Q3 2025 Liberty Global Ltd Earnings Call

Speaker #1: Good morning , ladies and gentlemen , and thank you for standing by . Welcome to Liberty Global's third quarter 2025 investor call . This call on the associated webcast are the property of Liberty Global and any redistribution , retransmission or rebroadcast of this call or webcast in any form without the express written consent of Liberty Global is strictly prohibited .

Operator: Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Liberty Global's Q3 2025 Investor Call. This call and the associated webcast are the property of Liberty Global, and any redistribution, retransmission, or rebroadcast of this call or webcast in any form without the express written consent of Liberty Global is strictly prohibited. At this time, all participants are in a listen-only mode. Today's formal presentation materials can be found under the Investor Relations section of Liberty Global's website at libertyglobal.com. After today's formal presentation, instructions will be given for a question and answer session. Page 2 of the slides details the company's safe harbor statement regarding forward-looking statements.

Speaker #1: At this time , all participants are in a listen only mode . Today's formal presentation materials can be found under the Investor Relations section of Liberty Global's website at Liberty Global plc .

Speaker #1: After today's formal presentation , instructions will be given for a question and answer session . Page two of the slides details the company's safe harbor statement regarding forward looking statements .

Speaker #1: 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 .

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

Speaker #1: 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 filings with the Securities and Exchange Commission , including its most recently filed form 10-q and 10-K .

Speaker #1: As amended . Liberty 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 .

Speaker #1: I would now like to turn the call over to Mr. Mike fries .

Speaker #2: All right . Welcome everyone , and thanks for dialing in to our Q3 results call today . After Charlie and I run through our prepared remarks , we'll open it up for what we hope is a lively Q&A .

Mike Fries: All right. Welcome, everyone, thanks for dialing in to our Q3 Results Call today. After Charlie and I run through our prepared remarks, we'll open it up for what we hope is a lively Q&A. As usual, I've got my core leadership team on the call with me. Before I jump into the presentation, I just want to acknowledge and be sure that everybody has seen the press release we put out yesterday regarding John Malone, who has decided to step off the board and move to a chairman emeritus role at the end of the year. Of course, he's making a similar move at Liberty Media. I won't repeat all the key messages that we put in the public statement.

Speaker #2: And as usual , I've got my core leadership team on the call with me . And before I jump into the presentation , I just want to acknowledge and be sure that everybody has seen the press release we put out yesterday regarding John Mullen , decided to step off the board and move to a chairman emeritus role at the end of the year . Of course , he's making a similar move at Liberty Media .

Speaker #2: And as usual , I've got my core leadership team on the call with me . And before I jump into the presentation , I just want to acknowledge and be sure that everybody has seen the press release we put out yesterday regarding John Mullen , decided to step off the board and move to a chairman emeritus role at the end of the year .

Mike Fries: You can read that, and I encourage you to do that, except perhaps to emphasize how important, impactful, and enjoyable my relationship with John has been over the last 25 to 30 years, and how pleased I am that as he implies in the release, he intends to stay very engaged with me and the board as we execute our strategic plans. Knowing John as I do, he will surely do just that. Of course, I'm happy to take any questions on this as well at the end. Now getting back to our results, let me kick it off with some key highlights from the quarter. If you're going to breeze through these slides later, these first two are perhaps the most critical in my opinion. I believe everyone's familiar with how we're organized today in order to create greater transparency around strategy, capital allocation, and value creation.

Speaker #2: with John has been over the last 25 to 30 years , and how pleased I am that as he implies in the release , he intends to stay very engaged with me and the board as we execute our strategic plans .

Speaker #2: And knowing John as I do , he will surely do just that . And of course , I'm happy to take any questions on this as well .

Speaker #2: At the end . Now getting back to our results , let me kick it off with some key highlights from the quarter . If you're going to breeze through these slides later .

Speaker #2: These first two are perhaps the most critical in my opinion . I believe everyone's familiar with how we're organized today in order to create greater transparency around strategy , capital allocation , and value creation .

Mike Fries: Everything we do falls into one of three core platforms at Liberty Global. These include, of course, Liberty Telecom, where we're focused on driving commercial momentum in our broadband and mobile businesses, most importantly, finding ways to unlock the intrinsic value of these companies for the benefit of shareholders. I'll get into that a bit more in the next slide. Of course, that starts with operating performance. As you'll see, despite intense competition, we had a strong Q3 with sequential improvement in broadband net adds across all four markets, for example. Importantly, our networks are proving to be critical sources of both competitive differentiation, like our 5G expansion in the UK that's being fueled by the recent spectrum purchases, and value creation, like our agreement with Proximus to rationalize fixed networks in Belgium, which I'll cover off in just a moment.

Speaker #2: And most importantly , finding ways to unlock the intrinsic value of these companies for the benefit of shareholders . And I'll get into that a bit more in the next slide .

Speaker #2: Of course , that starts with operating performance . And as you'll see , despite intense competition , we had a strong third quarter with sequential improvement in broadband net adds across all four markets .

Speaker #2: For example . Importantly , our networks are proving to be critical sources of both competitive differentiation like our 5G expansion in the UK that's being fueled by the recent spectrum purchases and value creation .

Speaker #2: Like our agreement with Proximus to rationalize fixed networks in Belgium , which I'll cover off in just a moment . Now , a theme .

Speaker #2: You will hear a few times today is lowering leverage and strengthening our balance sheet at Liberty Telecom . And Charlie and his team have worked tirelessly this year to strengthen the balance sheet , beginning with refinancing over 9 billion of 2028 maturities , particularly in the U.K.

Mike Fries: A theme you'll hear a few times today is lowering leverage and strengthening our balance sheet at Liberty Telecom. Now, Charlie and his team have worked tirelessly this year to strengthen the balance sheet, beginning with refinancing over $9 billion of 2028 maturities, particularly in the UK and NL, at very reasonable credit spreads. That includes a debt financing we just announced that funds the fiber rollout in Belgium while deleveraging Telenet, our ServCo in the market. Charlie will dig into that. Now turning to Liberty Growth, which includes our investments in media infrastructure and tech that today total $3.4 billion, and by the way, provide a source of capital to drive future value creation. This is a highly concentrated portfolio where the top 6 investments comprise over 80% of the value.

Speaker #2: and NL . At very reasonable credit spreads . And that includes a debt financing . We just announced that funds the fiber rollout in Belgium .

Speaker #2: While the leveraging Telenet , our servco in the market . And Charlie will dig into that . Attorney Liberty Growth , which includes our investments in media , infrastructure and tech that today total 3.4 billion .

Speaker #2: And by the way , provide a source of capital to drive future value creation . This is a highly concentrated portfolio where the top six investments comprise over 80% of the value .

Speaker #2: We're still targeting 500 to 750 million of non-core asset sales from the portfolio . And as I mentioned on our last call , we're not going to rush this and price bad deals in the process .

Mike Fries: We're still targeting $500 to 750 million of non-core asset sales from the portfolio. As I mentioned on our last call, we're not gonna rush this and price bad deals in the process. We have generated proceeds of $300 million year to date when you include the partial sale of our ITV stake last week. We are well on our way. Of course, one of the bigger portfolio companies is Formula E, which heads into season 12 in December with significant tailwinds, including double-digit growth in revenue, fans, and viewers last year, a knockout calendar of 18 races, and the public reveal of the Gen4 car, which debuts a year from now and doubles the max power of what is rapidly becoming the coolest car in racing. We'll highlight in just a few slides our data center investments.

Speaker #2: But we have generated proceeds of 300 million year to date . When you include the partial sale of ITV stake last week . So we are well on our way .

Speaker #2: Of course , one of the bigger portfolio companies is formula E , which heads into season 12 . In December with significant tailwinds including double digit growth in revenue , fans and viewers .

Speaker #2: Last year . A knockout calendar of 18 races and the public reveal of the Gen four car , which debuts a year from now and doubles the max power of what is rapidly becoming the coolest car in racing .

Speaker #2: And we'll highlight in just a few slides our data center investments . With the boom in AI infrastructure , we believe we have a tiger by the tail .

Mike Fries: With the boom in AI infrastructure, we believe we have a tiger by the tail, as they say, with over 1 billion in assets today and growing. Finally, the quarter brought some great progress at Liberty Services, where we manage large and profitable tech and financial platforms, and at our corporate level, where we are in the midst of reshaping the operating model. I think the big news here is that we are improving for the second time this year our guidance for net corporate cost in 2025. We started the year forecasting around $200 million of net corporate cost. In Q2, we improved that to $175 million, now we're improving it further to $150 million for this year.

Speaker #2: As I say , with over 1 billion in assets today and growing . And finally , the quarter brought some great progress at Liberty Services , where we managed large and profitable tech and financial platforms and at our corporate level , where we are in the midst of reshaping the operating model .

Speaker #2: I think the big news here is that we are improving for the second time this year . Our guidance for net corporate costs in 2025 .

Speaker #2: We started the year forecasting around 200 million net corporate costs . In the second quarter , we improved that to 175 million . And now we're improving it further to 150 million .

Speaker #2: For this year , perhaps even more importantly , we see visibility in 2026 to just 100 million of net corporate costs . Now this is a hot button for us , as most analysts reduced their target price for our stock by , I think , 8 to $10 per share .

Mike Fries: Perhaps even more importantly, we see visibility in 2026 to just $100 million of net corporate costs. This is a hot button for us, as most analysts reduce their target price for our stock by, I think, $8 to $10 per share just related to that $200 million net corporate spend. These announcements today should dramatically improve our valuation narrative, you can bet we'll be pounding the table on it starting right after this call. I think Charlie will also address it. Lastly, on this slide, we note that we're forecasting $2.2 billion of cash at the holding company at year-end, assuming just the $300 million of asset sales year to date. The next slide provides an update on our strategic plan to unlock value for shareholders, I guess this is the key takeaway today.

Speaker #2: Just related to that 200 million net corporate spend . These announcements today should dramatically improve our valuation narrative . And you can bet we'll be pounding the table on it starting right after this call .

Speaker #2: I think Charlie will also address it . Lastly , on this slide , we note that we're forecasting 2.2 billion of cash at the holding company at year end , assuming just the 300 million of asset sales year to date .

Speaker #2: Now the next slide provides an update on our strategic plan to unlock value for shareholders . And I guess this is the key takeaway today .

Speaker #2: First , let me reiterate what we laid out on our second quarter call back in August following the continued success of the sunrise spinoff .

Mike Fries: First, let me reiterate what we laid out on our Q2 call back in August. Following the continued success of the Sunrise spin-off about a year ago, we remain committed to pursuing similar transactions that would further unlock value for shareholders. This may include the separation of one or a combination of core operating businesses you see on this slide, actually, through a spin-off tracking stock listing or similar equity capital markets transaction. I imagine many of you still own or follow Sunrise. The stock has performed well and trades around 8x EBITDA with an 8% dividend yield today. Looking back on that deal, I think 4 key factors laid the groundwork for its success. Number 1, Switzerland is a largely rational telecom market.

Speaker #2: About a year ago , we remain committed to pursuing similar transactions that would further unlock value for shareholders . This may include the separation of one or a combination of core operating businesses .

Speaker #2: You see on this slide . Actually , through a spinoff tracking stock listing or similar equity capital markets transaction . I imagine many of you still own or follow sunrise .

Speaker #2: The stock has performed well and trades around eight times EBITDA with an 8% dividend yield today . And looking back on that deal , I think four key factors laid the groundwork for its success .

Speaker #2: Number one , Switzerland is a largely rational telecom market . Number two , sunrise had a less levered balance sheet thanks to our capital contribution at around 4.5 times on the date of the spinoff .

Mike Fries: Number 2, Sunrise had a less levered balance sheet, thanks to our capital contribution at around 4.5 times on the date of the spin-off. Number 3, Sunrise has a clear network strategy and CapEx profile. Number 4, Sunrise has a solid free cash flow story that it supports a progressive dividend policy. That was the formula. Strong balance sheet, a rational market, and a predictable path to stable or growing free cash flow. Now it won't surprise you to learn that this looks a lot like the things we are working on in the Benelux. For example, at VodafoneZiggo, we've installed a new team with a winning plan that is built around generating long-term free cash flow in a largely 3-player market. We have now refinanced something like 80% of the 2028 maturities, with the remainder targeted for this quarter or early next year.

Speaker #2: Number three summarized as a clear network strategy and CapEx profile . And number four summarized as a solid free cash flow story that it supports a progressive dividend policy that was the formula strong balance sheet , a rational market , and a predictable path to stable or growing free cash flow that won't surprise you to learn that this looks a lot like the things we are working on in the Benelux , for example , we've installed a new team with a winning plan that is built around generating long term free cash flow in a largely three player market , and we have now refinanced something like 80% of the 2028 maturities , with the remainder targeted for this quarter or early next year .

Speaker #2: In Belgium , we are even farther along our recently announced agreement with Proximus , which is currently being market tested by the regulator , rationalizes the build out and wholesale monetization of fiber in a large part of Flanders , with really only one network in 65% of the market .

Mike Fries: In Belgium, we are even farther along. Our recently announced agreement with Proximus, which is currently being market tested by the regulator, rationalizes the build-out and wholesale monetization of fiber in a large part of Flanders, with really only one network in 65% of the market. On the back of this, we just announced a EUR 4.35 billion financing for our NetCo there, which we call Wyre, which fully funds the build-out of fiber and allows us to reduce leverage at the Telenet ServCo, including all 2028 maturities. Even more exciting, we're in the early marketing stages of selling a significant stake in Wyre. Now this is an increasingly common value creation strategy in Europe, as you know, with the proceeds used to further deleverage our Telenet ServCo to about 4.5 times.

Speaker #2: On the back of this , we just announced a €4.35 billion financing for our netco there , which we call wire , which fully funds the buildout of fiber and allows us to reduce leverage at the Telenet Servco , including all 2028 maturities .

Speaker #2: Even more exciting , we're in the early stages of selling a significant stake in wire . This is an increasingly common value creation strategy in Europe .

Speaker #2: As you know , with the proceeds used to further deleverage . Our Telenet Servco to about 4.5 times . That's going to take a quarter or two to finalize all of these steps .

Mike Fries: It's going to take a quarter or two to finalize all of these steps, but we're feeling more and more encouraged about the possibilities in this region for a value unlock in the timeframe that we articulated. Of course, we continue to work on other ideas which we'll update you on in time. As I said last quarter, all of the operating businesses or assets you see on this slide, and some that aren't even shown, can be singled out or combined with one another to achieve a value unlock transaction. Stay tuned. As I said, a key enabler of that strategic roadmap is ensuring that our operating companies are driving commercial momentum in what are increasingly competitive markets, right? The long-term goal here is generating meaningful free cash flow.

Speaker #2: But we're feeling more and more encouraged about the possibilities in this region . For a value unlock in a time frame that we articulated .

Speaker #2: Now , of course , we continue to work on other ideas , which we'll update you on in time . And as I said last quarter , all of the operating businesses or assets you see on this slide and some that aren't even shown , can be singled out or combined with one another to achieve a value unlock transaction .

Speaker #2: So stay tuned . Now , as I said , a key enabler of that strategic roadmap is ensuring that our operating companies are driving commercial momentum and what our increasingly competitive markets and the long term goal here is generating meaningful free cash flow .

Speaker #2: Now , towards that end , each Opco has been implementing a series of commercial initiatives and network improvements that are starting to impact results positively .

Mike Fries: Towards that end, each opco has been implementing a series of commercial initiatives and network improvements that are starting to impact results positively. This next slide summarizes a handful of those initiatives which provide important context for the results that follow. Starting in the UK, where Lutz and the team have been busy across a number of fronts, including the recent rollout of our new pay TV and broadband bundles, which now include Netflix for free. That further differentiates us from the competition, in particular AltNets. VMO2 is also redefining the flanker brand segment with the introduction of giffgaff broadband services that complement giffgaff's mobile leadership. We're rapidly transforming the O2 mobile network using the recently acquired spectrum to launch our first 5G GigaSite. Plus, we announced the UK's first direct-to-cell satellite service with Starlink for what we call rural not-spots.

Speaker #2: This next slide summarizes a handful of those initiatives which provide important context for the results that follow . Starting in the UK , we're losing the team have been busy across a number of fronts , including the recent rollout of our new pay TV and broadband bundles , which now include Netflix for free .

Speaker #2: That further differentiates us from the competition in particular , alt nets M2 is also redefining the flanker brand segment with the introduction of Giffgaff broadband services that complement Giffgaff mobile leadership .

Speaker #2: And we're rapidly transforming the O2 mobile network using the recently acquired spectrum to launch our first 5G gig site . Plus , we announced the UK's first direct to cell satellite service with Starlink for what we call rural , not spot .

Speaker #2: So a lot happening in the UK . Stephen and the Vodafone Ziggo team have completely reversed trends in the Dutch market , delivering the lowest broadband churn we've seen since early 2023 and positive mobile net adds in the quarter .

Mike Fries: A lot happening in the UK. Stephen and the VodafoneZiggo team have completely reversed trends in the Dutch market, delivering the lowest broadband churn we've seen since early 2023 and positive mobile net adds in the quarter. Lots of things are working right here, including being the first to roll out 2 gigabit speeds nationwide, with upgrades underway for a DOCSIS four eight gig launch next year. We're also investing in the Vodafone brand on the back of the iPhone 17 launch. The how we will win plan that Stephen's developed is quickly becoming the why we are winning plan, which is exactly what we needed in this otherwise rational telecom market.

Speaker #2: And lots of things are working right here , including being the first to roll out two gigabit speeds nationwide with upgrades underway for a Docsis four eight gig launch next year .

Speaker #2: We're also investing in the Vodafone brand on the back of the iPhone 17 launch , so the how we will win plan that Stevens developed as quickly , becoming the why we are winning plan , which is exactly what we needed in this .

Speaker #2: Otherwise rational telecom market . John Porter and the Telenet team have gone from strength to strength in Belgium in the last three quarters , supported by doubling of broadband speeds for nearly a million customers .

Mike Fries: John Porter and the Telenet team have gone from strength to strength in Belgium the last 3 quarters, supported by doubling of broadband speeds for nearly 1 million customers, their rollout in the South, and a multi-brand strategy in mobile. The fiber upgrade in Ireland is proceeding at pace with over 650,000 premises built now. Tony and the Virgin team are ramping up our wholesale business with Vodafone Sky and expanding their own reach to new off-footprint territories with fiber. Just to put a marker out there, with CapEx set to fall by 50% in the coming 2 years, we're planning for significant free cash flow out of the Irish business as well. Now, the results on the following slide illustrate this improvement.

Speaker #2: Their rollout in the south and a multi-brand strategy in mobile and the fibre upgrade in Ireland is proceeding at pace , with over 650,000 premises built now , and Tony and the Argentine are ramping up our wholesale business with Vodafone and Sky and expanding their own reach to new off footprint territories with fibre .

Speaker #2: I just put a marker out there with CapEx set to fall by 50% in the coming two years , we're planning for significant free cash flow out of the Irish business as well .

Speaker #2: Now , the results on the following slide illustrate this improvement . Don't get me wrong , we are in a dogfight everywhere , but we are fighting right back and differentiating our products and services .

Mike Fries: Don't get me wrong, we are in a dogfight everywhere, but we are fighting right back and differentiating our products and services, attacking vulnerable competitors, and driving better results each quarter. In fact, 3 out of our 4 markets, we've demonstrated improved sequential fixed and mobile subscriber results throughout the year and in Holland over the last 2 quarters. Again, at VMO2, our fixed churn initiatives, things like proactive management of the base and one-touch switching activity are gaining traction and improving broadband performance in a very competitive market. Meanwhile, postpaid mobile subscriber performance has consistently improved quarter after quarter this year, including ARPU growth, supported by pre to postpaid migrations and our loyalty plans. VodafoneZiggo reported its 3rd straight quarterly improvement in broadband losses with another strong ARPU result, and postpaid mobile adds were positive again, driven by the initiative described just a moment ago.

Speaker #2: Attacking vulnerable competitors , and driving better results . Each quarter . In fact , three out of our four markets we've demonstrated improved sequential , fixed and mobile subscriber results throughout the year .

Speaker #2: And in Holland over the last two quarters . Again at BMO , to our fixed churn initiatives , things like proactive management of the base and one touch switching activity are gaining traction and improving broadband performance in a very competitive market .

Speaker #2: Meanwhile , postpaid mobile subscriber performance has consistently improved quarter after quarter this year , including Rpu growth supported by pre to postpaid migrations and our loyalty plans .

Speaker #2: Vodafone , Ziggo reported its third straight quarterly improvement in broadband losses , with another strong result and postpaid mobile ads were positive , again driven by the initiative described just a moment ago .

Speaker #2: Telenet maintained positive broadband net add momentum for the second quarter , running , driven by successful cross-sell campaigns including back to school , while fixed rpu growth was supported by price adjustments at the implemented during the second quarter , postpaid net adds in Belgium were negative despite a strong performance on the base brand .

Mike Fries: Telenet maintained positive broadband net add momentum for the Q2 running, driven by successful cross-sell campaigns, including back to school, while fixed ARPU growth was supported by price adjustments that they implemented during the Q2. Postpaid net adds in Belgium were negative despite a strong performance on the base brand, while mobile postpaid ARPU continues to show pressure from the competitive environment. In Ireland, Virgin Media's broadband base was largely flat, with aggressive fiber offers in the market driving higher churn and impacting fixed ARPU. Postpaid net adds, on the other hand, remained strong and that's supported by a EUR 15 for life offer launched in May, boosting gross adds. Charlie will walk through our financial results that are tied to these numbers in just a moment.

Speaker #2: While mobile postpaid Rpu continues to show pressure from the competitive environment and in Ireland , Virgin Media's broadband base was largely flat , with aggressive fibre offers in the market driving higher churn and impacting fixed ARPU .

Speaker #2: Postpaid net adds , on other hand , remains strong , not supported by a €15 for life offer launched in May , boosting gross ads .

Speaker #2: So , Charlie , we'll walk through our financial results that are tied to these numbers in just a moment . Let me first turn Liberty growth .

Mike Fries: Let me first turn to Liberty Growth. By now you're hopefully more familiar with the components of our portfolio, which as I mentioned, increased in value to $3.4 billion at Q3. That's around $10 per share. As you can see here, 45% of the value or about $1.5 billion consists of premium media, sports, and live events businesses, which we and most everyone else these days see as great long-term investment strategies. Another 40% is in digital infrastructure, which I'll dig into a bit more in the next slide. Then most of the balance resides in our tech portfolio, which consists largely of venture capital investments in companies, many that are leading the way in AI, cloud, and cybersecurity.

Speaker #2: And by now you're hopefully more familiar with the components of our portfolio , which , as I mentioned , increased in value to 3.4 billion at Q3 , at around $10 per share .

Speaker #2: As you can see here , 45% of the value , or about $1.5 billion , consists of premium media , sports and live events businesses , which we and most everyone else these days see as great long term investment .

Speaker #2: Strategies . Another 40% is in digital infrastructure , which I'll dig into a bit more in the next slide . And then most of the balance resides in our tech portfolio , which consists largely of venture capital investments in companies , many that are leading the way in AI , cloud and cybersecurity .

Speaker #2: Now , while it might appear like a complicated and diversified mix of investments from the outside , as I said earlier , it's important to remember that six of these deals comprise over 80% of the portfolio's value today .

Mike Fries: Now, while it might appear like a complicated and diversified mix of investments from the outside, as I said earlier, it's important to remember that six of these deals comprise over 80% of the portfolio's value today. You can see them listed at the bottom of the page. Things like a controlling interest in Formula E, which I spoke about, and our remaining 5% of ITV, for example, and the two largest assets in our digital infrastructure vertical, which I'm gonna highlight on the next slide. Now, both of these infrastructure investments are substantial, adding up to over $1 billion of value for us today, and they've performed extremely well, especially in the current environment where the development of AI infrastructure seems to have exploded. We're thrilled to own a minority interest in EdgeConneX.

Speaker #2: You can see them listed at the bottom of the page . Things are controlling interest in formula E , which I spoke about , and our remaining 5% of ITV , for example .

Speaker #2: And the two largest assets in our digital infrastructure vertical , which I'm going to highlight on the next slide . Now , both of these infrastructure investments are substantial , adding up to over 1 billion of value for us today .

Speaker #2: And they've performed extremely well , especially in the current environment where the development of AI infrastructure seems to have exploded . We're thrilled to own a minority interest in edge .

Speaker #2: It's a global data center platform controlled by ICT and focused on hyperscalers across over 60 tier one markets . In 20 countries around the world .

Mike Fries: It's a global data center platform controlled by EQT and focused on hyperscalers across over 60 Tier 1 markets in 20 countries around the world. We first invested in this company back in 2015. It was much smaller. We have a net $150 million invested today. The good news is that we've already taken $50 million off the table, and our residual stake is conservatively valued at over $500 million. That equates to a 30% IRR over the last decade. On the right, you'll see our 50/50 JV called AtlasEdge, which is a regional data center provider focused on Tier 2 markets. The company has strong positions in Germany, Austria, and Iberia and is seeking to expand capacity to 180 MW.

Speaker #2: And we first invested in this company back in 2015 . It was much smaller , and we have a net 150 million invested today .

Speaker #2: And the good news is that we've already taken 50 million off the table . And our residual stake is conservatively valued at over 500 million .

Speaker #2: That equates to a 30% IRR over the last decade . On the right , you'll see our 5050 JV called Atlas Edge , which is a regional data center provider focused on tier two markets .

Speaker #2: Company a strong positions in Germany , Austria and Iberia and is seeking to expand capacity to 180MW . We have a net investment here of about 345 million , and we've had our interest valued by third parties at around 600 million today , again , both of these companies find themselves in the middle of multiple AI infrastructure and data sovereignty projects .

Mike Fries: We have a net investment here of about $345 million, and we've had our interest valued by third parties at around $600 million today. Again, both of these companies find themselves in the middle of multiple AI infrastructure and data sovereignty projects, and we are focused on driving continued growth right now in what is an increasingly hot space. I look forward to your questions on all of this, but let me first turn it over to Charlie to walk through Liberty Services and our numbers. Charlie?

Speaker #2: And we are focused on driving continued growth right now in what is an increasingly hot space . So I look forward to your questions on all of this .

Speaker #2: But let me first turn it over to Charlie to walk through Liberty Services and our numbers . Charlie . Thanks , Mike . Turning now to Liberty Services and Corporate .

Charlie Bracken: Thanks, Mike. Turning now to Liberty Services in Corporate. On the left-hand side of the slide is an overview of our central services, which focus on three core activities. Our corporate group provides strategic management and advisory services in operating and managing financial and human capital, as well as technology strategies and investment. Liberty Tech focuses on the delivery of scale tech solutions, particularly in entertainment and connectivity platforms, as well as cybersecurity for our telecoms companies. Liberty Blume develops and provides tech-enabled back-office solutions, not just to companies within the Liberty Global family, but also increasingly to third parties. We are reinvesting these tech-enabled efficiencies within Liberty Blume to drive 20%+ organic revenue growth in 2025.

Speaker #3: On the left hand side of the slide is an overview of our central services , which focus on three core activities . Our corporate group provides strategic management and advisory services in operating and managing financial and human capital , as well as technology strategies and investment .

Speaker #3: Liberty tech focuses on the delivery of scaled tech solutions , particularly in entertainment and connectivity platforms , as well as cybersecurity for our telecoms companies and Liberty bloom develops and provides tech enabled back office solutions , not just to companies within the Liberty Global family , but also increasingly to third parties .

Speaker #3: We are reinvesting these tech enabled efficiencies within Liberty Bloom to drive 20% plus organic revenue growth in 2025 . During the third quarter , we undertook a significant reshaping exercise around both Liberty Corporate and Liberty Tech to drive cost efficiencies going forward and make both organizations more agile and well positioned for the future , starting with Liberty Corporate , we undertook both voluntary and involuntary redundancy schemes , which have reduced headcount by around 40% , with 90% of those leaving by year end .

Charlie Bracken: During Q3, we undertook a significant reshaping exercise around both Liberty Corporate and Liberty Tech to drive cost efficiencies going forward and make both organizations more agile and well-positioned for the future. Starting with Liberty Corporate, we undertook both voluntary and involuntary redundancy schemes, which have reduced headcount by around 40%, with 90% of those leaving by year-end. In Liberty Tech, we can continue to leverage our successful Infosys partnership with 4 years of proven track record to help secure additional efficiencies and simplification savings. We expect both the corporate and Liberty Tech initiatives to drive around $100 million of annualized cost savings. Bringing all this together, you will recall that we began the year guiding to less than $200 million of negative adjusted EBITDA, and we've already upgraded this to around $175 million of EBITDA at Q2.

Speaker #3: And in Liberty Tech , we can continue to leverage our successful emphasis partnership with four years of proven track record to help secure additional efficiencies and simplification .

Speaker #3: Savings . We expect both the corporate and Liberty tech initiatives to drive around $100 million of annualized cost savings , bringing all this together , you will recall that we began the year guiding to less than 200 million of negative adjusted EBITDA , and we've already upgraded this to around $175 million of EBITDA at Q2 .

Speaker #3: Now , we're pleased to reduce this further for 2025 to around $150 million of negative adjusted EBITDA , supported by the in-year benefits of our corporate reshaping programs .

Charlie Bracken: We're pleased to reduce this further for 2025 to around -$150 million of adjusted EBITDA, supported by the in-year benefits of our corporate reshaping programs. Perhaps more importantly, turning to the fully annualized impact, once we see the benefits of this reshaping annualized from 2026, we expect our corporate adjusted EBITDA to broadly halve to around $100 million. From there, we still see scope for further improvement as we evolve our operating model through additional third-party revenues, advisory fees, and management services agreements alongside the scope for further cost optimization.

Speaker #3: Now , perhaps more importantly , turning to the fully annualized impact . Once we see the benefits of this reshaping annualized from 2026 , we expect our corporate adjusted EBITDA to broadly halve to around $100 million , and from there , we still see scope for further improvement as we evolve our operating model .

Speaker #3: Through additional third party revenues , advisory fees and management services . Agreements . Alongside the scope for further cost optimization . So to put this in context , at the beginning of the year and the average analyst , some of the parts valuation , there was around $10 per share , negative impact based on the capitalisation of these corporate costs , which was typically at around 12 to 14 times enterprise value to operating free cash flow .

Charlie Bracken: To put this in context, at the beginning of the year and the average analyst sum of the parts valuation, there was around -$10 per share impact based on the capitalization of these corporate costs, which was typically at around 12x to 14x enterprise value to operating free cash flow. We now expect the run rate of negative corporate cost to essentially halve versus the start of the year going forward, which should drive a significant reduction, around half, of this discount in our analyst valuation. We would also argue that an EBITDA multiple more in line with the telco comparables, which is much lower, is the right way to value these costs, which would further reduce the impact.

Speaker #3: We now expect the run rate of negative corporate costs to essentially halve versus the start of the year , going forward , which would drive a significant reduction .

Speaker #3: Around half of this discount in our analyst valuation . And we would also argue that an everyday multiple more in line with the telco comparables , which is much lower , is the right way to value these costs , which would further reduce the impact .

Speaker #3: Moving to the Treasury , slide , we've been extremely proactive year to date and through Q3 in dealing with our 2028 maturities in what has been a favorable overall high yield market , in particular in the bond market overall , we've successfully refinanced close to $6 billion across our credit silos year to date .

Charlie Bracken: Moving to the treasury slide, we've been extremely proactive year-to-date and through Q3 in dealing with our 2028 maturities in what has been a favorable overall high-yield market, in particular in the bond market. We've successfully refinanced close to $6 billion across our credit silos year-to-date, and this actually increases to $9 billion if you include the underwritten Wyre financing that Mike has already discussed. At Virgin Media O2, using existing benchmark financings, we were able to complete mainly private tap transactions amounting to $1.4 billion, bringing to total refinancing year-to-date at Virgin Media O2 to over $3 billion, which leaves us only with around $100 million of outstanding 2028 maturities. VodafoneZiggo, we issued just under $1 billion of senior secured notes during Q3, leaving us with around $500 million of outstanding 2028 maturities.

Speaker #3: And this actually increases to $9 billion if you include the underwritten wire financing that Mike has already discussed at Virgin Media , O2 using existing benchmark financings , we were able to complete mainly private tap transactions amounting to $1.4 billion , bringing to total refinancing year to date at Virgin Media O2 to over $3 billion , which leaves us only with around $100 million of outstanding 2028 maturities .

Speaker #3: Vodafone , Ziggo . We issued just under $1 billion of senior secured notes during Q3 , leaving us with around $500 million of outstanding 2028 maturities and at Telenet , we've already completed $600 million of financings year to date and have recently secured a Euro 4.35 billion underwritten facility for wire .

Charlie Bracken: At Telenet, we've already completed $600 million of financings year-to-date and have recently secured a EUR 4.35 billion underwritten facility for Wyre. This will allow us to significantly refinance Telenet overall and formally separate the Wyre and Telenet ServCo capital structures, and in the process, repay all the 2028 maturities. All of this proactive refinancing activity has significantly reduced our 2028 maturities and has actually maintained our average life of our debt at close to 5 years and at broadly comparable credit spreads versus our historic levels. Turning to the next slide, we remain committed to our capital allocation model and strategy to both replenish our cash balance while also rotating capital into higher growth investments and strategic transactions.

Speaker #3: Now, this will allow us to significantly refinance Telenet overall and formally separate the wire and Telenet Servco capital structures, and in the process, repay all the 2028 maturities.

Speaker #3: Now , all of this proactive refinancing activity has significantly reduced our 2028 maturities and has actually maintained our average level of our debt at close to five years .

Speaker #3: And of broadly comparable credit spreads versus our historic levels . Turning to the next slide . We remain committed to our capital allocation model and strategy to both replenish our cash balance , while also rotating capital into higher growth investments and strategic transactions , starting with cash generation , we continue to see free cash flow in line with our expectations .

Charlie Bracken: Starting with cash generation, we continue to see free cash flow in line with our expectations as set out for the year across our OpCos and JVs. As has been the case in previous years, we expect the JV dividends to be largely paid in Q4, given the free cash flow phasing of Virgin Media O2 and VodafoneZiggo. Across all the OpCos, CapEx remains elevated, primarily driven by extensive 5G rollout in the UK, Belgium, and Holland. Also fiber investment is ramping in Belgium, and we continue to invest in Virgin Media O2's Fiber Up and Virgin Media Ireland's Fiber to the Home program. This is along with our DOCSIS upgrade path in Holland.

Speaker #3: As set out for the year across our Opcoes and JVs , as has been the case in previous years , we expect the JV dividends to be largely paid in Q4 , given the free cash flow phasing of Virgin Media , O2 and Vodafone , Ziggo across all the Opcoes CapEx remains elevated , primarily driven by extensive 5G rollout in the UK , Belgium and Holland , and also fibre investment is ramping in Belgium and we continue to invest in Virgin Media , O2's fibre up and Virgin Islands fibre to the home programme .

Speaker #3: And this is along with our Docsis upgrade path in Holland . Turning to our cash walk in the bottom right , our consolidated cash balance was $1.8 billion at the end of Q3 , with an additional $180 million received since then , with a partial ITV stake disposal in October .

Charlie Bracken: Turning to our cash walk in the bottom right, our consolidated cash balance was $1.8 billion at the end of Q3, with an additional $180 million received since then with a partial ITV stake disposal in October. During Q3, we saw modest investments into Liberty Growth of $77 million, which was primarily Formula E and AtlasEdge, and spent $56 million on our buyback program. We're currently tracking towards a buyback of around 5% of shares outstanding for 2025. Moving to the Liberty Growth walk, the fair market value of our Liberty Growth portfolio remains stable versus Q2 at $3.4 billion.

Speaker #3: During Q3 , we saw modest investments into Liberty Growth of $77 million , which was primarily formula E and Atlas Edge , and spent $56 million on our buyback program .

Speaker #3: We're currently trucking towards a buyback of around 5% of shares outstanding for 2025 , moving to the Liberty Growth Walk , the fair market value of our Liberty growth portfolio remains stable versus Q2 at $3.4 billion .

Speaker #3: This was primarily driven by the investments in formula E and Atlas Edge , offset by the partial disposal of our air stake and a full fair market value reduction in our Liberty Tech portfolio .

Charlie Bracken: This was primarily driven by the investments in Formula E and AtlasEdge, offset by the partial disposal of our Airalo stake and a small fair market value reduction in our Liberty Tech portfolio. Turning to the key financials on the next slide. Virgin Media O2 delivered a modest revenue decline of 1%, excluding the impact of handset sales, nexfibre construction revenues, and 2 months of Daisy contribution. This was driven by declines in our B2B revenues, which were offset by growth in our consumer businesses. Adjusted EBITDA of Virgin Media O2 continued to grow at 2.7%, supported by cost discipline and lower cost to capture year on year. Moving to VodafoneZiggo, we saw revenue decline of 4%, largely driven by the decline and ongoing repricing of our fixed customer base.

Speaker #3: Turning to the key financials on the next slide . Virgin media O2 delivered a modest revenue decline of 1% , excluding the impact of handset sales .

Speaker #3: Next, fiber construction revenues and two months of Daisy contribution. This was driven by declines in our B2B revenues, which were offset by growth in our consumer businesses.

Speaker #3: Adjusted EBITDA at Virgin Media , O2 continued to grow at 2.7% , supported by cost , discipline and lower cost to capture year on year .

Speaker #3: Moving to Vodafone , we saw revenue decline of 4% , largely driven by the decline in ongoing repricing of our fixed customer base .

Speaker #3: Adjusted EBITDA was impacted by the revenue declines and commercial initiatives supporting the new strategic plan , Telenet revenue and adjusted EBITDA growth were both impacted by a positive deferred revenue benefit in the prior year of $18 million .

Charlie Bracken: Adjusted EBITDA was impacted by the revenue declines and commercial initiatives supporting the new strategic plan. Telenet revenue and adjusted EBITDA growth were both impacted by a +$18 million deferred revenue benefit in the prior year. In addition, revenue growth was also impacted by the decision not to renew Belgian sports rights, which was more than offset by associated lower programming costs. Turning to our guidance slide, we are updating 2 items of guidance. Firstly, Virgin Media O2 revenue guidance, where we are confirming growth in the consumer and wholesale revenues. Given the Daisy transaction was completed during the Q3 and the creation of O2 Daisy, we are currently reviewing the impact of Daisy on B2B reporting, but can confirm our previous guided M&A impact from Daisy of around GBP 125 million of revenue in 2025.

Speaker #3: In addition, revenue growth was also impacted by the decision not to renew Belgium's sports rights, which was more than offset by associated lower programming costs.

Speaker #3: Turning to our guidance slide , we're updating two items of guidance . Firstly , Virgin Media O2 revenue guidance , where we are confirming growth in the consumer and wholesale revenues .

Speaker #3: But given the Daisy transaction was completed during the third quarter and the creation of O2 , Daisy were currently reviewing the impact of Daisy on B2B reporting .

Speaker #3: But can confirm our previous guided M&A impact from Daisy of around £125 million of revenue in 2025 and secondly , as discussed previously , we're improving our Liberty Global Services and corporate adjusted EBITDA guide to $150 million in 2025 .

Charlie Bracken: Secondly, as discussed previously, we're improving our Liberty Global Services and Liberty Corporate adjusted EBITDA guide to $150 million in 2025. All other opco guidance remains unchanged. That concludes our prepared remarks for Q3, and I'd like to hand over to the operator for the questions and answers.

Speaker #3: All other Opco guidance remains unchanged . Now that concludes our prepared remarks for Q3 , and I'd like to hand over to the operator for the questions and answers .

Speaker #1: The question and answer session will be conducted electronically . If you would like to ask a question , please do so by pressing the star or asterisk key , followed by the digit one on your phone .

Operator 2: The question and answer session will be conducted electronically. If you would like to ask a question, please do so by pressing the star or asterisk key followed by the digit 1 on your phone. In order to accommodate everyone, we request that you ask only one question. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. We will pause for just a moment to give everyone an opportunity to join the queue. The first question comes from the line of Maurice Patrick with Barclays. Please go ahead.

Speaker #1: 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.

Speaker #1: We'll pause for just a moment to give everyone an opportunity to join the queue . The first question comes from the line of Maurice Patrick with Barclays .

Speaker #1: Please go ahead .

Speaker #4: Yeah . Thanks guys , for taking the questions and the call today . And congrats , Mike on the on the new role maybe a question given the topical Ft article this morning around net omnia in the UK , I wouldn't expect you to comment on that .

Maurice Patrick: Yeah, thanks guys for taking the questions and the call today and congrats, Mike, on the new role. Maybe a question given the topical FT article this morning around Netomnia in the UK. I wouldn't expect you to comment on that transaction, but maybe a good opportunity, Mike, ahead of Telefónica's CMD next week to talk a little bit about your outlook and view on investments in the UK, specifically around the fiber side. You know, whether the NetCo sale plan could still be resurrected. Your view around buy versus build and the cost. You've always said you'd consider buying if the cost was comparable to your own build cost. How your thoughts are evolving there would be very helpful. Thank you.

Speaker #4: Just Sure

Speaker #4: On on that transaction . But maybe a good opportunity . Mike , ahead of Telefonica's next week to talk a little bit about your outlook and view on investments in the UK , specifically around the fibre side , whether you , the net net sail plan could still be still , still be resurrected , your your view around buy versus .

Speaker #4: There would be very helpful . Thank you .

Mike Fries: Sure. We're not sure what Telefónica will be addressing next week, obviously. We'll all find out. I think we've been consistent on the fiber point, at least through the course of this year, which is that, you know, we'll continue to upgrade our own fiber, and we're now reaching, you know, Lut and his team have access to 8 million fiber homes through a combination of our own upgrade on the Virgin Media network and of course, the nexfibre footprint. We continue to, at least with our own homes and the Virgin Media side, continue to upgrade fiber and increase the footprint and the reach of that technology. That's point one.

Speaker #5: .

Speaker #6: And we're not sure what Telefonica will be addressing next week . Obviously we'll I'll find out . But I think we've been consistent on the Fibre Point , at least through the course of this year , which is that we'll continue to upgrade our own fibre and we're now reaching Lutinus team have access to 8 million fibre homes through a combination of our own upgrade of the Virgin Media network and of course , the next fibre footprint .

Speaker #6: So we continue to , at least with our own homes and Virgin Media side , continue to upgrade fibre and increase the footprint and the reach of that technology .

Speaker #6: That's point one . Point two is we've always stated , and if you know , we are actually now one deal down with the up deal we did about a year or so ago .

Mike Fries: Point 2 is we've always stated, you know, we are actually now one deal down with the Up deal we did about a year or so ago. We've always stated that the market requires rationalization, that alt nets, most of them find it difficult to continue doing what they're doing in the manner in which they're doing it. We're supportive of opportunities to consolidate and rationalize the fixed network environment. I'm not commenting, as you suggested, on any particular deal. I would simply say if you look at our history where we used nexfibre in the case of Up to begin the process of rationalizing, we're open-minded and open for business, if you will, for opportunities that would achieve just that.

Speaker #6: We've always stated that the market requires rationalisation , that alternates most of them will find it difficult to to continue doing what they're doing .

Speaker #6: And the manner in which they're doing it . And we're supportive of opportunities to consolidate and rationalise the the fixed network environment . Period .

Speaker #6: So I'm not commenting as you suggested , on any particular deal . I would simply say , if you look at our history where we used fibre , in the case of up to begin the process of rationalising , we're open minded and open for business , if you will , for opportunities that would achieve just that , you know ?

Mike Fries: You know, so I think it's still a bit of a moving target everywhere, but we're hopeful that, you know, in the next 6 months, things will start to settle, and we may or may not be part of those transactions that precipitate that settling.

Speaker #6: So so I think it's still a bit of a moving target everywhere , but we're hopeful that , you know , in the next six months things will start to settle .

Speaker #6: And we may or may not be part of those transactions that precipitate that settling .

Speaker #1: Thank you .

Maurice Patrick: Thanks.

Operator 2: Thank you.

Speaker #6: Thank you .

Speaker #1: Next question is from the line of Paulo Tang with UBS . Please go ahead .

Mike Fries: Thanks, Maurice.

Operator 2: The next question is from the line of Polo Tang with UBS. Please go ahead.

Speaker #7: Yeah . Hi . Thanks for taking the question . I've got a question about the Dutch market and the improvement in terms of broadband that you're seeing there .

Polo Tang: Yeah, hi. Thanks for taking the question. I've got a question about the Dutch market and the improvement in terms of broadband that you're seeing there. Can you maybe just talk about competitive dynamics both in the broadband market but also in terms of mobile, and how confident are you that you can stabilize the broadband base in 2026? Will this come at the expense of further declines in terms of ARPU? Can you maybe also comment in terms of whether FWA is having any impact on the broadband market? Thanks.

Speaker #7: So can you maybe just talk about competitive dynamics both in the broadband market but also in terms of mobile and how confident are you that you can stabilize the broadband base in 2026 ?

Speaker #7: And will this come at the expense of further declines in terms of rpu ? And can you maybe also comment in terms of whether f w is having any impact on the broadband market ?

Speaker #7: Thanks .

Speaker #6: Sure . That's a great question for you , Stephen .

Mike Fries: Sure. That's a great question for you, Stephen.

Speaker #8: Yeah . Thank you . Mike . Stephen . So I've got three questions . Yeah . Can you can you hear me ? Hello .

Stephen van Rooyen: Yeah. Thank you, Mike.

Mike Fries: Stephen.

Stephen van Rooyen: look, I have 3 questions. Yeah. Can you hear me? Hello.

Speaker #8: Got it . Mike . Yeah . Got you . So I think three questions . So first is stabilizing broadband adds . We see the market is pretty competitive .

Lutz Schüler: Got you.

Stephen van Rooyen: Mike? Yeah, got you. I think, 3 questions. First is stabilizing broadband ads. We see the market is pretty competitive, although rational. We've set out a plan which we've spoken to about at length over the last 12 months, which is working. The heart of the plan is to get us back to broadband growth. That will take us, I think, the balance of next year, but that's what we're pushing towards. It's an uncertain journey because we can't predict what the competition will do, but certainly we are pushing our plan forward. The heart of that plan is our bringing down churn.

Speaker #8: Although rational, we've set out a plan which we've spoken to about at length over the last 12 months, which is working. The heart of the plan is to get us back to broadband growth.

Speaker #8: That will take us , I think the balance of next year , but that's what we're pushing towards . It's an uncertain journey because we can't predict what the competition will do , but certainly we are pushing our plan forward .

Speaker #8: The heart of that plan is about bringing down churn . You'll have seen , and we're pleased with how much we've been able to deal with the churn in our base .

Stephen van Rooyen: You'll have seen, and we're pleased with how much we've been able to deal with the churn in our base, and we'll continue to push on with that through the next year. In mobile, I think it's as she was. I think there's a lot of activity, like most European markets, in the value segment. We're well positioned there with hollandsnieuwe, which has done pretty well for us. We think that there's more we can do in that space, and we'll continue to pursue that through 2026. On fixed wireless, look, I think it's a variable in the marketplace. It's probably a question more for Odido than for us.

Speaker #8: And we'll continue to push on with that through through the next year . In mobile . I think it's it's actually was I think there's a lot of activity , like most European markets in the value segment , we're well positioned there with Hollands Nivea , which has done pretty well for us .

Speaker #8: We think that there's more we can do in that space , and we'll continue to pursue that through 2026 . And then on fixed wireless look , I think it's a variable in the marketplace .

Speaker #8: It's probably a question more for us than for us . We're focusing on our plan , reducing our broadband losses , getting our broadband back to growth .

Stephen van Rooyen: We're focusing on our plan, reducing our broadband losses, getting our broadband back to growth, and we've accommodated for that within our plan. I don't really have much to say about what's happening on fixed wireless there.

Speaker #8: And we've accommodated for that within within our plan . So I don't really have much to say about what's happening on fixed wireless .

Speaker #8: Thank you, Paula.

Mike Fries: Thank you. Paolo.

Speaker #1: Thank you . The next question is from the line of Joshua mills with BNP Paribas . Please go ahead .

Operator 2: Thank you. The next question is from the line of Joshua Mills with BNP Paribas. Please go ahead.

Speaker #9: Thanks , guys . My question is on the UK market and the competitiveness we're seeing . So I wonder if you could give us a bit more color on what you're seeing on the ground .

Joshua Mills: Thanks, guys. My question is on the UK market and the competitiveness we're seeing. I wonder if you could give us a bit more color on what you're seeing on the ground. I note that the ARPU development this quarter for fixed line was negative, which may be expected but perhaps disappointing following the 7.5% price increase in April. On B2B, I understand that there's some moving parts with the Daisy acquisition, but could you just give us an idea of what the underlying B2B growth would have been this quarter and whether that's running ahead, below, in line with expectations? That'd be great. Thanks.

Speaker #9: I know that the Apu development this quarter for fixed line was was negative , which may be expected , but perhaps disappointing following the 7.5% price increase in April .

Speaker #9: And then on B2B , I understand that there's some moving parts with the Daisy acquisition , but could you just give us an idea of what the underlying B2B growth would have been this quarter ?

Speaker #9: And whether that's running ahead below in line with expectations , that'd be great . Thanks .

Speaker #6: Louis , why don't you take the broadband and rpu question ? And , Charlie , you can address the B2B question .

Mike Fries: Lutz, why don't you take the broadband and ARPU question, and Charlie, you can address the B2B question.

Speaker #10: Yeah . I mean , the market is the broadband market is very competitive as we speak . On one hand side , you see offers already around £20 for one gig from old nets in the market per month .

Lutz Schüler: I mean, the broadband market is very competitive as we speak. On one hand side, you see offers already around GBP 20 for 1 Gb from Altnet in the market per month. Openreach came with two promotions. I don't know if you're aware, but for copper to fiber migrated customer, you are paying to Openreach for the next 24 months, GBP 16 for 1 Gb. This one promotion. The other one is you don't pay anything when you migrate and fix wireless access customer onto the fiber network of Openreach. Which leads to the fact that you see a very price-driven market. You see in the affiliate market, which is the most price-sensitive market prices from Sky also and Vodafone, around GBP 21 for 1 Gb.

Speaker #10: And then Openreach came with two promotions . I don't know if you're aware , but for copper to fibre migrated customer you are paying to Openreach for the next 24 months .

Speaker #10: £16 for one gig . So this one promotion , the other one is you don't pay anything when you migrate and fixed wireless access customer onto the fibre network of Openreach , which leads to the fact that you see a very price driven market .

Speaker #10: You see in the affiliate market , which is the most price sensitive markets , prices from a sky also in Vodafone , around £21 for one gig .

Speaker #10: How are we doing in this ? I think we are doing pretty well here because as you all know , we have the highest ARPU in the market .

Lutz Schüler: How are we doing in this? I think we are doing pretty well here because, as you all know, we have the highest ARPU in the market. We have the customers who have the demand for the highest speed in the market. Yes, on one hand side, to now lower churn of our customers, we have offered prevention offers with some dip on ARPU. Also, obviously, we have to get our fair share in acquisition which leads to lower ARPU. In the scheme of things, losing only 28,000 customers and having only a dip of 1% of ARPU, we personally think it's pretty out good outcome within a pretty competitive market. Wait, let's wait for the announcements of our competitors.

Speaker #10: We are we have the customers who have the demand for the high speed in the market . And yes , on one hand side to now , lower churn of our customers , we have offered prevention offers with some dip on RPO and also , obviously , we have to get our fair share in acquisition , which leads to lower RPO .

Speaker #10: But in the scheme of things , losing only 28,000 customers and having only a dip of 1% of RPO , we personally think is pretty good outcome within a pretty competitive market .

Speaker #10: But let's wait for the announcements of our competitors . Okay .

Stephen van Rooyen: Okay.

Speaker #1: Thank you .

Mike Fries: Thank you.

Mike Fries: Charlie, you wanna address the B2B question?

Speaker #6: Just the B2B .

Charlie Bracken: yeah, just, yes. Look, I think on the close O2 Daisy in the quarter, we've got a lot of work to do to try and reconcile accounting policies, the revised plans, 'cause also in fact a clean room. What we've been trying to do is say, look, you know, the businesses that remain outside that perimeter, we still expect to see growth and have had growth year to date. The business that we've actually contributed into O2 Daisy, which is our fixed and mobile B2B connectivity business, that has declined this year. You're right. We haven't actually broken that out and haven't taken that offline. I think what we need to do is now we've got this, not joint venture, but a, you know, a partnership.

Speaker #11: Just yeah , just just so as you know , we closed O2 . Daisy in the quarter . We've got a lot of work to do to try and reconcile accounting policies .

Speaker #11: The revised plans , because those things like clean rooms . So so what we've been trying to do is say the businesses that remain outside that perimeter , we still expect to see growth and have had growth year to date .

Speaker #11: The business that we've actually contributed into O2 , Daisy , which is our fixed and mobile B2B connectivity business that has declined this year .

Speaker #11: You're right , we haven't actually broken that out and happy to take that off that offline . But I think what we need to do is now we've got this not joint venture , but a partnership , but in the Q4 , results , we'll give you the separate financials and obviously explain how the impact of that business is and how we think it's going to grow in the future as we finalize the integration plans .

Charlie Bracken: In the Q4 results, we'll give you the separate financials and obviously explain how, you know, the impact of that business is and how we think it's gonna grow in the future, as we finalize the integration plans.

Speaker #6: Thanks .

Speaker #1: Operator . Thank you . Thank you . The next question is from the line of Robert Grindle with Deutsche Bank . Please go ahead .

Stephen van Rooyen: Thanks, Operator.

Operator 2: Thank you. Thank you. The next question is from the line of Robert Grindle with Deutsche Bank. Please go ahead.

Speaker #12: Thanks . Thanks very much . And congratulations , John , as well as Mike for his new position . I'd like to pick up on the central costs and valuation point , if I may .

Robert Grindle: Thanks. Thanks very much. Congratulations, John, as well as Mike, for his new position. I'd like to pick up on the central costs and valuation point, if I may. I suppose that's for Charlie. What would you say the costs are to drive the $100 million annualized savings at the center? Do you reckon it's like a 1-year payback period or longer? Is there any stock impact at all from all these redundancies and any CapEx which, you know, goes to offset the savings, or is effectively the $100 million a straight drop through? Thank you.

Speaker #12: suppose that's for Charlie . What would you say the costs are to drive the 100 million annualized savings at the center ? Do you reckon it's like a one year payback period or longer ?

Speaker #12: Thank you .

Speaker #11: Sorry . It's a pretty good payback . I mean , it's de minimis CapEx . Yeah . Sorry . It's a it's a pretty good payback .

Charlie Bracken: It's a pretty good payback.

Robert Grindle: That's right.

Robert Grindle: I mean, it's de minimis CapEx. Yeah, sorry. It's a pretty good payback. It's de minimis CapEx, which is one of the reasons why I think an EBITDA multiple is perhaps a more appropriate way to look at it. If you do take the view that these are costs necessary to run a telco, and we just scaled them across a portfolio and indeed across our growth assets. I think, you know, whether it's the telco multiple, you know, what that is, but it's certainly along those lines in my mind. In terms of the cost to achieve it, there is some degree of restructuring, but broadly speaking, it pays back within, I would say less than 12 months. Very little frictional cost.

Speaker #11: It's de minimis CapEx , which is one of these . Why . And multiple is perhaps a more appropriate way to look at it .

Speaker #11: If you do take the view that these are costs necessary to run a telco , and just scale them across a portfolio and indeed across our growth assets , I think , you know , whether it's the telco , multiple , you know , what that is , but it's certainly along those lines in my mind , in terms of the cost to achieve it .

Speaker #11: There is a some degree of restructuring . But broadly speaking , it pays back within , I would say , less than 12 months .

Speaker #11: So very little frictional cost .

Speaker #1: Thank you . The next question is from the line of Nick Lyell with Berenberg . Please go ahead .

Operator 2: Thank you. The next question is from the line of Nick Lyall with Berenberg. Please go ahead.

Speaker #12: Yeah .

Speaker #13: Afternoon .

Nick Lyall: Afternoon, everybody. Just a very quick one, please, Mike. On slide 4, I'm just interested why you've picked the Benelux markets first and maybe not VMO2 in the UK market. You know, is it simply just because of size or are there any one of those 4 criteria that you just don't think it ticks the box on yet and maybe the others are far closer to? Could you just maybe describe why that might be, please? Thank you.

Speaker #12: , everybody . Just just a very quick one please . Mike , on the on slide four . I'm just interested . Why you've picked the Benelux markets first and maybe not VMO two in the UK market .

Speaker #12: Is it simply just because of size or are there any one of those four criteria that you just don't think it ticks the box on yet ?

Speaker #12: And maybe the others are far closer to ? Could you just maybe describe why that might be , please ? Thank you .

Speaker #6: Sure . Yeah . I think we're we want to trend towards a sunrise type framework everywhere we operate . And I think there is a pathway to do that everywhere we operate .

Mike Fries: Sure. Yeah, I think we wanna trend towards a Sunrise type framework everywhere we operate. I think there is a pathway to do that everywhere we operate. We seem to be making and are making meaningful progress in the Benelux for all kinds of reasons. The both Dutch market and the Belgium market are highly rational markets, closer to Switzerland than anything else, I would say. Largely rational three-player markets. We've been able to attack the balance sheet, specifically in Belgium, where we've successfully created a NetCo and a ServCo there and have, you know, done the, are in the process of executing the classic move of putting more debt on the NetCo as it builds out. It's a higher quality credit.

Speaker #6: We seem to be making . And are making meaningful progress in the Benelux for all kinds of reasons , both Dutch market and the Belgian market are highly rational .

Speaker #6: Markets closer to Switzerland than anything else . I would say they have their own unique peculiarities around competition , but largely rational . Three player markets .

Speaker #6: We've been we've been able to attack the balance sheet specifically in Belgium , where we've successfully created a netco and a servco . There .

Speaker #6: And , I've done the in the process of executing the classic move of putting more debt on the netco as it builds out .

Speaker #6: It's a higher quality credit . I'm not allowed to tell you what the credit rating is of this . €4.35 billion financing , but it's the first time we've ever seen one .

Mike Fries: I'm not allowed to tell you what the credit rating is of this EUR 4.35 billion financing, but it's the first time we've ever seen one, I can promise you that. Using the proceeds and the financing capabilities of a NetCo to delever the ServCo, which is their remaining core commercial business. Those combination of steps have been in the works for quite some time. You know, now we did and have attempted to do similar things in the UK, as somebody mentioned just a moment ago, and not suggesting we can't get to the same place in the UK at some point. But it does appear like in particular in Belgium, we are on our way to executing on those four key measures.

Speaker #6: I can promise you that . And using the proceeds and the and the financing capabilities of a netco to deliver the Servco , which is the remaining core commercial business and those combination of steps have been in the works for quite some time .

Speaker #6: And , you know , now we did and have attempted to do similar things in the UK as somebody mentioned just a moment ago and not suggesting we can't get to the same place in the UK at some point , but it does appear like in in Belgium we are on our way to executing on those four key measures and so that to us is worthy of highlighting and letting you know we're busy , very busy in this part of the of the platform and portfolio and that if we , you know , made a commitment to make some decisions around these things .

Mike Fries: That to us is worthy of highlighting and letting you know we're busy, very busy in this part of the platform and portfolio, and that if we, you know, made a commitment to make some decisions around these things, and I think more likely than not, we'll be making some decisions around this part of our business in the, you know, relatively near term, certainly within the timeframe that we've outlined. We hope in all of these markets. You know, Ireland, I mentioned, is gonna have a massive reduction in CapEx. It's gonna start generating free cash, but it's small. Certainly Virgin Media Ireland looks and will tick the box on many of these particular metrics.

Speaker #6: And I likely than not , we'll be making some decisions around this part of our business in the relatively near term , certainly within the timeframe that we've outlined .

Speaker #6: We hope in all of these markets , you know , Ireland I mentioned is going to have a massive reduction in CapEx . It's going to start generating free cash , but it's small , but certainly Virgin Media Ireland looks and will tick the box on many of these particular metrics .

Speaker #6: The UK is looking a trophy business for us . Certainly something we are committed to for the long term and is an increasingly important investment .

Mike Fries: The UK is a trophy business for us, certainly something we are committed to for the long term and is a increasingly important investment. We are by no means suggesting that we can't achieve similar results or benefits in the UK. We're simply saying there we have a partner and we have to align with our partner on the best next move. We have a market that's a bit fragmented today, and as we discussed a moment ago, it's gonna require some form of rationalization. You know, these are things that we work on with our partner. I'm not suggesting for a second we can't achieve similar things in the other assets or markets identified on that slide. I'm simply saying we're making good progress here. We'd like you to know about it.

Speaker #6: And we are by no means suggesting that we can't achieve similar results or benefits in the UK . We're simply saying there we have a partner and we have to align with our partner on the best next move .

Speaker #6: We have a market that's a bit fragmented today , and as we discussed a moment ago , it's going to require some form of rationalisation , you know , and so these are things that we work on with our partner .

Speaker #6: So I'm not suggesting for a second we can't achieve similar things in in the other assets or markets identified . On that slide , I'm simply saying we're making good progress here .

Speaker #6: We'd like you to know about it.

Speaker #12: That's great . Understood . Thanks .

Nick Lyall: That's great. Understood. Thanks.

Speaker #13: Yep . You got it .

Mike Fries: Yep, you got it.

Speaker #1: Thank you . The next question is from the line of David Wright with Bank of America . Please go ahead .

Operator 2: Thank you. The next question is from the line of David Wright with Bank of America. Please go ahead.

Speaker #11: Yeah . Hi .

Speaker #14: Guys . Thanks for taking the questions . Congratulations , Mike , on the new role . It's obviously a quite a significant event to see John stepping away after such a significant impact on the industry .

David Wright: Yeah. Hi, guys. Thanks for taking the questions. Congratulations, Mike, on the new role. It's obviously quite a significant event to see John stepping away after such a significant impact on the industry. A couple of questions, please. The first is just on the UK guidance, and maybe my colleagues are better at this than me, but I'm trying to understand whether there seems to be a change in perimeter here. I'm looking at the numbers. I'm inclined to think that the same perimeter with the shift in B2B could have forced you to possibly push the revenue guidance lower. This is like for like without Daisy. It does feel like you could have had to push the revenue guidance lower. I'm just wondering if that's the case. I'm just struggling to reconcile that.

Speaker #14: A couple of questions , please . And the first is just on the UK guidance and maybe my colleagues at better are better at this than me .

Speaker #14: But I'm trying to understand whether there seems to be a change in perimeter here . And I'm looking at the numbers . I'm inclined to think that the same perimeter with the shift in B2B could have forced you to possibly push the revenue guidance lower .

Speaker #14: This is like for like without Daisy , it does feel like you could have had to push the revenue guidance lower . I'm just wondering if that's the case .

Speaker #14: I'm just struggling to reconcile that and then the second question I had , it's just your language used before , Mike , which I just found a little surprising , which was you sort of said , we'll have to see what Telefonica wants to do now .

David Wright: The second question I had is, it's just your language used before, Mike, which I just found a little surprising, which was you sort of said, We'll have to see what Telefónica wants to do. I might have expected you to sort of say, you know, We'll announce our plans jointly next week. Does Telefónica have any sort of strategic rights or priority around the UK business in the shareholder agreement? Maybe I've just read this incorrectly. That might be the case. I'd appreciate that. Thank you.

Speaker #14: I might have expected you to sort of say , you know , we'll announce our plans jointly next week . Does Telefonica have any sort of strategic rights or priority around the UK business in the shareholder agreement ?

Speaker #14: Maybe I've just read this incorrectly . That might be the case . I'd appreciate that .

Speaker #6: Thank you . David , I'm glad you asked that question . Yeah . No , I appreciate that . That second question , because as I spoke those words , I occurred to me that probably didn't come out very clearly .

Mike Fries: No, David, I'm glad you asked that question. Yeah, no, I appreciate that second question, 'cause as I spoke those words, it occurred to me those probably didn't come out very clearly. First of all, no, this is a fifty/fifty joint venture. We make decisions jointly, and I have a very good dialogue and working relationship with Marc. We are 100% aligned on everything that's happening in the UK. That is not what I intended to say. There was a reference to their capital markets day, and, you know, I'm just pointing out that we're not part of that. They'll have a lot of things to talk about to the market, and they will surely talk about those. We don't expect any surprises, if you will, around the UK market.

Speaker #6: No . First of all , no , this is a 5050 joint venture . We make decisions jointly . And I have a very good dialogue and working relationship with Mark .

Speaker #6: We are 100% aligned on everything that's happening in the UK . So that is not what I intended to say . There was a reference to their capital Markets day and you know , I'm just pointing out that we're not part of that .

Speaker #6: They'll have a lot of things to talk about to the market , and they will surely talk about those , but we don't expect any surprises , if you will , around the UK market .

Speaker #6: We're aligned to talk every week about what we're going to do together. So, thank you for asking that. I'm glad I could clarify that.

Mike Fries: We're aligned and talk every week about what we're gonna do together. Thank you for asking that. I'm glad I could clarify that. On the guidance, listen, I'll let Charlie dig into it. The way I see it is we're providing greater transparency at a time where it's probably needed for analysts to understand, you know, what's growing and what's not, and what are we getting our arms around. Charlie, do you wanna address that?

Speaker #6: On the guidance . Listen , all that Charlie , dig into it . The way I see it is we're providing greater transparency at a time where it's probably needed for analysts to understand what's going and what's not .

Speaker #6: And what are we getting our arms around? So, Charlie, do you want to address that?

Speaker #11: Yeah . So yeah . Look , I'm sorry if it's confusing . And you're right , the difficulty is that we've now got this company called O2 Daisy , and we own 70% of it .

Charlie Bracken: Yeah. You know, look, I'm sorry if it's confusing, and you're right. The difficulty is that we've now got this company called O2 Daisy, and we own 70% of it. 30% of it, we don't own. Therefore, at some point, hopefully very soon, at the end of Q4, we're gonna give you the key financials of that. As we align that company, it is tricky because there's different accounting policies, as I'm sure you'd realize, and blah, blah. What we're trying to do is confirm what we can tell you. We can tell you that the businesses, excluding the ones that we didn't know, are growing and we expect to grow. We have told you that to date, the B2B connectivity business, mobile and fixed, that we have put into O2 Daisy is in decline.

Speaker #11: So 30% of it , we don't own . And therefore at some point , hopefully very soon at the end of Q4 , we're going to give you the key financials of that .

Speaker #11: And as we align that company , it is tricky because there's different accounting policies , as I'm sure you realize , and blah , blah , blah .

Speaker #11: So what we're trying to do is confirm what we can tell you . So we can tell you that the businesses , excluding the ones that went in there are growing .

Speaker #11: And we expect to grow . And we have told you that to date , the B2B connectivity business , mobile and fixed that we have put into O2 , Daisy is in decline .

Speaker #11: Now , if that means you would interpret that as the combination of no , Daisy would have meant that the business would have not been growing .

Charlie Bracken: If that means you would interpret that as, you know, the combination of no Daisy would have meant that the business would have not been growing, maybe that's right. It's somewhat academic because we've got to work through what the O2 Daisy combination is gonna develop. The whole idea was, you know, two companies are very synergistic and not just in cost, there's a material cost saving there, but also, you know, with some revenue growth. I mean, I apologize if that's not clear enough and happy to take it offline, but certainly how we see it.

Speaker #11: Maybe that's right , but it's somewhat academic because we've got to work through what the O2 daisy combination is going to develop . And the whole idea was two companies are very synergistic and not just in costs .

Speaker #11: There's a material cost saving . There , but also there's some revenue growth . So I mean , I apologize if that's not clear enough .

Speaker #11: And I would take it offline , but certainly how we see it .

Speaker #13: Sure .

Mike Fries: Sure.

Speaker #14: Charlie, could I just add a quick one? Are there any puts and calls around that 30%, or is that just the ownership?

David Wright: Super, Charlie. Could I just add a quick one? Are there any puts and calls around that 30%, or is that just the ownership add in for item right now?

Speaker #14: At infinitum right now ?

Speaker #15: Charlie , you want me to take that ? It's Andrea .

Mike Fries: Charlie, do you want me to take that? It's Andrea.

Speaker #11: Yes , yeah . Andrea . Sorry , I was yeah . Yes , you should answer that .

Charlie Bracken: Yeah. Sorry, Andrea. Yes, you should answer.

Speaker #15: Yeah . No , there are no puts and calls . David .

Mike Fries: Yeah. No, there are no puts and calls, David.

Speaker #13: Thank you .

David Wright: Thank you.

Speaker #1: Thank you . The next question is from the line of Ulrich Raith with Bernstein . Societe Generale Group , please go ahead .

Operator 2: Thank you. The next question is from the line of Ulrich Rathe with Bernstein Societe Generale Group. Please go ahead.

Speaker #16: Thanks very much . My question is about the refinancing . Some very impressive question to Charlie . Are all of these financings can you confirm fully swapped and the usual policies that you used to have in terms of into the into the local currencies of the operating units and also in terms of fixed rate swaps ?

Ulrich Rathe: Thanks very much. My question is about the refinancings, which is very impressive. Question to Charlie. Are all of these financings, can you confirm, fully swapped in the usual policies that you used to have in terms of, into the, into the local, currencies of the operating units and also in terms of fixed rate swaps? I do think, I do remember you did some refinancings where you actually didn't implement, these older policies. Just wanted to confirm that the refi now are back to the old policies. Thank you.

Speaker #16: Because I do think I do remember you did some refinancing where you actually didn't implement these , these older policies . So , so just wanted to confirm that the revise now are back to the old policies .

Speaker #16: Thank you .

Speaker #11: Yeah . To honest I don't think we've changed our policies . The the bonds we've all swapped and our fixed rate at the rate we issued at which in some cases actually higher .

Charlie Bracken: Yeah. To be honest, I don't think we've changed our policies. The bonds, we've all swapped at our fixed rate at the rate we issued at, which in some cases is actually higher. Just to compose the two questions. One is all currencies are matched, so everything in the UK is sterling. We're not taking dollar or euro risk, so that's a tick on all the policies. On the interest rates, all bonds are fixed by nature. On any bank debt, we haven't done a ton of bank debt because the bond market's been so strong, to be honest. We have maintained the swaps. Remember, the swaps are independent of the original bank financings, so we are monetizing or riding those low interest rates till 2028, 2029, 2030.

Speaker #11: So just to confirm , the two questions , one is all currencies are matched . So everything in the UK is sterling . We're not taking dollar or euro risk .

Speaker #11: So that's a tick on all the policies on the interest rates. All bonds are fixed by nature and on any bank debt.

Speaker #11: We haven't done a ton of bank debt because the bond market has been so strong. To be honest, we have maintained the swaps.

Speaker #11: Remember the swaps are independent of the original bank financings . So we are monetizing or riding those low interest rates till 28 , 29 , 30 .

Speaker #11: But thereafter we would have to comment at higher rates . And we are gradually pushing out those hedges . So we are maintaining a pretty good three , four , five year sort of fixed profile , depending on which market it is .

Charlie Bracken: Thereafter, we would have to come in at higher rates, and we are gradually pushing out those hedges. We are maintaining a pretty good, 3, 4, 5-year sort of fixed profile, depending on which market it is. I hope that sort of answers the question.

Speaker #11: I hope that answers the question .

Speaker #16: Okay . Thank you very much .

Ulrich Rathe: Very clear. Thank you very much. Thanks.

Speaker #13: Thanks .

Speaker #1: Thank you . The next question is from the line of James Ratzer with New Street Research . Please go ahead .

Operator 2: Thank you. The next question is from the line of James Ratzer with New Street Research. Please go ahead.

Speaker #17: Yes . Good morning . Good afternoon . Thank you . I was just going to ask one question . I mean , tough to keep it to one , but on Virgin Media in their release , you're saying they're planning to bring it back to 4 to 5 times in the medium term ?

James Ratzer: Yes. Good morning, Nell. Good afternoon, my Charlie. Thank you. I was just gonna ask one question. I mean, tough to keep it to one. On Virgin Media, in their release, they are saying they're planning to bring leverage back to four to five times in the medium term. I was wondering if you can kind of talk us through the plans to get there. Does that require some inorganic steps like, a kind of dividend, removal, you and Telefónica injecting capital into VMO2, or do you expect to get there organically through EBITDA growth? Thank you.

Speaker #17: I was wondering if you can kind of talk us through the plans to get there . Does that require some inorganic steps , like a kind of dividend removal ?

Speaker #17: Are you in Telefónica injecting capital into VMO2, or do you expect to get there organically through EBITDA growth? Thank you.

Speaker #6: James . That was a little hard to hear . I want to be sure we got the question right . I think you're asking about leverage expectations at VMO two of staying within the 4 to 5 range .

Mike Fries: James, that was a little hard to hear. I wanna be sure we got the question right. I think you're asking about leverage expectations at VMO2, staying within the 4 to 5 range. I think that is our objective, and I think that is achieved in a number of ways. The one you didn't mention, which is organic EBITDA growth, which Lutz and the team have been able to deliver consistently. Organically, the business should delever over time. I don't think we're in a position today to talk about dividends or asset sales or things of that nature, although we do have a residual tower interests that could be used in that regard and, you know, we're always open-minded about it.

Speaker #6: And I think that is our objective . And I think that is achieved in a number of ways . But one , you didn't is organic EBITDA growth , which Lewis and the team have been able to deliver consistently .

Speaker #6: mention , which

Speaker #6: So organically . The business should deliver over time . I don't think we're in a position today to talk about dividends or asset sales or things of that nature .

Speaker #6: Although we do have a tower , residual tower interests that could be used in that regard . And , you know , we're always open minded about it .

Speaker #6: But getting within the range that we've maintained historically is always our underlying goal . Charlie , I don't think there's much to add to that , but go ahead .

Mike Fries: Getting within the range that we've maintained historically is always our underlying goal. Charlie, I don't think there's much to add to that, but go ahead if you think there is.

Speaker #6: If you think there .

Speaker #13: Is .

Speaker #11: No no , I think that's up to right . You know , listen , we are a 4 to 5 times . We're definitely through that in the UK .

Speaker #11: No no , I think that's up to right . You know , listen , we are a 4 to 5 times . We're definitely

Charlie Bracken: No, no, I think that's absolutely right. Listen, we are a four to five times lever. We're definitely through that in the UK. Some good synergies, you know, potentially from the O2 Daisy deal, which we've talked quite a bit about today. As Mike said, you know, we expect some, you know, organic growth, let's see how we go.

Speaker #11: we've talked quite a bit about today . And as Mike said , you know we expect organic growth . And let's see how we .

Speaker #13: Go .

Speaker #17: Great . Thank you .

Mike Fries: Great. Thank you.

Speaker #1: Thank you . The next question is from the line of Matthew Harrigan with the benchmark Company . Please go ahead .

Operator 2: Thank you. The next question is from the line of Matthew Harrigan with The Benchmark Company. Please go ahead.

Speaker #18: Thank you . I'll just ask one question right out of the box . I mean , I think when you look at the US and the UK , it's kind of competing dysfunction on the political side .

Matthew Harrigan: Thank you. I'll just ask one question right out of the blocks. I mean, I think when you look at the US and the UK, it's kinda competing dysfunction on the political side. Lutz was recently co-quoted on Starmer's infrastructure tax, and I don't think there'd be any implications this year. What might be the longer term implications? I was on the Comcast Q&A, so I apologize if you talked about this in the main discussion, but I rather suspect you didn't get to the topic. Thanks.

Speaker #18: was on the Comcast Q&A , so I apologize if you talked about this in the main discussion , but I rather suspect you didn't get to the topic .

Speaker #18: Thanks .

Speaker #6: Matt , you're asking it's a big question . You know , politics in Europe vis a vis our business . I mean , I'll step back a minute to say that I think we are approaching , hopefully approaching a bit of an inflection point here where our industry , for example , the mobile industry , just put a letter out to von der Leyen .

Mike Fries: Matt, I You're asking, that's a big question. You know, politics in Europe vis-à-vis our business. I mean, I'll step back a minute to say that I think we are approaching, hopefully approaching a bit of an inflection point here where our industry, for example, the mobile industry, just put a letter out to Von der Leyen, I think two days ago, three days ago, making it clear to her that change is critical, necessary, needed if Europe is to, you know, maintain any sort of, you know, path to leadership in, in digital and, you know, industrially, really any category productivity. We continue to make our case as an industry, as a sector, that we're not just critical infrastructure. We are, you know, necessary for pretty much every aspect of growth and productivity that regulators and politicians are searching for.

Speaker #6: I think two days ago , three days ago , making it clear to her that change is critical , necessary , needed . If Europe is to maintain any sort of path to leadership in in digital and industrially .

Speaker #6: Really any category productivity . So we continue to make our case as an industry , as a sector that we're not just critical infrastructure .

Speaker #6: We are , you know , necessary for pretty much every aspect of growth and productivity that regulators and politicians are searching for . So maybe get off our throats and and that is , I think , you know , being received positively in the UK in particular .

Mike Fries: Maybe get off our throats. That is, I think, you know, being received positively. In the UK in particular, I think the government has had a growth initiative, a growth-minded approach to regulation. Recent changes at the CMA, for example, the Competition Commission there, are positive in that they seem to be reflecting a much more growth-minded approach to M&A and to industry consolidation. I think there's green shoots across the markets we operate in. There are still pain points, you know, broadband taxes and things of this nature that are unnecessary, and we continue to fight those on a regular basis. I think more broadly, I would say it's more of a tailwind these days than not.

Speaker #6: I think the government has had a growth initiative , a growth minded approach to regulation , recent changes at the CMA , for example , the Competition Commission , there are positive in that they seem to be reflecting a much more growth minded approach to M&A and to industry consolidation .

Speaker #6: So, I think there are green shoots across the operation. The markets we operate in have still been experiencing pain points, you know, broadband taxes and things of this nature that are unnecessary.

Speaker #6: And we continue to fight those on a regular basis . But I think more broadly , I would say it's more of a tailwind these days than not .

Speaker #6: And whether it's sovereignty, where governments are realizing that their infrastructure, the critical infrastructure of telco, is part of the solution for broader sovereignty and independence, or whether it's just good economics, that you need healthy telecom infrastructure to compete in the global marketplace.

Mike Fries: Whether it's sovereignty, where governments are realizing that the critical infrastructure of telco is part of the solution for broader sovereignty and independence, or whether it's just, you know, good economics that you need healthy telecom infrastructure to compete in the global marketplace. All of those things I think are, you know, coming together a bit. I'm more encouraged now than I've been in a long time.

Speaker #6: All of those things , I think are , you know , coming together a bit and I'm more encouraged now than I've been in a long time .

Speaker #13: Thanks .

Matthew Harrigan: Thanks.

Speaker #1: Thank you for your questions . This will conclude the question and answer portion of today's call , and I would like to hand back to Mr. Mike Friese for any additional remarks .

Operator 2: Thank you for your questions. This will conclude the question and answer portion of today's call, and I would like to hand back to Mr. Mike Fries for any additional remarks.

Speaker #6: Great . Well thanks everybody . Appreciate you joining . As always . And we look forward to getting back on the phone for our year end call , probably in the February time frame .

Mike Fries: Great. Well, thanks everybody. Appreciate you joining as always, and we look forward to getting back on the phone for our year-end call, probably in the February timeframe. Hopefully with updates on the strategic roadmap on how we're driving commercial momentum, and more importantly, also how we're reshaping or continuing to reshape our corporate operating model. Appreciate your listening in today, and we'll speak to you all very soon. Take care.

Speaker #6: Hopefully with updates on the strategic roadmap on how we're driving commercial momentum and more importantly , also how we're reshaping or continuing to reshape our corporate operating model .

Speaker #6: So appreciate your listening in today , and we'll speak to you all very soon . Take care .

Speaker #1: Ladies and gentlemen , this concludes Liberty Global's third quarter 2025 investor call . As a reminder , a replay of the call will be available in the Investor Relations section of Liberty Global's website .

Operator 2: Ladies and gentlemen, this concludes Liberty Global's Q3 2025 investor call. As a reminder, a replay of the call will be available in the investor relations section of Liberty Global's website. There you can also find a copy of today's presentation materials.

Speaker #1: Good morning , ladies and gentlemen , and thank you for standing by . Welcome to Liberty Global's third quarter 2025 investor call . This call and the associated webcast are the property of Liberty Global and any redistribution , retransmission or rebroadcast of this call or webcast in any form without the express written consent of Liberty Global , is strictly prohibited .

Operator: Good morning, ladies and gentlemen, thank you for standing by. Welcome to Liberty Global's Q3 2025 Investor Call. This call and the associated webcast are the property of Liberty Global, and any redistribution, retransmission, or rebroadcast of this call or webcast in any form without the express written consent of Liberty Global is strictly prohibited. At this time, all participants are in a listen-only mode. Today's formal presentation materials can be found under the Investor Relations section of Liberty Global's website at libertyglobal.com. After today's formal presentation, instructions will be given for a Q&A session. Page 2 of the slides details the company's safe harbor statement regarding forward-looking statements.

Speaker #1: At this time , all participants are in a listen only mode . Today's formal presentation materials can be found under the Investor Relations section of Liberty website at Liberty Global plc .

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

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

Mike Fries: All right. Welcome, everyone, thanks for dialing in to our Q3 Results Call today. After Charlie and I run through our prepared remarks, we'll open it up for what we hope is a lively Q&A. As usual, I've got my core leadership team on the call with me. Before I jump into the presentation, I just want to acknowledge and be sure that everybody has seen the press release we put out yesterday regarding John Malone, who has decided to step off the board and move to a chairman emeritus role at the end of the year. Of course, he's making a similar move at Liberty Media. I won't repeat all the key messages that we put in the public statement.

These risks include those detailed and Liberty Global filings with the Securities and Exchange Commission. Including its most recently, filed, forms, 10, q, and 10K, as amended, Liberty Global disclaims, any obligation to update any of these, forward-looking statements to reflect any change in its expectations, or in the conditions on which any such statement is based. I would now like to turn the call over to Mr. Mike freeze.

All right, welcome everyone. And thanks for dialing in to our Q3 results. Call today have to join and I run through our prepared remarks. We'll open it up for what we hope is a lively Q&A and as usual I've got my core leadership. Team on the call with me.

And before I jump into the presentation, I just want to acknowledge and be sure that everybody has seen the press release, we put out yesterday, regarding Jamal, long who has decided to step off the board and move to a chairman emeritus role at the end of the year.

Mike Fries: You can read that, I encourage you to do that, except perhaps to emphasize how important, impactful, and enjoyable my relationship with John has been over the last 25 to 30 years, how pleased I am that as he implies in the release, he intends to stay very engaged with me and the board as we execute our strategic plans. Knowing John as I do, he will surely do just that. Of course, I'm happy to take any questions on this as well at the end. Now getting back to our results, let me kick it off with some key highlights from the quarter. If you're going to breeze through these slides later, these first two are perhaps the most critical in my opinion. I believe everyone's familiar with how we're organized today in order to create greater transparency around strategy, capital allocation, and value creation.

Of course, he's making a similar move at Liberty Media. Now, I won't repeat all the key messages that we put in the public statement. You can read that, and I encourage you to do that.

Except perhaps to emphasize how important, impactful, and enjoyable my relationship with John has been over the last 25 to 30 years.

And now, please, I am that, as he implies in the release, he intends to stay very engaged with me on the board. As we execute our strategic plans, and knowing John as I do, he will surely do just that.

Of course I'm happy to take any questions on this as well at the end. Now getting back to our results, let me kick it off with some key highlights from the quarter.

If you're going to Breeze through these slides later, these first 2 are perhaps the most critical in my opinion.

Mike Fries: Everything we do falls into one of three core platforms at Liberty Global. These include, of course, Liberty Telecom, where we're focused on driving commercial momentum in our broadband and mobile businesses, and most importantly, finding ways to unlock the intrinsic value of these companies for the benefit of shareholders, and I'll get into that a bit more in the next slide. Of course, that starts with operating performance, and as you'll see, despite intense competition, we had a strong Q3 with sequential improvement in broadband net adds across all four markets, for example. Importantly, our networks are proving to be critical sources of both competitive differentiation, like our 5G expansion in the UK that's being fueled by the recent spectrum purchases, and value creation, like our agreement with Proximus to rationalize fixed networks in Belgium, which I'll cover off in just a moment.

I believe everyone's familiar with how we're organized today in order to create greater transparency around strategy, capital allocation, and value creation. Everything we do falls into one of three core platforms: Liberty Global.

These include, of course, the Telecom where we're focused on driving commercial momentum, and our broadband, and mobile businesses, and most importantly, finding ways to unlock the intrinsic value of these companies. For the benefit of Cheryl, is not getting to that a bit more in the next slide.

Of course that starts with operating performance. And as you'll see despite intense competition, we had a strong third quarter with sequential Improvement in Broadband that adds across all 4 markets, for example,

Mike Fries: Now a theme you'll hear a few times today is lowering leverage and strengthening our balance sheet at Liberty Telecom. Charlie and his team have worked tirelessly this year to strengthen the balance sheet, beginning with refinancing over $9 billion of 2028 maturities, particularly in the UK and NL at very reasonable credit spreads. That includes a debt financing we just announced that funds the fiber rollout in Belgium while de-leveraging Telenet, our ServCo in the market. Charlie will dig into that. Now turning to Liberty Growth, which includes our investments in media infrastructure and tech that today total $3.4 billion. By the way, provide a source of capital to drive future value creation. This is a highly concentrated portfolio where the top six investments comprise over 80% of the value.

Importantly, our networks are proving to be critical sources of both competitive differentiation like our 5G expansion in the UK, that's being fueled by the recent Spectrum purchases, uh, and value creation. Like our agreement with proximus to rationalize fixed networks in Belgium, which I'll cover off in just a moment. Now, a theme, you will hear a few times today, is lowering leverage and strengthening our balance sheet at Liberty, Telecom, and Charlie. And his team have worked tirelessly this year to strengthen the balance sheet, beginning with refinancing over 9 billion of 2028 maturities, particularly in

The UK and NL at very reasonable credit spreads.

And that includes a debt financing. We just announced that funds. The fiber roll out in Belgium while the leveraging telenet our Servco in the market and Charlie will dig into that.

Mike Fries: We're still targeting $500 to 750 million of non-core asset sales from the portfolio. As I mentioned on our last call, we're not gonna rush this and price bad deals in the process. We have generated proceeds of $300 million year to date when you include the partial sale of our ITV stake last week. We are well on our way. Of course, one of the bigger portfolio companies is Formula E, which heads into season 12 in December with significant tailwinds, including double-digit growth in revenue, fans, and viewers last year, a knockout calendar of 18 races, and the public reveal of the Gen4 car, which debuts a year from now and doubles the max power of what is rapidly becoming the coolest car in racing. We'll highlight in just a few slides our data center investments.

Attorney's Liberty growth which includes our investments in media infrastructure and Tech that today, total 3.4 billion. And by way provide a source of capital to drive future value creation. This is a highly concentrated portfolio where the top 6 Investments comprise over 80% of the value.

Bigger portfolio companies is forming the E, which heads into season 12 and December was significant Tailwind including double digit growth and revenue fans and viewers last year, a knockout calendar of 18 races and the public reveal of the Gen 4 car, which debuts a year from now and doubles. The, max power of what is rapidly becoming the coolest car in racing.

Mike Fries: With the boom in AI infrastructure, we believe we have a tiger by the tail, as they say, with over $1 billion in assets today and growing. Finally, the quarter brought some great progress at Liberty Services, where we manage large and profitable tech and financial platforms and at our corporate level, where we are in the midst of reshaping the operating model. I think the big news here is that we are improving for the second time this year our guidance for net corporate cost in 2025. We started the year forecasting around $200 million of net corporate costs. In the second quarter, we improved that to $175 million, and now we're improving it further to $150 million for this year.

And we'll highlight in just a few slides, our data center Investments uh with the booming AI infrastructure, we believe we have a tiger by the Tail as I say with over 1 billion in assets today and growing and finally, the quarter brought some great progress at Liberty Services, where we manage large and profitable Tech, and financial platforms, and at our corporate level where we are in the midst of reshaping the operating model. I think the big news here is that we are improving for the second time this year, our guidance for net corporate cost in 2025

Mike Fries: Perhaps even more importantly, we see visibility in 2026 to just $100 million of net corporate costs. This is a hot button for us, as most analysts reduce their target price for our stock by, I think, $8 to $10 per share just related to that $200 million net corporate spend. These announcements today should dramatically improve our valuation narrative, and you can bet we'll be pounding the table on it starting right after this call. I think Charlie will also address it. Lastly, on this slide, we note that we're forecasting $2.2 billion of cash at the holding company at year-end, assuming just the $300 million of asset sales year to date. The next slide provides an update on our strategic plan to unlock value for shareholders. I guess this is the key takeaway today.

We started the year, forecasting around, 200 million of net, corporate costs. In the second quarter, we improved that to 175 million and now we're improving it. Further to 150 million for this year.

Perhaps even more importantly we see visibility in 2026 to just 100 million of net corporate costs. Now this is a hot button for us as most analysts reduce their Target price for our stock but I think 8 to 10 dollars per share just related to that 200 million net corporate spend.

These announcements today should dramatically improve our valuation narrative and you can bet will be pounding the table on it starting right after this call. Hey, Charlie will also address it.

Mike Fries: First, let me reiterate what we laid out on our Q2 call back in August. Following the continued success of the Sunrise spin-off about a year ago, we remain committed to pursuing similar transactions that would further unlock value for shareholders. This may include the separation of one or a combination of core operating businesses you see on this slide, actually, through a spin-off tracking stock listing or similar equity capital markets transaction. I imagine many of you still own or follow Sunrise. The stock has performed well and trades around 8x EBITDA with an 8% dividend yield today. Looking back on that deal, I think 4 key factors laid the groundwork for its success. Number 1, Switzerland is a largely rational telecom market.

Lefty on this slide, we know that we're forecasting, 2.2 billion of cash at the holding company at year end, assuming just the 300 million of asset sales year to date. Now, the next slide provides an update on our strategic plan to unlock value for shareholders. And I guess this is the key takeaway today. First, let me reiterate what we laid out on our second quarter, call back in August following, the continued success of the sunrise. Spin-off about a year ago, we remain committed to pursuing similar transactions, that would further unlock value for shareholders. This may include the separation of 1 or a combination of core operating businesses. You see on this slide actually do a spin-off tracking stock listing or similar, Equity Capital markets transaction,

I imagine many of you still own or follow Sunrise. The stock has performed well, and trades around 8 times ibida with an 8% dividend yield today and looking back on that deal.

I think 4 key factors laid the groundwork for its success. Number 1,

Mike Fries: Number 2, Sunrise had a less levered balance sheet, thanks to our capital contribution at around 4.5x on the date of the spin-off. Number 3, Sunrise has a clear network strategy and CapEx profile. Number 4, Sunrise has a solid free cash flow story that it supports a progressive dividend policy. That was the formula. Strong balance sheet, a rational market, and a predictable path to stable or growing free cash flow. Now, it won't surprise you to learn that this looks a lot like the things we are working on in the Benelux. For example, at VodafoneZiggo, we've installed a new team with a winning plan that is built around generating long-term free cash flow in a largely 3-player market. We have now refinanced something like 80% of the 2028 maturities with the remainder targeted for this quarter or early next year.

Swissland is a largely rational Telecom Market.

Number 2 Sunrise, had a less levered balance sheet. Thanks to our Capital contribution at around 4.5 times on the date of the spin-off. Number 3 summarize has a clear Network strategy and capex profile.

And number 4 summarize has a solid free cash flow store that supports a progressive dividend policy. That was the formula strong balance sheet, a rational market, and a predictable path to stable or growing free cash flow. That won't surprise you to learn that this looks a lot like the things we are working on in the Benelux, for example, a phone zigo. We've installed a new team with a winning plan that is built around. Generating long-term free cash flow in a largely 3-player Market.

Mike Fries: In Belgium, we are even farther along. Our recently announced agreement with Proximus, which is currently being market tested by the regulator, rationalizes the build-out and wholesale monetization of fiber in a large part of Flanders, with really only one network in 65% of the market. On the back of this, we just announced a EUR 4.35 billion financing for our NetCo there, which we call Wyre, which fully funds the build-out of fiber and allows us to reduce leverage at the Telenet ServCo, including all 2028 maturities. Even more exciting, we are in the early marketing stages of selling a significant stake in Wyre. Now, this is an increasingly common value creation strategy in Europe, as you know, with the proceeds used to further deleverage our Telenet ServCo to about 4.5 times.

And we have now we Finance something like 80% of the 2028 maturities with the remainder targeted for this quarter or early next year.

In Belgium, we are even farther along. Our recently announced agreement with proximus, which is currently being Market tested by the regulator

Rationalizes to build out and wholesale monetization of fiber in a large part of Flanders with really only 1 Network in 65% of the market.

On the back of this, we just announced a €4.35 billion financing for our netco there, which we call Wire.

which fully funds the build out of fiber and allows us to reduce leverage at the telenet serveco including all 2028 maturities

Mike Fries: It's gonna take a quarter or 2 to finalize all of these steps, but we're feeling more and more encouraged about the possibilities in this region for a value unlock in the timeframe that we articulated. Of course, we continue to work on other ideas, which we'll update you on in time. As I said last quarter, all of the operating businesses or assets you see on this slide, and some that aren't even shown, can be singled out or combined with one another to achieve a value unlock transaction. Stay tuned. As I said, a key enabler of that strategic roadmap is ensuring that our operating companies are driving commercial momentum in what are increasingly competitive markets, right? The long-term goal here is generating meaningful free cash flow.

Even more exciting. We're in the early marketing stages of selling a significant stake in wire. This is an increasingly common value creation strategy in Europe. As you know with the proceeds used to further delegate our telenet serfco to about 4.5 times.

It's going to take a quarter or 2 to finalize all of these steps but we're feeling more and more encouraged about the possibilities in this region for Value unlocking, the time frame that we are articulated.

Of course, we continue to work on other ideas, which will update you on in time. And, as I said last quarter, all of the operating businesses or assets, you see on this slide and some that aren't even shown can be singled out or combined with 1 another, to achieve a value unlocked transactions. So stay tuned.

Now, as I said a key enabler of that strategic road map.

Mike Fries: Towards that end, each opco has been implementing a series of commercial initiatives and network improvements that are starting to impact results positively. This next slide summarizes a handful of those initiatives which provide important context for the results that follow. Starting in the UK, where Lutz and the team have been busy across a number of fronts, including the recent rollout of our new pay TV and broadband bundles, which now include Netflix for free. That further differentiates us from the competition, in particular Altnets. VMO2 is also redefining the flanker brand segment with the introduction of giffgaff broadband services that complement giffgaff's mobile leadership. We're rapidly transforming the O2 mobile network using the recently acquired spectrum to launch our first 5G GigaSite. Plus, we announced the UK's first direct-to-cell satellite service with Starlink for what we call rural not spots.

Impact results. Positively this next slide summarizes, a handful of those initiatives which provide important context for the results that follow.

Starting in the UK, where loots and the team have been busy across a number of fronts, including the recent roll out of our new pay TV and Broadband bundles. Uh which now include Netflix for free, that further differentiates us from the competition in particular, alt Nets. A vmo2 is also redefining the flanker brand segment with the introduction of gift. GAF Broadband services, that complement gift, Cap's mobile leadership.

Mike Fries: A lot happening in the UK. Stephen and the VodafoneZiggo team have completely reversed trends in the Dutch market, delivering the lowest broadband churn we've seen since early 2023 and positive mobile net adds in the quarter. Now, lots of things are working right here, including being the first to roll out 2 gigabit speeds nationwide, with upgrades underway for a DOCSIS 4.0 8 gig launch next year. We're also investing in the Vodafone brand on the back of the iPhone 17 launch. The how we will win plan that Stephen's developed is quickly becoming the why we are winning plan, which is exactly what we needed in this otherwise rational telecom market.

And we're rapidly transforming the 02 mobile network using the recently acquired Spectrum to launch our first 5G gig site. Plus we announced the UK's First Direct to sell satellite service with Starling for what we call rule, not spot. So a lot happening in the UK

Stephen and the motor phone ziggo team have completely reverse Trends in the Dutch Market, delivering the lowest Broadband Insurance. We've seen since early 2023 and positive. Mobile net adds in the quarter and lots of things are working right here, including being the first to roll out 2 gigabit speeds Nationwide with upgrades underway for a doxis 48 gig launch next year.

Mike Fries: John Porter and the Telenet team have gone from strength to strength in Belgium the last 3 quarters, supported by doubling of broadband speeds for nearly 1 million customers, their rollout in the south, and a multi-brand strategy in mobile. The fiber upgrade in Ireland is proceeding at pace, with over 650,000 premises built now. Tony and the Virgin team are ramping up our wholesale business with Vodafone, Sky and expanding their own reach to new off-footprint territories with fiber. Just to put a marker out there, with CapEx set to fall by 50% in the coming 2 years, we're planning for significant free cash flow out of the Irish business as well. Now, the results on the following slide illustrate this improvement.

We're also investing in the Vodafone brand on the back of the iPhone 17 launch. So the how we will win plan that Stevens developed is quickly, becoming the why we are waiting plan, which is exactly what we needed in this otherwise rational Telecom Market.

John Porter and the telenet team have gone from strength to strength. In Belgium, the last 3 quarters supported by doubling of broadband speeds for nearly a million customers, their roll out in the South and a multi-brand strategy in Mobile.

And the fiber upgrade in Ireland is proceeding at PACE with over 650,000, premises built now and toning. The Virgin team ramping up our wholesale business with Vodafone sky and expanding their own reach to New off, footprint territories with fiber.

I just put a marker out there.

With capex set to Fall by 50% in the coming 2 years. We're planning for significant. Free cash flow out of the Irish business as well.

Mike Fries: Don't get me wrong, we are in a dogfight everywhere, but we are fighting right back and differentiating our products and services, attacking vulnerable competitors, and driving better results each quarter. In fact, 3 out of our 4 markets, we've demonstrated improved sequential fixed and mobile subscriber results throughout the year, and in Holland over the last 2 quarters. Again, at VMO2, our fixed churn initiatives, things like proactive management of the base and one-touch switching activity, are gaining traction and improving broadband performance in a very competitive market. Meanwhile, postpaid mobile subscriber performance has consistently improved quarter after quarter this year, including ARPU growth, supported by pre to postpaid migrations and our loyalty plans. VodafoneZiggo reported its third straight quarterly improvement in broadband losses with another strong ARPU result. Postpaid mobile adds were positive again, driven by the initiative described just a moment ago.

Now, the results on The Following slide illustrate this Improvement, don't get me wrong. We are in a dog fight everywhere, but we are fighting right back and differentiating, our products, and services attacking vulnerable competitors, and driving better results. Each quarter.

In fact, 3 out of our 4 markets, we've demonstrated improved sequential fixed and mobile subscribers throughout the year. And in Holland, over the last 2 quarters,

Again, at BO2 are fixed churn initiatives, things like ProActive Management of the base and 1-touch switching activity are gaining traction, and improving Broadband performance in a very competitive market.

Meanwhile, post a mobile subscriber, performance has consistently improved quarter of the quarter this year, including RPG, grow supported by pre to post, pay migrations and our loyalty plans.

Mike Fries: Telenet maintained positive broadband net add momentum for the Q2 running, driven by successful cross-sell campaigns, including back to school, while fixed ARPU growth was supported by price adjustments that they implemented during the Q2. Postpaid net adds in Belgium were negative despite a strong performance on the base brand, while mobile postpaid ARPU continues to show pressure from the competitive environment. In Ireland, Virgin Media's broadband base was largely flat, with aggressive fiber offers in the market driving higher churn and impacting fixed ARPU. Postpaid net adds, on the other hand, remained strong and that's supported by a EUR 15 for life offer launched in May, boosting gross adds. Charlie will walk through our financial results that are tied to these numbers in just a moment.

Photo reported its third, straight quarterly Improvement, in Broadband losses with another strong. R approved result and postpaid mobile ads were positive again driven by the initiative to describe that just a moment ago.

Kellet maintained positive Broadband, net, add momentum for the second quarter running driven, by successful. Cross sell campaigns, including back to school. While fixed our food growth was supported by price adjustments at the implemented during the second quarter.

Mike Fries: Let me first turn to Liberty Growth. By now you're hopefully more familiar with the components of our portfolio, which as I mentioned, increased in value to $3.4 billion at Q3. That's around $10 per share. As you can see here, 45% of the value or about $1.5 billion consists of premium media, sports, and live events businesses, which we and most everyone else these days see as great long-term investment strategies. Another 40% is in digital infrastructure, which I'll dig into a bit more in the next slide. Then most of the balance resides in our tech portfolio, which consists largely of venture capital investments in companies, many that are leading the way in AI, cloud, and cybersecurity.

Postpay net adds in Belgium were negative despite a strong performance on the base brand while mobile postpaid. Our boot continues to show pressure from the competitive environment and in Ireland, where to meet his Broadband base was largely flat with aggressive. Fiber offers in the market driving higher churn, and impacting fixed arpu post, bet on the other hand, remains strong, not supported by a 15 year old for life, offer launched. In May boosting growth ads. So Charlie will walk through our financial results that are tied to these numbers in just a moment.

Let me first discuss Liberty Growth. By now, you're hopefully more familiar with the components of our portfolio, which, as I mentioned, increased in value to $3.4 billion at Q3. That's around $10 per share.

As you can see here, 45% of the value or about 1.5 billion consists of Premium Media, Sports and Live Events businesses which we and most everyone else these days. See, as great long-term Investments strategies,

Mike Fries: Now, while it might appear like a complicated and diversified mix of investments from the outside, as I said earlier, it's important to remember that six of these deals comprise over 80% of the portfolio's value today. You can see them listed at the bottom of the page. Things like a controlling interest in Formula E, which I spoke about, and our remaining 5% of ITV, for example, and the two largest assets in our digital infrastructure vertical, which I'm gonna highlight on the next slide. Now, both of these infrastructure investments are substantial, adding up to over $1 billion of value for us today, and they've performed extremely well, especially in the current environment where the development of AI infrastructure seems to have exploded. We're thrilled to own a minority interest in EdgeConneX.

another 40% is in digital infrastructure, which I'll dig into a bit more in the next slide. And then most of the balance resides in our Tech portfolio, which consists largely of venture capital investments in companies. Many that are leading the way in AI cloud and cyber security now. Well, it might appear like a complicated and diversified mix of investments from the outside. As I said earlier, it's important to remember that 6 of these deals comprise over 80% of the portfolio's value today. You can see them listed at the bottom of the page.

Things I could controlling interest in Formula E, which I spoke about and our remaining 5% of ITV, for example, and the 2 largest Assets, in our digital infrastructure vertical, which I'm going to highlight on the next slide.

Now, both of these infrastructure Investments are substantial adding up to over 1 billion of value for us today. And they've performed extremely well, especially in the current environment where the development of AI infrastructure seems to have exploded

Mike Fries: It's a global data center platform controlled by EQT and focused on hyperscalers across over 60 Tier 1 markets in 20 countries around the world. We first invested in this company back in 2015. It was much smaller. We have a net $150 million invested today. The good news is that we've already taken $50 million off the table, and our residual stake is conservatively valued at over $500 million. That equates to a 30% IRR over the last decade. On the right, you'll see our 50/50 JV called AtlasEdge, which is a regional data center provider focused on Tier 2 markets. The company has strong positions in Germany, Austria, and Iberia and is seeking to expand capacity to 180 MW.

And focused on hyperscalers across over 60, Tier 1 markets, in 20 countries around the world. And we first invested in this company back in 2015, and it was much smaller.

And we have a net, 150 million invested today and it's a good news is that we've already taken 50 million off the table and our residual stake is conservatively valued at over 500 million that equates to a 30% irr over the last decade.

Mike Fries: We have a net investment here of about $345 million, and we've had our interest valued by third parties at around $600 million today. Again, both of these companies find themselves in the middle of multiple AI infrastructure and data sovereignty projects, and we are focused on driving continued growth right now in what is an increasingly hot space. I look forward to your questions on all of this, but let me first turn it over to Charlie to walk through Liberty Services and our numbers. Charlie?

On the right, you'll see our 5050 JV called Atlas Edge, which is a regional data center. Provider focused on tier 2. Markets company is strong positions in Germany, Austria and Iberia. And is seeking to expand capacity to 180 megawatts.

Charlie Bracken: Thanks, Mike. Turning now to Liberty Services and Corporate. On the left-hand side of the slide is an overview of our central services, which focus on three core activities. Our corporate group provides strategic management and advisory services in operating and managing financial and human capital, as well as technology strategies and investment. Liberty Tech focuses on the delivery of scaled tech solutions, particularly in entertainment and connectivity platforms, as well as cybersecurity for our telecoms companies. Liberty Blume develops and provides tech-enabled back-office solutions, not just to companies within the Liberty Global family, but also increasingly to third parties.

We have a net investment here of about 345 million and we've had our interest value by Third parties at around 600 million today. Again, both of these companies find themselves in the middle of multiple AI infrastructure and data sovereignty projects and we are focused on driving continued growth right now in what is an increasingly hot space. So I look forward to your questions on all of this. Um, but let me first turn it over to Charlie to walk through Liberty services and our numbers Charlie.

Thanks, Mike turning now to Liberty services in corporate. On the left hand side of the slide is, an overview of our Central Services which focus on 3 core activities. Our corporate group provides strategic management and advisory services and operating a managing financial and human capital as well as technology strategies and investment.

Liberty Tech focuses on the delivery of scale, Tech Solutions, particularly in entertainment and connectivity platforms, as well as cyber security for our telecoms companies.

Charlie Bracken: We are reinvesting these tech-enabled efficiencies within Liberty Blume to drive 20% plus organic revenue growth in 2025. During Q3, we undertook a significant reshaping exercise around both Liberty Corporate and Liberty Tech to drive cost efficiencies going forward and make both organizations more agile and well-positioned for the future. Starting with Liberty Corporate, we undertook both voluntary and involuntary redundancy schemes, which have reduced headcount by around 40%, with 90% of those leaving by year-end. In Liberty Tech, we can continue to leverage our successful Infosys partnership with 4 years of proven track record to help secure additional efficiencies and simplification savings. We expect both the corporate and Liberty Tech initiatives to drive around $100 million of annualized cost savings.

And Liberty Bloom develops and provides Tech enabled back Office Solutions, not just to companies within the Liberty Global family, but also increasingly to third parties.

We are reinvesting these Tech enabled efficiencies within Liberty Bloom to drive 20% plus organic Revenue. Growth in 2025

During the third quarter, we undertook a significant reshaping exercise around both Liberty, corporate and Liberty Tech to drive cost efficiencies going forward and make both organizations more agile and well positioned for the future.

Starting with Liberty corporate, we undertook both voluntary and involuntary, redundancy schemes which have reduced headcount, by around 40% with, 90% of those leaving by year end.

And in Liberty Tech, we can continue to leverage our successful emphasis partnership with 4 years of proven track record to help secure additional efficiencies and simplification savings.

Charlie Bracken: Bringing all this together, you will recall that we began the year guiding to less than $200 million of negative adjusted EBITDA, and we've already upgraded this to around $175 million of EBITDA at Q2. Now we're pleased to reduce this further for 2025 to around $150 million of negative adjusted EBITDA, supported by the in-year benefits of our corporate reshaping programs. Now perhaps more importantly, turning to the fully annualized impact. Once we see the benefits of this reshaping annualized from 2026, we expect our corporate adjusted EBITDA to broadly halve to around $100 million. From there, we still see scope for further improvement as we evolve our operating model through additional third-party revenues, advisory fees, and management services agreements alongside the scope for further cost optimization.

We expect both the corporate and Liberty Tech initiatives to drive around 100 million dollars of annualized cost savings.

Bring all this together. You will recall that we began the year. Guiding to less than 200 million of negative adjusted every day and we've already upgraded this to around 175 million of FDA at Q2.

Now, we're pleased to reduce this further for 2025, to around $150 million of negative adjusted EBITDA, supported by the inherent benefits of our corporate reshaping programs. Now, perhaps more importantly, turning to the fully annualized impact, once we see the benefits of this reshaping annualized from 2026, we expect our corporate adjusted EBITDA to broadly have to around $100 million.

Charlie Bracken: To put this in context, at the beginning of the year, and the average analyst sum of the parts valuation, there was around $10 per share negative impact based on the capitalization of these corporate costs, which was typically at around 12 to 14x enterprise value to operating free cash flow. We now expect the run rate of negative corporate cost to essentially halve versus the start of the year going forward, which should drive a significant reduction, around half, of this discount in our analyst valuation. We would also argue that an EBITDA multiple more in line with the telco comparables, which is much lower, is the right way to value these costs, which would further reduce the impact.

And from there, we still see scope for further improvement. As we evolve our operating model through additional services, advisory fees, and management services agreements, alongside the scope for further cost optimization.

So, to put this in context as a beginning of the year and the average analyst, some of the parts valuation, there was around $10 per share negative impact, based on the capitalization of these corporate costs, which was typically at around 12 to 14 times Enterprise Value to operating free cash flow.

Charlie Bracken: Moving to the treasury slide, we've been extremely proactive year-to-date and through Q3 in dealing with our 2028 maturities in what has been a favorable overall high-yield market, in particular in the bond market. Overall, we've successfully refinanced close to $6 billion across our credit silos year-to-date, and this actually increases to $9 billion if you include the underwritten Wyre financing that Mike has already discussed. At Virgin Media O2, using existing benchmark financings, we were able to complete mainly private tap transactions amounting to $1.4 billion, bringing to total refinancing year-to-date at Virgin Media O2 to over $3 billion, which leaves us only with around $100 million of outstanding 2028 maturities. VodafoneZiggo, we issued just under $1 billion of senior secured notes during Q3, leaving us with around $500 million of outstanding 2028 maturities.

We now expect the Run rate of negative corporate cost to essentially half versus the start of the Year going forward which would drive a significant reduction around half of this discount in our analysts valuation. And we would also argue that an everyday multiple more in line with the Telco comparables, which is much lower, is the right way to Value these costs which would further reduce the impact.

Moving to the treasury slide. We've been extremely proactive here today and through Q3 in dealing with our 2028 maturities in, what has been a favorable, overall higher Market in particular in the bond market.

overall we've successfully refinanced close to 6 billion dollars across our credit silos year to date and this actually increases to 9 billion if you include the underwritten W financing that Mike has already discussed

A bureau to using existing Benchmark financing. We were able to complete mainly private tap transactions, amounting to 1.4 billion dollars bringing to to Total refinancing year to date at Virgin Media 2 to over 3 billion dollars. Which leaves us only with around a hundred million dollars of outstanding 2028 maturities.

Charlie Bracken: At Telenet, we've already completed $600 million of financings year-to-date and have recently secured a EUR 4.35 billion underwritten facility for Wyre. This will allow us to significantly refinance Telenet overall and formally separate the Wyre and Telenet ServCo capital structures, and in the process, repay all the 2028 maturities. All of this proactive refinancing activity has significantly reduced our 2028 maturities and has actually maintained our average life of our debt at close to 5 years and at broadly comparable credit spreads versus our historic levels. Turning to the next slide, we remain committed to our capital allocation model and strategy to both replenish our cash balance while also rotating capital into higher growth investments and strategic transactions.

Maturities.

And a tenet we've already completed million dollars of finances year to date and have recently secured a Euro 4.35 billion underwritten facility for wire. Now, this will allow us to significantly refinance, tener overall and formerly separate, the war in telenet serfco capital structures. And in the process we pay all the 2028 maturities.

Now, all of this proactive refinancing activity has significantly reduced our 2028 maturities and has actually maintained our average level of debt at close to 5 years. Additionally, our credit spreads are broadly comparable to our historic levels.

Charlie Bracken: Starting with cash generation, we continue to see free cash flow in line with our expectations as set out for the year across our OpCos and JVs. As has been the case in previous years, we expect the JV dividends to be largely paid in Q4, given the free cash flow phasing at Virgin Media O2 and VodafoneZiggo. Across all the OpCos, CapEx remains elevated, primarily driven by extensive 5G rollout in the UK, Belgium, and Holland. Also fiber investment is ramping in Belgium, and we continue to invest in Virgin Media O2's Fiber Up and Virgin Media Ireland's Fiber to the Home program. This is along with our DOCSIS upgrade path in Holland.

Turning to the next slide. We remain committed to our Capital allocation model and strategy to both replenish our cash balance. While also rotating Capital into higher growth, Investments and strategic transactions.

Starting with cash generation. We continue to see free cash flow in line with our expectations as set up for the year across our op Co in JBS.

As has been the case in previous years, we expect the JB dividends to be largely paid in Q4 given the free cash flow. Phasing of burger. Media, 2 and berteau pens again.

Charlie Bracken: Turning to our cash walk in the bottom right, our consolidated cash balance was $1.8 billion at the end of Q3, with an additional $180 million received since then with a partial ITV stake disposal in October. During Q3, we saw modest investments into Liberty Growth of $77 million, which was primarily Formula E and AtlasEdge, and spent $56 million on our buyback program. We're currently tracking towards a buyback of around 5% of shares outstanding for 2025. Moving to the Liberty Growth walk, the fair market value of our Liberty Growth portfolio remains stable versus Q2 at $3.4 billion. This was primarily driven by the investments in Formula E and AtlasEdge, offset by the partial disposal of our Airalo stake and a small fair market value reduction in our Liberty Tech portfolio.

Across all the op codes, capex remains elevated. Primarily driven by extensive 5G, rollout in the UK, Belgium, and Holland. And also fiber investment is ramping in Belgium and we continue to invest in Virgin Media o2's. Fiber up and burger meteor Islands private to the home program and this is along with our Doc's upgrade path in Holland.

Turning to our cash walk in the bottom right, I consolidated. Cash balance was $1.8 billion at the end of Q3, with an additional $180 million received since then from a partial ITB stake disposal in October.

During Q3, we saw modest investments into Liberty growth of 77 million, which was primarily formulary and Adis Edge and spent 56 million on our buyback program.

We're currently tracking towards a buyback of around 5% of shares outstanding for 2025.

Moving to the Liberty growth walk. The fair market value of our Liberty growth portfolio remains stable versus Q2 at 3.4 billion.

Charlie Bracken: Turning to the key financials on the next slide, Virgin Media O2 delivered a modest revenue decline of 1%, excluding the impact of handset sales, nexfibre construction revenues, and 2 months of Daisy contribution. This was driven by declines in our B2B revenues, which were offset by growth in our consumer businesses. Adjusted EBITDA at Virgin Media O2 continued to grow at 2.7%, supported by cost discipline and lower cost to capture year-on-year. Moving to VodafoneZiggo, we saw revenue decline of 4%, largely driven by the decline in ongoing repricing of our fixed customer base. Adjusted EBITDA was impacted by the revenue declines and commercial initiatives supporting the new strategic plan.

This was primarily driven by the investments in formulary and Atlas Edge upset with a partial disposal of our are Arlo stake and a small fair market value reduction in our Liberty Tech portfolio.

Turning to the key financials on the next slide, Virgin Meteor 2 delivered a modest revenue decline of 1%, including the impact of handset sales, Next Fiber construction revenues, and 2 months of Daisy contribution.

This was driven by a decline in our B2B revenues, which were offset by growth in our consumer businesses.

Adjusted every day at Virgin Media to continue to grow a 2.7% supported by cost discipline and lower cost to capture year on year.

Maybe it's about a pencil. We saw revenue decline of 4%, largely driven by the decline and ongoing repricing of our fixed customer base.

Charlie Bracken: Telenet revenue and adjusted EBITDA growth were both impacted by a positive deferred revenue benefit in the prior year of $18 million. In addition, revenue growth was also impacted by the decision not to renew Belgian sports rights, which was more than offset by associated lower programming costs. Turning to our guidance slide, we're updating two items of guidance. Firstly, Virgin Media O2 revenue guidance, where we are confirming growth in the consumer and wholesale revenues. Given the Daisy transaction was completed during Q3 and the creation of O2 Daisy, we're currently reviewing the impact of Daisy on B2B reporting, but can confirm our previous guided M&A impact from Daisy of around GBP 125 million of revenue in 2025.

Adjusted everyday was impacted by the revenue declines and Commercial investors supporting the new strategic plan.

Telenet revenue and adjusted Eva growth for both impacted by a positive deferred revenue benefit in the prior year of 18 million. In addition, Revenue growth was also impacted by the decision, not to renew Belgian, Sports rights, which was more than offset by Associated lower programming costs.

Turn into our guidance. Like we're updating 2 items of guidance.

Charlie Bracken: Secondly, as discussed previously, we're improving our Liberty Services and Corporate adjusted EBITDA guide to $150 million in 2025. All other OPCO guidance remains unchanged. That concludes our prepared remarks for Q3, and I'd like to hand over to the operator for the questions and answers.

Firstly Virgin Media 2 Revenue guidance. Where we are confirming growth in the consumer and wholesale revenues. But given the daisy transaction was completed during the third quarter and the creation of OT Daisy were currently reviewing the impact of Daisy on B2B reporting but can confirm our previous guided m&a. In power from Daisy of around 125 million pounds of Revenue in 2025.

And secondly, as discussed previously, we're improving our Liberty, Global Services and corporate adjusted wda guide to 150 million dollars in 2025.

All other op code guidance remains unchanged.

Now that concludes our prepared remarks for Q3, and I'd like to hand over to the operator, both the questions and answers.

Operator 2: The first question comes from the line of Maurice Patrick with Barclays. Please go ahead.

The question and answer session will be conducted electronically.

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

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

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

The first question comes from the line of Maurice. Patrick with Barclays, please go ahead.

Maurice Patrick: Yeah, thanks guys, for taking the questions and the call today. Congrats, Mike, on the new role. Maybe a question given the topical FT article this morning around Netomnia in the UK. I wouldn't expect you to comment on that transaction, but maybe a good opportunity, Mike, ahead of Telefónica's CMD next week to talk a little bit about your outlook and view on investments in the UK, specifically around the fiber side. You know, whether the NetCo sale plan could still be resurrected. Your view around buy versus build and the cost. You've always said you'd consider buying if the cost was comparable to your own build cost. How your thoughts are evolving there would be very helpful. Thank you.

Thanks guys for taking the questions and the call today. And congrats. Mike on the, on the new role. Um just to maybe a question, given the topical FTR to call this morning around, um, netomnia in the UK. I wouldn't expect you to comment on that on on that transaction but maybe a good opportunity might get ahead of telefonica.

CND next week to talk a little bit about your outlook and view on investments in the UK, specifically, around the fiber side, you know, whether you

Mike Fries: Sure. We're not sure what Telefónica will be addressing next week, obviously. We'll all find out. I think we've been consistent on the fiber point, at least through the course of this year, which is that, you know, we'll continue to upgrade our own fiber, and we're now reaching, you know, Loot and his team have access to 8 million fiber homes through a combination of our own upgrade on the Virgin Media network and of course, the nexfibre footprint. We continue to, at least with our own homes and the Virgin Media side, continue to upgrade fiber and increase the footprint and the reach of that technology. That's point 1.

the netco netco sale plan could still be still still be reserved, um, your your view around buy versus build and the, the cost, um, you've always said you would consider buying is the cost was comparable to your own bill cost or how your thoughts are evolving. Their be very helpful. Thank you.

Mike Fries: Point 2 is we've always stated, you know, we are actually now one deal down with the UPC deal we did about a year or so ago. We've always stated that the market requires rationalization, that alt nets, most of them will find it difficult to continue doing what they're doing in the manner in which they're doing it. We're supportive of opportunities to consolidate and rationalize the fixed network environment, period. I'm not commenting, as you suggested, on any particular deal. I would simply say, if you look at our history where we used nexfibre in the case of UPC to begin the process of rationalizing, we're open-minded and open for business, if you will, for opportunities that would achieve just that.

Sure. Um, and we're not sure what uh, telefonica will be addressing next week obviously uh, we'll find out but I I think we've been consistent on the fiber point at least through the course of this year. Which is that, you know, we will continue to upgrade our own fiber. And we're now reaching uh you know lutens team have access to 8 million fiber homes through a combination of our own upgrade of the Virgin Media Network and of course, the next fiber footprint. So we continue to at least with our own homes and the virtual media side continue to upgrade fiber and increase the footprint and the reach of that technology. That's Point 1 Point 2 is we've always stated and if you you know we are actually now 1 deal down with the up deal. We did about a year

Mike Fries: You know, I think it's still a bit of a moving target everywhere, but we're hopeful that, you know, in the next 6 months things will start to settle, and we may or may not be part of those transactions that precipitate that settling.

Or so ago, we've always stated that the market requires rationalization that alternates. Most of them will have to find a typical to, to continue doing what they're doing in the manner in which they're doing it comma. And we're supportive of opportunities, to consolidate and rationalize, uh, the the fixed Network environment period. So, I'm not commenting as you suggested on any particular deal. Uh, I I would simply say, if you look at our history, where we used next fiber, in the case of up to begin the process of rationalizing. We're open-minded and open for business, if you will, uh, for opportunities that would achieve just that, um, you know, so so I think it's still a bit of a moving Target everywhere, but we're hopeful that, uh, you know, in the next 6 months, things will start to settle and we may or may not be part of those transactions that that precipitate, that settling.

Maurice Patrick: Thanks.

Operator 2: Thank you.

Mike Fries: Thanks, Maurice.

Operator 2: The next question is from the line of Polo Tang with UBS. Please go ahead.

Thank you, thank you. Next question, is from the line of Polo. Tang with UBS. Please go ahead.

Polo Tang: Yeah. Hi. Thanks for taking the question. I've got a question about the Dutch market and the improvement in terms of broadband that you're seeing there. Can you maybe just talk about competitive dynamics both in the broadband market but also in terms of mobile? How confident are you that you can stabilize the broadband base in 2026? Will this come at the expense of further declines in terms of ARPU? Can you maybe also comment in terms of whether FWA is having any impact on the broadband market? Thanks.

Yeah, hi, thanks for taking the question. I've got a question about the Dutch market and the improvement in terms of broadband that you're seeing there. So can you maybe just talk about competitive dynamics, both of the broadband market and also in terms of mobile? How confident are you that you can stabilize the broadband base in 2026, and will this come...?

Mike Fries: Sure. That's a great question for you, Stephen.

At the expense of further declines in terms of arpu and you maybe also comment in terms of whether fwa is having any impact on the Broadband Market. Thanks.

Sure, that's a great question for you. Stephen

Stephen van Rooyen: Yeah. Thank you, Mike.

Mike Fries: Stephen. There you go.

Stephen van Rooyen: Look, I've three questions. Yeah. Can you hear me?

Mike Fries: Hello?

Yeah, thank you, Mike. Um, any questions? Yeah, can you hear me?

Polo Tang: Got you.

Stephen van Rooyen: Mike? Got you. I think I have 3 questions. First is stabilizing broadband ads. We see the market is pretty competitive, although rational. We've set out a plan which we've spoken to about at length over the last 12 months, which is working. The heart of the plan is to get us back to broadband growth. That will take us, I think, the balance of next year, but that's what we're pushing towards. It's an uncertain journey because we can't predict what the competition will do, but certainly we are pushing our plan forward. The heart of that plan is about bringing down churn.

Hello, got it.

Mike. Yeah, got you. So I think 3 questions. So first is stabilizing Broadband uh ads? Um, we see the market is pretty competitive, um, although rational um, we've uh, set out a plan which we've spoken to about at length over the last 12 months.

Which is working.

Stephen van Rooyen: You'll have seen, and we're pleased with how much we've been able to deal with the churn in our base, and we'll continue to push on that with that through the next year. In mobile, I think it's as she was. I think there's a lot of activity, like most European markets, in the value segment. We're well-positioned there with hollandsnieuwe, which has done pretty well for us. We think that there's more we can do in that space, and we'll continue to pursue that through 2026. On fixed wireless, look, I think it's a variable in the marketplace. It's probably a question more for Odido than for us.

Uh, the harder, the plan is to get us back to broadband growth that will take us. I think the balance of next year, but that's what we're pushing towards. Um, it's an uncertainty, uh, Journey because we can't predict what the competition will do. But certainly, we are pushing our plan forward. Uh, the heart of that plan is about bringing down churn you'll have seen, and we are pleased with how much we've been able to deal with, uh, the churn in our base. And we'll continue to push on.

With that through uh, through the next year. Uh, in Mobile I think it's it's actually was I think there's a lot of activity uh like most European markets uh in the valley segment. Um we're well positioned there with Hollands never which has done pretty well for us. Uh, we think that there's more we can do in that space and we'll continue to pursue that through 2026.

Stephen van Rooyen: We're focusing on our plan, reducing our broadband losses, getting our broadband back to growth, and we've accommodated for that within our plan. I don't really have much to say about what's happening on fixed wireless there. Thank you, Paolo Pescatore.

Uh, I don't really have much to say about what's happening on this wall. Is there?

Thank you, Paulo.

Operator 2: Thank you. The next question is from the line of Joshua Mills with BNP Paribas. Please go ahead.

Thank you.

The next question is from the line of Joshua Mills with BMP paraba. Please go ahead

Joshua Mills: Thanks, guys. My question is on the UK market and the competitiveness we're seeing. I wonder if you could give us a bit more color on what you're seeing on the grounds. I note that the ARPU development this quarter for fixed line was negative, which may be expected but perhaps disappointing following the 7.5% price increase in April. On B2B, I understand that there's some moving parts with the Daisy acquisition, but could you just give us an idea of what the underlying B2B growth would have been this quarter and whether that's running ahead, below, in line with expectations? That'd be great. Thanks.

Thanks guys. Um, my question is on the UK Market in the competitiveness, we're seeing. Um, so I wonder if you could give us a bit more color on what you're seeing on the grounds, I note that the rpu development this quarter for, um, fix line was was negative, uh, which may be expected, but has disappointing following the 7 and a half percent price, increase in April and then on B2B.

I understand that there's some moving Parts with the the daisy acquisition, but could you just give us an idea of what the underlying B2B growth would have in this quarter? And whether that's running ahead Below in line with expectations, that would be great. Thanks.

Mike Fries: Lutz, why don't you take the broadband and ARPU question, and Charlie, you can address the B2B question.

Lewis. Why don't you take the, uh, broadband and RP question in? Charlie, you can address the B2B question.

Lutz Schüler: I mean, the broadband market is very competitive as we speak. On one hand side, you see offers already around GBP 20 for 1 gig from Altnet in the market per month. Openreach came with two promotions. I don't know if you're aware, but for copper to fiber migrated customer, you are paying to Openreach for the next 24 months, GBP 16 for 1 gig. This one promotion. The other one is you don't pay anything when you migrate and fixed wireless access customer onto the fiber network of Openreach. Which leads to the fact that you see a very price-driven market. You see in the affiliate market, which is the most price-sensitive markets, prices from Sky, also in Vodafone, around GBP 21 for 1 gig.

Yeah. Um, I mean the market is the broccoli Market is very competitive as we speak. Um, on 1 hand side, you see offers already around 20 pounds for 1 gig from mnet in the market per month. And then um open reach came with 2 promotions.

Uh, I don't know if you're aware but uh, for copper to fiber migrated customer, you are paying to open reach for the next 24 months 16 pounds uh for 1 gig. So this 1 promotional access customer onto the fiber network of open reach uh which uh leads to the fact that you see uh a very priced with Market

um,

You see in the affiliate market, which is the most price-sensitive market, prices.

Lutz Schüler: How are we doing in this? I think we are doing pretty well here because, as you all know, we have the highest ARPU in the market. We are, we have the customers who have the demand for the highest speed in the market. Yes, on one hand side to now lower churn of our customers, we have offered prevention offers with some dip on ARPU. Also, obviously, we have to get our fair share in acquisition which leads to lower ARPU. In the scheme of things, losing only 28,000 customers and having only a dip of 1% of ARPU, we personally think is pretty a good outcome within a pretty competitive market. Well, let's wait for the announcements of our competitors.

From a sky. Also, in Buddha phone around 21 pounds for 1 gig, uh, how are we doing in this? Um, I think we are doing pretty well here. Because, uh, as you all know, we have the highest up here in the market, we are, uh, we have the customers who have the, uh, demand for the highest speed in the market. And uh, yes, on 1 hand side to now, lower churn of our customers. We have offered prevention offers with, uh, some dip on aru and also, obviously, we have to get our fair share and acquisition with which leads to lower help you. But in the scheme of things losing uh only 28,000 customers and having only a dip of 1% of rpu. Uh we personally think it's pretty uh good outcome Within

Pretty competitive market, but let's wait for the announcements of our competitors.

Stephen van Rooyen: Okay.

Operator 2: Thank you.

Mike Fries: Charlie, you wanna address the B2B question? Yes. Look, as you know, we closed O2 Daisy in the quarter. We've got a lot of work to do to try and reconcile accounting policies to revise plans 'cause also things like clean room. What we've been trying to do is say, look, you know, the businesses that remain outside that perimeter, we still expect to see growth and have had growth year to date. The business that we've actually contributed into O2 Daisy, which is our fixed and mobile B2B connectivity business, that has declined this year. You're right. We haven't actually broken that out and having to take that offline. I think what we need to do is now we've got this, not joint venture, but a, you know, a partnership.

Stephen van Rooyen: In the Q4 results, we'll give you the separate financials and obviously explain how, you know, the impact of that business is and how we think it's gonna grow in the future as we finalize the integration plans. Thanks. Operator?

Okay. Thank you. Joy. You wanted us to be to just. Yeah, just yes. So as you know we closed our 2 Daisy in the quarter, we've got a lot of work to do to try and reconcile our accounting policies. The revised plans because lots of things like clean room. So so what we've been trying to do is say look you know, the businesses that remain outside, that perimeter, we still expect to see growth and have had growth here to date. Uh, the business that we've actually contributed into O2 Daisy, which is our fixed and mobile B2B connectivity business, that has declined this year, you're right. Uh, we haven't actually broken that out and how we take that off that offline. Uh, but I think what we need to do is now we've got this not joint venture but uh, you know, partnership, but in the Q4 results we'll give you the the separate financials and obviously explain how, you know, the impact of that business is and how we think it's going to grow in the future as we finalize the integration plans.

Operator 2: Thank you. Thank you. The next question is from the line of Robert Grindle with Deutsche Bank. Please go ahead.

Thanks operator. Thank you.

Thank you. The next question is from the line of Robert grindle with Deutsche Bank, please go ahead.

Robert Grindle: Thanks. Thanks very much. Congratulations, John, as well as Mike for his new position. I'd like to pick up on the central costs and valuation point, if I may. I suppose that's for Charlie. What would you say the costs are to drive the 100 million annualized savings at the center? Do you reckon it's like a 1-year payback period or longer? Is there any stock impact at all from all these redundancies and any CapEx which, you know, goes to offset the savings, or is effectively the 100 million a straight drop through? Thank you.

Thanks, uh, thanks very much and uh, congratulations, John as well as Mike for his new position. Um, I'd like to pick up on the uh, Central costs and valuation point if I may I suppose that's for Charlie. Uh, what would you say the costs are to drive the 100 million annual life savings at the center?

Uh, do you reckon it's like a 1 year, payback, period, or, or longer? Is there any stock impact at all? Uh, from all these redundancies and any capex, which, you know, goes to offset, the savings or is effectively the 100 million a straight drop through, thank you.

Charlie Bracken: Sorry. It's a pretty good payback. Hi, Charlie. I mean, it's de minimis CapEx. Yeah, sorry. It's a pretty good payback. It's de minimis CapEx, which is one of the reasons why I think an EBITDA multiple is perhaps a more appropriate way to look at it. If you do take the view that these are costs necessary to run a telco, we just scale them across a portfolio and indeed across our growth assets. I think, you know, whether it's the telco multiple, you know, what that is, but it's certainly along those lines in my mind. In terms of the cost to achieve it, there is some degree of restructuring, but broadly speaking, pays back within, I would say, less than 12 months. Very little frictional cost.

Um, capex, which is 1 of the reasons why I think multiple is is perhaps a more appropriate way to look at it. If you do take the view that these are cost necessary to run uh a Telco, we just scale them across a portfolio and indeed across our growth assets. So I think you know, whether it's the Telco multiple um you know what that is, but it's certainly along those lines in in my mind, in terms of the cost to achieve it. There was a some degree of a structuring but broadly speaking pays back within I would say less than 12 months.

So, very little frictional cost.

Operator 2: Thank you. The next question is from the line of Nick Lyall with Berenberg. Please go ahead.

Thank you.

The next question is from the line of Nick Lyall with Baron Berg. Please go ahead.

Nick Lyall: Yeah, afternoon, everybody. Just a very quick one, please, Mike. On slide 4, I'm just interested why you've picked the Benelux markets first and maybe not VMO2 in the UK market. You know, is it simply just because of size? Are there any one of those 4 criteria that you just don't think it ticks the box on yet and maybe the others are far closer to? Could you just maybe describe why that might be, please? Thank you.

Mike Fries: Sure. I think we wanna trend towards a Sunrise type framework everywhere we operate, and I think there is a pathway to do that everywhere we operate. We seem to be making and are making meaningful progress in the Benelux for all kinds of reasons. Both Dutch market and the Belgium market are highly rational markets, closer to Switzerland than anything else, I would say. They have their own unique peculiarities around competition, but largely rational three-player markets. We've been, we've been able to attack the balance sheet, specifically in Belgium, where we've successfully created a NetCo and a ServCo there and have, you know, done the, are in the process of executing the classic move of, putting more debt on the NetCo as it builds out. It's a higher quality credit.

Good afternoon, everybody just just a very quick 1, please, Mike on the on slide Forum. I'm just interested why. Um you've picked the Benelux markets first and maybe not vmo2 in the UK Market. You know, is it simply just because of size or are there any 1 of those 4 criteria that you just don't think it ticks the Box on yet and maybe the others are far closer to you, could you just maybe describe why that might be please. Thank you.

Sure. Yeah, I think we're we want to Trend towards a sunrise. Type framework everywhere we operate. Uh, and I think there is a pathway to do that everywhere. We operate, we seem to be making and are making meaningful progress in the Benelux.

Mike Fries: I'm not allowed to tell you what the credit rating is of this EUR 4.35 billion financing, but it's the first time we've ever seen one, I can promise you that. Using the proceeds and the financing capabilities of a NetCo to de-lever the ServCo, which is their remaining core commercial business. Those combination of steps have been in the works for quite some time. You know, now we did and have attempted to do similar things in the UK, as somebody mentioned just a moment ago, not suggesting we can't get to the same place in the UK at some point. It does appear like in particular in Belgium, we are on our way to executing on those 4 key measures.

For all kinds of reasons, the both Dutch market and the Belgium Market are highly rational markets closer to Switzerland than anything else. I would say they have their own unique peculiarities around competition but largely rational 3-player markets. Uh, we've been we've been able to attack the balance sheet specifically in Belgium where we've successfully created a netco and a serve code there. And a, you know, done the in the process of executing the classic move of putting more debt on the netco, as it builds out, its a higher quality credit. Um, not allowed to tell you what the credit reading is of this 4.35 billion Euro financing, but it's the first time we've ever seen 1. I can promise you that, uh, and using the proceeds and the and the financing capabilities of a netco to de-lever the serve code, which is the the remaining core Commercial Business, uh, and those combination of steps have been in the works for quite some time. And, you know, now we did and have

Mike Fries: That to us, is worthy of highlighting and letting you know we're busy, very busy in this part of the platform and portfolio, and that if we, you know, made a commitment to make some decisions around these things, and I think more likely than not, we'll be making some decisions around this part of our business in the, you know, relatively near term. Certainly within the timeframe that we've outlined. We hope in all of these markets, you know, Ireland, I mentioned, is gonna have a massive reduction in CapEx. It's gonna start generating free cash, but it's small. Certainly Virgin Media Ireland looks and will tick the box on many of these particular metrics.

attempted to do similar things in the UK. As uh, somebody mentioned just a moment ago and not suggesting we can't get to the same place in the UK at some point, uh, but it does appear like a particular in Belgium. We are on our way to executing on those 4 key measures. Um, and so that to us is worthy of highlighting and letting you know, we're busy very busy in this part of the, of, of the platform and portfolio and that if we, you know, made a commitment to make some decisions around these things and

Mike Fries: The UK is a trophy business for us, certainly something we are committed to for the long term and is a increasingly important investment. We are by no means suggesting that we can't achieve similar results or benefits in the UK. We're simply saying there we have a partner, and we have to align with our partner on the best next move. We have a market that's a bit fragmented today, and as we discussed a moment ago, it's gonna require some form of rationalization. You know, so these are things that we work on with our partner. I'm not suggesting for a second we can't achieve similar things in the other assets or markets identified on that slide. I'm simply saying we're making good progress here, we'd like you to know about it.

I think more likely than not. We'll be making some decisions around this part of our business in the, you know, relatively near-term certainly within the time frame that we've outlined, we hope in all of these markets. You know, Ireland, I mentioned is going to have a massive reduction in capex. It's going to start generating free cash but it's small but certainly Virgin Media Ireland looks and and will, uh, tick the Box on on many of these particular metrics. The UK is look at a trophy business, for us. Certainly something we are are are committed to for the long term and as a increasingly important, uh, investment and we are by no means suggesting that we can't achieve similar results or benefits in the UK. We're simply saying there we have a partner and we have to align with our partner on the best. Next move. We have a market that's a bit fragmented today and as we discussed a moment ago, it's going to require some form of rationalization. Um, you know, and and and so these are things that we work on with our partner. Uh,

So I'm not suggesting for a second, we can't achieve similar things in in the other assets or markets. Identified on that slide, I'm simply saying we're making good progress here, we'd like you to know about it.

Nick Lyall: That's great. Understood. Thanks.

Mike Fries: Yep. You got it.

That's great understood. Thanks. Yeah.

You got it?

Operator 2: Thank you. The next question is from the line of David Wright with Bank of America. Please go ahead.

Thank you.

The next question is from the line of David Wright, with Bank of America. Please go ahead.

David Wright: Yeah. Hi, guys. Thanks for taking the questions. Congratulations, Mike, on the new role. It's obviously quite a significant event to see John stepping away after such a significant impact on the industry. A couple of questions, please. The first is just on the UK guidance, and maybe my colleagues are better at this than me, but I'm trying to understand whether there seems to be a change in perimeter here. I'm looking at the numbers. I'm inclined to think that the same perimeter with the shift in B2B could have forced you to possibly push the revenue guidance lower. This is like for like without Daisy. It does feel like you could have had to push the revenue guidance lower. I'm just wondering if that's the case. I'm just struggling to reconcile that.

David Wright: The second question I had is it's just your language you used before, Mike, which I just found a little surprising, which was you said, We'll have to see what Telefónica wants to do. Now, I might have expected you to say, you know, We'll announce our plans jointly next week. Does Telefónica have any strategic rights or priority around the UK business in the shareholder agreement? Maybe I've just read this incorrectly. That might be the case. I'd appreciate that. Thank you.

Think that the same perimeter, with the shift in B2B, could have forced you to possibly push the revenue guidance lower. This is, like, for, like, without Daisy, it does feel like you could have had to push the revenue guidance slower. I'm just wondering if that's the case. I'm just struggling to reconcile that. And then, the second question I had is just your language used before mine, which I just found a little surprising, which was you sort of said, we'll have to see what Telefónica wants to do. Now, I might have expected you to sort of say, you know, we will announce our plans jointly next week. Does Telefónica have any sort of strategic...

Mike Fries: No, David, I'm glad you asked that question. Yeah, no, I appreciate that second question 'cause as I spoke those words, occurred to me those probably didn't come out very clearly. No, First of all, no, this is a 50/50 joint venture. We make decisions jointly, and I have a very good dialogue and working relationship with Marc. We are 100% aligned on everything that's happening in the UK. That is not what I intended to say. There was a reference to their capital markets day, and, you know, I'm just pointing out that we're not part of that. They'll have a lot of things to talk about to the market, and they will surely talk about those. We don't expect any surprises, if you will, around the UK market.

Rights or priority around the UK business in the shareholder agreement. Um, maybe I've just uh read this um incorrectly that might be the case. Um, I'd appreciate that. Thank you know David, I'm glad you asked that question. Yeah. And I appreciate that that second question because as I spoke those words I

Occurred to me, those probably didn't come out, very clearly know it. The first of all know, this is a 50-50 joint venture, we make decisions jointly, and I have a very good dialogue and working relationship with Mark. Um, we are 100% aligned on everything that's happening in the UK. So, that is not what I intended to say. Uh, there was a reference to their Capital markets day and, you know, I'm just pointing out that we're not part of that. That'll they'll have a lot of things to talk about to the market, and they will surely talk about those, but we don't expect

Mike Fries: We're aligned and talk every week about what we're gonna do together. Thank you for asking that. I'm glad I could clarify that. On the guidance, listen, I'll let Charlie dig into it. The way I see it is we're providing greater transparency at a time where it's probably needed for analysts to understand, you know, what's growing and what's not, and what are we getting our arms around. Charlie, do you wanna address that?

Expect any surprises if you will around the UK Market. We're aligned, uh, and talk every week about what's what? We're going to do together. So thank you for asking that. I'm, I'm, I'm glad I could clarify that, um, on the guidance. Listen. All that Charlie, dig into it. The way I see it is we're providing greater transparency at a time where it's probably needed for analysts to understand, you know, what's growing and what's not, and what are we getting our arms around? So Charlie, do you want to address that?

Charlie Bracken: Yeah. You know, look, I'm sorry if it's confusing. You're right. The difficulty is that we've now got this company called O2 Daisy, and we own 70% of it. 30% of it, we don't own. Therefore, at some point, hopefully very soon, at the end of Q4, we're gonna give you the key financials of that. As we align that company, it is tricky because there's different accounting policies, as I'm sure you'd realize, and blah, blah. What we're trying to do is confirm what we can tell you. We can tell you that the businesses, excluding the ones that went in there, are growing and we expect to grow. We have told you that to date, the B2B connectivity business, mobile and fixed that we have put into O2 Daisy is in decline.

Charlie Bracken: If that means you would interpret that as, you know, the combination of no O2 Daisy would have meant that the business would have not been growing, maybe that's right. It's somewhat academic because we've got to work through what the O2 Daisy combination is gonna develop. The whole idea was, you know, two companies are very synergistic and not just in costs, there's a material cost saving there, but also, you know, there's some revenue growth. I mean, I apologize if that's not clear enough and happy to take it offline, but that's certainly how we see it.

Mike Fries: Sure.

David Wright: Super, Charlie. Could I just add a quick one? Are there any puts and calls around that 30%, or is that just the ownership ad infinitum right now?

Yeah. So, you know, I'm sorry if it's confusing and you're right. The difficulty is that we've now got this company called 02 Daisy and we own 70% of it, so 30% of it, but we don't own. And therefore at some point hopefully very soon at the end of Q4, we're going to give you the the key financials of that. And as we align that company it is tricky because the different accounting policies, as I'm sure you'd realize and blah blah blah. So we're trying to do is confirm what we can tell you. So we can tell you that, the business is excluding the ones that went in. There are growing and we expect to grow and we have told you that to date the B2B connectivity business mobile and fix that, we have put into our 2 Daisy is in Decline. Now, if that means you would interpret that as you know the combination of Noah Daisy would have meant that the business would have not been growing. Maybe that's right but it's somewhat academic because we've got to work through what the O2 Daisy combination is going to develop and the whole idea was you know, 2 companies are very synergistic and not just in costs as a material cost saving their uh, but also, you know, there's some Revenue growth. Um, so I mean, I'm probably that's not clear enough and have a take it offline, but but certainly how we see it.

Super Charlie, could I just add a quick one? Are there any pots and calls around that 30%? Or is that just the, um, the ownership, um, adding an item right now?

Mike Fries: Charlie, do you want me to take that? It's Andrea.

Charlie Bracken: Yeah, yeah. Andrea, sorry. Yes, you should answer.

Charlie, do you want me to check that? It's Andrea.

Mike Fries: Yeah. No, they're on it, puts and calls, David.

David Wright: Thank you.

Yeah. Yeah, Andre. Sorry. I was wasn't it? Yeah. Yes. You should answer. Yeah. No. There are no puts and calls David.

Thank you.

Operator 2: Thank you. The next question is from the line of Ulrich Rathe with Bernstein Societe Generale Group. Please go ahead.

Thank you.

The next question is from the line of or great rates with Burns teams Society General group. Please go ahead.

Ulrich Rathe: Thanks very much. My question is about the refinancings, which is very impressive. Question to Charlie. Are all of these financings, can you confirm, fully swapped in the usual policies that you used to have in terms of into the local currencies of the operating units and also in terms of fixed rate swaps? I do think, I do remember you did some refinancings where you actually didn't implement these older policies. Just wanted to confirm that the refi is now are back to the old policies. Thank you.

Thanks very much. Um, my question is about the refinancing. Um, obviously very impressive. Question to Charlie are all of these financing can you confirm

Charlie Bracken: Yeah, to be honest, I don't think we've changed our policies. The bonds, we've all swapped at our fixed rate at the rate we issued at, which in some cases is actually higher. Just to compose the two questions, one is all currencies are matched, everything in the UK is sterling. We're not taking dollar or euro risk, that's a tick on all the policies. On the interest rates, all bonds are fixed by nature. On any bank debt, we haven't done a ton of bank debt because the bond market has been so strong, to be honest. We have maintained the swaps. Remember, the swaps are independent of the original bank financings. We are monetizing or riding those low interest rates till 2028, 2029, 2030.

Fully swapped in the usual policies that you used to have in terms of um, into the into the local, um, currencies of the operating units. And also in terms of fixed rates swaps because I do think I do remember that. You you did some refinancing where you actually didn't Implement um these these older policies. So so just wanted to confirm that the refi is now up back to the old policies. Thank you.

Charlie Bracken: Thereafter, we would have to come in at higher rates, and we are gradually pushing out those hedges. We are maintaining a pretty good, 3, 4, 5 year sort of fixed profile, depending on which market it is. I hope that sort of answers the question.

Uh, but thereafter, we would have to come in at higher rates and we are gradually pushing out those Hedges. So we are maintaining a pretty good uh, 345 year sort of fixed profile, depending on which Market it is.

I hope that sort of answers the question.

Ulrich Rathe: Very clear. Thank you very much. Thanks.

Very clear. Thank you very much.

Thanks.

Operator 2: Thank you. The next question is from the line of James Ratzer with New Street Research. Please go ahead.

The next question is from the line of James, ratzer, with new Street research. Please go ahead.

James Ratzer: Yes. Good morning, or good afternoon, Mike, Charlie. Thank you. I was just gonna ask one question. I mean, tough to keep it to one, but on Virgin Media, in their release, they are saying they're planning to bring leverage out to 4 to 5 times in the medium term. I was wondering if you can kind of talk us through the plans to get there. I mean, does that require some inorganic steps like a kind of dividend removal, you and Telefónica injecting capital into VMO2, or do you expect to get there organically through EBITDA growth? Thank you.

Yes. Uh, good morning. Also, good afternoon, my choice. Thank you. I was just going to ask one question. I mean, tough to keep it to one, but on Virgin Media.

In their release, they are saying they're planning to bring out of Port of 5 times. In the meantime, I was wondering if you can kind of talk us through the plans to get there. I mean does that require some inorganic steps? Like a a kind of dividend uh removal um you in telephonic injecting Capital into vmo2 or do you expect to get there organically through either dark growth? Thank you.

Mike Fries: James, that was a little hard to hear. I want to be sure we got the question right. I think you're asking about leverage expectations at VMO2 of staying within the 4 to 5 range. I think that is our objective, and I think that is achieved in a number of ways. The one you didn't mention, which is organic EBITDA growth, which Lutz and the team have been able to deliver consistently. Organically, the business should delever over time. I don't think we're in a position today to talk about dividends or asset sales or things of that nature, although we do have a residual tower interests that could be used in that regard. You know, we're always open-minded about it. Getting within the range that we've maintained historically is always our underlying goal.

James, that was a little hard to hear. I want to be sure. We got the question, right. I think you're asking about

Mike Fries: Charlie, I don't think there's much to add to that, but go ahead if you think there is.

Charlie Bracken: No, no, I think that's absolutely right. Look, you know, listen, we are a four to five times lever. We're definitely through that in the UK. Good synergies, you know, potentially from this O2 Daisy deal, which we've talked quite a bit about today. As Mike said, you know, we expect some, you know, organic growth, and let's see how we go.

Uh, leverage expectations at vmo2, uh, staying within the 4 to 5 range and I think that is our objective and I think that is achieved in a number of ways. But 1, you didn't mention, which is organic IBA, dog growth, which Lutz in the team have been able to deliver consistently? So organically the business, uh, should deliver over time. I don't think we're in a position today to talk about dividends or asset sales or things of that nature. Although we do have a tower, residual Tower interests, that could be used in that regard and and, uh, you know, we're always open-minded about it. But getting within the range that we've maintained historically is always our underlying goal, uh, Charlie. I don't think there's much to add to that, but go ahead, if you think there is,

No no I think that's absolutely right. Look, you know. Listen we are a 4 to 5 times level. We're definitely through that in the UK, it's a good citizen you know, potentially from this 02 Daisy deal, which we've talked about a bit about today. Uh, and as Mike said, you know we expect some, you know, organic growth and let's see how we go.

James Ratzer: Great. Thank you.

Great. Thank you.

Operator 2: Thank you. The next question is from the line of Matthew Harrigan with The Benchmark Company. Please go ahead.

Thank you.

Matthew Harrigan: Thank you. I'll just ask one question right out of the blocks. I mean, I think when you look at the US and the UK, it's kinda competing dysfunction on the political side. That Lutz was recently quoted on Starmer's infrastructure tax, and I don't think there'd be any implications there this year about what might be the longer-term implications. I was on the Comcast Q&A, so I apologize if you talked about this in the main discussion, but I rather suspect you didn't get to the topic. Thanks.

The next question is from the line of Matthew Hairegen with the Benchmark Company. Please go ahead.

Uh, thank you. I I'll just ask 1 question right out of the blocks. I mean, I think when you look at the US and the UK, it's kind of competing dysfunction on the uh political side. But that looks was recently quoted on starmer's infrastructure tax and I don't think there'd be any implications this year but what might be the longer term implications I was on the Comcast Q&A so I apologize if you talked about this in the main discussion by I rather suspect you you you didn't get to the topic. Thanks.

Mike Fries: Matt, you're asking, that's a big question. You know, politics in Europe vis-a-vis our business. I mean, I'll step back a minute to say that I think we are approaching, hopefully approaching a bit of an inflection point here where our industry, for example, the mobile industry, just put a letter out to Von der Leyen, I think two days ago, three days ago, making it clear to her that change is critical, necessary, needed if Europe is to, you know, maintain any sort of, you know, path to leadership in, in digital and, you know, industrially, really any category productivity. We continue to make our case as an industry, as a sector, that we're not just critical infrastructure. We are, you know, necessary for pretty much every aspect of growth and productivity that regulators and politicians are searching for.

Matt, I, you're asking it's a big question. You're, you know, politics in Europe, V our business. I mean, I'll, I'll step back a minute to say that. I think we are approaching, hopefully approaching a bit of an inflection point here, where

Our industry, for example, the mobile industry just put a letter out to vand. I think, 2 days ago, 3 days ago, making it clear to her. That change is critical necessary needed if Europe is to you know, maintain any sort of uh, you know, path to leadership in in in digital and you know industrially really any category productivity. So we can continue to make our case as an industry as a sector that uh we're not just critical infrastructure. We are you know, necessary for pretty much every aspect of growth.

Mike Fries: Maybe get off our throats. That is, I think, you know, being received positively. In the UK in particular, I think the government has had a growth initiative, a growth-minded approach to regulation. Recent changes at the CMA, for example, the Competition Commission there, are positive in that they seem to be reflecting a much more growth-minded approach to M&A and to industry consolidation. I think there's green shoots across the operation, the markets we operate in. There are still pain points, you know, broadband taxes and things of this nature that are unnecessary, and we continue to fight those on a regular basis. I think more broadly, I would say it's more of a tailwind these days than not.

And productivity that regulators and politicians are searching for so maybe get off our throats and uh, and that is, I think, you know, being received positively in the UK in particular, I think the government has had a growth initiative, a growth minded approach to regulation, recent changes at the CMA. For example, the competition commission there are positive in the in that they seem to be reflecting a much more growth-minded approach to m&a and to Industry consolidation.

Mike Fries: Whether it's sovereignty, where governments are realizing that the critical infrastructure of telco is part of the solution for broader sovereignty and independence, or whether it's just, you know, good economics that you need healthy telecom infrastructure to compete in the global marketplace. All of those things I think are, you know, coming together a bit, and I'm more encouraged now than I've been in a long time.

Loco is part of the solution for broader sovereignty and independence, or whether it's just, you know, good economics that you need healthy telecom infrastructure to compete in the global marketplace. All of those things, I think, are coming together a bit, and I'm more encouraged now than I've been in a long time.

Matthew Harrigan: Thanks.

Thanks.

Operator 2: Thank you for your questions. This will conclude the question and answer portion of today's call, and I would like to hand back to Mr. Mike Fries for any additional remarks.

Thank you for your questions. This will conclude the question and answer portion of today's call and I would like to hand back to Mr. Mike, freeze for any additional remarks

Mike Fries: Great. Well, thanks everybody. Appreciate you joining as always, and we look forward to getting back on the phone for our year-end call, probably in the February timeframe. Hopefully with updates on the strategic roadmap on how we're driving commercial momentum, and more importantly, also how we're reshaping or continuing to reshape our corporate operating model. Appreciate your listening in today, and we'll speak to you all very soon. Take care.

Great. Well, thanks everybody. Uh appreciate you joining as always and we look forward to getting back on the phone for our year end call.

Probably in the February time frame, uh, hopefully with updates on the Strategic road map on how we're driving commercial momentum. Um, and more importantly also how we're reshaping or continuing to reshape our corporate operating model. So appreciate your uh, listening in today and we'll speak to you all very soon. Take care.

Operator 2: Ladies and gentlemen, this concludes Liberty Global's Q3 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's third quarter 2025 investor call. As a reminder, a replay of the call will be available in the investor relations section of Liberty Global's website. There, you can also find a copy of today's presentation materials.