Stephen Malcolm

Stephen Malcolm of Redburn questioned the VodafoneZiggo plan, asking where savings would come from to fund the DOCSIS 4 rollout within the stated CapEx, the upgrade timeline, and whether Champions League rights are essential.

Answer

CEO Stephen van Rooyen explained that funds for the DOCSIS 4 upgrade will be freed up as the mobile network upgrade and certain IT projects conclude. He sees a path to multi-gig speeds over the next 18 months. On sports rights, he noted it's too early for a long-term plan but sees the content as a valuable brand differentiator for Ziggo Sport. Executive Chairman Michael Fries added that some DOCSIS CapEx was already in the original budget.

Stephen Malcolm from Redburn asked for an update on shareholder distribution plans for the post-spin company, particularly regarding the pace of buybacks, and inquired about the potential for intense U.K. altnet consolidation in 2025.

Answer

Michael Fries, Executive, outlined a value creation strategy for the remaining telecom assets similar to Sunrise, focusing on commercial momentum and strategic transactions. On buybacks, he noted they could become easier with a smaller market cap but gave no specific guidance. Lutz Schüler, Executive, described the U.K. altnet situation as unsustainable for many players and confirmed that while VMO2 is in conversations, valuation remains the key hurdle to consolidation.

Stephen Malcolm of Redburn Atlantic inquired about the status of the retail and marketing relationship between VMO2 and its nexfibre JV. He also raised concerns about the potential for low market cap and poor liquidity for Liberty Global's remaining entity post-Sunrise spin.

Answer

Lutz Schüler, CEO of VMO2, explained that the sales machine for nexfibre is ramping up quarter-over-quarter. Michael Fries, CEO of Liberty Global, addressed the post-spin concern by stating his expectation that the Sunrise transaction will force a re-rating of the remaining company. He acknowledged the liquidity point but said they would 'cross that bridge' if the market fails to re-rate the remaining assets.

Asked about the consumer revenue growth outlook, whether the rest of the business needs to grow at 4.5-5% to compensate, and for more detail on the strong performance and profitability of the tailored solutions business.

Answer

Consumer revenue growth is expected to be around 1-1.5%, making it challenging to break out of that range. Consequently, the B2B and wholesale segments do need to grow at a higher rate (4-5%) to meet overall targets, which the company is confident in achieving. Tailored solutions had a strong Q1, with another strong quarter expected in Q2 before tapering off. The business is described as having good, CapEx-light, free cash flow margins.