Q2 2025 Liberty Global PLC Earnings Call

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

Welcome to Liberty Global second quarter, 2025 investor call.

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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 4 Republican 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. Now, 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. We do that through 3 core platforms: Liberty Telecom, Liberty Growth, and Liberty Services.

Which any such statements is based. I would now like to turn the call over to Mr. Mike Freeze.

Thank you, operator. Hello everyone. Uh, we appreciate you joining us today for our second quarter results call hope your Summers 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. Now we do speak from slides and I'm going to get a started on slide 3 with some highlights. Really. I think the key messages from the quarter

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 delivering value for shareholders.

Mike Fries: 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. Despite these challenges, we're performing regionally well financially, delivering revenue and EBITDA in line with guidance expectations, and that's helped in part by price increases and strong RPU results.

Adapter 3 core platforms, will 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: 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, 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 H2 to support growth and deleveraging. I'll talk about those. Now, moving to Liberty Growth, our strategy here also remains the same.

In the face of these headwinds our subscriber results are mixed with some markets, seeing improved churn and green Chutes 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.

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 plan for the second half of the year to support growth and deleveraging. I'll talk about those.

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, and 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, and 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 to $750 million. We believe this is achievable, but of course, we won't sacrifice price just to get to an end date.

now, moving to the Liberty growth, our strategy here also Remains the Same

Today, our portfolios were 3.4 billion. Representing a small increase from q1 primarily driven by additional investments in favorable FX movements.

And this is a highly concentrated group of assets. And how 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 and infrastructure and that's along with our Tech portfolio.

The goal moving forward is simple. We want to rotate capital and the higher return investments in sectors that have tailwind and where appropriate use some of that capital for a creative transactions at Liberty Telecom. Like we did with sunrise.

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 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, 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 fine. Well 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?

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 that we just announced an extension to our exclusive license with the FIA covering all electric single-seater racing through 2053.

Mike Fries: Now, 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. 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 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.

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.

I'm 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 and 1 of our largest and most successful Investments today. And I'll finish up on this slide

You comments on our service platforms. Incorporate operating models, 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

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,

Mike Fries: I'm excited about the organic and inorganic growth plans at Liberty 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. 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, and 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.

Compared to which I say, go get it.

Similarly, our Liberty Tech platform, generates 475 million in revenue and has been driving ever increasing profitability of the last few years, with sophisticated Outsourcing Arrangements. I think you know 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 the reduce our cost to serve and there could be more of these types of deals down the road.

Mike Fries: Our guidance for the year was to spend a bit less than $200 million when you'd add it all together. 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. 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. 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.

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.

Mike Fries: Now, 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. As with most of our deals, synergies are substantial, with an NPV of £600 million, including integration costs, and that's based on an annual run-rate savings estimate of around £70 million by 2030. This is a great deal. On the mobile front, VMO2 recently closed on the purchase of 80 megahertz of Spectrum from Vodafone Three. 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.

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 finally at the end of the quarter, our cash balance is 1.9 billion. If you 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.

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 even to have 150 million

As with most of our deals, synergies are substantial with npv 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 great deal.

On the mobile front. Vmo2 recently closed in the purchase of 80 MHz of spectrum from Vodafone 3, that 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: It secures our competitive position in the mobile market for a very long time. Finally, Lutz 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. 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.

Which is really significant it. Secures our competitive position in the mobile market for a very long time. And then finally loots in 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: 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. 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.

Also is been working on product enhancements like data rollover on O2 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

You leveraged the business and then finally announced a great deal with Delta in the market. Uh, 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'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: After material investment in 5G over the last three 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. 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 Gb fiber broadband service. Importantly, we also just added our third wholesale fiber customer in this market. After Sky and Vodafone, that helps to bring our utilization on the fiber network to 16%, which is great as we've just gotten started.

To 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 telenet 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 bill, 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: 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. Okay, 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, where our last call, I think we outlined Stephen and the management team's new strategic and operating plan for the Dutch market. The plan's organized here on slide 5 into four 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, that's been characterized by exactly what you'd think you'd see, simplified processes, accelerated decision-making, optimized costs.

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. And 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.

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 of the management team's new strategic and operating plan for the Dutch Market.

The plans organized here on slide 5 into 4.

Mike Fries: 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 is exactly what we needed here. I love that. Second major initiative revolves around repositioning broadband pricing, which happened in April, and after 1 month, really a 1-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. 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.

Optimize costs and all that will result in significant Opex savings but more importantly a more competitive posture Visa V. Kpn.

Mostly Steven has instilled a culture of winning and pride across the organization. That's exactly what we needed here. I love that second major initiative revolves around repositioning Broadband pricing which happened in April and after 1 month really a 1 month lag May and June saw a 50% Improvement in churn intent compared to April as supported by moving to a 24-month contract with so far so good. Those are green shoots above all else. It was particularly important. The finalized a clear Network strategy in this market

Mike Fries: Perhaps to put a pin in it, we will maximize the 1 Gb speeds we have today across the HFC footprint. We will aggressively roll out 2 Gb speeds using the current DOCSIS 3.1 technology, and we will accelerate our upgrade of DOCSIS 4 with 8 Gb speeds expected in 2026. It might also be worth reminding everyone that the cost of DOCSIS 4 in the Netherlands, including the 1.8 Gb 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.

Analysts of penalized 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 to 1 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 for in the Netherlands, including the 1.8 gig Network upgrade is 90% cheaper than building fiber.

Mike Fries: 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. 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.

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 flank, to 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.

And that's just a quick update on Belgium and the particular discussions with proximus to rationalize fixed networks. As a reminder proximus and fiberglass on 1 side and telenet and our netco called wire on the other side.

Mike Fries: 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 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.

Have made significant progress on an agreement to collaborate on the acceleration of fiber across Flanders and 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 arrangement, in September, which is really good news.

In fairness, this is a complicated deal. So 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.

Mike Fries: 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. 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.

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.

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 in 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: 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. A lot of positive things in Belgium. Let me 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 8 months ago, it was valued at around 5.5x EBITDA as part of Liberty Global. Today, as a Swiss public company, Sunrise trades at 8x EBITDA with an 8% dividend yield.

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

By the way, there's some additional value creation steps for us to take your including creating unique Capital structures for wire and telenet bringing new Equity investors into wire and driving free cash flow at telling that the serve come from 2026 as capex starts to decline. So a lot of positive things in Belgium. Lou my last slide then it's it's 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: Now, 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. 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. 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.

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 Evita.

Investment.

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.

Mike Fries: As I just said, the opportunity to eliminate that conglomerate discount in our stock is substantial. We've shown we can do it, we have built-in advantages to achieve that others don't. 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. What's the timing here?

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 it 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 that others don't.

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 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, the liberty shareholders,

Mike Fries: 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. 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. Thanks, Mike.

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.

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 essentially eliminate the discount in our stock. And I'm confident that we can do that. Charlie over to you.

Mike Fries: Moving on to our operating highlights slide and 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 switching. Fixed ARPU was stable after 4 consecutive quarters of growth. In postpaid, the decline in net ads was primarily driven by lower-value B2B disconnects in the quarter. Encouraging the O2 postpaid churn fell year over year, 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.

Thanks, Mike. Moving on to our operating highlights slide and starting with virtual 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 process in the UK Market largely from the all beds, 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 disconnects from the quarter. But encouraging the O2 post page, turn fell year-over-year, and we continue to drive initiatives to improve performance going forward and see growing momentum on the gift GAF brand.

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

Mike Fries: 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. 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. 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.

Moving to Vodafone 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.

On fixed yupoo, despite the front book. Repricing impact starting to flow. Through our poo continues to have some support from the prior year, price adjustments.

Post paid net adds were again impacted by B2B Port. Adds those worth noting that consumer. Letters did grow modestly in the quarter.

And mobile churn also improved, including the impact of our bbrand Holland snowy year.

Mike Fries: 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. 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 improvement in performance following the launch of new mobile offers in May.

Starting to tell them, 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. Rpu growth driven by the earlier implementation of the price adjustment across telenet from April, which was compared to June of the prior year.

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, Belgian 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 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.

Mike Fries: 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. 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.

The next slide shows a summary of the quarterly revenue and EBITDA performance in our key markets.

Go Sport and the way for content.

Tet reported a revenue increase of 6% supported by growth, in both cable, subscriptions up the back of an earlier price, adjustment and continued, strong programming revenues.

Mike Fries: 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. Now, starting from the top left, in H1 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 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.

Moving to our Q2 adjusted Edward de performance. BMO 2's adjusted over de grew 1.1% on a guidance basis supported by lower year-on-year. Operating expenses and better phones. Z goes adjusted every da declined 0.1% in the quarter driven by the fixed base Decline and the impact of its new strategy. And in particular, the repricing of its front book.

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

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 4 year guidance, as has been the case. In previous years, we have limited cash distribution from the JVS in the first half which tend to come in Q4.

Mike Fries: 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. 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.

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 a hundred million dollars a year annual headwind

As we noted earlier in the year, tell her, that serfco 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 budget meteor Islands.

Turning to our cash walk at the top, right? Our Consolidated. Cash balance sits at 1.9 billion. At the end of Q2 down, modesty 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.

Mike Fries: 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 update, 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 while 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 million dollars, 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 formulary.

Additionally, the exit of our Vodafone caller 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.

Mike Fries: 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. During the quarter, we remained very active, completing an $850 million private tap to extend the 2028 maturities at VMO2, and 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 two metrics.

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 op, the cost of debt is around 4% to 5%, with an average tenor of approximately 5 years.

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. And we also successfully completed just over 1.3 billion dollars 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 in our financing approach and we intend to continue to proactively. Push out existing maturities to maintain tenor.

Mike Fries: 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, and this has really been supported by a strong H1 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 one-off deferred revenue benefit in Q3 of 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. Now, 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 Gardens on 2x a tenet. We're tightening our 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 is 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.

At Liberty Services and Corporate, we're upgrading our adjusted EVA guidance to be around negative $175 million, as opposed to $200 million.

We are reconfirming all the remaining guidance metrics of BMO, 2 butter, 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 start or action 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'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.

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

To give everyone an opportunity to join in the queue.

The first question comes from the line of Robert. J, grindle with dorsa bank, please proceed.

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.

Yeah, hi there. Um, I'd like to ask about telefonica comments on the UK netco. So, is this just not a good idea for 1 of the parties and that's it? Or is it an idea to be debated further? Uh, why do you think the idea has not landed in Madrid?

Mike Fries: Thanks, Robert. Look, I think our partner has been pretty clear, and you can read into their remarks. I 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 is a lot of strategic and fiscal cooperation that VMO2 can do with nexfibre.

Thanks Robert. Um, look at I think our partner has been pretty clear. Uh and you can read into their remarks. They did their call the other day around their 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, which is there are other ways to achieve some of the very same goals that they seem to be supported up. So we have a great joint venture called Next fiber together with infra.

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.

Next fiber is in the midst of the building has already built. Over 2 million fiber homes as well, capitalized and represents a terrific vehicle for uh, exploring altnet. Consolidation, for example, there's a lot of strategic and fiscal cooperation, that vmo2 can do with next fiber. Um, so I do see us playing a role in all the consolidation, which was 1 of The Main benefits of the netco project.

That we were exploring together, I think they 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, um, you know, as we get closer to having specific either transactions or 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 telefonica would agree with and other 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.

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

uh,

I got it. Mike is the hfc upgrade uh piece to 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 about 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 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.

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 homes, 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 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. It's a combination of next fiber and our own upgrades 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.

Indeed. Thanks Mike.

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 Mills with BNP paramas, please proceed.

Joshua Mills: Hi guys. Thanks for taking the question. It's coming back to slide number 7, which is a 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.

Hi guys, thanks for taking the question. Um, it's coming back to slide number 7, which is a helpful outline of the rationale you're putting forwards for for taking more corporate action. Um, firstly if you could maybe just clarify when you talk about the 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?

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.

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 tenet is in the midst of

You know, big Network upgrade at the moment.

How many steps do we have to go through before we end a position when 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,

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 lot of 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: 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?

And you know, our our lawyers and our tax people want us to be very thoughtful about what we're committing to what we're talking about. Because these are these are there are a lot of moving Parts here. So without not trying to be vague, I'm just trying to be careful. That's Point 1. Um 12 to 24 months seems like a window in which 1 or more of these ideas can come to fruition. As you rightly point out, it could be 1 or more assets in the growth portfolio. Uh, it could be 1 or more assets in the 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 uh, fig figuring out which of these businesses which of these assets presents, the most realistic opportunity in the most value creating opportunities. So that's that's the main point in terms of your question about 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 amongst institutions, and 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 4.5x, but it doesn't appear that investors need further delevering for that business to be attractive. If we think that 4.5x is a good spot, then 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.

The number 1 thing on the operational side isn't so much growth at the ebita 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.

You know, relatively materially down to 4 and a half times 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.

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. I'm not suggesting we would do it, but if we decided to simply track or spin our interest in VMO2, for example, if you 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. 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 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. So,

Lutz Schüler: Thank you. Sorry, Mike.

Robert Grindle: Operator?

Lutz Schüler: If you give me some familiar.

Thank you, sorry.

Robert Grindle: Go ahead, Josh.

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

Go ahead, Josh. Thank you.

The next question comes from the line of Polo Tank 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.

Before 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 declines? 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.

Let's go ahead.

Lutz Schüler: Yeah, sure. I mean, 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 adds 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 switching 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, so your 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 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.

Um, and the reason for leaving is only one.

that is the only reason. So we are not losing a single Customer because of Technology

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. What I can say is we are not giving a guidance, as you know, right, on fixed net ads on a quarterly basis. What I can say is we are getting our arms around in the prevention machine.

Um, so what are we doing?

We are right. We have put together a very sophisticated retention machine which lets us expect that we have been growing.

Up, you over the course of the last 18 months in this market, 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 in new contracts.

And this is what we are doing. So, a significant number of customers now are sitting in a minimum contract length, and also in minimum contract lengths exceeding six months.

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

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 netz 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 confident that we will stabilize the situation.

Hope that helped.

Polo Tang: Great. Thanks.

Great, thanks.

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 lot of Matthew harrian 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? 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 a 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.

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 faster 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, I would say consumption both on mobile and on fixed is not growing as fast as it did historically. I'm 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. 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.

Sure. Matt um, on the Broadband consumption side, it's interesting. I know we don't have the chart here on the 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 have 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 come. 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 the best 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.

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, but 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 in capacity, and we'll see how it transpires. But if we're at a moment now where that rapid appreciation and increase in consumption, is 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 doc's foresight. I'm happy to let our chime in here. There are quite a few differences between the US.

Mike Fries: I mean, we already start, for example, with an 862 megahertz network, getting to 1.2 megahertz is not as complicated. We will get all the way to 1.8 megahertz. 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 gigs. Now, 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's a pretty good number for most consumers.

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

Mike Fries: 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?

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.

Uh, allocations. We don't see a massive spike in the capex costs here. Um, and there, 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 the market.

Henrique: 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.

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

Done live demonstrations, uh, of doctors for in the world. Uh, as Mike pointed out, we were not, um, going all the way from what we are today to August 4. We're also doing upgrades on 3.1, so we're we're pretty confident that these numbers are accurate. And uh as you pointed out on the question the vo network is quite friendly to the upgrade. Uh so we currently take advantage of that.

Matthew Harrigan: If you don't mind, one follow-up actually prompted by Lutz Schüler'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'm seeing $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 1, follow on actually prompted by Lisa. Sorry.

Uh list is earlier answer. I mean you can see in the US on on post paid. I mean T-Mobile it's just ripping Away share you know for various reasons and you dominate the the switching share and 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 the financial condition of the alt Nets, and is CityFibre doing what it just did, how can people possibly be willing to pay?

300 in 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.

Mike Fries: Yeah. Well.

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

Lutz Schüler: 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, the 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 Rite.

And so, what they do is, they come up with very aggressive pricing and they are buying customers out of existing contracts. And if, if you are on your back food, 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.

Charlie Bracken: Great. Thanks, Mike. Thanks, Lutz.

Great. Thanks. Mark, thanks. Thanks a lot.

Mike Fries: Yep.

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 Reza, with new Street research, please proceed.

James Ratzer: Yes. Good morning, Mike. Thank you. Good afternoon for taking the question. The question had been asking me, you've given some hints around kind of cash flow generation for 2026, where you're 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. Do we kind of fall back to that kind of level? In Telenet, because I mean, you were saying that's going to go to free cash positive in the ServCo, but we don't have guidance on the NetCo. I think total CapEx this year for Telenet is going to be around $1.1 billion.

Uh, yes, good. Good morning Mike, thank you. Good afternoon for taking the question. So uh 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? Well, I appreciate the question. James Ratzer, 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?

Because we I mean you're saying that's going to go to free cash positive in the serve code but we don't have guidance on the net code so I think you know total capex this is for tenets going to be around 1.1 billion. Where do you see that going to next year?

Well, I appreciate the question. Daniel's a good ones. 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 Bracken: Yeah. I mean, to be honest with you, I am afraid it is almost like saying, give us guidance for 2026. It is just too early. I do understand why you would want to know that, we have to be allowed to go through our planning process. What we can say is that certainly in the case of the Telenet ServCo, which I agree we haven't clearly shown the separation, that is 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.

Yeah. I mean to be honest I'm afraid it's it's almost like saying give us guidance of 26, it's just too early. I do understand why you'd want to know that 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 tenet Circle, which I agree, we haven't clearly, you know, shown the separation of that, of the things. We might reference to 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. 2026.

Charlie Bracken: Can I ask that? Can I ask 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 that you're saying things like Irish FTTH?

Same with Ireland, so then maybe like some another way is like we...

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, we're not, we're not going to give an Irish ftth.

Charlie Bracken: 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.

Yeah, we're not going to give you the specifics. I mean these are directional statements. We clearly understand why you want them and we're not trying to duck it. But you know, 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 and yeah, make some strategic decisions as well.

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

Got it, okay. Thanks.

Thank you.

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

David Wright: Hi, guys. I guess just following on from Joshua'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's 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. Mine. Come just trying to think about these opportunities for tracking spending 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 penalizing you guys on on the, on the sort of cable, side of network 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?

Mike Fries: 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? I think it's a few things, David. 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.

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 the 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 they currently are in in the Liberty Global Group?

I think it's a few things. Uh David I think it's a few things. Number 1 you want to do it. Uh this there is uh, a demand among European institutions.

Mike Fries: 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 more in a different light. While Swisscom is an excellent peer, KPN might be even better, traded 9x even, Doc. 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.

To own either Pure Play or local telecom assets. Do you see that across the board? 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, 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 trade at 9 times, he could talk. And when you line Vodafone ziggo up to kpn,

And almost.

Mike Fries: 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 pay a large dividend. The 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%. 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.

Any operating metric when it comes to physicals or financials. It looks pretty good. What are the differences? The difference of 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 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 of European Telecom assets uh like dividends clearly. And that's you know, most of our peers if not all of our peers pay a large dividend, the sunrise is demonstrating that an 8% dividend yield even with that higher yield. It's a it's it's Distributing at a great multiple. Uh I think the dividend yield at kpn is maybe 5% so can you generate enough free cash in these businesses to adopt a, a capital markets.

Mike Fries: 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. No, it's interesting, Mike. Thanks. You got it.

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. Um, I understand it's not immediately 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.

No, it's interesting. Mike, thanks.

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

You got it?

Thank you.

The next question comes from the line of Carl McArt Smith, from Citi Group. Please proceed.

Carl Murdock-Smith: 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.

Talk about your um turnarounds in uh vod'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 Steven do that. I don't know if you were on for the remarks, but there's a whole slide in the deck on this. Steven, why don't 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. But Stephen, why don't you add some more to that?

[Company Representative] (VodafoneZiggo): I think this slide that you published, Mike, earlier in the slide deck is probably the best summary of it. We've got four specific areas that we've looked at as I came into the organization. We've tucked in behind each of those four. 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 kiltovert of 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.

I think, um, I think this slide that you published Mike uh earlier in the slide deck is probably the best summary of it. So we've got 4 specific areas that we've looked at as an organ as I came into the organization.

Uh, we've tucked in behind each of those four.

We've reset our organizational model, it gave us an opportunity to take some costs out as well, uh, which we needed to do specifically pointed at being more aggressive in the marketplace. Uh, 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 at a kilter with a Marketplace, um, 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'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. The land grab. Then 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 Luts, 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

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 we're 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've fully back the plan to roll off to roll out hfc. Uh we've got a we've got an aggressive plan.

I think over the next 18 months, the land app. Uh, and then I think we were short on marketing. We were short on positioning as the GO brand, where we needed to be back in the connectivity world.

We were short on investing in.

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's where we are today. You'll see more from us over the next 12 months.

FMC, which you'll see coming soon. Uh, and we think there's great opportunity for us to attack with, uh, with Holland's never. 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 an 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.

Mike Fries: Thanks, Steve.

Carl Murdock-Smith: That's great. Thank you. 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?

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

Um, can just 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 to today, should we be drawing a line between those 2 things? Um, or uh, or or not? And given the timing within the year could that potentially mean that next year, could see. Further improvements within that kind of services and corporate ebit 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 could 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.

Thanks. Yeah I want to be really thoughtful on commenting on internal, you know restructuring or employee matters um as they should be that that article was obviously not authorized by us. But suffice to say at the trajectory, we're trying to uh, you know, um, illustrate here is a good 1 and there are lots of tools in the tool box 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: 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, if you're 1 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 a Tailwind to your Target price.

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

That's great. Thanks Mike.

Mike Fries: You got it.

Operator: Thank you.

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

You got time for maybe one or two more operators? Yeah, go ahead.

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 fiber 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. Then 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 it's sort of slightly less your question but, you know, clearly your your chart is a problem part of that. I guess you know 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 is is being thoughtful I guess on whether to deploy fiber in areas where there are already 2 providers.

Steve Malcolm: Would you consider you haven't wholesaled from Openreach for a while, but it seems a pretty obvious step, given the mismatch between your fix 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.

I guess it's a kind of 2-part question 1 is, you know, is it something you give a lot of thought to is how you bridge that Gap open reach cover is 30 million lines, you cover 18. Um, and then secondly, you know what what how do you think about the opportunity of bridging that Gap and and would you consider, you know, you haven't wholesale from open reach for a while. But it seems a pretty obvious set, you know, given the mismatch in your fixed in your mobile Footprints to do. So just to sort of expand your address or market and possibly deal with some of those churn natural churn impediments you face. It's 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.

Thank you, 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 that 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 with whom we get there. Those are, you know, well technical questions or something. I'm not going to get into this morning, but you're right to ask us about it and we see it. Similarly,

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

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

Mike Fries: Yes.

Yes.

Steve Malcolm: Okay. Thank you.

Thank you.

Operator: Thank you.

Thank you.

Mike Fries: 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.

Who are we? Of course.

The last question comes from the line of Overage Rat with Bernstein. Please proceed, General Group.

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.

Thank you, Mike, Mike. 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 could you just frame that for us a little bit? How, how you, how you look at what happened there. Why you exited 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.

Sure, 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 the 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,

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.

Ulrich Rathe: All right. Is that a change compared to the spots when you actually bought it?

That. All right. So is that a change? I appreciate everybody joining. You actually bought it.

Mike Fries: Not necessarily. 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. 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 our North Star, as 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 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 that would put more in that category than any sort of long-term strategic view of other phone as a company.

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, it's we're at the hour here. Um, but markets are challenging. You, you got that message, but we are not sitting still and the management team. You're listening to here, really are on their game and investing innovating winning. And lastly, just our value creation is, you know, value creation is our Northstar if you like to say, right? So its shareholders turns here to to try to see that value creation realize. 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.

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.