Robert Grindle

Robert Grindle with Deutsche Bank inquired about the UK deal, specifically if the 8 million nexfibre homes and 2.1 million HFC home upgrades would definitively unlock the UK wholesale opportunity, or if they need to wait for the full 8 million. He also asked about the timeline for upgrading the rest of the VMO2 network.

Answer

CEO Mike Fries explained that the 8 million fiber homes would be achieved by the end of 2027, with VMO2 being a significant wholesale partner for this 20 million home footprint. Lutz Schüler, CEO of Virgin Media O2, added that 5 million homes are already upgraded to fiber, making 13 million fiber homes accessible, but no further timeline for remaining upgrades has been disclosed.

Robert Grindle inquired about the definitive impact of the 8 million Nexfibre homes and the 2.1 million HFC home upgrade on unlocking the UK wholesale opportunity, and the timeline for upgrading the remaining VMO2 network.

Answer

Mike Fries, CEO of Liberty Global, explained that the 8 million fiber homes would be achieved by end of 2027, creating a significant wholesale opportunity. Lutz Schüler, CEO of Virgin Media O2, added that 5 million homes have already been upgraded to fiber, contributing to a 13 million fiber home access, but did not provide a timeline for further upgrades.

Robert Grindle of Deutsche Bank AG inquired about the VodafoneZiggo strategy, asking if the DOCSIS upgrade costs include CPE and take-up assumptions, and what prompted the decision to sell Dutch towers now.

Answer

Executive Chairman Michael Fries confirmed that the company and its partner are now aligned to proceed with the tower sale, with proceeds intended for debt reduction. Regarding the network, he stated their DOCSIS 4 plan is aligned with U.S. peers like Comcast and Charter, making cost estimates reliable and removing the 'overhang' of a potential fiber build. Executive Stephen van Rooyen added they are comfortable the upgrade fits within the existing CapEx envelope.

Robert Grindle of Deutsche Bank inquired about the pace of U.K. fiber construction, asking if the organic build for nexfibre and the VMO2 fiber upgrade speed indicated a slowdown, possibly due to the Upp acquisition integration or pending a NetCo wholesale deal.

Answer

An executive, likely from Virgin Media O2, clarified that nexfibre built nearly 300,000 premises in the quarter, which is not a slowdown and is on plan. Michael Fries, Executive, added that the figures do not yet include any impact from the Upp acquisition, which is a factor for Q4 and beyond.

Robert Grindle of Deutsche Bank asked about the Benelux holdco, inquiring if investor interest is contingent on controlling VodafoneZiggo and if there was any change in Vodafone's stance. He also questioned VMO2's pricing strategy for its nexfibre footprint.

Answer

Michael Fries, CEO of Liberty Global, stated that investor interest in the Benelux holdco is not necessarily contingent on controlling the underlying assets. He deferred questions about Vodafone's plans to them. On U.K. pricing, Lutz Schüler, CEO of VMO2, confirmed that they maintain a premium ARPU for the Virgin Media brand in nexfibre areas and are not matching lower altnet prices.

Robert Grindle from Deutsche Bank sought details on the 15-20% performance improvement for 5G SA customers, questioned if an interim dividend was considered, and asked about the timing of potential cost savings from the U.S. delisting.

Answer

CEO André Krause confirmed the 15-20% performance improvement is versus regular 5G and covers latency, uplink, and downlink speeds. CFO Jany Fruytier responded that an interim dividend is being evaluated but faces technical hurdles under Swiss law, and that significant cost savings from the SEC deregistration are not expected to materialize until 2027.

Robert Grindle from Deutsche Bank sought clarification on the 15-20% performance improvement from 5G SA, the company's stance on paying an interim dividend, and the timeline for potential cost savings from the U.S. delisting.

Answer

CEO André Krause confirmed the 15-20% 5G SA performance gain is versus standard 5G and applies to latency, uplink, and downlink speeds. CFO Jany Fruytier stated that while an interim dividend is being evaluated, technical hurdles make it a more likely consideration for 2026. She also clarified that significant cost savings from the SEC deregistration are not expected to materialize until 2027.

Robert Grindle of Deutsche Bank sought specifics on the 15-20% performance improvement for 5G SA customers, asking if it was relative to standard 5G and which metrics improved. He also inquired about the possibility of an interim dividend and the timing of cost savings from the U.S. delisting.

Answer

CEO André Krause confirmed the 15-20% performance gain is for 5G SA versus standard 5G, with improvements seen in latency, uplink, and downlink speeds. CFO Jany Fruytier stated that while an interim dividend is being evaluated, it faces technical hurdles and a decision would follow the stabilization of the shareholder base. She also confirmed that significant cost savings from the U.S. delisting are expected to materialize primarily in 2027.

Robert Grindle from Deutsche Bank asked about the improving service revenue trend in Germany, the prospects for returning to growth, and the market dynamics behind the softer Q1 commercial activity, particularly the negative broadband net adds.

Answer

Group CFO Luka Mucic confirmed Germany is expected to return to service revenue growth during the year, aided by the lapping of MDU impacts and the 1&1 wholesale ramp-up. Group CEO Margherita Della Valle added that while mobile net adds were negative due to downsizing low-margin reseller segments, the valuable branded contract base saw churn fall to a four-year low. In fixed, she noted a strategic focus on front-book value over volume led to lower gross additions but improved ARPU.