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Q4:

 

European Highlights

• 2016 RGU additions of 946,000 were up 24% or 186,000 year-over-year on an organic basis

    Increase driven by materially lower video churn and higher broadband gains

    YoY improvement fueled by 304,000 U.K. adds and turnaround in the Netherlands

• Q4 organic customer relationship15 additions of 46,000 drove full-year increase of 25,000

• Gained 402,000 organic mobile postpaid subscribers in 2016, driven by the U.K. and Belgium

• Q4 Operating income up 22% YoY, rebased OCF growth excluding Ziggo of 7.5% in Q4

    2016 Operating income increased 18%, while rebased OCF (excl. Ziggo) grew 4.3%

• Delivered $2.0 billion of Adjusted FCF in 2016, beating our guidance of $1.8 billion16

• Achieved our new build program target of >1.3 million European homes during 2016

  Added 1.4 million new homes in 2016, including 465,000 in U.K./Ireland

 

Presentation:

 

http://www.libertyglobal.com/pdf/presentations/Liberty-Global-Group-Q4-2016-Investor-Call-Presentation-FINAL.pdf

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I really don't understand what is going on with Mobile in the UK?  Can anyone explain it to me.  On the call, Mike Fries punted to the CFO.  and then he basically said, "Mike already mentioned the issues with mobile".

 

There were a few things going on but I don't understand them.

 

1) prepaid subs in Belgium declined in response to a regulation that requires SIM card registration??  why would this matter?

2) Decrease in UK mobile relates to: 1) lower ARPU in UK including $22.9M decline in post paid mobile revenue related to "UK split contract Program."...

 

anyone understand what they're talking about here? 

 

They also lost 8M in Fixed line revenue due to a changes in regulations governing payment handling fees. 

That is discussed here:

 

http://www.ispreview.co.uk/index.php/2016/03/virgin-media-slash-non-direct-debit-payment-handling-fees-45p.html

 

Guess they were ripping off their customers with a 5 pound charge for debit payments!

 

I'm sorta tired of listening to the constant sales pitch from Mike Fries every quarter.  They're really losing credibility. It's hard to focus on  their earnings calls because they aren't consistent in discussing results.  They just tell you all the numbers that are going up.

 

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a lot of speculation here

 

Austria is a very small market with very little room for growth and scaling outside of Austria is difficult minus whatever the underlying value of administrative synergies...and I believe the Swiss team manages the Austrian assets

 

that said, the stock might be as cheap as it is misunderstood

 

the play, as I understand it, is the synergies found when collapsing the categories of cable broadband and wireless carrier as different businesses and markets

 

I think they are on the cusp of material improvements in cash flows

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a lot of speculation here

 

Austria is a very small market with very little room for growth and scaling outside of Austria is difficult minus whatever the underlying value of administrative synergies...and I believe the Swiss team manages the Austrian assets

 

that said, the stock might be as cheap as it is misunderstood

 

the play, as I understand it, is the synergies found when collapsing the categories of cable broadband and wireless carrier as different businesses and markets

 

I think they are on the cusp of material improvements in cash flows

 

It's cheap but I'd say LiLAC is cheaper.

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LILAC might be cheaper but it's likely not to return until everything gets cleaned up

 

If any of you follow the reinsurance markets, the clear trend is that natural disasters are not only more severe but more frequent

 

LILAC may always trade under the European assets because of the additional risk, which in turn might yield greater performance over time

 

That said, the recent hurricane season has had an impact and the business needs a couple years before material improvements will be felt

 

I'm of the opinion that Liberty Global will likely see results sooner and that the stock is not priced to reflect

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LILAC might be cheaper but it's likely not to return until everything gets cleaned up

 

If any of you follow the reinsurance markets, the clear trend is that natural disasters are not only more severe but more frequent

 

LILAC may always trade under the European assets because of the additional risk, which in turn might yield greater performance over time

 

That said, the recent hurricane season has had an impact and the business needs a couple years before material improvements will be felt

 

I'm of the opinion that Liberty Global will likely see results sooner and that the stock is not priced to reflect

 

1. It's actually pretty easy to figure out impact of hurricane. If you take extreme worse case scenarios then see how that impacts intrinsic value.

 

2. Waiting for things to clear. By the time things get more certain, the market will bid that up.

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