Liberty Global plc (NASDAQ:LBTYA) Q4 2022 Earnings Conference Call February 23, 2023 9:30 AM ET Company Participants Mike Fries - Chief Executive Officer Charlie Bracken - Executive Vice President & Chief Financial Officer André Krause - Chief Executive Officer, Sunrise Lutz Schüler - Chief Executive Officer, Virgin Media Rick Westerman - Senior Vice President of Investor Relations Conference Call Participants Sam McHugh - BNP Exane James Ratcliffe - Evercore Maurice Patrick - Barclays Robert Grindle - Deut ...

LIBERTY GLOBAL PLC INVESTOR CALL 04 2022 February 23, 2023 (x-) O 2 ) 00 lve XO Sunrise "SAFE HARBOR" Forward-Looking Statements + Disclaimer 2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements with respect to our strategies, future growth prospects and opportunities; expectations regarding our and our businesses' financial performance, including revenue, Rebased Revenue, EBITDA, Adjusted EBITDA, Adjusted Fr ...

Financial Data and Key Metrics Changes - The company confirmed its original guidance for 2022, including distributable cash flow guidance of $1.7 billion [24][31] - The company reported a significant improvement in EBITDA growth in three of its four markets, driven by synergies, cost controls, and price increases [7][28] - Year-to-date, the company delivered $979 million of full company distributable free cash flow, remaining on track to deliver $1.7 billion for the full year 2022 [31][32] Business Line Data and Key Metrics Changes - Broadband performance remained stable, with growth in the U.K. offsetting declines in Switzerland, Belgium, and Holland [10][15] - The Postpaid Mobile segment saw improved growth trends, particularly supported by the iPhone 14 launch and converged offerings [10][11] - Consumer Fixed business has been declining across all major markets, with video and voice RGUs decreasing, although broadband revenue is growing [15][17] Market Data and Key Metrics Changes - Virgin Media O2 reported 19,000 net adds in Broadband, achieving a new high in national market share [11] - Sunrise experienced stable broadband performance, with 42,000 postpaid net adds in Swiss mobile, aligning with Swisscom [12] - VodafoneZiggo's broadband net adds were negative at 9,000, but mobile postpaid adds were strong at 67,000 [13][25] Company Strategy and Development Direction - The company is focused on expanding its fiber plans in the U.K., Ireland, and Belgium, and increasing 5G coverage across all markets [8][20] - A commitment to buy back $1.7 billion of shares in 2022, with a minimum commitment to buy back 10% of shares in 2023 [8][22] - The company is actively pursuing network strategies to enhance its competitive position in both fixed and mobile segments [17][20] Management's Comments on Operating Environment and Future Outlook - The management expressed caution regarding the macroeconomic outlook for 2023 due to inflation, energy costs, and rising interest rates [6][24] - Despite macro challenges, the company remains confident in its ability to deliver strong results, supported by solid connectivity trends and diverse revenue streams [24][28] - Management highlighted the importance of maintaining a cash balance to capitalize on potential opportunities in a volatile market [40] Other Important Information - The company has a strong balance sheet with $4 billion in cash and no near-term refinancing needs [23][32] - The fair value of the company's portfolio fell slightly to $3 billion, primarily due to declines in ITV share price [30] Q&A Session Summary Question: Impact of higher rate environment on capital structure - Management indicated that existing fixed-rate debt is not directly impacted by higher rates, but refinancing could be affected [34][35] Question: Profit margins on video versus broadband - Video margins vary by market, generally between 50% to 75%, while broadband generates around 99% margin [35][36] Question: Update on UPC migration in Switzerland - The migration process is ongoing, with expectations to take around two years to fully transition UPC customers to the new Sunrise brand [41][42] Question: Pricing environment in the Netherlands - Management refrained from commenting on future pricing strategies but acknowledged the potential for inflation-related adjustments [48][59] Question: Energy and wage impacts into 2023 - The company is approximately 70% hedged on energy costs for 2023, with ongoing wage negotiations largely completed [70][72]

Liberty Global plc (NASDAQ:LBTYA) Q2 2022 Results Earnings Conference Call July 29, 2022 9:30 AM ET Company Participants Mike Fries - Chief Executive Officer Charlie Bracken - EVP, Chief Financial Officer Lutz Schüler - CEO, Virgin Media Conference Call Participants Stephen Malcolm - Redburn Luis Sanchez-Lecaroz - Credit Suisse James Ratcliffe - Evercore ISI Samuel McHugh - BNP Paribas Exane Robert Grindle - Deutsche Bank David Wright - BofA Securities Polo Tang - UBS James Ratzer - New Street Research Ulri ...

Customer Base and Market Presence - As of June 30, 2022, the company served 4,105,900 fixed-line customers and 5,788,800 mobile subscribers, with networks passing 7,512,100 homes[258]. - The company’s ability to maintain or increase subscription numbers is critical for future financial performance, with a focus on customer service and new product offerings[253]. - The ongoing COVID-19 pandemic has had a relatively minimal impact on the company, with strong demand for products and services during the second quarter of 2022[260]. - The company’s operations in the U.K. were contributed to the VMO2 JV, which began accounting for its 50% interest as an equity method investment on June 1, 2021[257]. Financial Performance - Total revenue for the three months ended June 30, 2022, was $1,754.2 million, a decrease of 41.3% compared to $2,989.2 million in the same period of 2021[273]. - For the six months ended June 30, 2022, total revenue was $3,607.5 million, down 44.4% from $6,489.1 million in the prior year[274]. - Consolidated Adjusted EBITDA for the three months ended June 30, 2022, was $649.8 million, a decrease of 45.8% from $1,199.1 million in the same period of 2021[270]. - Adjusted EBITDA for the three months ended June 30, 2022, was $649.8 million, down from $1,199.1 million, a decrease of $549.3 million, or 45.8%[289]. - Adjusted EBITDA for the six months ended June 30, 2022, was $1,334.1 million, down from $2,515.3 million in the same period of 2021, a decrease of approximately 47.0%[270]. Revenue Breakdown - Total subscription revenue decreased by $861.6 million, or 55.0%, from $1,567.8 million to $706.2 million in the three months ended June 30, 2022[296]. - Residential fixed revenue decreased by $881.0 million, or 54.6%, from $1,614.4 million to $733.4 million in the same period[296]. - Residential mobile revenue decreased by $149.0 million, or 24.4%, from $611.8 million to $462.8 million[296]. - B2B revenue decreased by $220.8 million, or 39.6%, from $557.4 million to $336.6 million[296]. - The average revenue per household (ARPU) has been adversely impacted by competition and macroeconomic factors, affecting the total number of customers[259]. Regional Performance - In Switzerland, the decrease in residential fixed subscription revenue was primarily due to a decline in the average number of customers and ARPU, resulting in a total decrease of $12.6 million for the three-month period[278]. - Belgium's total revenue decreased by $85.7 million in the three-month period, attributed to a decline in subscription revenue and the impact of foreign exchange losses of $91.0 million[282]. - Ireland's revenue for the three months ended June 30, 2022, decreased significantly, with specific details pending further analysis[285]. - The Central and Other segment reported a revenue increase of 15.0% for the three-month period, totaling $180.6 million compared to $157.0 million in the prior year[273]. - The company noted a significant decline in U.K. revenue, which was $1,101.4 million in the prior year, now reported as zero due to the closure of the U.K. JV Transaction[275]. Costs and Expenses - Programming and other direct costs of services decreased by $363.3 million or 43.1% for the six months ended June 30, 2022, compared to the same period in 2021[308]. - Other operating expenses excluding share-based compensation decreased by $164.6 million or 38.3% for the three months ended June 30, 2022, and by $399.2 million or 42.6% for the six months ended June 30, 2022, compared to 2021[315]. - SG&A expenses excluding share-based compensation decreased by $157.8 million or 30.6% for the three months ended June 30, 2022, totaling $358.6 million[318]. - Total SG&A expenses excluding share-based compensation decreased by $395.3 million or 35.5% for the six months ended June 30, 2022, compared to the same period in 2021[323]. Foreign Currency Impact - The company experienced significant foreign currency transaction losses of $1,148.7 million for the three months ended June 30, 2022, compared to losses of $131.4 million in the same period of 2021[270]. - The impact of foreign exchange fluctuations resulted in a total revenue decrease of $45.5 million for the three-month period in Switzerland[278]. - Total foreign currency transaction gains for the three months ended June 30, 2022, amounted to $1,148.7 million, a significant increase from $131.4 million in the same period of 2021[338]. - The company experienced a foreign exchange impact, with 55.2% of reported revenue derived from subsidiaries using the euro and 43.7% from those using the Swiss franc[388]. Cash Flow and Debt - Consolidated cash and cash equivalents totaled $2,391.1 million as of June 30, 2022, with $1,510.3 million held by Liberty Global and unrestricted subsidiaries[360]. - The outstanding principal amount of consolidated debt and finance lease obligations was $13.3 billion as of June 30, 2022, with $0.8 billion classified as current and $12.2 billion not due until 2028 or thereafter[374]. - The company reported a net cash provided by operating activities of $1,363.0 million for the six months ended June 30, 2022, a decrease of $487.8 million from $1,850.8 million in 2021[378]. - The net cash used by investing activities was $2,581.3 million for the six months ended June 30, 2022, compared to a usage of $5,407.2 million in 2021, reflecting a change of $7,988.5 million[378]. Gains and Losses - The company reported a gain of $693.3 million from the Telenet Tower Sale during the three months ended June 30, 2022[270]. - The company recognized impairment, restructuring, and other operating items of $67.7 million for the six months ended June 30, 2022, compared to $51.2 million in the same period of 2021[328]. - The company reported a net gain on debt extinguishment of $2.8 million for the six months ended June 30, 2022, compared to a net loss of $90.6 million for the same period in 2021[341]. - The company recognized a pre-tax gain of $693.3 million from the Telenet Tower Sale during the three months ended June 30, 2022[348].

Financial Data and Key Metrics Changes - The company reported stable to slight growth in core assets, with Virgin Media O2 delivering stable top-line growth and mobile revenues excluding handsets [26] - EBITDA growth for Virgin Media O2 was over 2%, while Sunrise UPC achieved close to 10% EBITDA growth [28][29] - The consolidated group reported over 2% EBITDA growth, with free cash flow of $137 million on an adjusted and distributable basis [30][29] Business Line Data and Key Metrics Changes - Virgin Media O2's broadband and postpaid mobile ads were flat for the quarter, impacted by a significant price rise and reduced marketing activity [11][12] - Sunrise UPC experienced strong broadband and postpaid mobile growth, totaling 56,000, supported by a new full-service offering [15] - Telenet delivered positive broadband and postpaid mobile ads, aided by a single product marketing strategy [17] Market Data and Key Metrics Changes - The U.K. market saw a decline in broadband sales, attributed to the end of lockdowns and consumer focus on utility costs [12] - In Switzerland, Sunrise UPC's mobile subscription revenues grew, driven by brand segmentation and reduced discounting [27] - The Netherlands reported stable revenue growth supported by mobile subscriptions reaching a five-year high [27] Company Strategy and Development Direction - The company is focused on M&A opportunities in the European Telco sector, having successfully closed the sale of its Polish business for $1.7 billion [9] - The strategy includes prioritizing stock buybacks and exploring direct investment opportunities in core FMC operations [24][25] - The company aims to achieve significant synergies from fixed-mobile mergers, with expectations of $11 billion in total synergies [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic environment, citing low churn rates and stable revenues despite inflationary pressures [8][10] - The company reiterated its 2022 guidance, including $1.7 billion of distributable cash flow, despite higher energy and inflation costs [36] - Management highlighted the importance of price adjustments to mitigate inflation impacts and maintain financial stability [31][66] Other Important Information - The company is transitioning to report EBITDA after leasing expenses (EBITDAaL) to align with European competitors [37] - The company has a strong balance sheet with total liquidity of $4.7 billion, including $3.2 billion in cash [35] Q&A Session Summary Question: Thoughts on net churn fee lobbying - Management acknowledged the ongoing debate in the European Telco sector regarding recouping network costs from streaming services, expressing skepticism about its success but willingness to participate if beneficial [40][41] Question: Buyback strategy and potential increase - Management confirmed an opportunistic approach to buybacks, indicating that they are ahead of the 10% target and will assess the situation in the second quarter call [44][46] Question: VodafoneZiggo ownership discussions - Management stated that VodafoneZiggo remains a successful FMC champion, with no current plans to discuss full ownership but recognizing its strong performance [48][47] Question: Broadband net ads and disconnections - Management noted that price rises have led to higher disconnections, but churn rates remain stable, and they are monitoring the situation closely [50][51] Question: Mitigating cost inflation - Management emphasized the importance of passing through price increases to customers to mitigate inflation impacts, with various price adjustments planned across markets [66][67] Question: Venture portfolio and 5G opportunities - Management expressed confidence in their venture portfolio, focusing on strategic tech investments, and acknowledged the potential of 5G enterprise networks as a long-term opportunity [74][75]

Liberty Global plc (NASDAQ:LBTYA) Q4 2021 Earnings Conference Call February 18, 2022 9:00 AM ET Company Participants Michael Fries - Vice Chairman, President and CEO Charles Bracken - EVP and CFO Lutz Schüler - CEO, Virgin Media André Krause - CEO, Sunrise UPC Business Conference Call Participants Polo Tang - UBS David Wright - BofA James Ratzer - New Street Research Robert Grindle - Deutsche Bank Carl Murdock-Smith - Berenberg Nick Lyall - SocGen James Ratcliffe - Evercore ISI Maurice Patrick - Barclays Ma ...