Liberty Global Continues to Shift Its Network Strategy as Growth Remains Elusive During Q3

Liberty Global’s third-quarter results were in line with our expectations across its various operating businesses and joint ventures. The firm continues to talk up plans to expand fiber in several areas, including the U.K., Ireland, and Belgium, where subsidiary Telenet intends to create a new infrastructure venture with Belgian utility company and current partner Fluvius. Major details of the agreement, including ownership positions, have yet to be announced, and the Belgian business also faces some uncertainty around the sale of cable rival Voo. Despite the array of moving parts, we like Liberty Global’s diversified set of assets. We don’t expect to significantly change our $33 fair value estimate, and we believe the stock remains modestly undervalued.