Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an outlook for free cash flow beyond 2025, considering CapEx trends and other financial factors? A: Michael Fries, CEO, explained that free cash flow is a key metric for Liberty Global. He noted that VMO2 and VodafoneZiggo are generating free cash flow and expect growth. In Ireland, CapEx will decrease as fiber build completes, leading to positive free cash flow. Belgium's situation is more complex due to ongoing NetCo consolidation, but the company anticipates positive free cash flow trajectories across all markets over time.
Q: How do you plan to balance increasing MSA fees from OpCos with maintaining their EBITDA and free cash flow, especially with potential IPOs or spinoffs? A: Charles Bracken, CFO, stated that the focus is on providing valuable services that are expensive to replicate at the OpCo level, such as treasury services. The goal is to ensure the value provided is recognized while also considering cost reductions and rethinking the operating model. The approach is not just about cost allocation but also about value creation.
Q: What is the strategy for share buybacks, particularly regarding A shares versus C shares? A: Michael Fries, CEO, mentioned that the company has not been buying shares recently but plans to resume buybacks. The decision on which share class to buy back will be dynamic and disclosed over time.
Q: How might an acceleration in the handset replacement cycle impact your mobile operations in the UK and Benelux? A: Lutz Schuler, CEO of Virgin Media O2, noted that while O2 is a premium brand with a strong position in high-end handsets, they have not yet seen an acceleration in demand due to AI functionalities. Any increase in demand would be considered upside, but it is not currently factored into their guidance.
Q: Can you provide details on the spectrum position in the UK, especially in light of the Vodafone 3 transaction? A: Lutz Schuler, CEO of Virgin Media O2, explained that while specific details on spectrum and pricing cannot be disclosed, the transaction will significantly improve their spectrum position relative to market share. This strengthens their long-term relationship with Sky and positions them well in the market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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