Liberty Global plc Q1 FY2026 earnings call

• Operational Performance: Delivered strong operational performance with fourth straight quarter of steady broadband improvement across big three markets and stable fixed to mobile ARPUs. Highlighted commercial momentum from multi-brand strategies, network investments, and AI implementations.
• Value Unlock Initiatives: Progress on value unlock initiatives, including acquisition of Vodafone's 50% stake in Dutch JV on track to close in summer, restructuring in Belgium, and progress on Netomnia transaction in UK.
• Liberty Growth Portfolio: Fair market value of growth portfolio remained broadly stable at $3.4 billion, with investments in various verticals and focus on rotating capital.
• Formula E: Unveiled next generation race car Gen 4, which has significant power, performance, and sustainability improvements.

Benelux Companies

• Vodafone Ziggo: Q1 revenue declined 1.8% due to lower customer base and repricing impact, but adjusted EBITDA declined 6.4% due to higher marketing costs and network investments. Broadband performance improved for the fourth consecutive quarter, and post-paid mobile net ads improved sequentially.
• Telenet: Q1 revenue was broadly stable, with adjusted EBITDA growing 8.9% due to lower content costs from exiting football broadcasting rights. Broadband delivered its highest quarterly result in 10 years.
• WIRE: Revenue declined 1% due to a new pricing model, but adjusted EBITDA declined 4.6% due to investment in build capability.

UK and Ireland

• Virgin Media O2: Total service revenue declined 3% due to competitive pressure, but wholesale revenue growth offset some of the decline. Adjusted EBITDA declined 3.4%.
• Virgin Media Ireland: Revenues declined 1.4% due to competition, but adjusted EBITDA declined 7.1% due to top-line pressures.

• Reconfirming all 2026 guidance metrics of VMO2, Vodafone Ziggo, Telenet, and corporate costs.
• Anticipating WIRE to draw on standalone facility following BCA approval and fully repay short-term funding from Liberty Global consolidated cash via Telenet.
• Aiming to end 2026 with around $1.5 billion of corporate cash despite expected outflows from Vodafone transaction and Net Omnia acquisition.

• Regulatory risks related to the approval of transactions such as the Proximus collaboration and Netomnia acquisition.
• Competitive risks in markets like Belgium and the UK, impacting mobile and fixed ARPUs and subscriber numbers.
• Risks associated with the execution of value unlock initiatives, including potential delays in completing transactions or achieving expected synergies.

Q: On Virgin Media O2 about wholesale service revenue growth, did they know about the change in accounting treatment when issuing guidance in February?

A: It was basically in budget, a difficult business to forecast, but was a pretty strong quarter.

Q: On UK competitive dynamics, how have recent price rises landed and are you optimistic post-paid mobile losses can stabilize?

A: Price rise landing well, no spike in churn so far, expecting recovery in mobile service revenue.

Q: If delayed for another six to nine months on the Proximus collaboration, what happens?

A: Confident in completing transaction over next six to eight weeks, with necessary 30-day review at European Commission.

Q: On leverage of the New Zygo group, what's the pro-forma leverage position?

A: Relatively high elevated, but confident in path to get to around four and a half times by 2028 with asset sales and organic EBITDA growth.

Q: On Belgium broadband growth drivers, what's behind it?

A: Strong growth in base brand, 50-50 between televent footprint and growth in Wallonia, with migration out of DVBC to full IP.

Q: On more benign regulatory environment, any specifics?

A: EU merger guidelines released are positive, looking at modern and pragmatic approach to in-market consolidation.

Q: On one billion synergies in SIGL, rough makeup?

A: Consisting of financial, operating cost, procurement synergies, with more detail to come closer to legal day one.

Q: On DOCSIS 4.0 in Holland, when's commercial launch?

A: Field trials underway, four and eight gig trials later in the year, more info closer to public listing.

Q: On having a separate infra co making Servco more agile, what's the view?

A: Forcing efficiency and agility, with Belgium as a test showing benefits like focusing on customer experience and better margins.