie, over to you. Thanks, Mike. Moving on to our operating highlights slide. Starting with Virgin Media O2. In broadband, despite delivering our highest market share of gross ads during the quarter, net ads saw a similar decline to Q1. This was driven by a continuation of higher churn due to the competitive pressures in the UK market, largely from the altnets, as well as the impact of One Touch Switch.

Charlie Bracken: Thanks, Mike. Moving on to our operating highlights slide and starting with Virgin Media O2. In broadband, despite delivering our highest market share of gross adds during the quarter, net adds saw a similar decline to Q1. This was driven by a continuation of higher churn due to the competitive pressures in the U.K. market, largely from the alt nets, as well as the impact of one-touch switching. Fixed ARPU was stable after four consecutive quarters of growth. In postpaid, the decline in net adds was primarily driven by lower-value B2B disconnects in the quarter. But encouragingly, O2 postpaid churn fell year over year. We continue to drive initiatives to improve performance going forward and see growing momentum on the GIFGAF brand. We continued recent growth in mobile postpaid ARPU supported by price adjustments, which were implemented from April.

But rest assured, as we get closer to definitive plans, we will surely let you know what those are. It's also important to say that these transactions are not dependent on any M&A, and that includes our joint venture markets; you can read into what I'm saying there. We don't need to consolidate to get these things done. The key takeaway is that the strategy illustrated here will not change. Our goal is to use all means available to reduce and essentially eliminate the discount in our stock. And I'm confident that we can do that. Charlie, over to you.

Mike Fries: Fixed ARPU was stable after 4 consecutive quarters of growth. In postpaid, the decline in net adds was primarily driven by lower-value B2B disconnects in the quarter. Encouraging, the O2 postpaid churn fell year over year, and we continue to drive initiatives to improve performance going forward and see growing momentum on the giffgaff brand. We continued recent growth in mobile postpaid ARPU, supported by price adjustments, which were implemented from April. Moving to VodafoneZiggo. In broadband, despite the continued competitive fixed market dynamics, we saw encouraging early signs of the new strategy, with a modest improvement in broadband net adds supported by lower churn through the quarter. On fixed ARPU, despite the front-book repricing impact starting to flow through, ARPU continues to have some support from the prior year price adjustments.

Thanks, Mike. Moving on to our operating highlights slide and starting with Virgin Media 02 in Broadband, despite delivering, our highest market share of gross ads. During the quarter, net adds saw a similar decline to q1 and this was driven by a continuation of higher churn due to the competitive pressures. In the UK Market largely from the old meds, as well as the impact of 1 touch switching.

Fixed our poo is stable after 4 consecutive quarters of growth.

In postpaid, the decline in net adds was, primarily driven by lower value B2B discounts in the quarter.

But encouraging the O2 post page churn fell year over the year, and we continue to drive initiative to improve performance, going forward and see grow momentum on the gift. Gaff brand.

We continued recent growth. In Mobile post-paid alpu supported by price adjustments which were implemented from a April.

Charlie Bracken: Moving to VodafoneZiggo, in broadband, despite the continued competitive fixed market dynamics, we saw encouraging early signs of the new strategy, with a modest improvement in broadband net adds supported by lower churn through the quarter. On fixed ARPU, despite the frontbook repricing impact starting to flow through, ARPU continues to have some support from the prior year price adjustments. Postpaid net adds were again impacted by B2B port adds, though it is worth noting that consumer net adds did grow modestly in the quarter. Mobile churn also improved, including the impact of our B-brand, Holland's Neuer. Turning to Telenet, we returned to broadband net add growth supported by improving churn and some easing on the competitive front. We continue to gain momentum with Base's fixed mobile convergent offering, including expansion in the south of Belgium.

Moving to Veron zeiger in Broadband, despite the continued competitive fixed market dynamics. We saw encouraging early signs of the new strategy with a modest Improvement in Broadband, net ads supported by lower churn through the quarter.

Mike Fries: Postpaid net ads were again impacted by B2B port ads, though it's worth noting that consumer net ads did grow modestly in the quarter. Mobile churn also improved, including the impact of our B brand, Hollandsnieuwe. Turning to Telenet, we returned to broadband net ad growth, supported by improving churn and some easing on the competitive front. We continued to gain momentum with BASE's fixed mobile convergent offering, including expansion in the south of Belgium. We delivered strong fixed ARPU growth, driven by the earlier implementation of the price adjustment across Telenet from April, which was compared to June in the prior year. Encouragingly, we saw positive postpaid net ads during the quarter, leveraging BASE to defend against the impact of Digi's launch in the market late last year.

On fixed YUPoo, despite the front book, repricing impact is starting to flow. Through our POO, we continue to have some support from the prior year, price adjustments.

Postpaid. Net ads were again impacted by B2B Port. Adds? Those worth noting, the consumer letters. Did grow modestly in the quarter.

And mobile churn also improved, including the impact of our bbrand Hollands Noya.

Charlie Bracken: We delivered strong fixed ARPU growth driven by the earlier implementation of the price adjustment across Telenet from April, which was compared to June in the prior year. Encouragingly, we saw positive postpaid net adds during the quarter, leveraging Base to defend against the impact of Digi's launch in the market late last year. However, Belgium mobile postpaid ARPU remains under pressure from the competitive environment, especially B-brand price points in the market. Lastly, turning to Virgin Media Ireland, broadband performance was impacted by an intensified competitive environment resulting in higher churn during the quarter. Despite this, our growing wholesale traffic is acting as an offset and supporting strong fiber uptake. Fixed ARPU also remains under pressure due to the pricing environment. Irish postpaid mobile saw an improvement in performance following the launch of new mobile offers in May.

Turning to Talent, we returned to broadband net, a growth supported by improving churn and some easing on the competitive front, we continue to gain momentum with bases. Fixed mobile convergent offering including expansion in the south of Belgium and we delivered strong fixed. Aroo growth driven by the early implementation of the price adjustment of cross ten app from April, which was compared to June of the prior year.

Mike Fries: However, Belgian mobile postpaid ARPU remains under pressure from the competitive environment, especially B brand price points in the market. Lastly, turning to Virgin Media Ireland, broadband performance was impacted by an intensified competitive environment, resulting in higher churn during the quarter. Now, despite this, our growing wholesale traffic is acting as an offset and supporting strong fiber uptake. Fixed ARPU also remains under pressure due to the pricing environment. Irish postpaid mobile saw an improved performance following the launch of new mobile offers in May. The next slide sets out a summary of the quarterly revenue and EBITDA performance in our key markets. VMO2 reported a modest revenue decline of 0.4% on a guidance basis in Q2, which was primarily driven by lower B2B fixed revenue, whilst overall fixed and mobile service revenue remained stable.

Encouraging me. We saw positive post-paid, net ads during the quarter leveraging base to defend against the impact of deegees launched in the market late last year.

However, Belgium, mobile postpaid, arpu, remains under pressure from the competitive environment, especially bbr price points in the market.

And then lastly turning to Virgin Media, Ireland Broadband performance was impacted by an intensified competitive environment, resulting in higher churn during the quarter. Now, despite this, our growing wholesale traffic is acting as an offset and supporting strong fiber, uptake,

Fixed our pool. Also, it remains under pressure due to the pricing environment.

An Irish postpaid mobile saw an improvement performance following the launch of new mobile offers in May.

Charlie Bracken: The next slide sets out a summary of the quarterly revenue and EBITDA performance in our key markets. Virgin Media O2 reported a modest revenue decline of 0.4% on a guidance basis in Q2, which was primarily driven by lower B2B fixed revenue, whilst overall fixed and mobile service revenue remains stable. VodafoneZiggo reported a revenue decline of 2.4% during the quarter, mainly driven by a decline in the fixed base and the impact of the frontbook repricing, which was partially offset by improved monetization of Ziggo Sport and the Away for Content. Telenet reported a revenue increase of 0.6%, supported by growth in both cable subscriptions off the back of an earlier price adjustment and continued strong programming revenues. Moving to our Q2 adjusted EBITDA performance, Virgin Media O2's adjusted EBITDA grew 1.1% on a guidance basis, supported by lower year-on-year operating expenses.

The next slide sets out a summary of a quarterly revenue and eida performance in our key markets.

Mike Fries: VodafoneZiggo reported a revenue decline of 2.4% during the quarter, mainly driven by a decline in the fixed base and the impact of the front-book repricing, which was partially offset by improved monetization of Ziggo Sport and the UEFA content. Telenet reported a revenue increase of 0.6%, supported by growth in both cable subscriptions off the back of an earlier price adjustment and continued strong programming revenues. Moving to our Q2 adjusted EBITDA performance, VMO2's adjusted EBITDA grew 1.1% on a guidance basis, supported by lower year-on-year operating expenses. VodafoneZiggo's adjusted EBITDA declined 0.1% in the quarter, driven by the fixed base decline and the impact of its new strategy and, in particular, repricing of its front-book. Telenet's adjusted EBITDA grew 2.8%, supported by price adjustments and lower direct costs. The next slide provides an update on our key capital allocation metrics.

Vmo2 reported a modest Revenue decline of 4% on a guidance basis in Q2, which was primarily driven by lower B2B fixed Revenue. Whilst overall fixed and mobile service Revenue remains stable.

Reported a revenue decline of 2.4% during the quarter, mainly driven by a decline in the fixed base and the impact of the front, but with pricing, which was partially offset by improved monetization of Ziggo Sport and the UEFA for content.

Tenet reported a revenue increase of 0.6% supported by growth, in both cable, subscriptions up the back of an earlier price, adjustment, and continued, strong programming revenues.

Charlie Bracken: VodafoneZiggo's adjusted EBITDA declined 0.1% in the quarter, driven by the fixed base decline and the impact of its new strategy and a meticulous repricing of its frontbook. Telenet's adjusted EBITDA grew 2.8%, supported by price adjustments and lower direct costs. The next slide provides an update on our key capital allocation metrics. Starting from the top left, in the first half of the year, we saw cash flow generation in line with our expectations and with our full-year guidance. As has been the case in previous years, we have limited cash distributions from the JVs in the first half, which tend to come in Q4. Moving to the bottom left, I wanted to reinforce a number of midterm free cash flow drivers. Firstly, there's no expected material U.S. tax expenses at Liberty Corporate from 2026, with the U.S. transition tax now behind us.

By The Fixx based Decline and the impact of its new strategy and in particular repricing of its front book.

Sellers adjusted every day. Grew 2.8%, supported by price adjustments and lower direct costs.

Mike Fries: Now, starting from the top left, in H1, we saw cash flow generation in line with our expectations and with our full-year guidance. As has been the case in previous years, we have limited cash distribution from the JVs in H1, which tend to come in Q4. Moving to the bottom left, I wanted to reinforce a number of mid-term free cash flow drivers. Firstly, there's no expected material US tax expenses at Liberty Corporate from 2026, with the US transition tax now behind us, and that's been around $100 million a year annual headwind. As we noted earlier in the year, Telenet's ServCo free cash flow is expected to turn positive from 2026 as 5G and digital CapEx spend falls away.

The next slide provides an update on our key capital allocation metrics. Now starting from the top left in the first half of the year, we saw cash flow generation in line with our expectations and with our four-year guidance, as has been the case. In previous years, we have limited cash distribution from the JBS in the first half, which tends to come in Q4.

Moving to the bottom left. I wanted to reinforce a number of mid-term free, cash flow drivers.

Charlie Bracken: That's been around a $100 million a year annual headwind. As we noted earlier in the year, Telenet's Servco free cash flow is expected to turn positive from 2026 as 5G and digital CapEx spend falls away. Similarly, with significant progress made on the Irish Fiber to the Home rollout, CapEx is expected to fall from 2026, driving free cash flow back into positive territory at Virgin Media Ireland. Turning to our cash walk in the top right, our consolidated cash balance sits at $1.9 billion at the end of Q2, down modestly from our Q1 closing balance of $2.1 billion. We saw outflows in the quarter related to continued investments in the Liberty Growth portfolio and the execution of our share buyback program.

Firstly, there's no expected material us. Tax expenses at Liberty, corporate from 2026 with the US transition tax now behind us and that's been around a hundred million dollars a year annual headwind

Mike Fries: Similarly, with significant progress made on the Irish Fibre to the Home rollout, CapEx is expected to fall from 2026, driving free cash flow back into positive territory at Virgin Media Ireland. Turning to our cash walk in the top right, our consolidated cash balance sits at $1.9 billion at the end of Q2, down modestly from our Q1 closing balance of $2.1 billion. We saw outflows in the quarter related to continued investments in the Liberty Growth portfolio and the execution of our share buyback program. Moving to the Liberty Growth walk in the bottom right, the fair market value of our Liberty Growth portfolio increased by around $100 million during Q2 to reach $3.4 billion. This was primarily driven by the increase in dollar terms of our largely European currency-denominated investments, as well as additional investments in EdgeConneX and Formula E.

As we noted earlier in the year, tell us serve Co free cash. Flow is expected to turn positive from 2026 as 5G and digital capex spend Falls away.

Similarly, with significant progress, made on the Irish 5 to the home. Rollout, capex, is expected to fall from 2026 driving free, cash flow. Back into positive territory of budget media Outlets

Turning to our cash walk at the top, right? Our Consolidated. Cash balance sits at 1.9 billion dollars at the end of Q2 down modestly from our q1 closing, balance of 2.1 billion.

We saw outflows in the quarter related to continued investments in the Liberty growth portfolio and the execution of our share buyback program.

Charlie Bracken: Moving to the Liberty Growth walk in the bottom right, the fair market value of our Liberty Growth portfolio increased by around $100 million during Q2 to reach $3.4 billion. This was primarily driven by the increase in dollar terms of our largely European currency-denominated investments, as well as additional investments in EdgeConnex and Formula E. Additionally, the exit of our Vodafone collar position generated around $82 million in proceeds. Turning to our treasury updates, we maintain a strong balance sheet position, with our debt split equally between bank debt and bonds. We maintain a siloed and portable debt capital structure at our operating businesses, where the variable bank debt is fixed using independent swaps, allowing us to refinance the credit spreads on our near-term maturities, whilst also benefiting from the full term of the swaps.

Moving to the Liberty Growth Walk in the bottom right, the fair market value of our Liberty Growth portfolio increased by around $1 million during Q2 to reach $3.4 billion.

Mike Fries: Additionally, the exit of our Vodafone collar position generated around $82 million in proceeds. Turning to our Treasury updates, we maintain a strong balance sheet position with our debt split equally between bank debt and bonds. We maintain a siloed and portable debt capital structure at our operating businesses, where the variable bank debt is fixed using independent swaps, allowing us to refinance the credit spreads on our near-term maturities whilst also benefiting from the full term of the swaps. Across the opcos, the cost of debt is around 4% to 5%, with an average tenor of approximately five years. Now, in general, we look to manage our debt maturities so that there are no material refinancing commitments over the next two to three years.

This was primarily driven by the increase in dollar terms of our largely European currency denominated Investments as well as additional investments in edgeconnex and formulary.

Additionally, the exit of our Vodafone caller position generated around $82 million in proceeds.

Charlie Bracken: Across the OpCos, the cost of debt is around 4% to 5%, with an average tenor of approximately five years. In general, we look to manage our debt maturities so that there are no material refinancing commitments over the next two to three years. During the quarter, we remained very active, completing an $850 million private TAP to extend the 2028 maturities of Virgin Media O2. We also successfully completed just over $1.3 billion of debt financing for the Daisy acquisition by Virgin Media O2, which closed today. In aggregate, we've completed $5.5 billion of refinancings during 2025 at attractive spreads. We remain opportunistic and flexible in our financing approach, and we intend to continue to proactively push out existing maturities to maintain tenor. Turning to our guidance slide, we are improving guidance on two metrics.

Turning to our treasury updates, we maintain a strong balance sheet position with our debt. Split equally between Bank debt and bonds. We maintain a siloed and portable debt capital structure at our operating businesses where the variable Bank debt is fixed. Using independent swaps, allowing us to refinance the credit spreads on our near-term. Maturities whilst also benefiting from the full term of the swaps.

The op Co the cost of debt is around 4 to 5% with an average tener of approximately 5 years.

Mike Fries: During the quarter, we remained very active, completing an $850 million private tap to extend the 2028 maturities at VMO2. We also successfully completed just over $1.3 billion of debt financing for the Daisy acquisition by VMO2, which closed today. In aggregate, we've completed $5.5 billion of refinancings during 2025 at attractive spreads. We remain opportunistic and flexible in our financing approach, and we intend to continue to proactively push out existing maturities to maintain tenor. Turning to our guidance slide, we are improving guidance on 2 metrics. At Telenet, we're tightening our adjusted EBITDA guidance, which we now expect to be low single-digit decline, which is an improvement on the top end of our previous guidance range. This has really been supported by a strong H1 performance by the company.

Now in general, we look to manage our debt maturities so that there are no material refinancing commitments over the next 2 to 3 years.

During the quarter, we remained very active, completing an $850 million private tap to extend the 2028 maturities of BMO 2. We also successfully completed just over $1.3 billion of debt financing for the Daisy acquisition by BMO 2, which closed today.

In aggregate. We've completed 5.5 billion dollars of refinancing during 2025 at attractive sprouts.

We remain opportunistic and flexible enough financing approach and we intend to continue to proactively push out existing maturities to maintain tenner.

Charlie Bracken: At Telenet, we're tightening our adjusted EBITDA guidance, which we now expect to be low single-digit decline, which is an improvement and at the top end of our previous guidance range. This has really been supported by a strong first-half performance by the company. The revised guidance continues to include the TOF comparator coming up at Q3 due to the prior year having a €17 million one-off deferred revenue benefit in Q3 of 2024. At Liberty Services and Corporate, we're upgrading our adjusted EBITDA guidance to be around negative $175 million as opposed to $200 million. We are reconfirming all the remaining guidance metrics of Virgin Media O2, VodafoneZiggo, and Telenet. That concludes our prepared remarks for Q2. I would like to hand over to the operator for the questions and answers.

Mike Fries: The revised guidance continues to include the tough comparator coming up at Q3 due to the prior year having a €17 million one-off deferred revenue benefit in Q3 2024. At Liberty Services and Corporate, we're upgrading our adjusted EBITDA guidance to be around -$175 million as opposed to $200 million. We are reconfirming all the remaining guidance metrics of VMO2, VodafoneZiggo, and Telenet. That concludes our prepared remarks for Q2, and I'd like to hand over to the operator for the questions and answers.

Turning to our guidance slide, we are improving. Guidance on 2, metrics a telenet with adjusted ebit dial guidance, which we now expect to be low single digit decline, which is an improvement. And at the top end of our previous guidance range. And this has really been supported by a strong first half performance, by the company.

The revised guidance continues to include the tough comparator coming up at Q3 due to the prior year, having a 17 million euro 1-off deferred revenue benefit in Q3 of 2024.

And at Liberty services and corporate. We're upgrading our adjusted everyday Gardens to be around negative 175 million as opposed to 200 million.

We are reconfirming all the remaining guidance metrics of BMO, 2 butter, phones, that go and tap.

Now that concludes our prepared remarks for Q2, and I'd like to hand over to the operator for both the questions and answers.

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 followed by digit 1 on your phone. In order to accommodate everyone, we request that you ask only one question. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. We'll pause for just a moment to give everyone an opportunity to join in the queue. The first question comes from the line of Robert Grindle with Deutsche Bank. Please proceed.

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 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 in the queue. The first question comes from the line of Robert J. Grendel with Deutsche Bank. Please proceed.

If you would like to ask a question, please do so by pressing the star or action key followed by digit 1 or your phone?

in order to accommodate everyone, we request that you ask only 1 question

If you are using a speaker-phone, please make sure your mute function is turned off to allow your signal to reach our equipment.

Will pause for just a moment to give everyone an opportunity to join in the queue.

The first question comes from the line of Robert J. Grindle with Dorse Bank. Please proceed.

Various Analysts: Yeah, hi there. I would like to ask about Telefónica's comments on the U.K. netco. Is this just not a good idea for one of the parties, and that's it? Or is it an idea to be debated further? Why do you think the idea has not landed in Madrid? Thank you.

Robert Grindle: Yeah, hi there. I'd like to ask about Telefónica's comments on the UK NetCo. Is this just not a good idea for one of the parties and that's it, or is it an idea to be debated further? Why do you think the idea has not landed in Madrid? Thank you.

Madrid.

Thank you.

Mike Fries: Thanks, Robert. Look, I think our partner has been pretty clear, and you can read into their remarks they did their call the other day around their position on the ownership of networks, the financing of networks, I'm not going to go back through that. I would make this point, which is there are other ways to achieve some of the very same goals that they seem to be supportive of. We have a great joint venture called nexfibre together with InfraVia. nexfibre is in the midst of building, has already built over 2 million fiber homes, is well capitalized, and represents a terrific vehicle for exploring altnet consolidation, for example. There's a lot of strategic and fiscal cooperation that VMO2 can do with nexfibre.

Mike Fries: Thanks, Robert. Our partner has been pretty clear, and you can read into their remarks. They did their call the other day around their position on the ownership of networks, the financing of networks. I am not going to go back through that. I would make this point, which is there are other ways to achieve some of the very same goals that they seem to be supportive of. We have a great joint venture called nexfibre together with InfraVia. nexfibre is in the midst of building, has already built over 2 million fiber homes, is well-capitalized, and represents a terrific vehicle for exploring Altnet consolidation, for example. There is a lot of strategic and fiscal cooperation that Virgin Media O2 can do with nexfibre.

Thanks, Robert. Um, look, I think our partner has been pretty clear, and you can read into their remarks. They did their call the other day around their position on the ownership of networks, the financing of networks, and so I'm not going to go back through that.

Uh, but I would make this point: there are other ways to achieve some of the very same goals that they seem to be supporting. We have a great joint venture called Next Fiber, together with IMAP.

NextFiber is in the midst of the building that has already been built. Over 2 million fiber homes have been capitalized and represent a terrific vehicle for exploring alt-net consolidation, for example.

Mike Fries: I do see us playing a role in Altnets consolidation, which was one of the main benefits of the NetCo project that we were exploring together. I think there is an open mind to playing a significant role in consolidation, just perhaps doing it through different vehicles and in a different manner. As we get closer to having specific either transactions or structures to communicate, we will, but we have a very good dialogue on this front. I think there are many things about the NetCo strategy that Telefónica would agree with and other aspects they don't. As good partners, we'll work to find the areas of agreement and head forward. That's the answer.

Mike Fries: I do see us playing a role in the consolidation, which was one of the main benefits of the NetCo project that we were exploring together. I think there is an open mind to playing a significant role in consolidation, just perhaps doing it through different vehicles and in a different manner. As we get closer to having specific either transactions or structures to communicate, we will. We have a very good dialogue on this front. I think there are many things about the NetCo strategy that Telefónica would agree with and other aspects they do not. As good partners, we will work to find the areas of agreement and head forward. That is the answer.

There's a lot of strategic and fiscal cooperation that BO2 has to do with Next Fiber. Um, so I do see us playing a role in all the consolidation, which was one of the main benefits of the Netco project that we were exploring together. I think there is an open mind to, uh, playing a significant role in consolidation, just perhaps doing it through different vehicles and in a different manner. So, um, you know, as we get closer to having specific either transactions or structures to communicate, we will, but we have a very good dialogue on this front. I think there are many things about the Netco strategy that I would say Telefonica would agree with and others.

Aspects, they don't and so as good partners we'll work to find the areas of agreement and uh, and head and head forward. So that's that's the, that's the answer.

Various Analysts: I got it, Mike. Is the HFC upgrade piece to the strategy still moving ahead?

Robert Grindle: Got it, Mike. Is the HFC upgrade piece to the strategy still moving ahead?

Uh,

I got it, Mike. It's the HFC upgrade piece of the strategy. Still moving ahead.

Mike Fries: Sure. We are upgrading HFC homes to fiber at a relatively strong clip, with economics on those upgrades looking very similar. Remember, today, VMO2 has access to about 18.5 million homes if you include the nexfibre homes in that number. Of those 18.5 million, 7 million are already or over 7 million are fiber. There's an 18.5 million footprint that VMO2 markets to today, of which 7 million are already fiber. It's a combination of nexfibre and our own upgrades at VMO2. We're already a very large player in the fiber business in the UK, and I expect that we will continue to get larger.

Mike Fries: Sure. We are upgrading HFC homes to fiber at a relatively strong clip with economics on those upgrades looking very similar. Remember, today, Virgin Media O2 has access to about 18.5 million homes if you include the nexfibre homes in that number. Of those 18.5 million, 7 million are already over 7 million are fiber. So there's an 18.5 million footprint that Virgin Media O2 markets to today, of which 7 million are already fiber. It's a combination of nexfibre and our own upgrades at Virgin Media O2. We're already a very large player in the fiber business in the U.K., and I expect that we will continue to get larger.

Sure, we are upgrading, uh, hfc. Homes to fiber at a relatively strong clip, uh, with economics, on those upgrades looking very similar remember today but uh vmo2 has about access to about 18 and a half million holes if you include the next fiber homes uh, in that in that number and of those 18 and a half million. 7 million are already oh over 7. Million are fiber.

So there's an 18 and a half million footprint that vmo2 markets to today of which 7 million are already fiber. Its combination of necks fiber and our own upgrades at vmo2. So we're already in a very large player in the fiber business in the UK and I expect that we will continue to get larger.

Robert Grindle: Indeed. Thanks, Mike.

Various Analysts: Indeed. Thanks, Mike.

And indeed. Thanks Mike.

Operator: Thank you. The next question comes from the line of Joshua Mills with BNP Paribas. Please proceed.

Operator: Thank you. The next question comes from the line of Joshua Mills with BNP Paribas. Please proceed.

Thank you.

The next question comes from the line of Joshua meals with BNP paramas, please proceed.

Joshua Mills: Hi, guys. Thanks for taking the question. Coming back to slide number 7, which is the helpful outline of the rationale you're putting forward for taking more corporate action. Firstly, if you could maybe just clarify, when you talk about timing of the next 12 to 24 months, is that focused on the Liberty Telecom assets, or could we see Liberty Growth and Liberty Services assets monetized in some way first before coming to the telecom assets? Secondly, if I look at the telco businesses, and you correctly point out that Sunrise created a lot of value, I guess that asset had a relatively stable revenue and EBITDA growth profile, visibility on the network upgrades, and subsequent to your cash injection brought leverage down to four and a half times.

Various Analysts: Hi, guys. Thanks for taking the question. It is coming back to slide number seven, which is the helpful outline of the rationale you are putting forward for taking more corporate action. Firstly, if you could maybe just clarify, when you talk about timing in the next 12 to 24 months, is that focused on the Liberty Telecom assets, or could we see Liberty Growth and Liberty Services assets monetized in some way first before coming to the telecom assets? Secondly, if I look at the telco businesses, and you correctly point out that Sunrise created a lot of value, I guess that asset had a relatively stable revenue and EBITDA growth profile, visibility on the network upgrades, and subsequent to your cash injection port leverage down to 4.5 times.

Hi guys, thanks for taking the question. Um, it's coming back to slide number 7, which is a helpful outline. The rationale you're putting forward for taking more corporate action, um, firstly, if you could maybe just clarify, when you talk about timing in the next 12 to 24 months.

Is that focused on the Liberty Telecom assets? Or could we see Liberty growth and Liberty Services assets, monetizing? Some way first before coming to the Telecom assets.

Um and then secondly if I look at the Telco businesses and you you correctly, point out that Sunrise created a lot of value.

Um,

yeah, I guess that asset has a relatively stable Revenue in a bit dark growth profile visibility on the network upgrades.

Joshua Mills: Given that the leverage for VMO2 and VodafoneZiggo is some way above that and Telenet is in the midst of a big network upgrade at the moment, how many steps do we have to go through for each of these assets before they're in a position where they could be spun off in IPOs? Do you think that leverage or operational performance is the key thing you need to get in place before you take corporate activity on the Liberty Telecom assets? Thanks.

Various Analysts: Given that the leverage for Virgin Media O2 and VodafoneZiggo is somewhere above that, and Telenet is in the midst of a big network upgrade at the moment, how many steps do we have to go through for each of these assets before they are in a position where they could be spun off an IPO? Do you think that leverage or operational performance is the key thing you need to get in place before you take corporate activity on the Liberty Telecom assets?

And, you know, subscript to your cash injection, Port, leverage down to the 4 and a half times.

Given that the leverage for vmo2 goes somewhere above that and 10. That is in the midst of

Yeah, big Network upgrade at the moment.

How many?

Steps. Do we have to go through for each of these assets, which rather in a position where they could be spun off in IPOs? And do you think that leverage or operational performance is the key thing you need to get in place before you take corporate activity on the, um, Liberty Telecom assets.

Mike Fries: Excellent questions, all of them. I'm glad we've got a chance to talk about it further. The timing, there are a few issues we're trying to dance around here. Our lawyers and our tax people want us to be very thoughtful about what we're committing to, what we're talking about, because there are a lot of moving parts here. Not trying to be vague, I'm just trying to be careful. That's point one. 12 to 24 months seems like a window in which one or more of these ideas can come to fruition. As you rightly point out, it could be one or more assets in the growth portfolio. It could be one or more assets in the telecom portfolio in multiple combinations, depending on what makes sense.

Mike Fries: Excellent questions, all of them. I am glad we have got a chance to talk about it further. The timing, and there are a few issues we are trying to dance around here. Our lawyers and our tax people want us to be very thoughtful about what we are committing to, what we are talking about, because there are a lot of moving parts here. I am not trying to be vague. I am just trying to be careful. That is point one. 12 to 24 months seems like a window in which one or more of these ideas can come to fruition. As you rightly point out, it could be one or more assets in the growth portfolio. It could be one or more assets in the telecom portfolio in multiple combinations, depending on what makes sense.

Mike Fries: The main message here is that we do have the "technology" to be flexible in terms of figuring out which of these businesses and which of these assets presents the most realistic opportunity and the most value-creating opportunity. That's the main point. In terms of your question around growth versus leverage, I think they're both important. Sunrise, as you well know, is not a high-growth business but a very profitable business and committed to a dividend strategy that is quite popular and should be, especially among Swiss institutions. An 8% tax-free dividend yield in a market with 0% interest rates is pretty appealing. In that particular case, it's worked well. I think the number one thing on the operational side isn't so much growth at the EBITDA or revenue line, but can you deliver free cash?

Mike Fries: The main message here is that we do have the quote-unquote "technology" to be flexible in terms of figuring out which of these businesses and which of these assets presents the most realistic opportunity and the most value-creating opportunity. That is the main point. In terms of your question about growth versus leverage, I think they are both important. Sunrise, as you well know, is not a high-growth business, but a very profitable business and committed to a dividend strategy that is quite popular and should be, especially among Swiss institutions. An 8% tax-free dividend yield in a market with 0% interest rates is pretty appealing. In that particular case, you know it has worked well. I think the number one thing on the operational side is not so much growth at the EBITDA or revenue line, but can you deliver free cash?

Telecom portfolio in multiple combinations depending on what makes sense. The main message here is that we do have the quote unquote technology to be flexible in terms of figuring out which of these businesses, which of these assets, presents the most realistic opportunity in the most value creating opportunity. So that's the main point in terms of your question around growth versus leverage. I think they're both important. Sunrise, as you will know, is not a high growth business but a very profitable business and committed to a dividend strategy that is quite popular, and should be especially appealing amongst institutions. An 8% tax-free dividend yield at a market with 0% interest rates is pretty appealing. And in that particular case, you know, it's worked well. I think, um,

Mike Fries: Is there a dividend strategy with the telecom asset that can support long-term investor interest from that perspective? I think all of these assets, as you well know, the bigger ones in particular, do generate free cash. Your leverage point is also a good one. In the case of Sunrise, we did delever that business relatively materially down to four and a half times, but it doesn't appear that investors need further delevering for that business to be attractive. If we think that four and a half times is a good spot, I think we have to be creative and aggressive in how we might get there. I'm not going to be specific on this call about ideas, but we have plenty of them. The last point I'll make is we can spin an entire business or track an entire business as we did with Sunrise.

Mike Fries: Is there a dividend strategy with the telecom asset that can support long-term investor interest from that perspective? I think all of these assets, as you well know, the bigger ones in particular, do generate free cash. Your leverage point is also a good one. In the case of Sunrise, we did delever that business relatively maturely, down to 4.5 times. It does not appear that investors need further delevering for that business to be attractive. If we think that 4.5 times is a good spot, then I think we have to be creative and aggressive in how we might get there. I am not going to be specific on this call about ideas, but we have plenty of them. The last point I will make is we can spin an entire business or track an entire business as we did with Sunrise.

The number 1 thing. On the operational side isn't so much growth that the ibitta revenue line. But can you deliver free cash? Is there a dividend strategy with the Telecom asset? That can support long-term uh, investor interest from that perspective? And I think all of these assets is you will know the bigger ones and particularly do generate free cash. Your leverage point is also a good 1. In the case of Sunrise, we did de-lever that business.

No relatively materially down to 4 and a half times be but but it doesn't appear that that's a that investors need further de-levering for that business, to be attractive. So if we, if we think that 4 and a half times is a good spot, then I think we have to be creative and and aggressive and how we might get there. And I'm not going to be specific on this call about ideas, but we have plenty of them. The last point I'll make is

Mike Fries: We can also track or spin an interest in a business. That's what I meant with my M&A comment. I'm not suggesting we would do it, but if we decided to simply track or spin our interest in VMO2, for example, we could do that and give investors an opportunity to own directly the shares that we own or an interest in the shares that we own in that business. Now, I'm not suggesting we will do that. I'm just simply pointing out that there are a multitude of options here, which, in my opinion, is exciting because we know that there is a path to shrinking that value gap, and it's nice to have a lot of opportunities to do it in different ways.

Mike Fries: We can also track or spin an interest in a business. That is what I meant with my M&A comment. I'm not suggesting we would do it, but if we decided to simply track or spin our interest in Virgin Media O2, for example, we could do that and give investors an opportunity to own directly the shares that we own or an interest in the shares that we own in that business. Now, I'm not suggesting we will do that. I'm just simply pointing out that there are a multitude of options here, which in my opinion is exciting because we know that there is a path to shrinking that value gap. It's nice to have a lot of opportunities to do it in different ways.

We can spin an entire business or track an entire business as we did with Sunrise. We can also

track or spin an interest in a business, and that's what I meant with my m&a, comment. Uh, I'm not suggesting, we would do it. But if we decided to Simply, uh, track or spin our interest in vmo2, for example, you could do that, you give investors an opportunity to own directly, our the shares that we own or an interest in the shares that we own in that business. Okay? No, I'm not suggesting, we will do that. I'm just simply pointing out that there are a multitude of options here, which in my opinion,

It's exciting because we know that there is a path to shrinking that value gap, and it's nice to have a lot of opportunities to do it in different ways.

Lutz Schüler: Thank you. Sorry, Mike.

Various Analysts: Thank you. Sorry, maybe hold on.

Joshua Mills: Operator?

Lutz Schüler: One follow-up. I think you're giving some familiar.

Mike Fries: I'm ready.

Various Analysts: If you're getting somewhat familiar.

Thank you, sorry.

Joshua Mills: Go ahead, Josh.

Mike Fries: Go ahead, Josh.

Operator: Thank you. The next question comes from the line of Polo Tang with EBS. Please proceed.

Operator: Thank you. The next question comes from the line of Paolo Tang with EBS. Please proceed.

Go ahead. Thank you.

The next question comes from the line of Polo time with EBS, please proceed.

Polo Tang: Hi. Thanks for taking the question. The question on the UK for Lutz. If you look at Virgin Media O2, it posted a second successive quarter of heavy broadband declines. Can you comment in terms of your view in terms of what has driven the declines and how optimistic are you that the level of broadband declines can reduce going forward? Do you need to accelerate the upgrade of a cable network to fiber? Do you need to accelerate footprint expansion with nexfibre? What have you seen in terms of broadband net ads in July? Thanks.

Various Analysts: Hi. Thanks for taking the question. I have a question on the U.K. for Lutz. If you look at Virgin Media O2, it posted a second successive quarter of heavy broadband declines. Can you comment in terms of your view, in terms of what has driven the declines, and how optimistic are you that the level of broadband declines can reduce going forward? Do you need to accelerate the upgrade of a cable network to fiber? Do you need to accelerate footprint expansion with nexfibre? What have you seen in terms of broadband net adds in July? Thanks.

Um, hi. Thanks for taking the question. Uh, the question on the UK for alerts. Um, so if you look at Virgin Media, 02 posted a second successive quarter, um, of heavy Broadband, declines. But can you comment, uh, in terms of your view in terms of what has driven the decline? And how optimistic are you that the level of broadband declines, uh, can reduce going forward. So, do you need to accelerate the upgrade of your cable network to fiber? Do you need to accelerate, uh, footprint expansion with next fiber. Um, and what have you seen in terms of broadband, net adds in July,

Mike Fries: Lutz, go ahead.

Mike Fries: Lutz, go ahead.

Let's go ahead.

Various Analysts: Yeah, sure. So your observation is right. Second quarter, we lost as much fixed customers as we did in Q1. The only driver for that is churn. So our share on gross adds is pretty strong. This is across nexfibre and our existing coverage. So we absolutely don't have a sales problem. We have a churn challenge. The churn challenge comes from predominantly one-time switch in combination with a very aggressive competitive market. As you might know, competitors are paying £300 to really buy a customer out of the existing contract length. Therefore, customers join less retention. They are leaving us before even talking to us. The reason for leaving is only one. It's price. That is the only reason. So we are not losing a single customer because of technology. So what are we doing?

Lutz Schüler: Yeah, sure. I mean, so your observation's right? Q2, we lost as much fixed customers as we did in Q1. The only driver for that is churn. Our share on gross ads are pretty strong, and this is across nexfibre and our existing coverage. We absolutely don't have a sales problem with a churn challenge. The churn challenge comes from predominantly One Touch Switch in combination with a very aggressive competitive market, right? As you might know, competitors are paying £300 to really buy a customer out of the existing contract length. Therefore, customers join less retention. They are leaving us before even talking to us. The reason for leaving is only one. It's price. That is the only reason. We are not losing a single customer because of technology. What are we doing?

Yeah, sure. Um, so, I mean, our observations, right? Right? Second quarter, we lost as much.

Fixed customers, as we did in Q1.

Um, the only driver for that is true. So, our share on grosses are pretty strong, and this is across Next Fiber and our existing coverage, so we absolutely don't have a sales problem.

uh, with a joint challenge, the turn challenge comes from

Predominantly 1 times, which in combination with a very aggressive competitive market, right? As you might know,

Competitors are paying 300 pounds.

To, uh, really buy a customer out of the existing contract length.

And therefore customers, join less retention.

They are leaving us before even talking to us.

um, and the reason for leaving is only 1,

That is the only reason. So we are not losing a single customer because of technology.

Various Analysts: We have put together a very sophisticated retention regime, which led us to the fact that we have been growing ARPU over the course of the last 18 months in this market, sitting on the highest ARPU in this market. Now we have to create a similar Salesforce pre-bench machine because we simply have to extend customer lifetime value into new contracts. This is what we are doing. So a significant number of customers now are sitting in a minimum contract length and also a minimum contract length exceeding six months. Your last question, how was July? A bit better. It is still tough. We are not giving a guidance, as you know, on fixed net adds on a quarterly basis. But what I can say is we are getting our arms around in the pre-bench machine.

Lutz Schüler: We have put together a very sophisticated retention machine, which led us to the fact that we have been growing RPU over the course of the last 18 months in this market, sitting on the highest RPU in this market. Now we have to create a similar successful prevention machine because we simply have to extend customer lifetime value into new contracts. This is what we are doing. A significant number of customers now are sitting in a minimum contract length and also a minimum contract length exceeding 6 months. Your last question, how was July? A bit better, yeah, but it is still tough. We are not giving a guidance, as you know, right, on 6 net ads on a quarterly basis. What I can say is we are getting our arms around in the prevention machine.

Sitting on the highest RPM this month.

And now we have to create a similar successful prevention machine.

Because we simply have to extend customers into customer lifetime value into new contracts.

Lutz Schüler: We have more customers within the minimum contract length, and we are confident that we will stabilize the situation. Hope that helps.

Various Analysts: We have more customers within the minimum contract length, and we are confident that we will stabilize the situation. Hope that helps. Great. Thanks.

And this is what we are doing. So, a significant number of customers now are sitting in a minimum contract length and also a minimum contract lengths exceeding, 6 months. Um, your last question, how was July a bit better? Yeah, but it is still tough. And we are not giving a guidance as, you know, right on 6, net apps on a quarterly basis. But what I can say is, we are getting our arms around in the prevention machine, we have more customers within the minimum contract length. And we are a confident that we will stabilize the situation.

Hope that helps.

Joshua Mills: Great. Thanks.

Great, thanks.

Operator: Thank you. The next question comes from the line of Matthew Harrigan with The Benchmark Company. Please proceed.

Operator: Thank you. The next question comes from the line of Matthew Harrigan with The Benchmark Company. Please proceed.

Thank you.

The next question comes from the line of Matthew hearing with the Benchmark Company. Please proceed.

Matthew Harrigan: Thank you. I was just curious what you see on the broadband consumption front that is driving consumer utility and pricing power, maybe as AI agents, live sports, streaming, gaming, low-lag apps. Do you see the consumers being more facile in the use of broadband or is it fairly plain vanilla? Then secondly, as you're well aware, I mean, Charter has had some postponements on DOCSIS 4, really talking about some of the expensive network requirements. Clearly, I guess your network topology in the Netherlands is very favorable. As people know, it's very dense population and flat topology, but it's still pretty striking that it's 90% less expensive than doing fiber all the way. It seems like a bit of an anomaly. Could you just clarify that? Thanks.

Matthew Harrigan: Thank you. I was just curious what you see on the broadband consumption front that is driving consumer utility and pricing power, maybe as AI agents, live sports, streaming, gaming, low-lag apps. Do you see the consumers being more facile in the use of broadband, or is it fairly plain vanilla? Secondly, as you are well aware, Charter has had some postponements on DOCSIS 4, really talking about some of the expensive network requirements. Clearly, I guess your network topology in the Netherlands is very favorable. As people know, it is a very dense population and flat topology. It is still pretty striking that it is 90% less expensive than doing fiber all the way. It seems like a bit of an anomaly. Could you just clarify that? Thanks.

Uh, thank you. I was just curious what you see on the broadband consumption front that is driving, you know, consumer utility and pricing power. Maybe it's AI agents, you know, live sports streaming, gaming, low-lag apps. But do you see the consumers being more fast? All.

And and the use of uh, Broadband or is it fairly, you know, plain vanilla and then secondly, as as I as you're, well, aware. I mean Charter, uh, has had some postponements on DOCSIS 4, you know, really talking about some of the expensive Network requirements, you know? Clearly, I guess your network topology and, and, and the Netherlands is very favorable. And I, I as, as people know, it's very dense, uh, population and flat to policy, but it's still pretty striking that it's 90% less expensive than uh, doing 5 or all the way. It seems like a bit of an anomaly. Could you just uh clarify that facts?

Mike Fries: Sure, Matt. On the broadband consumption side, it's interesting. I know we don't have the chart here on the deck or in the appendix, but I would say consumption both on mobile and on fixed is not growing as fast as it did historically. I am not suggesting consumers have stopped or in any way don't have a lot of things they want to do or continue to do or do more of. It's just that whereas before, we might see a 20% to 30% increase in consumption, particularly on mobile, I think the consumption patterns are leveling off a little bit. Now, they might spike again with all the reasons that you indicated, whether it's streaming or AI apps or things of that nature. It's very possible.

Mike Fries: Sure, Matt. On the broadband consumption side, it is interesting. I know we do not have the chart here on the deck or in the appendix, but I would say consumption both on mobile and on fixed is not growing as fast as it did historically. I am not suggesting consumers have stopped or in any way do not have a lot of things they want to do or continue to do or do more of. It is just that whereas before, we might see a 20% to 30% increase in consumption, particularly on mobile, I think the consumption patterns are leveling off a little bit. Now, they might spike again, for all the reasons that you indicated, whether it is streaming or AI apps or things of that nature. It is very possible.

Sure. Matt, um, on the broadband consumption side, it's interesting. I know we don't have the chart here on the deck or in the appendix, but I would say consumption, both on mobile and on fixed.

Is not growing as fast as it did. Historically, consumers—not suggesting consumers that have stopped or in any way don't have a lot of things they want to do or continue to do or do more of. Um, it's just that, whereas before, we might see a 20% to 30% increase in consumption.

Particularly on mobile. I think the consumption patterns are leveling off a little bit. Now they might Spike again.

Mike Fries: That's a good news story for us because it's giving us the ability to provide greater quality, perhaps a tiny bit less in capacity. We'll see how it transpires. We're at a moment now where that rapid appreciation or increase in consumption is starting to level off just a little bit. Our pricing power really comes from the quality of the network we provide and the speeds that matter. The apps that people want to use, they want it to be quick, fast, lightning-fast. That's really what they're paying for versus massive consumption or knowing even how much they're consuming. On the DOCSIS 4 side, I'm happy to let Henrique chime in here. There are quite a few differences between the US and the Netherlands.

Mike Fries: But that is a good news story for us because it is giving us the ability to provide greater quality, perhaps invest a tiny bit less in capacity. We will see how it transpires. We are at a moment now where that rapid appreciation or increase in consumption is starting to level off just a little bit. Our pricing power really comes from the quality of the network we provide and the speeds that matter. The apps that people want to use, they want them to be quick, fast, lightning fast. That is really what they are paying for versus massive consumption or knowing even how much they are consuming. On the DOCSIS 4 side, I am happy to let Anika chime in here. There are quite a few differences between the U.S. and the Netherlands. We already start, for example, with an 862 megahertz network.

Uh, you know, withdraw all the reasons that you indicated whether it's streaming or, or, you know, may I apps or things of that nature. It's very possible. But, and that's a, that's a good news story for us because it's giving us the ability to provide greater quality, perhaps the best tiny bit less incapacity and we'll see how it transpires. But we're at a moment now where that rapid appreciation and increase in consumption, starting to level off just a little bit. Um, you know, our pricing power really comes from the quality of the network. We provide and the speeds that matter, and the apps that people want to use, they want them to. They want it to be quick, fast lightning fast, and so, that's really what they're paying for versus massive consumption or knowing even how much they're consuming.

On the docks, there are four sides. I have to let you chime in here. There are quite a few differences between the U.S.

Mike Fries: I mean, we already start, for example, with an 862 MHz network, getting to 1.2 MHz is not as complicated. We will get our way to 1.8 MHz. The network upgrade piece of it is not in any way complicated for us. We believe we're getting access to the right equipment and the right technology on a timely basis to start trialing and rolling out sometime next year, speeds up to 8 Gb per second. Now, the other benefit we have, which I think Charter Communications and Comcast take advantage of as well, is the ability to squeeze more capacity out of the DOCSIS 3.1 network and perhaps get all the way to 2 to 3 Gb per second. That's a pretty good number for most consumers.

Mike Fries: Getting to 1.2 megahertz is not as complicated. We will get all the way to 1.8 megahertz. So the network upgrade piece of it is not in any way complicated for us. We believe we are getting access to the right equipment and the right technology on a timely basis to start trialing and rolling out sometime next year, speeds up to 8 gigs. The other benefit we have, which I think Charter and Comcast take advantage of as well, is the ability to squeeze more capacity out of the DOCSIS 3.1 network and perhaps get all the way to 2 to 3 gig. That is a pretty good number for most consumers. So we feel pretty good about the time frame and the cost envelope, which is essentially happening within our existing CapEx allocations. We do not see a massive spike in the CapEx costs here.

Uh, and the Netherlands. I mean, we already start, for example, with an 862 MHz network and getting to 1.2 MHz is not as complicated, and we will get our way to 1.8 MHz. So the network upgrade piece of it is not in any way complicated for us.

Mike Fries: We're not we feel pretty good about the time frame and the cost envelope, which is essentially happening within our existing CapEx allocations. We don't see a massive spike in the CapEx costs here. I don't know if Henrique, you want to add anything to that in particular or Steve, the relative cost of fiber versus DOCSIS 4 in the market?

Um and we believe we're getting access to the right equipment and the right, you know, technology on a on a timely basis to start, trialing and rolling out sometime next year, speeds up to 8, you know, Mech make gigs. Now we the other benefit we have, which I think chartering Comcast take advantage of as well. Is the ability to squeeze more capacity out of the doctor 3.1 Network and perhaps, get all the way to, you know, 2 to 3 gig. Uh and that's a pretty good number for most consumers. So we're not, you know, we feel pretty good about the time frame and and the cost envelope which is essentially happening within our existing capex.

Mike Fries: I do not know if Enrique, you want to add anything to that in particular, or Steven, the relative cost of fiber versus DOCSIS 4 in the market?

Uh, allocations, we don't see a massive spike in the capex costs here. Um, and the, you know, I don't know if Enrique you want to add anything to that in particular, or Stephen, the relative cost of fiber versus doctors for in the market.

[Company Representative] (Liberty Global): Yeah. Nothing really to add. I mean, we've been together with the other CableLabs members developing the technology over the last few years. We're pretty confident. We've done live demonstrations of DOCSIS 4 in the VodafoneZiggo network. As Mike pointed out, we're not going all the way from where we are today to DOCSIS 4. We're also doing upgrades on 3.1. We're pretty confident these numbers are accurate. As you pointed out in the question, the VodafoneZiggo network is quite friendly to the upgrade. We're certainly taking advantage of that.

Charlie Bracken: Yeah, nothing really to add. We have been together with the other cable lab members developing the technology over the last few years. We are pretty confident. We have done live demonstrations of DOCSIS 4 in the VodafoneZiggo network. As Mike pointed out, we are not going all the way from where we are today to DOCSIS 4. We are also doing upgrades on 3.1. So we are pretty confident these numbers are accurate. As you pointed out in the question, the VodafoneZiggo network is quite friendly to the upgrade. We are certainly taking advantage of that.

Yeah. Not nothing really to add. I mean we've been we've been uh together with the with the other people lab members developing the technology over the last few years, we're pretty confident with

Done live demonstrations, uh, of doses for, in the Von network. Uh, as Mike pointed out, we were not, um, going all the way from where we are today to assess for. We're also doing upgrades on 3.1, so we're we're pretty confident. These numbers are accurate. And uh as you pointed out on the question, the Von network is quite friendly to the upgrade. Uh so we certainly take advantage of that.

Matthew Harrigan: If you do not mind, one follow-up actually prompted by Lutz Schüler's earlier answer. You can see in the U.S. on postpaid, T-Mobile is just ripping away share for various reasons. You dominate the switching share in the matrix. It is a very happy, fluid dynamics problem. I do not understand with all the stresses in the UK on the economy and the financial condition of the Altnets and CityFibre doing what it just did, how can people possibly be willing to pay $300 of a customer's contract? That just does not seem like economically rational behavior. It is not like people have not had a lot of time to figure this out. It feels like some people are pretty slow learners here. Sorry.

Matthew Harrigan: If you don't mind, one follow-up actually prompted by Lutz's earlier answer. I mean, you can see in the US on postpaid, I mean, T-Mobile is just ripping away share for various reasons. You dominate the switching share on kind of the matrix, and it's kind of like a very happy fluid dynamics problem. I don't understand with all the stresses in the UK on the economy and the financial condition of the Altnets and CityFibre doing what it just did, how can people possibly be willing to pay I assume $300 million of a customer's contract? I mean, this just doesn't seem like economically rational behavior. It's not like people haven't had a lot of time to figure this out. It feels like some people are pretty slow learners here. Sorry.

And if you don't mind, what prompted that follow-on, actually? Lisa, sorry.

Uh Lisa's earlier answer. I mean you can see in the US on on post paid. I mean T-Mobile is just ripping Away share you know for various reasons and and you dominate the the switching share aren't kind of the Matrix and it's kind of like a very happy you know, fluid dynamics problem. But

I don't understand with all the stresses in the UK on the economy and and the financial condition of the alt Nets and and his City fiber doing what what it just did, how can people possibly be willing to pay?

300 300 million, 300 million, 300 dollars of a of a, of a customer's contract. I mean, this just doesn't seem like economically rational behavior and it's not like, you know, people haven't had a lot of time to figure this out. It feels like some people are are pretty slow Learners here. Sorry.

Lutz Schüler: Yeah. Well.

Various Analysts: Yeah. Well.

Mike Fries: Yeah, I mean, go ahead, Lutz.

Lutz Schüler: Yeah. I mean, go ahead, Lutz.

Various Analysts: Yeah, sorry. Sorry. Especially Altnets are under pressure, right? I mean, cost of capital is high. They have to refinance. Investors are desperate to see higher usage of the network they have built, which is nothing else than penetration. They do not have anything other than price, right? So what they do is they come up with very aggressive pricing, and they are buying customers out of existing contracts. If you are on your back foot, this is what you do. It is absolutely, I agree with you, it is not a long-term sustainable position for the market. Absolutely not.

Mike Fries: Yeah. Sorry. Sorry. Especially Altnets are under pressure, right? I mean, cost of capital is high. They have to refinance. Investors are desperate to see higher usage of the network they have built, which is nothing else than penetration. They don't have anything other than price, right? What they do is they come up with very aggressive pricing, and they are buying customers out of existing contracts. If you are on your back foot, this is what you do. I agree with you. It is not a long-term sustainable position for the market, absolutely not.

Yeah. Well um, yeah, I mean go ahead, especially.

Yeah, sorry. Sorry uh especially old Nets are under pressure, right? I mean cost of capital is high. Uh they have to refinance and um investors are desperate to see higher usage of the network. They have built,

Which is nothing else than penetration and they don't have anything other than price.

And so, what they do is they come up with very aggressive pricing, and they are buying customers out of existing contracts. And if you are on your back foot, this is what you do. It's absolutely— I agree with you. It is not a long-term sustainable position for the market. Absolutely not.

Matthew Harrigan: Great. Thanks, Mike. Thanks, Lutz.

Matthew Harrigan: Great. Thanks, Mike. Thanks, Lutz.

Great. Thanks, Mark, thanks. Thanks for what?

Mike Fries: Yep.

Mike Fries: Yep.

Operator: Thank you. The next question comes from the line of James Ratzer with New Street Research. Please proceed.

Yep.

Operator: Thank you. The next question comes from the line of James Ratzer with New Street Research. Please proceed.

Thank you.

The next question comes from the line of James Rizza with New Street Research. Please proceed.

James Ratzer: Good morning, Mike Fries. Thank you. Good afternoon for taking the question. The question I have been interested in asking you has given some hints around kind of cash flow generation for 2026, where you are kind of calling out changes in CapEx at Telenet and in Ireland. I was wondering if we could just dig into that in a bit more detail to understand the magnitude there. I think Irish CapEx is currently running around $180 million a year. Pre the fiber upgrade, it was at about $80 million. Do we kind of fall back to that kind of level? In Telenet, because I mean, you were saying that is going to go to free cash positive in the ServCo, but we do not have guidance on the NetCo. I think total CapEx this year for Telenet is going to be around $1.1 billion.

Various Analysts: Yes. Good morning, Mike. Thank you, Garth, for taking the question. The question would be interested in asking, you have given some hints around cash flow generation for 2026, where you are calling out changes in CapEx at Telenet and in Ireland. I was wondering if we could just dig into that in a bit more detail to understand the magnitude there. I think Irish CapEx currently running around $180 million a year. Pre the fiber upgrade, it was at about $80. Do we kind of fall back to that level? In Telenet, you are saying that is going to go to free cash positive in the Servco, but we do not have guidance on the NetCo. I think total CapEx this year for Telenet is going to be around $1.1 billion. Where do you see that going to next year?

Uh, yes, good morning Mike. Thank you. Good afternoon for taking the question. So, uh, the question I've been asking, you've given some hints around kind of cash flow generation for 2026.

Uh where you're kind of calling out changes in capex at telenet and in Ireland. So I was wondering if we could just dig into that in a bit more detail to understand the magnitude there I think you know Irish capex currently running around 180 million a year. Pre the fiber upgrade it was at about 80 so do we kind of fall back to that kind of level and then in telling it

James Ratzer: Where do you see that going to next year?

Because we, I mean, you were saying that's going to go to free cash positive in the service code, but we don't have guidance on the net code. So I think total CapEx this is for ten that's going to be around $1.1 billion. Where do you see that going to next year?

Mike Fries: Well, I appreciate the question. Daniel, those are good ones. I'm pretty sure we're not going to be able to give you guidance for 2026 on this call. Charlie, do you want to manage that?

Mike Fries: I appreciate the question. Daniel, those are good ones. I am pretty sure we are not going to be able to give you guidance for 2026 on this call. Charlie, do you want to manage that?

Well, I appreciate the question. Daniel's a good one. I'm pretty sure we're not going to be able to give you guidance for 2026 on this call. But Charlie, do you want to manage that?

Charlie: I mean, to be honest with you, I'm afraid it's almost like saying, 'Give us guidance for 2026.' It's just too early. I do understand why you'd want to know that, but we have to be allowed to go through our planning process. What we can say is that certainly in the case of the Telenet circle, which I agree we haven't clearly shown the separation, that's one of the things Mike referenced in his slides, we have seen the peak level of CapEx, particularly on 5G and also on digital. There should be a positive free cash flow profile from next year onwards.

Charlie Bracken: Yeah, I mean, to be honest with you, I'm afraid it's almost like saying give us guidance for 2026. It's just too early. I do understand why you'd want to know that. But we have to be allowed to go through our planning process. What we can say is that certainly the case for Telenet Servco, which I agree we haven't clearly shown the separation. That's one of the things Mike referenced in his slides. We have seen the peak level of CapEx, particularly on 5G and also on digital. So there should be a positive free cash flow profile from next year onwards.

Yeah. I mean to be honest I'm afraid it's it's almost like saying give us guidance to 26, it's just too early. I do understand why you'd want to know that, uh, but we, you know, we have to be allowed to go through our our planning process. But what we can say, is that certainly the case of the telenet circle, which I agree, we haven't clearly, you know, shown the separation, that's 1 of the things. I might reference in this slides. We have seen the peak level of capex, particularly on on 5G and also on digital. So there should be a positive free cash flow profile. Uh, from next year onwards.

Mike Fries: Same with Ireland, 2025.

Mike Fries: Same with Ireland.

Various Analysts: Garth, maybe sometimes another way is like with, sorry, I was just going to say, Garth, another way you say 5G digital CapEx fall. How much should that fall by if you are willing to make the comment in the presentation?

James Ratzer: Can I ask that then maybe? I was just going to say, can I ask that another way you say 5G digital CapEx will fall? I mean, how much should that fall by if you're willing to make the comment in the presentation?

Same with Ireland. Maybe another way is like with.

Charlie: We're not going to give those.

Charlie Bracken: are not going to give those specifics.

James Ratzer: Based on Irish FTTH?

Various Analysts: On Irish FTTH.

Sorry, I was just going to say class. And another way you say 5G, digital capex for—I mean, how much should that fall by? If you're willing to make the comment in the presentation? No, no, we're not going to give those; we're not an Irish FTTH.

Charlie: Yeah. We're not going to give you the specifics. I mean, these are directional statements. We clearly understand why you'd want them, and we're not trying to duck it. You have to understand we've established a principle of not giving forward guidance in the middle of the summer for the following year. We have to be allowed to go through our processes and make some strategic decisions as well.

Charlie Bracken: Yeah, we are not going to give you the specifics. These are directional statements. We clearly understand why you would want them, and we are not trying to duck it. You have to understand we have established a principle of not giving forward guidance in the middle of the summer for the following year. We have to be allowed to go through our processes and, yeah, make some strategic decisions as well.

James Ratzer: Got it. Okay. Thank you.

Various Analysts: Got it. Okay. Thanks.

Got it, okay. Thanks.

Operator: Thank you. The next question comes from the line of David Wright with Bank of America. Please proceed.

Operator: Thank you. The next question comes from the line of David Wright with Bank of America. Please proceed.

Thank you.

The next question comes from the line of David Wright with Bank of America. Please proceed.

[Company Representative] (Liberty Global): Yeah, hi, guys. I guess just following on from Josh's question, I believe it was, and your answer, Mike, I am just trying to think about these opportunities for tracking, spinning, IPO, or evolutions of that. You did mention, I think, Mike, that maybe analysts were not recognizing or were penalizing you guys on the sort of cable side of networks versus fiber. I am just thinking it was clear, and you alluded to this, that the Sunrise asset always had a real fighting chance because of the interest rate environment in Switzerland. That is quite unique. Why do you think analysts would value any of the other assets any differently from where Liberty Global is currently? I appreciate that the market is a lot smarter than analysts. I am not going to argue that one.

Various Analysts: Yeah. Hi, guys. I guess just following on from Joshua Mills's question, I believe it was, and your answer, Mike Fries, I am just trying to think about these opportunities for tracking, spinning, IPO, or evolutions of that. You did mention, I think, Mike Fries, that maybe analysts were not recognizing or were penalizing you guys on the sort of cable side of networks versus fiber. I am just thinking it was clear, and you alluded to this, that the Sunrise asset always had a real fighting chance because of the interest rate environment in Switzerland. That is quite unique. Why do you think analysts would value any of the other assets any differently from where Liberty Global is currently? I appreciate that the market is a lot smarter than analysts. I am not going to argue that one.

Yeah, hi guys. Um, so I, I guess just, um, following on from Josh's question, I believe it was on your answer. Mike, I'm just trying to think about these opportunities for tracking spinning IPO, um, or uh, or, or evolutions of that. Um, you did mention, I think Mike, you know that maybe analysts were, you know, not recognizing or were penalizing. You guys on on the, on the sort of cable side of networks versus fiber. I'm just thinking it was clear and you, you alluded to this, that the sunrise asset always had a a real Fighting Chance because of the interest rate environment in in Switzerland. But that is quite unique. What why do you think?

[Company Representative] (Liberty Global): What do you think creates value when these assets come out of the Liberty Global Group? Is it maybe just that a lot more European PMs can buy them within their mandate? Is there just a technical kind of opportunity there instead of buying the US list? What gives you confidence that the markets would value these assets any higher than they currently are in the Liberty Global Group?

Various Analysts: What do you think creates value when these assets come out of the Liberty Global group? Is it maybe just that a lot more European PMs can buy them within their mandate? Is there just a technical kind of opportunity there instead of buying the U.S. list? What gives you confidence that the markets would value these assets any higher than they currently are in the Liberty Global group?

Analysts would value any of the other assets. Any differently from where Liberty Global is currently? I appreciate that the Market's a lot smarter than analysts. I'm not going to argue that 1. Um, but what, what do you think creates value? When these assets come out of the Liberty Global Group, is it? Maybe just that, you know, a lot more European PMs can buy them within their mandate is is is just a technical kind of opportunity there instead of buying the US list. Um but what what gives you confidence that the markets would value these assets any higher than

Currently are in in the Liberty Global Group.

Mike Fries: I think it's a few things, David. I think it's a few things. Number one, you pointed it, this. There is a demand among European institutions to own either pure play or local telecom assets. You see that across the board. As a NASDAQ-listed company, we're able to attract some of those investors, but many don't look at it either because it's perceived to be offshore, not onshore, or perhaps has a layer of complexity that makes it challenging for them to assess value. When you can create a pure play telecom asset as we did in Switzerland, I think, Number one, you start to look at peers in a different light. While Swisscom is an excellent peer, KPN might be even better, traded 9 times EBITDA.

Mike Fries: I think it is a few things, David. I think it is a few things. Number one, you pointed to this. There is a demand among European institutions to own either pure play or local telecom assets. You see that across the board. As a NASDAQ-listed company, we are able to attract some of those investors, but many do not look at it, either because it is perceived to be offshore, not onshore, or perhaps has a layer of complexity that makes it challenging for them to assess value. When you can create a pure play telecom asset, as we did in Switzerland, I think, number one, you start to look at peers more in a different light. While Swisscom is an excellent peer, KPN might be even better, right, at nine times EBITDA.

Mike Fries: When you line VodafoneZiggo up to KPN on almost any operating metric when it comes to physicals or financials, it looks pretty good. What are the differences? The difference are the balance sheet, of course. You have already raised that point, leverage, and squeezing free cash flow out of the operations. I think those are the only two hurdles to a higher multiple on VodafoneZiggo, for example, as a pure play standalone business. I am pretty sure we can find a way to improve that. The second big difference is investors in Europe and investors of European telecom assets like dividends, clearly. That is most of our peers, if not all of our peers. They have a large dividend. Sunrise is demonstrating that an 8% dividend yield, even with that higher yield, it is trading at a great multiple. I think the dividend yield at KPN is maybe 5%.

Mike Fries: When you line VodafoneZiggo up to KPN on almost any operating metric when it comes to physicals or financials, it looks pretty good. What are the differences? The difference are the balance sheet, of course. You've already raised that point, leverage, and squeezing free cash flow out of the operations. I think if those were the only two hurdles to a higher multiple on VodafoneZiggo, for example, as a pure play standalone business, I'm pretty sure we can find a way to improve that. Second big difference is investors in Europe and investors of European telecom assets like dividends, clearly. That's most of our peers, if not all of our peers. They enlarge dividend. Sunrise is demonstrating that an 8% dividend yield, even with that higher yield, it's trading at a great multiple. I think the dividend yield at KPN is maybe 5%.

I think it's a few things. Uh David, I think it's a few things. Number 1, you pointed it. Uh this there is uh, a demand among European institutions to own either Pure Play or local, uh, Telecom assets. Do you see that across the board? Um, as a NASDAQ listed company, we were able to attract some of those investors but many don't. Uh, look at it either because it's uh, perceived to be offshore not onshore, or perhaps has a, a layer of complexity that makes it, you know, challenging for them to assess value. But when you can create a pure play Telecom asset as we did in Switzerland. I think number 1, you know, you you start to look at peers more in a different light, while swisscom is an excellent peer, you know, kpn might be even better trades at 9 timeslot.

Any operating metric when it comes to physicals or financials. It looks pretty good. What are the differences? The difference are the balance sheet. Of course, you've already raised that point leverage and and squeezing free cash flow out of the out of the operations. And I think, you know, if those are the only 2 2, 2 hurdles to a higher multiple on Vodafone ziggo for example, as a pure play Standalone business. I'm pretty sure we can find a way to improve that. Second big difference is investors in Europe and investors other

European Telecom assets uh like dividends clearly. And that's most of our peers. If not all of our peers they enlarge dividends

Mike Fries: Can you generate enough free cash in these businesses to adopt a capital markets strategy or a balance sheet strategy that delivers dividends to investors on a reasonable, predictable long-term basis? Those are not hard equations to solve when you have stable businesses as we do. I understand it's not immediately obvious how we do those things. Trust me when I say that to put a slide like this up on the screen implies we believe we have a path in each of these instances to create a story that should be appealing to investors. That's how I'd leave it.

Mike Fries: Can you generate enough free cash in these businesses to adopt a capital markets strategy or a balance sheet strategy that delivers dividends to investors on a reasonable, predictable, long-term basis? Those are not hard equations to solve when you have stable businesses as we do. I understand it is not immediately obvious how we do those things. Trust me when I say that to put a slide like this up on the screen implies we believe we have a path in each of these instances to create a story that should be appealing to investors. That is how I would leave it.

Sunrise is demonstrating that an 8% dividend yield even with that higher yield. It's a it's it's it's trading at a great multiple. Uh I think the dividend yield that APN is maybe 5%, so can you generate enough free cash in these businesses to adopt a a capital markets strategy or an a balance sheet strategy that delivers dividends to investors in a reasonable predictable long-term basis. Those are not hard equations to solve when you have stable businesses as we do. Um, I understand it's not immediately, uh, uh, uh, obvious. How we do those things. But, trust me, when I say that to put a slide like this up on the screen, implies, we believe we have a path in, you know, each of these instances to create a, a story that will be should be appealing to investors.

And that's, that's how I'd leave it.

Various Analysts: No, it's interesting, Mike. Thanks.

[Company Representative] (Liberty Global): No, it's interesting, Mike. Thanks.

No, it's interesting. Mike, thanks.

Mike Fries: You got it.

Mike Fries: You got it.

Operator: Thank you. The next question comes from the line of Carl Murdock-Smith with Citigroup. Please proceed.

You got it?

Operator: Thank you. The next question comes from the line of Carl Murdock-Smith with Citigroup. Please proceed.

Thank you.

The next question comes from the line of Carl MC dark Smith with the city group, please proceed.

Various Analysts: That's great. Thanks very much. I was just wondering if you could expand a little bit more and talk about your turnaround in VodafoneZiggo and early evidence, both competitively and operationally, in terms of how that's going. Wondering if you could talk a bit more. Thank you.

Charlie: That's great. Thank you very much. I was just wondering if you could expand a little bit more and talk about your turnaround in VodafoneZiggo and early evidence, both competitively and operationally, in terms of how that's going. Wondering if you could talk a bit more. Thank you.

That's great. Thank you very much. Um, I was just wondering if you could expand a little bit more and talk about your, um, turnarounds in VOG's ego and, uh, early evidence, um, both competitively and operationally, in terms of how that's going. Wondering if you could talk a bit more. Thank you.

Mike Fries: Sure. I'll let Steve do that. I don't know if you were on for the remarks, but there's a whole slide in the deck on this. Steve, why don't you add some more to that?

Mike Fries: Sure. I will let Steve do that. We did, I do not know if you were on for the remarks, but there is a whole slide in the deck on this. Steve, why do not you add some more to that?

Sure. I'll let you even do that we did. I don't know if you were on for the remarks, but there's a whole slide in the deck on this particular topic. Why don't you add some more to that?

Steve Malcolm: I think the slide that you published, Mike, earlier in the slide deck is probably the best summary of it. We've got 4 specific areas that we've looked at as I came into the organization. We've tucked in behind each of those 4. We've reset our organizational model. It gave us an opportunity to take some costs out as well, which we needed to do. Specifically pointed at being more aggressive in the marketplace. I think over the last couple of years, we've taken a step back from that. Secondly, as part of that, getting broadband pricing right for the market. I think we're at a kilter with the marketplace. Getting that as a first step right was important. Like Lutz tackling the churn problem, we don't have a gross ads problem either. We have a churn problem.

Charlie Bracken: I think the slide that you published, Mike, earlier in the slide deck is probably the best summary of it. We have four specific areas that we have looked at as I came into the organization. We have tucked in behind each of those four. We have reset our organizational model. It gave us an opportunity to take some costs out as well, which we needed to do. Specifically, it pointed at being more aggressive in the marketplace. I think over the last couple of years, we have taken a step back from that. Secondly, as part of that, getting broadband pricing right for the market. I think we are at a kilter with the marketplace. Getting that as a first step right was important. Like Lutz tackling the churn problem, we do not have a gross adds problem either. We have a churn problem.

Earlier in the slide deck is probably the best summary of it. So we've got four specific areas that we've looked at as an organization since I came into the organization.

Uh, We've tucked in behind behind each of those 4.

We've reset our organizational model; it gave us an opportunity to take some costs out as well, which we needed to do, specifically pointed at being more aggressive in the marketplace. I think over the last couple of years, we've taken a step back from that.

Uh, secondly, as part of that getting broadband pricing right for the market, I think we're out of kilter with the marketplace, and getting that, as a first step, right was important. Um,

Charlie Bracken: Part of the solution set there was fixing our pricing, but also fixing our trading practices and our contracting. You are seeing the green shoots. May and June were pleasing to us, having implemented much of this in April and May. The overhang of, you know, are we a good enough broadband network? We have taken away. We are fully back in the plan to roll at HFC. We have got an aggressive plan, I think, over the next 18 months to land that. Then I think we were short on marketing. We were short on positioning the VodafoneZiggo brand where it needed to be back in the connectivity world. We were short on investing in FMC, which you will see coming soon. We think there is great opportunity for us to attack with Holland's nexfibre. We think there is a market space for us to go after that.

Matthew Harrigan: Part of the solution set there was fixing our pricing, but also fixing our trading practices and our contracting. You're asking the green shoots. May and June were pleasing to us, having implemented much of this in April and May. The overhang of, are we a good enough broadband network? We've taken away. We're fully back to the plan to roll out HFC. We've got an aggressive plan, I think, over the next 18 months. To land that. I think we were short on marketing. We were short on positioning the Ziggo brand where it needed to be back in the connectivity world. We were short on investing in FMC, which you'll see coming soon. We think there's great opportunity for us to attack with Hollandsnieuwe. We think there's a market space for us to go after that.

Like looks tackling the churn problem. Uh, we don't have a gross ads problem. Either we have a churn problem, uh, part of the solution that there was, uh, fixing our pricing, uh, but also fixing our trading practices and uh, our Contracting

You are seeing the green shoots uh May and June uh were pleasing to us having uh implemented much of this in in April and May the overhang of you know are we good enough uh Broadband Network we've taken away? Uh we're fully back the plan to roll off to roll that hfc. Uh we've got a we've got an aggressive plan.

I think over the next 18 months, the land that, uh, and then I think we were, we were short on marketing. We were short on positioning, as a go brand, uh, where it needed to be back in the connectivity world.

We were short on investing in.

FMC, which you'll see coming soon.

Matthew Harrigan: I think just tightening everything up, being more focused, and bringing an organization behind a plan that puts us, as I said, on the front foot and in the attack. That's where we are today. You'll see more from us over the next 12 months.

Charlie Bracken: I think just tightening everything up, being more focused, and bringing an organization behind a plan that puts us, as I said, on the front foot and in the attack. That is where we are today. You will see more from us over the next 12 months.

And we think there's great opportunity for us to attack with uh with Holland's new back. Uh, we think there's a market space for us us us to go after that. So I think just tightening everything up uh, being more focused, uh and bringing organization uh behind a plan that puts us, as I said, uh, on the front foot uh uh and in the attack. Uh and that's where we are today.

More from us over the next 12 months.

Carl Murdock-Smith: Thanks, Steve.

Mike Fries: Thank you.

Carl Murdock-Smith: That's great. Thank you. Then just as a follow-up, kind of just looking at the voluntary redundancy scheme that was announced the other day and then also the improvements in the services and corporate guidance today, should we be drawing a line between those two things or not? Given the timing within the year, could that potentially mean that next year could see further improvements within that kind of services and corporate EBITDA line?

Various Analysts: Sorry. Thank you. Just as a follow-up, looking at the voluntary redundancy scheme that was announced the other day, and also the improvements in the services and corporate guidance today, should we be drawing a line between those two things or not? Given the timing within the year, could that potentially mean that next year could see further improvements within that kind of services and corporate EBITDA line?

Thank you, that's great. Thank you. And then just as a follow-up.

Um, can just, uh, looking at the voluntary redundancy scheme, that was announced, um, the other day and then also the improvements in the services in corporates. Um, guidance today, should we be drawing a line between those 2 things? Um, or uh, or or not and give them the timing within the year could that potentially mean that next year, could see. Further improvements within that kind of services and corporate e bit online.

Mike Fries: Thanks. Yeah. I want to be really thoughtful on commenting on internal restructuring or employee matters as they should be. That article was obviously not authorized by us. If I should say it, the trajectory we're trying to illustrate here is a good one. There are lots of tools in the toolbox to ensure and deliver an operating structure that is more flexible and more aligned and fit for purpose. All that really means is, yes, I think you can assume that over time, through either new revenue sources or new operating models, we will be providing to you guidance for that number, which is lower and lower and lower. I do think if you're one of those analysts that puts a big multiple on it, I would get the pencil out, start determining on your own what that number could be, might be.

Mike Fries: Thanks. I want to be really thoughtful on commenting on internal, you know, restructuring or employee matters, as they should be. That article was obviously not authorized by us. But suffice it to say that the trajectory we're trying to illustrate here is a good one. There are lots of tools in the toolbox to ensure and deliver an operating structure that is more flexible and more aligned and fit for purpose. All that really means is, yes, I think you can assume that over time, we will be to either new revenue sources or new operating models, we will be providing to you guidance for that number, which is lower and lower and lower.

Thanks. Yeah, I want to be really thoughtful on commenting on internal you know uh restructuring or employee matters. Um as I should be at at article with obviously not authorized by us. But suffice to say at the the trajectory we're trying to uh, you know, um, illustrate here is a good 1 and there are lots of tools in the toolbox to ensure and deliver a, you know, uh, an operating structure that is more flexible and more aligned and, you know, fit for purpose, all that really means is yes, I think you can assume that over time.

Mike Fries: I do think if you're one of those analysts that puts a big multiple on it, I would, you know, get the pencil out, start determining on your own what that number could be, might be, and hopefully that's a tailwind to your target price.

Mike Fries: Hopefully, that's a tailwind to your target price.

Uh, we will be, uh, through either new revenue sources or new operating models. We will be, uh, providing to you guidance for that number, which is lower and lower and lower. So, I do think if you're one of those analysts that puts a big multiple on it, I would, you know, get the pencil out, start determining on your own what that number could be, it might be, and hopefully, that's a tailwind to your target price.

Carl Murdock-Smith: That's great. Thanks, Mike.

Various Analysts: That's great. Thanks, Mike.

That's great. Thanks Mike.

Mike Fries: You got it. Thank you.

Mike Fries: I think we have time for maybe one or two more comments. Yeah, go ahead.

Mike Fries: I think we have time for maybe one or two more operators. Yeah. Go ahead.

You got time for maybe 1 or 2 more operators. Yeah, go ahead.

Operator: The next question comes from the line of Steve Malcolm with Redburn. Please proceed.

Operator: The next question comes from Steve Malcolm with Redburn. Please proceed.

The next question comes from Dana, Steve Malcolm with rust, trial and Company Redbarn please proceed.

Steve Malcolm: Yeah. Hi there. I want to come back to the UK and maybe a sort of slightly left-field question. Clearly, your churn is a problem. Part of that, I guess, has always stemmed from the fact that you don't cover the entire UK. It seems like your ambitions to do so have slowed a bit in the last 12 months. I mean, nexfibre is being thoughtful, I guess, on whether to deploy fibre in areas where there are already two providers. You talked about organic consolidation. I guess it's a kind of two-part question. One is it something you give a lot of thought to? Is how you bridge that gap? Openreach covers 30 million lines. You cover 18. Secondly, how do you think about the opportunity of bridging that gap?

Various Analysts: Yeah, hi there. I want to come back to the U.K. and maybe a slightly less fuel question. Clearly, your churn is a problem. Part of that, I guess, has always stemmed from the fact that you do not cover the entire U.K. It seems like your ambition to do so has slowed a bit in the last 12 months. I mean, nexfibre is being thoughtful, I guess, on whether to deploy fiber in areas where there are already two providers. You talked about all that consolidation. I guess it is a two-part question. One is, is it something you give a lot of thought to? Is how you bridge that gap? OpenReach covers 30 million lines. You cover 18. Secondly, how do you think about the opportunity of bridging that gap?

Yeah, hi there. I want to come back to the UK and maybe sort of slightly less your question. But, you know, clearly your churn is a problem. Part of that, I guess, has always stemmed from the fact that you don't cover the entire UK, and it seems like, you know, your ambitions to do so have slowed a bit in the last 12 months. I mean, next 5 years is being thoughtful, I guess, on whether to deploy fiber in areas where there already are 2 providers.

Charlie: Would you consider you haven't wholesaled from Openreach for a while, but it seems a pretty obvious step, given the mismatch between your fixed and your mobile footprints, to do so just to sort of expand your addressable market and possibly deal with some of those natural churn impediments you face? Just curious to know your thoughts on that.

Various Analysts: Would you consider, you have not wholesaled from OpenReach for a while, but it seems a pretty obvious step, given the mismatch between your fixed and your mobile footprints, to do so just to expand your addressable market and possibly deal with some of those natural churn impediments you face. Just curious to know your thoughts on that.

Mike Fries: Thanks, Steve. It's the right question, and it's a good one. As you point out, we do reach 18.5 million homes. It's not the entire marketplace. Obviously, we do look at other means of reaching another 10 million homes, let's say. I'm not going to be specific on this call except to say it is the right long-term strategic move for VMO2 to be a national player on fixed as it is in mobile. How we get there, with whom we get there, those are more technical questions which I'm not going to get into this morning. You're right to ask us about it, and we see it similarly.

Mike Fries: Thanks, Steve. It's the right question, and it's a good one. As you point out, we do reach 18.5 million homes. It's not the entire marketplace. Obviously, we do look at other means of reaching, you know, another 10 million homes, let's say. I'm not going to be specific on this call except to say it is the right long-term strategic move for Virgin Media O2 to be a national player on fixed as it is in mobile. How we get there, with whom we get there, those are, you know, more technical questions, which I'm not going to get into this morning, but you're right to ask us about it, and we see it similarly.

Thanks Steve. It's the right question and it's a good 1. Um, as you point out, we do reach, 18 and a half million homes. It's not the entire Marketplace. Uh obviously we do look at other means of reaching uh you know, another 10 million homes. Let's say

And I'm not going to be specific on this call, except to say it is the right long-term strategic move for VMO2 to be a national player on fixed as it is in mobile. How we get there.

Whom we get there, those are, you know, well technical questions, which I'm not going to get into this morning. But you would write to ask us about it, and we see it. Similarly,

Steve Malcolm: Okay. All options are on the table, Mike, in your consideration. Is that fair?

Various Analysts: Okay. So all options are on the table, Mike, in your consideration. Is that fair?

Okay. So, but on all options are on the table mic and your consideration is that fair

Mike Fries: Yes.

Mike Fries: Yes.

Yes.

Various Analysts: Okay. Thank you.

Steve Malcolm: Okay. Thank you.

Thank you.

Operator: Thank you.

Operator: Thank you.

Thank you.

Mike Fries: One more question, operator? Or are we?

[Company Representative] (Liberty Global): One more question, operator. Are we?

1 more question, operator.

Operator: Of course. The last question comes from Ulrich Rathe with Bernstein Societe Generale Group. Please proceed.

Operator: The last question comes from the line of Ulrich Rathe with Bernstein Societe Generale Group. Please proceed.

Where are we? Of course.

The last question comes from the line of over at Bernstein, such a general group. Please proceed.

Ulrich Rathe: Thank you, Mike. Most of my questions have been answered. Let me ask this. Mike, I think in your prepared remarks, you said you would actually frame the exit from Vodafone. Maybe I missed it. Could you just frame that for us a little bit? How you look at what happened there, why you exited at this point in time, and give us context. Thank you.

Various Analysts: Thank you. My questions, most of my questions have been answered. Let me ask this. Mike, I think in your prepared remarks, you said you would actually frame the exit from Vodafone. Maybe I missed it. But could you just frame that for us a little bit? How you look at what happened there, why you accessed it at this point in time, and give us context? Thank you.

Thank you. My my, my question is, most of my questions have been answered. So let me ask this, um,

Mike, I think you prepared remarks. You, you said you would actually frame the the exit from from border phone. Um, but, but maybe I missed it but I could you just frame that for us a little bit, how, how you, how you look at what happened there, why you access it at this point in time? And, and

Give us context. Thank you.

Mike Fries: Sure. Sure, sure. I will say right up front, I don't necessarily want you to assume that the reason we've exited the position is because we don't have faith in the stock or in Margherita. That's not the case. We just have to look at what's the best use of our capital. We had really limited exposure to the stock given the colored structure of the position anyway. There was not much strategic value in the end to the position. I think it's the right move for us to put our capital into the best possible use. In this case, I don't think that long-term holding was achieving that. That's really the only color I can give you on that. All right. Is that a change compared to the spots when you actually bought it? Not necessarily.

Mike Fries: Sure. Sure, sure. I will say right up front, I don't necessarily want you to assume that the reason we've exited the position is because we don't have faith in the stock or in Margherita. That's not the case. We just have to look at what's the best use of our capital. We had really limited exposure to the stock given the color structure of the position anyway. There was not much strategic value in the end to the position. So I think it's the right move for us to put our capital into the best possible use. In this case, I don't think that long-term holding was achieving that. So that's really the only color I can give you on that.

Sure, sure. Sure. And I will say right up front, I don't necessarily...

What you do assume that the reason we've exited the position is because we don't have faith in the stock or Margarita. That's not the case. Uh, we just have to look at what's the best use of our Capital. Uh, we had really limited exposure to the stock given the colored structure of the position anyway. Um, and there was, you know, not much strategic value in the end to, to the position. So, I think it's the right move for us to, uh, you know, put our Capital, you know, in into, you know, the best possible use. And in this case, I don't think that long-term holding was achieving that so that that's really the only color I can give you on that.

Various Analysts: All right. Is that a change? I appreciate everybody's thoughts. When you actually bought it?

All right. So is that a change? I appreciate everybody's thoughts when you actually bought it.

Mike Fries: Not necessarily. I think we, you know, we didn't know at the time, you know, what the future held. We were optimistic, perhaps, that there might be more tailwinds and a different result. But in the end, you know, we're just like you. We have to, you know, make decisions about where we put our cash every day. This is just a decision that would put more in that category than any sort of long-term strategic view of Vodafone as a company. Anyway, I appreciate everybody joining the call. I know we're at the hour here. The markets are challenging. You got that message, but we are not sitting still. The management teams you're listening to here really are on their game in investing, innovating, winning. Lastly, just our value creation is, you know, value creation is our North Star, we'd like to say, right?

Mike Fries: I think we didn't know at the time what the future held. We were optimistic, perhaps, that there might be more tailwinds and a different result. In the end, just like you, we have to make decisions about where we put our cash every day. This is just a decision that would put more in that category than any sort of long-term strategic view of Vodafone as a company. Anyway, I appreciate everybody joining the call. We're at the hour here. The markets are challenging. You got that message. We are not sitting still. The management teams you're listening to here really are on their game in investing, innovating, winning. Lastly, just our value creation is value creation is our North Star, we like to say, right. It's shareholders' turns here to try to see that value creation realized.

Um, not necessarily. I think we, you know, we didn't know at the time.

You know what, what the future held. We were optimistic perhaps that there might be more Tailwinds and and a different result. Um, but in the end, you know, we just like you we have to, you know, make make decisions about our where we put our cash every day. And and this is just a decision. I would put more in that category than any sort of long-term strategic view of other phone as a company.

Mike Fries: So it's shareholders' turns here to try to see that value creation realized. We get a lot of optionality. As we pointed out, we will look for the executable strategies and communicate those when they become executable and clear. Whether we, you know, succeed in those or not, they will lead to outcomes, which I think is exactly what we need to do here. So one way or the other, we're really confident about the opportunity to create value for you. Hope you have a great summer, and thanks for joining, everybody.

Mike Fries: We got a lot of optionality. As we pointed out, we will look for the executable strategies and communicate those when they become executable and clear. Whether we succeed in those or not, they will lead to outcomes, which I think is exactly what we need to do here. One way or the other, we're really confident about the opportunity to create value for you. Hope you have a great summer, and thanks for joining, everybody.

Anyway, appreciate everybody joining the call. Uh, we're at the hour here, um, but markets are challenging. You got that message, but we are not sitting still and the management teams. You're listening to here, really are on their game investing innovating winning. And lastly, just our value creation is, you know, value creation is our Northstar if we like to say, right? So its shareholders turns here to to try to see that value creation realized. Um, we got a lot of optionality. As we pointed out, we will look for the executable strategies and communicate. Those when they become executable and clear, and whether we, you know, succeed in those or not, they will lead to outcomes, which I think is exactly what we need to do here. So, 1 way or the other it, we we're we're really confident about the opportunity to create value for you. Hope you have a great summer and thanks for joining everybody.

Operator: Ladies and gentlemen, this concludes Liberty Global's Q2 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.

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

Ladies and gentlemen, this concludes Liberty Global second quarter, 2025 investor calls.

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.