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Liberty Global PLC Class A LBTYA

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Morningstar’s Analysis

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Liberty Global Rebounds During Q3 as It Continues to Chart a Path Forward; Shares Attractive

Analyst Note

| Michael Hodel, CFA |

Liberty Global showed sequential improvement during the third quarter as the pandemic impact waned and the demand for broadband connectivity remains solid. Its Virgin subsidiary added 38,000 net new customer relationships in the United Kingdom during the quarter, its best performance in three years. Nearly a fourth of Virgin’s broadband customers now also take its wireless service, a percentage that will shoot far higher (40%-plus) following the merger with Telefonica’s O2. Financing for that transaction has been put in place, and management expects it to close in mid-2021 pending regulatory approval. The merger of Liberty Global’s Swiss subsidiary UPC with Sunrise is expected to close this month, with both financing and regulatory approval in place.

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Company Profile

Business Description

Liberty Global is one of the largest cable owners in Europe, with operations in the United Kingdom, Switzerland, Belgium (60%-owned), the Netherlands (50%-owned), Ireland, Poland, and Slovakia. The firm sold its businesses in Germany, Romania, Hungary, and the Czech Republic to Vodafone in 2019, generating $11 billion proceeds. An attempt to sell its Swiss business to rival Sunrise fell apart in 2019. The firm serves about 9.4 million Internet access customers across its consolidated footprint and another 3.4 million in the Netherlands, which it does not consolidate in its financial statements. Liberty also serves 6.4 million wireless customers in consolidated markets and 5.1 million in the Netherlands. The firm agreed to merge its U.K. business with wireless carrier O2 in May 2020.

Contact
161 Hammersmith Road, Griffin House
London, W6 8BS, United Kingdom
T +44 2084836449
Sector Communication Services
Industry Entertainment
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type
Employees 20,200

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