Liberty Global C (LBTYK) Q3 2026 Earnings Report

The call was broadly optimistic, with management emphasizing the planned Ziggo Group spin-off, higher-than-expected synergies, deleveraging progress, share repurchases, improving VodafoneZiggo and VMO2 commercial trends, and maintained guidance. These positives were partly offset by significant UK market challenges, declining or pressured EBITDA in several operating units, VMO2 leverage above target, fixed ARPU pressure, and uncertainty around the Netomnia regulatory process.

Liberty Global said it is on track to spin off the Ziggo Group in Q2 2027, with initial confidential prospectuses expected in December, synergies now expected to be well in excess of EUR 1 billion, over EUR 700 million in tax assets, and VodafoneZiggo tower-sale gross proceeds of EUR 670 million; it reiterated guidance for EUR 500 million of free cash flow and a 4.5x leverage multiple in 2028, with a roughly 12% free cash flow yield implying a $13 tax-free dividend and a $21 stock price today, while EUR 400 million at a 16% yield would imply an $8 tax-free dividend and EUR 300 million at a 20% yield would imply $5 per share, a 62% premium to the current stock price. VMO2’s plan calls for EUR 400 million of run rate cost reductions next year, growing to GBP 800 million by 2029, funded in part by a 30% headcount reduction, no more fiber on the VMO2 balance sheet, and upgrading nearly 70% of the HFC network to 2 gig speeds next year; VMO2 coverage in 5G+ is approaching 90%, while VodafoneZiggo’s DOCSIS 4.0 will ultimately reach 8 million homes. The company bought back 2.9% of the company in Q3, intends to continue at that pace in Q4, and said an additional $100 million buyback would retire another 3.7% of the shares, or nearly 7% in the second half of the year; it is now targeting $1.8 billion of corporate cash at year-end assuming the full $200 million of share buybacks is completed, and will update on VMO2’s planned cash distribution to shareholders in Q1 2027.