Liberty Global PLC (NASDAQ:LBTYK) Q3 2019 Earnings Conference Call - Preliminary Transcript

Nov 07, 2019 • 09:00 am ET


Liberty Global PLC (NASDAQ:LBTYK) Q3 2019 Earnings Conference Call - Preliminary Transcript


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Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Liberty Global's Third Quarter 2019 Results Investor Call. This call and the associated webcast are the property of Liberty Global, and any redistribution, retransmission or rebroadcast of this call, or webcast in any form without the expressed written consent of Liberty Global is strictly prohibited. [Operator Instructions]. Today's formal presentation materials can be found under the Investor Relations section of Liberty Global's website at

After today's formal presentation, instructions will be given for a question-and-answer session. Page 2 of the slides, details the company's Safe Harbor statement regarding forward-looking statements. Today's presentation may include forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995, including the Company's expectations with respect to its outlook and future growth prospects and other information and statements that are not historical fact. These forward-looking statements involve certain risks that could cause actual results to differ materially from those expressed or implied by these statements.

These risks include those detailed in Liberty Global's filings with the Securities and Exchange Commission, including its most recently filed Forms 10-Q and 10-K as amended. Liberty Global disclaims any obligation to update any of these forward-looking statements to reflect any change in its expectations or in the conditions on which any such statement is based.

I would now like to turn the call over to Mr. Mike Fries.

Mike Fries

Great. Thanks operator and welcome everybody. I appreciate you joining the call today. We've got plenty of ground to cover, as usual. So we're going to have to try to keep our prepared remarks a bit shorter today, so we can spend more time on Q&A. And as you've got a number of exacts on the call with me who will be sure to get engaged as needed in that conversation, so I'll kick it off with some Q3 highlights. By now, you've come through our financial and operating results. No doubt and Charlie is going to dig into those in a moment. From my point of view, there were three key takeaways here.

First, we're tracking the guidance in particular free cash flow and as we've discussed all year, that's a function in part of resetting our capital intensity levels with P&E additions down considerably we've reported 40% rebased OFCF growth, if you include Switzerland 80% if you don't, year-to-date. Again that's a major step up from prior years and it's happening across all of our key opcos. And third, we are absolutely descaling central cost both at corporate and in our centralized T&I operations, several of you have asked for clarity on this point and Charlie has an entire slide on it, coming up.

The punch line though is that, the cost we incurred to fulfill the service agreements we signed with Vodafone, Deutsche Telekom and our Dutch JV were more or less equal the revenue we're generating from those agreements as they rise and fall. So there will be no significant mismatch in