Liberty Global Ltd Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Carl Murdock-Smith - Citigroup Inc. - Analyst : That's brilliant. I wanted to ask on the UK net adds, and specifically the kind of commentary around the broadband additions and tough market conditions. I was wondering if you could provide a bit more color on that topic. I mean you talked about One Touch Switching. You talked about market competition, AltNets and also, I guess, price rise impact as well. Could you provide some more color in terms of how much you assign to each one? And I suppose you're talking about One Touch Switching is interesting given that it was also in place last quarter, but we didn't seem to see the same impact last quarter. So what are you seeing through the quarter as well?

Question: Robert Grindle - Deutsche Bank AG - Analyst : That was an exciting hour or so. The question is on the Netherlands, actually. I think it's impressive that you can do the DOCSIS upgrades within the existing CapEx envelope. Just to be clear, is there an assumption about CPE costs and take-up of the higher speeds within that CapEx envelope? And you said you're going to pay -- you're going to sell towers in the Netherlands to reduce debt a bit. You've said that before a few years ago, if I'm not mistaken. So is there something that's changed now between yourselves and Broad that you've got a bigger plan for the business that's unlocked this new ambition?

Question: Polo Tang - UBS Investment Bank - Analyst : It's really just to focus a bit more in terms of VodafoneZiggo. I'd just be interested in terms of any commentary from Stephen and Ryan in terms of what he's doing differently since he's taken over? And then also any first impressions but also be specifically interested in terms of the customer response, the EUR5 price cut in terms of broadband, has this resulted in any improvement in terms of net adds for Q2? And then just given the weakening EBITDA trends and with leverage at VodafoneZiggo at 6x, does it make sense to continue upstreaming a dividend to shareholders? Is cutting the dividend, not the faster way to delever VodafoneZiggo?

Question: Stephen Malcolm - Redburn (Europe) Limited - Analyst : And I'll take a couple if I can related on VodafoneZiggo again. So Stephen, I guess you're going to have to step up the plain again. Just on the CapEx, can you give us an idea where the savings are to fund the DOCSIS 4.0 rollout, you're saying a sort of stable EUR900 million. So what's coming out to fund that? And also how long until you get the whole network upgrade a rough sort of idea of the time frame. And maybe you said it, I missed it, but it would be great to hear that. And just so on the OpEx savings. I'm curious that clearly, part of the EBITDA downdrafts this Champions League. Stephen, you clearly come from a rich content environment in Sky. I can't give a single telco that's really made money out of Champion League rights. Is there something that you need to own or something that you would give up fairly easily to try to improve EBITDA in a couple of years' time?

Question: Joshua Mills - BNP Paribas Exane - Analyst : Thanks for the questions. I understand you probably can't give too much detail on this one. But maybe if you'd be able to give us some color on the kind of conversations you're talking to Telefonica about on VMO2, that would be helpful. How do they see the asset? How do you see the assets? Is it still a priority longer term that you can reduce leverage at this entity be that through asset sales or perhaps lowering the dividend payment. Just any broad brush commentary there you could give would be very helpful as obviously a bit of [price phase] see the net taking a pause. And then secondly, on the network strategy, in the Netherlands, I think you very clear that you're not going to build fiber. But I think there was some comments at a conference from yourself, Mike, recently that you may be open to partnering with or doing deals with the AltNets longer term. Is that still something you'd be considering under the right conditions? Or do you think the DOCSIS 4 strategy you're putting in place today will be enough to provide the speeds you need across the whole footprint long term?

Question: Ulrich Rathe - Bernstein Ltd - Analyst : So on the Netherlands, I wanted to ask, one of the sort of arguments that is floating around on the difference between staying with HFC and going to full fiber is that the operating costs on the cable option, even with the higher speeds that DOCSIS 4 offers will be structurally higher in the long term and that this is a competitive issue. How do you think about that element of it, the higher operating costs and potential margin impact relative to competitors? If I may just put in one clarification on the UK NetCo. Is there a time scale to this pause? Is this something that they you would expect to be talking to us again in six months or over the next two years? Or is there any sense of when this sort of this pause might end?

Question: Matthew Harrigan - The Benchmark Company - Analyst : Two questions, one on Formula E and then on 5G, both consumer and business services. When that Other Liberty bought Formula One, it was pretty apparent in some of the practices under Ecclestone weren't optimal on social media, promotion, sponsorship, et cetera, imbalances with Ferrari and between the structure of the teams. What do you think the missteps in the past have been? And what do you think you can do to elicit more interest and enhance the team, values as well because that was clearly one of the things that Liberty did right on Formula One. And how do you assess kind of the competitive position? I know it's very different, but kind of Formula E relative to Formula One in terms of the very long-term potential? And then secondly, Mike, you've been very vocal about 5G has kind of been table stakes on the consumer side, very difficult to monetize, disappointing in the U as well, whereas network slicing, you've got a lot of opportunities on the business services side. But is there anything happening with better integration of AI and the handsets, say, complexity or even like 8K or whatever makes people want to stream more on 5G mobile that would finally enable you and others to kind of benefit from the rising tide on better monetization for the European consumer?

Question: Matthew Harrigan - The Benchmark Company - Analyst : Congratulations on Sunrise, that has really worked out well.

Question: David Wright - BofA Securities - Analyst : I think we've covered Holland now. So just, I guess, a question on the NetCo and just a super quick aside on Formula E, but the NetCo, I mean, Test Chairman has obviously indicated an H2 strategic review to be communicated and then there could obviously be some moves alongside that. But that means you kind of have to wait a little. And I'm just wondering how comfortable you guys are waiting because one of the objectives of NetCo was always to provide a vehicle to potentially consolidate the UK. UK competition is hitting you guys very hard now, hitting everyone very hard. So I think the general view is the sooner that consolidation comes the better. And of course, it speeds up your time to market, and you've obviously just brought back the nexfibre targets a little bit. So I'm just wondering how comfortable you are kind of sitting on the sidelines when arguably, you guys are running behind target and need to move a little quicker. And just on Formula E, yes, I did notice that very huge departure of McLaren, who prioritized Formula One. That is obviously a marquee brand. I'm just wondering, do you guys have any opportunity to sort of -- was there any opportunity to keep them involved or even bring them back? That seemed like quite a big loss for the sort of -- for the branding of the sport? Or maybe I'm wrong on that.

Question: James Ratzer - New Street Research LLP - Analyst : Yes. I just had one question, please, if I look at VodafoneZiggo, you've obviously been facing some broadband customer losses there for a few quarters now, and you've now decided to kind of react with a new strategy to reprice on the front book. And if I look at the UK, you've now just had 44,000 broadband losses this quarter. I mean if that were to continue as well, and I mean, it seemed like some of the one-touch switching effect is going to continue at least into Q2, at some point, do you need to consider a similar type of strategic shift on pricing in the UK as well.

Question: James Ratzer - New Street Research LLP - Analyst : Got it. So does that mean you feel that you can probably get back to a kind of customer stability in the UK without having to make major changes to the front book pricing?