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.