We are pleased to share with you our strategic plans and financial performance for the second quarter of 2024. Liberty Global remains focused on delivering shareholder value and maximizing our operations, as outlined by CEO Mike Fries during the earnings call. Despite challenges in the mobile sector, we reported positive results for VodafoneZiggo and steady broadband performance. Our initiatives, including the Sunrise spin in Switzerland, the collaborative agreement with Vodafone in the UK, and progress in the Benelux region, demonstrate our commitment to growth and innovation.
Our Ventures platform achieved significant noncore asset sales, with further disposals planned before year-end. Our consolidated cash balance stands at $3.5 billion, and we are working to close the valuation gap and unlock the remaining value in Ventures and other FMCs. We are on track with our goal of $500 million to $1 billion in noncore asset sales, and the average analyst valuation for Sunrise implies a $12 per share contribution to our stock price.
While challenges exist, such as decreased adjusted EBITDA for Virgin Media O2 and negative postpaid mobile subscriptions, we are addressing these issues and focusing on growth drivers. VodafoneZiggo experienced 8% EBITDA growth, and our fixed ARPU continues to rise, with churn declining due to effective customer value programs.
Looking ahead, Liberty Global remains committed to closing the valuation gap and enhancing shareholder value. Our debt profile is strong, and we have no significant maturities until 2028. We are exploring opportunities in fintech, entertainment, and healthcare sectors, and are monitoring competitive dynamics to adjust our strategies accordingly.
In conclusion, Liberty Global is strategically positioning itself for future growth while managing current challenges. Our strong balance sheet, operational efficiency, and focus on shareholder value set us apart in the telecommunications industry. We look forward to providing further insights at our upcoming Capital Markets Day in September. Thank you for your continued support. We have a lot of information to cover, so I’ll dive right into my prepared remarks. My senior team is also on the call, and we will involve them in the Q&A later on. Starting with our Q2 highlights, I want to remind everyone of our strategic plan laid out in February, which focuses on maximizing the value of our FMC operations, leveraging our Ventures portfolio for liquidity, and ultimately delivering value to our shareholders.
In Switzerland, the Sunrise spin is on track for the fourth quarter of this year, with analysts estimating a dividend of around $12 per Liberty Global share. This spin-off will be supported by deleveraging and a commitment for annual dividends from Sunrise. We have scheduled a Capital Markets Day for September 9 in Zurich to provide more information on this.
In the U.K., we have strengthened our mobile network sharing agreement with Vodafone and reached 5 million fiber homes across VMO2 and next fiber. Plans to create a U.K. NetCo are on track for the first half of 2025. In the Benelux, we are making progress in Belgium and the Netherlands to create a general operating platform with strategic synergies.
We are also using our Ventures platform to support strategic opportunities and innovation, with $650 million in asset sales in the last 6 months. Our balance sheet and capital allocation model are strong, with a long-term debt profile and aggressive share buyback program. We continue to invest in growth and navigate through challenges in our core FMC operations. We discuss this topic regularly with our peers and it’s clear that the marketplace is becoming more competitive each quarter, with consumers feeling the effects of inflation and macro challenges. While our fixed ARPUs are either stable or increasing, which is positive news, we are facing pressure in the mobile sector from promotional activities and flanker brands. Despite this, we are on track to meet all 18 of our guidance metrics, with the exception of revenue growth at VMO2, which is being adjusted due to slower hardware sales. However, we are confident in meeting our EBITDA and free cash flow guidance in the U.K. Thanks to several factors including our investments in fiber and 5G technology, growth in our flanker brands, access to new revenue streams from our fixed network strategies, and the value of our digital infrastructure assets. We believe we have the tools to navigate through this transition and deliver value to our shareholders.
Moving on to our operating highlights, Sunrise had a strong quarter with significant growth in broadband and postpaid mobile subscriptions. In Belgium, Telenet’s results improved from previous quarters despite challenges in the competitive market. VodafoneZiggo faced operational challenges in the Netherlands but achieved strong financial results. Virgin Media O2 in the U.K. saw growth in fixed ARPU and is focusing on rebuilding momentum in the postpaid mobile market. Overall, 2024 is a transition year for us as we prepare for a strong 2025. Each market has its unique challenges, but we are confident in our ability to address them. Feel free to ask any questions during the Q&A session. We have extensively discussed our fixed network strategies, especially our fiber build plans. Recently, we have made efforts to separate our fiber and HFC networks from the service platforms in certain businesses. In Belgium, we have successfully achieved this through the formation of wire, which, along with our partner Fluvius, now owns and controls the Telenet HFC network passing 4 million homes. Wire is already wholesaling network to Telenet and Orange Belgium, representing about 50% utilization of the network. We have also announced an MOU with Proximus to share the fiber build-out in around 2 million homes, bringing utilization of the wire network to over 80%. In the U.K., we are planning to create a NetCo, Lightwire, from our 16 million fixed network passings, with a JV called nexfibre, giving VMO2 access to between 21 million and 22 million fiber homes.
The rationale behind these restructuring efforts is to create stable and high-margin cash flow generating platforms that attract new capital and drive long-term returns for investors. This separation allows for in-market consolidation and facilitates network upgrades. The remaining ServCo benefits from this separation by focusing on customer experience and innovation to drive new revenue streams. The hidden value in our network assets is demonstrated by recent fiber transactions in Europe, where the median EBITDA multiple was about 18x, a significant premium compared to integrated telco multiples.
In our Ventures platform, we have achieved our goal of $500 million to $1 billion of noncore asset sales before mid-2024, with over $650 million of proceeds through Q2. We are targeting another $100 million to $150 million before year-end. Our focus remains on building larger positions in scale businesses like Atlas Edge and increasing our stake in Formula E. Formula E, after just 10 seasons, has become one of the fastest-growing motorsports in the world, with a global fan base of over 400 million and revenue growth of nearly 20%. We are riding the tailwinds of vehicle electrification and have an exclusive license with the FIA for electric racing for another 15 years. Formula E has been Net Zero since day zero, making it an attractive platform for sponsors and fans. As we continue to refine our racing series in collaboration with the FIA and iconic partners like Andretti and Penske, we are confident in the significant upside potential of our future investments. We are focused on realizing this potential and are excited about the opportunities ahead. Now, Charles will provide an overview of our quarterly revenue and EBITDA performance in our key markets. Finally, I would like to provide an update on our 2024 guidance. At VMO2, we anticipate a low- to mid-single digit decline in revenue excluding nexfibre construction. This decline is due to lower margin hardware revenue being a continued challenge. However, other revenue teams are expected to remain stable, and adjusted EBITDA, adjusted free cash flow, and all other 2024 guidance at VMO2 are reiterated as the company invests in its growth drivers. VMO2 has had a solid start to the year with a slightly better than 2% EBITDA decline. Additionally, all other guidance at Telenet, Sunrise, and VodafoneZiggo is reaffirmed. This concludes our prepared remarks for Q2 2024, and I will now pass it over to the operator for the Q&A session. We don’t anticipate a significant difference in phasing, but there could be some minor changes. Ulrich Rathe from Bernstein Societe Generale Group asked about the Belgian memorandum of understanding and whether the wholesale access agreement with Proximus will be open to all takers at the same level. Michael Fries mentioned that the regulators are reviewing the contract and they hope it will be seen as a positive development. John Malone clarified that the agreement is for reciprocal passive access with Telenet building 60% and Proximus 40% in the collaboration zone. The agreement will be nondiscriminatory as per regulator principles.
Polo Tang from UBS inquired about the competitive dynamics in the Swiss market, promotional activity, the impact of the UPC brand retirement on financials, and potential slower growth in Q3 and Q4 due to price rises. Michael Fries mentioned that the UPC migration will be completed by year-end, reducing its impact on results. André Krause discussed high promotional intensity in the market but also noted a decrease in discounts and increased retention activities. He highlighted new features like the Flex upgrade program and increased HFC speeds as differentiating factors. Fries added that the dual-brand strategy with giffgaff in the U.K. has been successful in driving growth. Do you have anything else to add on that, Lutz? Okay.
Operator: Our next question comes from David Wright with Bank of America.
David Wright: I’m curious, Mike and Lutz, about the potential for consolidation in the U.K. market. With the altnets focusing more on network loading and provisioning rather than building, do you see any hurdles to consolidation, especially with incumbent subscribers possibly on discounted pricing creating regulatory challenges? TalkTalk seems to be in a distressed state currently. Do you think the regulator might consider allowing customers from TalkTalk to be acquired by the two largest network operators, yourselves and BT?
Michael Fries: I can’t speak to TalkTalk’s situation, but it’s too early to speculate on what the regulator might do. We’re assuming TalkTalk will continue to compete with us until they indicate otherwise. As for the altnets, some are slowing down their build as financing dries up, leading to potential winners and losers. Companies like nexfibre and VMO2 are fully financed and committed to expanding their networks. While customer bases from altnets may be considered in M&A discussions, it doesn’t fundamentally change our analysis of potential acquisitions. Andrea, do you have anything to add as Chairman of nexfibre?
Andrea Salvato: I think Mike covered it well. Value expectations in the market need to be adjusted before we see significant consolidation.
David Wright: You mentioned infrastructure multiples in your presentation. Can you elaborate on that further?
Michael Fries: Those multiples apply to NetCos with scale and cash flow, so it’s a bit different from the altnet market. But yes, they provide a benchmark.
Operator: Our next question is from Joshua Mills with BNP Paribas.
Joshua Mills: Can you discuss your testing of DOCSIS 4.0 and the benefits of upgrading cable networks for faster speeds? How do these upgrades translate into commercial benefits? Additionally, with Proximus now wholesaling from you on cable, do you see this as a template for other markets in the future?
Michael Fries: These are great questions. Josh and I are discussing whether we have enough time to answer this question, but I’ll give it a quick try and maybe Enrique can provide some insight as well. In Belgium, we have been wholesaling cable or a hybrid fiber coax for about 5 years. We were obligated to open up the cable network in Flanders, and Orange Belgium is a happy customer on our cable network with hundreds of thousands of customers. They have committed exclusively to our fiber build as we transition. In the UK, the cost to upgrade to fiber or DOCSIS 4 is similar, but in a market where fiber is dominant, it makes more sense for the long term. In Switzerland, we have the flexibility to use different technologies based on customer needs. We will migrate customers to our infrastructure over time for better margins. In the Netherlands, our pricing strategy is aimed at remaining competitive in a declining inflation market. We focus on price value perception to prevent churn. Regarding TalkTalk, we may be limited in what we can disclose at this time. The question was about the potential interest in acquiring assets like TalkTalk in the U.K., despite the declining customer base. Michael Fries mentioned that they are keeping an eye on the sector, but TalkTalk is a competitor, so any potential opportunities would be outside of their control. He emphasized that they would consider opportunities if they arise, but there is nothing to announce at the moment.
Regarding participating in other industries like fintech, entertainment, and healthcare, Fries mentioned that the Netco and ServCo structure could potentially position them better to compete and take their fair share of the ecosystem. He highlighted the potential for new products and services, AI advancements, and leveraging networks to drive services into homes and businesses. While the structure may not guarantee an easier path forward, Fries believes that with the right execution and strategy, they could see positive changes in the next 10 years compared to the last.
The call concluded with a reminder about Liberty Global’s upcoming Capital Markets Day on September 9th and the availability of a replay of the call on their website.