Liberty Global (LBTYA) Goldman Sachs European Communacopia & Technology Conference summary

Valuation gap and value crystallization

• Public and private valuation gap remains significant, with a 40–50% difference despite recent stock gains.

• Concrete actions are underway to address the gap, including the Sunrise spin-off and financial engineering initiatives.

• The Sunrise spin-off will distribute 100% of the Swiss subsidiary to shareholders, expected in early to mid-November.

• The spin-off is tax-free, targets Swiss investors, and is positioned as a dividend and free cash flow story.

• Spin-offs are part of the group’s DNA, aiming to unlock value and reward investors directly.

Market structure and operational strategy

• European cross-border synergies are limited due to regulatory and market differences, leading to portfolio rationalization.

• Centralized services continue to provide value to multiple operators, maintaining scale where beneficial.

• Regulatory environment is showing positive signs, with calls for more supportive industrial policy and behavioral remedies.

• UK market consolidation is viewed as healthy, with expectations that it will not negatively impact consumers.

• Fiber build-out in the UK is slowing, with a 40–50% decline in new permits and construction.

UK market and infrastructure

• The business plan focuses on organic fiber build-out, with 5–7 million greenfield homes and upgrades to existing infrastructure.

• NetCo/ServCo split is being considered to highlight network value and attract investment, with a potential event in 2025.

• Fixed business is strong, with 40% market share and growing ARPUs, while mobile faces headwinds due to market softness.

• Pricing remains competitive, with price increases below inflation and a focus on retention.