Mike Fries - President and CEO Bernie Dvorak - Co-CFO Charles Bracken - EVP and Co-CFO Tom Mockridge - CEO, Virgin Media Diederik Karsten - Chief Commercial Officer Betzalel Kenigzstein - President and COO, Latin America and Caribbean Operations Balan Nair - Chief Technology Officer.

Frank Knowles - New Street Research James Ratcliffe - Buckingham Research Group Jeff Wlodarczak - Pivotal Ulrich Rathe - Jefferies Vijay Jayant - Evercore ISI Jason Bazinet - Citi Justin Funnell - Credit Suisse Michel Morin - Morgan Stanley Jonathan Dann - Royal Bank of Canada Matt Harrigan - Wunderlich Securities Ben Swinburne - Morgan Stanley.

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Liberty Global's First Quarter 2016 Results Investor Call.

This call and the associated webcast are the property of Liberty Global, and any redistribution, retransmission or rebroadcast of this call or webcast in any form without the expressed written consent of Liberty Global is strictly prohibited. At this time all participants are in a listen-mode mode.

Today's formal presentation materials can be found under the Investor Relations section of Liberty Global's website at www.LibertyGlobal.com. Following today's formal presentation instruction will be given for question and answer session. As a reminder, this investor call is being recorded on this date, May 10, 2016.

Page 2 of the slides details the Company's Safe Harbor statement regarding forward-looking statements.

Today's presentation may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the Company's expectations with respect to its outlook, and future growth prospects, and other information and statements that are not historical fact.

These forward-looking statements involve certain risks that could cause actual results to differ materially from those expressed or implied by these statements. These risks include those details from time to time in Liberty Global's filings with the Security and Exchange Commission, including its most recently filed Forms 10-Q and 10-K.

Liberty Global statements disclaims any obligation to update any of these forward-looking statements to reflect any change in its expectations, or in the conditions on which any such statement is based. I would now like to turn the call over to Mr. Mike Fries..

Thank you, operator, and welcome, everybody. Thanks for joining us on our Q1 call here, our first of the year. Nice to have both sets of shareholders on the call with us, Liberty Global and LiLAC. I'm joined by a number of folks from my management team, who you'll hear from likely in Q&A.

I'll do a quick overview as we normally do, of the numbers and results, and I'll turn it over to Bernie for some financials and then we'll get your questions as quickly as we can. We're talking from slides as we normally do.

And 'm going to start on Slide 4, which has what we think are really the key messages, the key takeaways that you need to get from the call today. And I think first and most importantly we had a strong quarter on subscriber growth. We doubled our net ads versus last year. We exceeded our own internal expectations, pretty considerably.

We saw improvements across all three products, video, broadband and telephony, with really strong results in the UK. I'll dig into this in a bit in just a moment. Secondly, we were particularly pleased with this kind of volume growth after taking price increases across two-thirds of our customer base in the first quarter.

By the way, if you ad Ziggo, those customer increases were closer to which just got their price increases announced. We took a lot of lessons that we learned from last year, and ensure that this year we reduce the impact of churn, and optimize the benefits to sales, and we think we hit the mark here.

Going forward, as we manage the price value relationship in this time frame Q4, Q1 we think this RGU growth in the first quarter is the new normal for us, and phasing will be more back ended throughout the year. So make note of that. Thirdly, our plans to build 1.5 million new homes in 2016 are right on track.

Like I said previously, these are high return, cash flow generating investments that exploit our existing scale and innovation platform, and materially enhance our growth in the future. Project Lightning results at Virgin, are very encouraging as you'll see, and we're getting more active outside the UK as well.

Fourth, our mobility plans are taking shape in every market. We're spending a lot of time, optimizing the revenue and margin opportunity represented by the [Indiscernible] with a flexible market-by-market approach that keeps our options open, in what is becoming an increasingly converged market.

That's a nice segue to the cable and wireless acquisition, which is set to close next week. We think this deal is a game changer for us in the region. It increases our scale, with great mobile and fixed assets. And then finally, we're confirming all of our 2016 guidance today, for Liberty Global and for LiLAC.

We think it's been a good start to the year from our perspective. Subscribers are ahead of plan, and our rebased operating cash flow growth, while perhaps behind some of your own estimates, is right in line with our own budget phasing.

And as I said on our last call, it shows that the business is ramping, and we expect it to ramp in the second half of 2016. That's the foundation for our 7% to 9% operating cash flow growth guidance for the next three years. Now slide 5 provides more detail to highlight some of these main takeaways from Q1.

I'm going to start on the left hand side of that slide, with operating and financial highlights. We gained 156,000 RGUs in the first quarter. As I mentioned that's more than double our Q1 performance from last year. We also added 100,000 postpaid mobile subs organically. Now I'll get into those details in a moment.

Rebased revenue and operating cash flow growth were both up 3% year over year. Revenue, of course, remains driven by a healthy mix of volume and price, and mobile and B2B. And operating cash flow growth followed that same trend.

And when you exclude Holland and the BASE acquisition, both revenue and operating cash flow were up 4%, again, in line with our internal forecast. We did have negative free cash flow of $85 million in the quarter, but that was due, among other things, to the timing of working capital and some vendor financing issues.

Shifting gears to M&A, in the middle of the slide, we were busy, and we have been busy. The cable and wireless acquisition will close next week. More on that in just a minute. Our JV with Vodafone in Holland is progressing nicely. It's on track.

In fact, we're in very constructive dialogue with the European Commission right now, and still expect that transaction to close around the end of the year. We completed the acquisition of BASE, a mobile business in Belgium. That integration is going very well, it's underway now.

It's still in the early days, but we've already publicly increase our synergy estimates 50%, from €150 million to €220 million. Speaking of growth opportunities and efficiencies, Liberty 3.0 is in full swing. I'll provide a bit more detail in a minute.

But the punch line here, is that the momentum is building across the whole organization, on both on the revenue front, and with respect to our operating model. And you should expect to see some benefits of that in the second half of this year.

Finally, on the balance sheet, we ended Q1 with a total of 4.4 billion of consolidated liquidity, a record low cost of capital at 4.8%. And while leverage is up a bit, over 5 times due to among other factors some FX movements, and the BASE transaction, we expect more normalized levels going forward.

And we still benefit from a long term fixed rate capital structure, where less than 15% of our debt matures in the next five years. Finally, we were meaningfully restricted on the buybacks in the first quarter. Most of you probably know that, due to the cable and wireless transaction, so we were only able to repurchase $286 million worth of stock.

Needless to say, we expect to restart our buyback program next week, after that deal closes. And we're likely to accelerate that activity in the weeks and months ahead. Slide 6, provides a bit more detail on the subscriber growth.

In the quarter, and compared to last year so you can see on the left hand side of that slide, all three fixed product categories improved year over year. We lost fewer video subs across the group, including in markets like Holland, as we push out killer apps like Horizon Go and Replay TV.

We added more broadband and voice customers in markets like the UK, where net adds were up 43,000 over last year. As I said earlier, this growth came in a quarter where around two thirds of our customers were impacted by price increases in that period.

In the middle of the chart, you will see that net adds in Western Europe were up nearly fourfold, again driven by the UK which had its best first quarter in six years. And of course, those results were offset by another challenging quarter in Holland, where our RGU losses improved year over year, but were still down 40,000.

Now there's some green shoots in Holland, we added 8,000 broadband subs in the first quarter. And KPN announced some sizable price increases recently, more or less double the level of previous years at 4%. We'll see how that sorts itself out. And then, finally, our Central and Eastern European region gained 64,000 RGUs in the first quarter.

And they're starting to see the benefits from our network expansion and new products like Horizon. Moving to slide 7, now we've been updating you regularly on Liberty Global 3.0, and after a solid year of planning, I am pleased to announce that Liberty 3.0 is definitely at go.

In fact, we've rebranded the entire initiative to Liberty Go to capture the energy and the enthusiasm of our top 400 leaders, and to connect the entire organization of 38,000 people to our three-year mission of growth and customer centricity. This is no longer a transformation project or an overlay. It's one integrated plan from top to bottom.

Now you've seen this visual. These are the five building blocks that support our acceleration in revenue and operating cash flow over the next three years. I've touched on the first two, and I'll get to more of those in a second.

I'm talking about smart execution of price rises across our footprint and then, of course, expanding that footprint with highly accretive new build activity targeting 7 million homes. Let me spend a minute on the efficiency side though. I think we've been clear that while direct costs like content and bandwidth will always grow along with revenue.

The bulk of our indirect expenses, which total approximately $5.5 billion a year are expected to stay broadly flat over the next three years. Now how are we going to do that? Let me rattle off just a few examples, so you get a sense of what we're focused on.

In order to take advantage of our scale across Europe, we're pretty far along in restructuring and centralizing our entire technology organization including product development, our core network development management, IT, our supply chain.

Along those lines, we issued just the biggest RFP in the market to consolidate, reduce, and improve our customer contact centers. On the procurement front, we're putting in place master service agreements for our largest vendors by category, cutting off the long tail of company-specific solutions and many vendors.

And we developed group wide preferred supplier lists for all contingent labor. To drive an even better customer experience, we're starting to digitize much of what we do, self-help or online tools we're launching a company-wide service apps and implementing digital-first philosophies across customer engagement centers.

Obviously the goal is quicker response times, higher satisfaction levels, but also to be more efficient. And these are just a few examples. There are many. But as you can see it takes time. There's a lot of hard work, and it does not happen overnight.

And now that we've moved into full execution mode, as I said, you should expect to see tangible benefits to begin flowing here in the second half of this year. Again 2016 really lays the groundwork for our three-year plan that's targeting 7% to 9% OCF, a CGAR of 7% to 9% between now and 2018.

Now as I've said publicly, 60% of the value creation of Liberty Go starts on the revenue side, which means we need to constantly innovate, and invest in our residential products like Horizon TV, Wi-Fi and the fastest broadband speeds.

So Slide 8 takes you through a few highlights there, starting with Horizon, with over 2 million Horizon TV subs and 13 million households eligible for our TV Everywhere product, Horizon Go. We think we're starting to reach critical mass here, with our next-generation digital platforms.

Horizon Go offers 60 to 100 channels live streaming services, recording functionality, all of our on-demand content including Replay TV. Replay TV is nearly as popular as the DVR. We are seeing over 60% usage of Replay TV at home or on the mobile in the four markets where we've made it available.

So you should look for us to expand that killer app to many more markets through the course of this year. To take advantage of our scale, we're developing faster, cheaper and smarter devices, like EOS, which is a project name for our cloud-based set-top-box that we're going to be trialing later this year.

It's going to be faster, cheaper, provide more functionality than today's Horizon box. We also have a new Wi-Fi router, we call it the connect box, which is now live in all European markets and sets us even farther apart from the competition by providing faster, more reliable in-home signals, and up to 1 gigabit speeds.

The customer response has been positive. This is a big issue, when you've driven average customer speeds to 100 megabits per second and you don't control the in-home Wi-Fi router, customers complain. So we're already expect -- we're already seeing reduced call volumes CapEx savings from lower maintenance and truck rolls.

This is going to be a terrific product for us. On the right-hand side of the slide, you're going to see more details on the new build program. Again, targeting 1.5 million new homes and then seven over the next three years. We're starting to pick up steam across our footprint. We added 210,000 new build homes in the first quarter.

You've already heard us talk about the economics, right? These projects are scalable and they're demand-led. They have great cash-on-cash paybacks and unlevered IRR is in the 30%s.

But they do require capital, right? We spent $100 million in the first quarter and have referenced I believe in our last call that we might spend up to 700 million this year in incremental CapEx on new build. I personally can't think of a better way to put our capital to work.

And we're going to endeavor to provide you as much visibility as we can on how our new build program is impacting our key results, from revenue to free cash flow. Fourthly, we're far enough along on the Project Lightning in the UK to feel really confident with these plans.

We're just over a year into that market and are already are delivering great results and you can see some of those on the slide. We added another 70,000 homes in Q1 bringing cumulative homes released to approximately 330,000. And we're budgeting additional 400,000 plus homes this year in the UK.

Average build costs are just under £500, that's lower than our estimated average and the commercials are right in line. You can see that on the graph, the bottom right. Penetrations at the end of Q1 for premises that release to three, six and nine months ago are exactly where we thought they would be or in fact, ahead of plan in many cases.

After nine months, we're at 26% penetration. So we're well on our way to achieving our 40% goal over three years. And of course there is plenty of opportunity in other markets like Germany, Central and Eastern Europe and even Chile. On Slide 9, I am highlighting two additional drivers of growth here, beginning with mobile.

Now I know most of you are already aware of this, but I just want to repeat it. In Europe, there is no confusion about where mobile fits in the cable bundle. We are all-in as they say and focused on providing seamless connectivity with up to 500 megabits fixed broadband, in-home Wi-Fi, outdoor public spots in 4G.

And pro forma for the recent Belgian acquisition, we now serve over 7 million mobile customers in Europe, representing over 10% of our revenue. If you add in the pending cable and wireless acquisition, and our JV in Holland, our mobile base moves closer to the 15 million. And I get it, we're not AT&T.

But we are starting to build a sizable and profitable mobile business that complements our fixed platforms. And the benefits are material, in terms of churn reduction, and the competitiveness of our bundles.

Just in our existing base, we had 100,000 postpaid mobile subs organically in Q1, and we saw especially high take up among our most important set of customers -- that's our triple play subs.

Now I think we've done a nice job, of balancing the speed of launch, the capital spend, and the importance of margin, to deliver the right mobile solution for each market. Most of our MVNO contracts are future-proof, from a technology point of view and they provide some protection from significant increases in usage or falling retail prices.

We're already offering 4G in four markets, and we're launching an additional four markets later this year. Now in conjunction with the mobile offerings, our Wi-Fi network currently stands at 6 million public access points, and we'll expand that to 10 million in the second half of the year.

Another key area of organic growth for us is, of course, B2B, which grew revenue 10% in the first quarter, and now run rates around 2 billion of annual revenue for us. Now we're particularly focused on the SOHO segment which grew over 25% year-over-year, and surpassed the 1 million subscriber mark.

Now we know we've got relatively low market share in both SOHO and [SME] on our footprint today, and we believe that double-digit market share is achievable in the next few years. In SOHO, we're offering our customers enhanced products and service levels at a premium price point to residential.

And in the SME segment, we've got tailored packages that are focused around superior data services, with value-added applications for voice, Wi-Fi, security and even storage. And lastly, we see even better B2B results, or we will see better B2B results, of course, as we build out 7 million more new homes.

Now those are going to generate an additional 600,000 to 700,000 businesses that we can market those services to. My last Slide, Slide 10. Just give you a quick update on cable and wireless.

You should have seen that the transaction was approved by 99% of shareholders who cast a vote by both companies, so clearly there is pretty good support for this deal. On the eve of closing the transition, I have to tell you I'm even more excited than before, to own and operate this business.

Cable and wireless adds substantial scale to LiLAC, which it needs to stand on its own. Cable and wireless added depth to our regional management team especially in mobile, and we're going to need all of that to exploit the growth opportunities in this region.

Cable and wireless adds a powerful B2B platform, including a sub marine fiber network to capitalize on what I'm seeing as explosive growth in data consumption there. And the deal unlocks significant synergies, well beyond the $125 million that we publicly disclosed.

And of course, as we get closer to having the exact number, you can expect us to communicate that as quickly we can. Now we've also discussed that there are plenty of M&A opportunities in the region. It's highly fragmented.

There is a very large pipeline of deal flow, but I want you to know that you can expect this to be opportunistic, but not hectic here. Post closing, LiLAC's market cap is going to be around $7 [billion], with 67% of the stock held by Liberty Global.

We want you to know that we're exploring the pros and cons of distributing the LiLAC tracking shares that Liberty Global Group holds to Liberty Group shareholders, so that 100% of LiLAC would be freely traded.

A final decision hasn't been made, that's important to point out, but we certainly think that there are benefits and we will certainly tell you, what we intend to do, as soon as we know. Let me just wrap by saying, there are a lot of good things happening across our business today. Our growth is steady and in line with our forecast and phasing.

Liberty Global is up and running, and the entire leadership team -- I'm telling you is mobilized and motivated to deliver that kind of growth and value creation over the next three years.

All of these things make us pretty anxious, as you can imagine, to get back to into the market with our buyback program, after the cable and wireless deal closes next week. So we're really excited. I'm excited about what's happening here. I look forward to your questions. But in the meantime, let me turn it over to Bernie for the financials.

Bernie?.

Thanks, Mike. On the following slides, I will present financial results for the Liberty Global Group, which consists of our European operations including BASE since February 11, followed by an overview of the performance of the LiLAC Group which consists of our operations in Chile and Puerto Rico.

On Slide 12, we present financial results for the Liberty Global Group. When adjusting for FX and the impacts of acquisitions and dispositions, we grew our rebased revenue and OCF by 3%, year-over-year in Q1.

Similar to our first quarter last year, we increased prices in the majority of our markets, in order to lay the foundation for faster growth during the remainder of the year.

In terms of the capital intensity of our business in Europe, property and equipment additions were 22% of revenue, above the 21% of revenue that we reported in the prior year period.

The increase in P&E additions, both in absolute and percentage terms was principally due to higher customer premise equipment spend, as a result of higher subscriber volumes, and increased line extensions spend related to our new build activities In terms of our Q1 2016 P&E additions, 43% pertaining to line extensions, upgrade and rebuild, and scalable infrastructure, 33% was related to CPE, and 24% was related to support capital.

Our new build spend is expected to accelerate for the remainder of the year, and we are reconfirming our full year P&E additions to range from 25% to 27% of revenue. From a free cash flow perspective, Liberty Global Group reported negative free cash flow of 105 million, as compared to positive free cash flow of 356 million in Q1 2015.

This variance was due to trade working capital, and vendor financing outflows, and it was in line with our expectations. We continue to expect our full year 2016 free cash flow to exceed $2 billion. Slide 13 shows the performance of our operations in Western Europe, which represents over 90% of Liberty Global Group's revenue and OCF.

Virgin Media, our business in the UK and Ireland delivered rebased revenue and OCF growth of 4% in Q1. Top line growth was supported by a wide range of drivers, including a strong subscriber growth, ARPU improvement, higher mobile revenue, including handset sales and B2B growth.

Unitymedia in Germany grew rebased revenue by 5% and rebased OCF by 6%, on the back of ARPU and broadband volume growth. In Belgium, Telenet reported Q1 rebased revenue growth of 5%, primarily fueled by higher ARPU, continued growth in subscribers, and an increase in mobile and B2B.

Rebased OCF growth of 2% was impacted by higher marketing spend, and costs associated with the BASE integration. In the Netherlands, Ziggo reported a 3% revenue decline, rebased revenue declined while OCF grew 3%.

The top line decline reflects the continued competitive environment in the Dutch market, and the impact of RGU losses over the last 12 months. Our rebased OCF performance was stronger, as reduced integration expenses and synergies realized during Q1 2016 more than offset revenue headwinds.

And finally, Switzerland and Austria delivered rebased revenue growth of 2% and rebased OCF growth of 8% Q1.

Our revenue growth was driven mainly by ARPU per RGU expansion and volume growth in mobile, while our rebased OCF performance was primarily driven by lower network and marketing spend, and supported by benefits from the ongoing integration of these two markets.

On slide 14, we show Liberty Global Group's leverage, share repurchases and liquidity position. At the end of March, we had $47 billion of debt, attributed to the Liberty Global Group, with an average tenor of over seven years.

Most of the $2.3 billion increase in Liberty Global Group's debt from year end 2015, is due to the addition of debt associated with the BASE acquisition.

Our blended cost of debt improved further to a record low of 4.7%, as compared to 4.8% at year end, as we took advantage of current market conditions to re-strike portions of our derivative portfolio.

Our debt remains nearly 100% hedged, as we have swapped our nonfunctional currency exposures to match local currency cash flows, and have fixed all of our floating rate debt.

Our gross and net leverage ratios at the end of Q1 stood at 5.4 times and 5.3 times, respectively, excluding $2.5 billion of debt backed by the underlying shares we hold in ITV, Sumitomo and Lions Gate.

The increase to our gross leverage ratio from 5 times at the end of Q4 2015 is due to a sequential decrease in OCF in local currency terms excluding BASE, higher debt balances on a reported basis associated with the weakening of the US dollar, and the inclusion of BASE.

Turning to our buyback program, in Q1 we repurchased only 285 million [ph] of our shares, as our daily volume limits were impacted by the cable and wireless deal. The recent buyback moratorium will be lifted on May 18, which coincides with the anticipated closing date for the cable and wireless transaction.

By the end of 2017, we plan on repurchasing $3.7 billion of our shares. Finally, regarding our liquidity, we ended the quarter with nearly $4 billion of liquidity, consisting of $685 million of cash, and $3.2 billion of borrowing capacity. Turning to slide 15, we present an overview of the LiLAC Group's Q1 financial results.

We reported a strong first quarter with rebased revenue up 6% year-over-year to $304 million, primarily driven by VTR. At the same time, rebased OCF growth at LiLAC grew 11% to $122 million in Q1 2016, which compares to 6% rebased OCF growth in the prior year period.

LiLAC's OCF margin increased 250 basis points over the last 12 months to 40.1%, supported by operational efficiencies. P&E additions for the LiLAC Group increased to 24% of revenue in Q1 2016, as compared to 20% in the prior year period.

The increase in both absolute P&E additions and as a percentage of revenue, was primarily related to higher spend for new build and upgrade projects, as we built over 20,000 homes in the quarter partially offset by the depreciation of the Chilean peso against the US dollar.

Finally, LiLAC generated Q1 2016 free cash flow of $20 million, as compared to a cash flow deficit of $26 million in Q1 last year, with the variance mainly related attributed lower interest-related derivative payments, organic OCF growth, and trade working capital improvement, slightly offset by higher interest payments due to the inclusion of Choice debt.

The lower derivative payments in the second quarter, sorry, in the first quarter, were directly related to the re-striking of all of VTR's derivatives during the second half of 2015. Slide 16 provides more detail on our Q1 performance at our businesses in Chile and Puerto Rico.

Starting with revenue, Chile and Puerto Rico delivered 8% and 3% rebased growth, respectively, in the first quarter of 2016. The VTR's revenue growth was its best Q1 performance in three years, as [Kaleb's] subscription growth -- revenue growth was driven by an increase in ARPU per RGU, and continued growth in subscribers.

And in Puerto Rico, Liberty grew 3% on a rebased basis, driven by organic subscriber growth and the continued success at B2B. This growth was partially offset by a decline in ARPU per RGU.

Moving to OCF, VTR reported 13% rebased OCF growth for Q1 2016, this result was primarily due to the aforementioned revenue drivers, together with operating leverage, as the increase in LiLAC Group's revenue significantly exceeded increases in its programming and other costs.

In Puerto Rico, we delivered rebased OCF growth at 7% in Q1, driven in part by the previously mentioned revenue growth drivers, and SG&A cost reductions in Q1.

The chart on the right, displays the gross and net leverage ratios of the LiLAC Group that stood at 4.9 times and 4.3 times, up from 4.5 times and 3.9 times at Q4, due to lower sequential OCF at VTR. The LiLAC Group's average tenor of third party debt exceeds seven years, with minimal maturities prior to 2022.

And our blended fully swapped borrowing cost was 6% at the end of the quarter. To summarize, we had better volume growth this year, as compared to Q1 last year, while successfully implementing annual price increases in most of our markets.

Looking ahead, we expect RGU growth to be higher in the upcoming quarters of 2016, a trend similar to what we saw last year, and supported by ramping new build. And as Mike mentioned earlier, we are reconfirming all of our guidance targets today. Under Liberty Go, we are entering the execution phase of this transformation program.

The closing of the cable and wireless transaction is imminent, and we are excited to kick start the integration and begin unlocking synergies. And next week, we will be back in the market with share repurchases. Finally, one housekeeping item. Please be aware that our upcoming annual General meeting will be taking place in London on the 16 of June.

And with that operator, please open it up for Q&A?.

[Operator Instructions] And will take our first question from Frank Knowles, New Street Research..

Yes, good morning. I'd like to ask if possible one question on new build and maybe also just a quick one on LiLAC. On the new build, you talked about a 1.5 million new homes in 2016. You did a couple 100,000 in Q1, so obviously going to need to ramp that up quite a lot.

I think even further in subsequent years to meet your Project Lightning targets and so on.

Could you just discuss how that's likely to look in terms of which quarters are we going to see a significant increase in the CapEx and the adds? And maybe also, how much that 1.5 million is actually LiLAC versus the core Liberty operations? And then just very quickly on LiLAC, I wonder if you can discuss the pros and cons of whether you're thinking also of a possible full spin off of the business, rather than just a distribution of the tracking shares to Liberty holders, the sort of thinking is, in terms of the benefits or distribution benefits of doing either of those? Thank you..

Sure. Thanks, Frank. On the new build question, I think it's safe to say that across the markets where we are expecting and planning to build, we're going to ramp every quarter from here until the end of 2018. We're targeting 7 million homes. So we're only budgeting $2.5 million this year.

So you should expect that every quarter and there is no real cyclicality for the most part, to build, no material cyclicality to it. So this is all about gearing up, ramping up being thoughtful. And so I think you can expect every six months that's going to be a bigger number than the prior six months.

And where there is a little new build in LiLAC, I think we're budgeting for the full year, and Rick, correct me if I am wrong, a couple hundred thousand new build I think in that part of the world. And we did do some of the first quarter. In terms of the spin I think the I've said this publicly, there's two benefits to the spin.

One is of course, creating a fully distributed and traded public vehicle. The second, of course is having its own identity, and giving it a bit more flexibility and freedom if you will. Now I think the tracking stock is accomplishing a lot of that.

And certainly, if we are to decide to distribute these shares that are owned by the Liberty Global and the tracking stock, so that we have a fully distributed LiLAC tracker, I think we've accomplished at least half of that goal.

And by that, I mean there won't be an overhang, what happens to the 67% of the shares that Liberty Global owns, for example. But more importantly, it will be hopefully trading well, it will be a large free float, and that has major benefits for those who want to own the stock, and it creates opportunity for those who don't want to own the stock.

So I think it is the right thing to do, and I think most people will agree with that. I will tell you that there is a lot we can add to Liberty to LiLAC Group, as soon as we have control of this business. I'm anxious we have a We have been unable to do much during the approval process. So I think it is a little soon to set the ship on its own.

I would like to put a little cargo on there, if you follow me. And I do know that with respect to allocation of capital, product development and technology road maps, there's a number of things that we want to be able to influence and manage from the center, before we go ahead and spin that business. I think ultimately, that's what will happen.

But distributing the tracking shares, I think achieves quite a bit from the point of view of those who want a fully distributed and traded public stock. And for those who prefer perhaps not to own LiLAC through Liberty Global, then they will have the ability to do what they choose to do. So it's a good interim step..

And we will take our next question from James Ratcliffe with Buckingham Research Group..

Two if I could. First of all, I noticed you expanded the expected synergy gains out of the BASE acquisition. Can you talk a little bit about what the timing of this is expected to be for those additional synergies as a whole? And secondly, just Central Eastern Europe EBITDA margin was down, UK was flat, most of rest of the business was up.

Was there any meaningful EBITDA impact of Lightning and the CEE footprint expansions in the quarter? And how do we think about that flowing on the -- the impact from the EBITDA basis through the rest of the year? Thanks..

Sure. Charlie, you can think about the margin question in terms of Central Eastern Europe. On the synergies in Belgium, I don't believe -- we have not changed the time frame of those synergies. They are a little more backend-loaded than some.

But remember, the biggest source of synergies in the BASE acquisition is of course, migrating the customer base from Telenet to BASE itself. And that is something that's going to drive pretty meaningful benefits. So I think it is good that we are more aggressive and more ambitious in the synergies.

But I don't think that the time frame of those synergies has changed materially. We did increase I believe in small amounts I mean the costs of integration to approximately 300 million So it's going cost us a bit more to get those synergies. But the time frame hasn't materially changed.

Charlie, do you have any thoughts on that on the sense to the question?.

I think, the margins are still holding up. There is no particular reduction in margin. It's more a question of phasing of marketing. So there isn't any discernible trend to be concerned about..

We will take our next question from Jeff Wlodarczak with Pivotal..

Good morning, guys. As we think about modeling EBITDA for the balance of the years, is it fair to say -- based on your comments that Q1 was a low watermark, and we should see a steady acceleration for the balance of the year? And then Mike, specifically I wanted to get your thoughts on the Three O2 deal or I guess lack of deal.

It sounds like the EU is going to nix that, and how do you feel like Virgin is positioned for either circumstance? Then I have a follow-up..

I think the short answer on the EBITDA question is, yes, it is a low watermark. I mean we're still providing guidance of 5% to 7% in this year. So clearly we need to step it up in the second quarter and in particular in the second half. But that's as I kind of tried to allude to in my remarks that's how we budgeted it.

So while the number might not be where all the analysts had it because you understandably maybe looking at things on a straight-line basis, we never had it that way internally. So we weren't discouraged at all by the Q1 OCF number. In fact, it's right where we thought it would be.

On the O2-Three deal -- Tom's on the phone as well, I will let him chime in. We are not privy to any specific knowledge about what the Commission will or won't do. We certainly have been engaged in some conversations along the way here, as you'd imagine. And I think from our point of view, we are well-positioned whatever occurs.

If for example, they decide not to approve the transaction, then we have optionality around what we do in the long run with our MVNO contract. Of course, our current contract lasts until 2018. We'll be launching 4G. And there is a number of positive things in our estimates to you for the next three years.

Do not assume any changes to our UK mobile situation. We think whatever happens there's greater optionality for us if the deal is approved then we do have some backstop arrangements that we could possibly implement. And I like the idea personally of having optionality.

We don't think it is going to be a big difference one way or the other to the ARPU in the market or growth in the market. But as we sit back and look at it, we can proceed forward with our base case, which we think is terrific in the UK on mobile.

Or we can look at options that might be accretive to that -- and I can't be specific on what those are, but I like the position that Virgin is in.

Anything want to add to that, Tom?.

No. No thanks, Mike. Absolutely, his point is we have that optionality, and we feel in a good place with the deal tenor that is available to us..

And then, just a quick follow up.

Not sure what you can say, Mike but some have argued publicly that if the Three O2 deal falls apart, that O2 might be an interesting candidate for you all to merge Ops with? Can you say anything about that?.

No, I haven't, I can't say anything about it. You should expect that we look at all options in our marketplace and it would be strange if we didn't evaluate that option. But I can't give you any color on that and to be honest with you like I said we like our current plan.

And while I like optionality I'm not particularly fond of options that preclude optionality. So we're going to be thoughtful not just about the economics of a transaction or something along of our mobile business there, but also just looking three, four, five years down the road, is it for the right plan for us.

And that is what we're doing in every market with mobile. We're basically saying, here's where we are today. Here's what our three to five-year plan say we can achieve at current arrangements that we have under contract.

And what are our options for improving that, as time evolves? And then we just sit back and figure out what works best for us and for shareholders. But no there is no color I can provide you on that right now..

We'll take our next question from Ulrich Rathe with Jefferies. .

Thank you very much. I would like to start with Germany. It seems that RGUs [internet] in the first quarter was down year on year, and then it seems that you had some spending on retention, if I look at your OCF trends. Now in the fourth quarter, you talked about -- having that control under much, that process under much better control than last year.

You're approaching it with the learning of last year. I'm just wondering how you look at the results after -- this is now water under the bridge.

I mean, how do you interpret the results?.

Yes, one big difference. And I don't know if we actually let made this transparent to folks. In Q1, 2015, the price increases across our base really only impacted I think about 1 million of our customers. We did take increases across our acquisition portfolio. This year, the price rises have impacted closer to 4 million customers.

So what we did, we didn't impact the acquisition portfolio as materially, but we did take price increases across 4 million customers. So I think we are actually really pleased with these results. Because last year, our ability to impact margin and OCF, was materially less. Because we were not taking increases across a very large proportion of our base.

This year, that increase impacted over 4 million of our customers. That I think the main issue, I would take this particular type of Q1 over any other Q1 because those price increases will benefit us through the course of the rest of the three quarters.

Is that clear?.

That's very helpful. Thank you, and if I may just a follow-up on something. So taking a step back, I mean, at Q1 of last year, you provided fairly upbeat guidance for the year that was also very much backend-loaded.

In fact, I think we were told just now, that we should think about the second half or the remainder of '16, not unlike the remainder of '15. But, of course it is true that not all the targets that you communicated after Q1 did come through, the RGU adds were not above 1 million, and we didn't quite get to those mid-single-digits OCF growth.

I know, there were good reasons for last year, and I am not quibbling with that. But I was just wondering, what's different this year such that we should have more confidence of this big step up in trends for them to come through in the second half.

Is there anything structurally different this year, compared to last year?.

Yes. I think there are some structural differences particularly in the cost equation. So the Liberty Global plan, as I've indicated, have a number of initiatives underway, that are focused on improving our cost efficiency in the manner in which we run the business.

So, we did not have any of those in place last year, and those take some time to put in place of course. So, I think you are going to see some of the benefits accruing in the second half of the year, from our cost efficiencies. Look, we do the best we can to forecast revenue and customer growth.

Nobody has a crystal ball, but we feel pretty good about the momentum. We can see forward reasonably well. And I think, especially in markets like the UK, where the new build program with another 400,000 homes they're going to build this year, has demonstrated that we are hitting the mark on customer acquisition and growth.

Some of those things are pretty easy to predict. So, I can't give you a lot more detail than that but I will tell you that we have at least a more aggressive new build program, 1.5 million homes that we know are going benefit us as we build those homes out.

And secondly, we have a greater emphasis, focus, and a greater, and a much more concrete delivery schedule on the Liberty Global efficiency plans that in last year's market we're just really in the planning phase. So those are two variables or two levers that I feel pretty good about..

We'll take our next question from Vijay Jayant with Evercore ISI..

Hi, Mike. Just a couple of questions. First, can you just help us on understanding what is the rate increase, we saw you have done a lot of in the quarter and that's going to be a key driver up the top line.

If you can help us just isolate that on a broad number, what range it is? Second, I'm trying to understand the structure on, your comments about possibly doing a distribution of the LiLAC shares as a tracker.

So, given that it is still a tracker, would you do more M&A before a hot spin, or can we expect another transaction similar to what you have right now with cable wireless, where Liberty Global is part of the equity story there? And finally, just a housekeeping question.

On the base integration costs, can you help us understand what that was? Thank you..

Sure. Charlie, why don't you put some thoughts on the base integration cost together. On the rate increases, I can't remember if we make these very clear in the market or not. But if you go around Europe, those increases are ranging from 2.5% to 5%, right. In the UK, it was over 5%, and in Ireland it was over 5%.

In Switzerland, more like 3.5%, Austria more like 3.5%. In Germany in the mid 2s%, Belgium, Chile and Holland, in the mid 2s%. So it's really a range and it has a lot of issues, a lot of factors that determine that, what's the competition doing, what did we do last year, what improvements to the products have we made? That is a key driver.

Are we increasing speed? But those are not dissimilar from prior years, and we were maybe a little more aggressive at Virgin last year. Of course, we had a different type of price increase in Germany last year. That was more focused on the acquisition portfolio. Belgium was a little higher last year. So it is going to be mixed.

But I think for the most part -- I don't know that we have an aggregate figure for you, unless Charlie has one that he can pull out. But those are sort of the key markets and what we've done. Good question on the M&A in Latin America.

You can bet that we are both thoughtful about that issue -- and I think one of the reasons for distributing the tracking stock, if we choose to do that, that's held by Liberty Global would be to have a more fully distributed publicly listed entity, that would be able to stand on its own two feet, so to speak, with respect to being a public vehicle.

So I would think it is highly unlikely that we would issue shares, or do a transaction with another candidate down there that looks like the cable and wireless deal. Now I have to be careful to say that -- never say never. But on the other hand, I am -- and we are all quite sensitive to the pros and cons of the structure we just completed.

And I think -- one of the reasons for distributing that tracking stock is to try to unwind that a little bit, and give people the -- both the flexibility to do if they want with their shares. And for those that want to own what I think will be an extremely attractive business, to give them a more fully liquid security.

So I think that's the right answer to that question. I will just repeat that; we are highly attuned to the point. Let's put it that way.

Charlie, any thoughts on the third question?.

Just on the pricing point, I think we built with a budget -- we saw a net price increase of 2% to 2.5%. About half of that comes from price increase net of usage declines, so they're half our build increase is roughly half of that, but the balance coming from upselling.

On the BASE integration costs, actually I'm not going to answer that question, because I want to make sure what the public disclosure from the Telenet side is. But there are BASE integration costs that are hitting this year's numbers at Telenet, so certainly a factor in there. Slow growth this year.

But let me get back to you with the exact numbers that we have -- are proposed (multiple speakers)..

Yes, Charlie, it's Bernie. In the quarter it is about $4 million external costs in the quarter so..

For the BASE integration, yes..

Yes..

We can follow up with you on that, Vijay..

And we'll take our next question from Jason Bazinet with Citi. .

Just sort of had a technical question. Regarding sort of the -- I think there is going to be about $5 billion of Liberty Global stock that cable and wireless shareholders will get. And if you do end up distributing the LiLAC shares that you own, $5 billion of LiLAC supply that could come to the market.

I was just wondering if you could share with us in other instances, maybe VMed [ph] where you've issued equity, things that the market may not be thinking about, that can mitigate that sort of supply. i.e. people sometimes hang onto the shares, or they sell over a period of time.

Or you can phase your buyback cadence in a way to sop up that extra supply.

Just any sort of color on that would be helpful?.

Yes, very good question, Jason. There are options here. You don't have to distribute the shares all at once. I think that you can distribute them in three, six, or nine month periods.

I think the problem with that is then, you create this overhang, that those that want to own LiLAC are wondering, when is it coming? When are more shares hitting the market? We like the idea of a clean simple one-step transaction, which undoubtedly creates a little bit of maybe uncertainty, who will hold, who will not hold? What will happen? Remember, most of the -- general wireless shareholders will not be particularly large shareholders of Liberty Global.

So when the LiLAC shares are distributed to Liberty Global, they won't be a particular part of it. I mean, the numbers are not on the top of my hand, but Global is. So I don't think you should assume that every share that gets handed to a cable and wireless shareholder, is going to then define the market.

Because many of them will hang on to most of their shares, 95% of their value is still going to be in Liberty Global shares. If that is what you are asking about, with respect to LiLAC. On the LiLAC front, look, it's all about marketing and telling the story.

We have do as good a job or better, with the LiLAC story, and the LiLAC message and opportunity, so that people decide they want to own it. But for those who don't want to own it, it creates opportunity for the rest of us that do. So it's a normal and ordinary course moment, I guess I would say, and there may be a slight bit of dislocation.

But we are hopeful that dislocation creates opportunity for some, and liquidity for others, and we move on down the road.

Does that answer your question?.

It does. Thank you very much..

We'll take our next question from Justin Funnell with Credit Suisse..

Thank you. Yes, just two questions, please. I guess, Project Lightning so far, so good, and the in the meantime, BT is sort of tied down with [off com] and future regulations.

So there is an opportunity to perhaps go a bit bigger in the UK, if you've any thoughts about that? Can you expand your footprint plans in the UK substantially? And then secondly, in Germany churn, I guess, went up in Q1, with the TV price increase. In prior years, churn has come back down in Q2 to normal levels.

Are you seeing a similar pattern this year? Thank you..

Tom, do you want to address that UK footprint point? And I don't know if Lutes, if he can address the German point?.

Look our focus at the moment is really very much on proving the case that we have, which is going very successfully. We mentioned earlier that we've got a target of over 500,000 additional premises this year. And to indicate our momentum there, we've got over 300,000 premises in the build program at this moment.

At this time last year, that number was 30,000 so we're definitely building the momentum. But we've got to deliver that over 500,000 this year and then lift to something approaching 1 million next year. So far, we're getting that penetration that we wanted, and in many expected respects, exceeding it.

And we're getting the ARPU, so I believe we've certainly proved that case. But ultimately it will be up to the judgment of Mike and the Board of Liberty Global, whether or not the project goes beyond the current program of 4 million premises..

Look, I think we are I mean, as we have demonstrated, and as you will see, new build is the single biggest contributor to the value creation we're anticipating here. It is not without as I said, not without cost, not without complexity. But as we every quarter that goes by here, as we hit the numbers and see the results.

I think we become more and more confident, and more and more emboldened. Arguably to continue beyond on the 7 million, because we know it is more like 10 million plus available, and or to accelerate.

And the beauty of a new build program is we can speed it up, or slow it down, based upon we're seeing and what it's costing, and are we hitting the mark? So it is a really terrific source of value creation for us, with lots of flexibility and the ability to control what we are doing.

In terms of Germany, I don't know, Lutz, are you on? I don't know if he is. But in terms of Germany as you look at our prior year, the second quarter is certainly better than our first quarter, right? Last quarter, our first quarter was more or less like this first quarter, and the second quarter, we were able to pick it up.

But Lutz, I'm sorry, Diederik, did you want to add anything to that?.

Yes, the only thing I would add is that there will still be a tail end of the churn related to the video losses, because some of customers were confronted with the price increase relatively late in the first quarter. But by and large, and like you said, Mike, most of the churn comes from cat fee, so basic TV turn.

So we should have seen most of that in Q1, tail end into Q2. And then indeed, a kind of facing phasing out of the effect of that in the remainder of the year. With that you'd see more net adds in the total video domain. So that's the total story. Thanks..

And will take our next question from Michel Morin with Morgan Stanley..

Thanks. On LiLAC, Puerto Rico saw a bit of a slowdown this quarter. I was wondering if you can comment on that, how much of that is due to macro? Or if there was any disruption related due to the rebranding? And then, obviously you're still delivering OCF growth there.

How much more room is there for cost savings and synergies to come through? And just to clarify on the potential distribution maybe I missed this, but do we know the share classes that the LiLAC share classes, that Liberty Global will have and will potentially distributed? Thank you..

Yes, on the LiLAC distribution, it's highly likely that we would simply mirror the share classes, that in the distribution that exist at the Liberty Global level. Brian, if I got that wrong, jump in, but I think that's right.

And then, with respect to Puerto Rico, I'm not sure if Betzalel is on, but the macro issues there of course are obvious and apparent. And we're seeing probably, most significantly people leaving the island now.

Fortunately, we're in the midst of an integration and the synergy there are continued synergies to be realized, and the product we're offering is highly competitive and attractive. So we still forecast good growth out of Puerto Rico. We haven't changed our long range plan on that business, or mid-range plan.

So we expect it to be an important contributor to the LiLAC growth that we budgeted or guided to this year 7% to 9% OCF growth in 2016.

Betzalel, if you're on, want to jump in?.

Yes, Mike. As you said, I think as we see a slight decrease in churn versus last year, they're mainly related to people leaving on the island as you said. But operationally we are having a good control on churn. And despite price increases that we implemented last month, we don't see a spike in churn.

On the other hand, the integration of Choice, keep on going as planned, we are executing on the cost side. And on the other side, increasing the awareness with the rebranding to Liberty Global across the islands.

So they are the concern is there with the macro, but I think on the operational side, we're managing the situation quite closely, and the results are still in good shape..

Will take our next question from Jonathan Dann with Royal Bank of Canada..

Can you help me square your slowdown in German broadband adds, and then Deutsche Telekom reintroducing regional discounting? I had assumed that was a response to your success in urban cabled areas..

Well, I think, Deutsche Telekom, and Diederik, and you can jump in on this as well. Pardon me. Deutsche Telekom is a tough competitor, and they have definitely started to find their niche, if you will with their bundle, and in particular with the mobile part of their bundle.

But we still added 40,000 broadband subs in the first quarter to their 62,000 and we're in three states. So while I'm we're always thoughtful and careful about what they're doing and how they do it.

Cable in particular and I would add, say Kabel Deutschland and Telekomis to that mix is still doing 175,000 to 180,000 net ads every quarter, 2 to 2.5 more than Deutsche Telekom is doing. So now they're getting better at it certainly finding their way in the video and mobile bundle is helping quite a bit.

But it is really a boxing match, like it is in other markets. So I'm not sure I can provide any more color to what they're doing this week versus next week or the prior week. Perhaps, Diederik, if you want to jump in, if you can..

Yes, just to add to that, Mike, that their first quarter increment performance was lower than last year's performance. Ours was a touch and absolute better than last year. So like you say, it is a boxing match, but particularly with the triple play, and now also the move to quad play, they are a strong contender, might have lost him there.

Any ways, does that answer your question?.

It does. Thank you..

And we will take our final question today from Matt Harrigan with Wunderlich Securities..

Thank you. Two questions. I know Lutz isn't on the call, but there's reports that you're doing 1.5 million hot spots in Germany off the dual SSID approach and also going all digital look like you got a lot of initiatives going on in that market in serve as a harbinger of Liberty 3.0 or Go as you now refer to it.

I know it is a little distorted looking at net activity versus gross and mathematically, in a light activity quarter. It looks like Eastern Europe was about 47% of your net adds, or it's only 19% of your homes passed, so clearly, kind of knocking the cover off the ball.

I know it's lower ARPU customers but what's going on there? I mean just that the product [indiscernible] that you've introduced or is there something that doesn't meet the eye immediately? Thank you..

Well, I think, I'll let Diederik chime in, but Sempletion in Europe has, if you're looking at just raw volume, quite a large business there and a little bit of innovation a little bit of product development, a little bit of price goes a long way in that particular part of the world. And I think we've also found, and this is more of a broad statement.

For a long period of time Sempletion Europe was highly, highly competitive. It's still competitive. But I think the ARPU erosion the prices are already quite low. So a little bit of product, a little bit of marketing really goes a long way in a market that seen years of price erosion. So we think there is an upside in that market for sure.

I remember calls, when we were talking about Romania and now it is growing 9% a quarter. So it is possible that particular part of the world has seen, not the bottom but close to the bottom, which means that it's all -- more we can do on the product innovation and marketing here could be upside.

But Diederik do you want to add anything to that?.

Yes. We also see the first effects of the new build, that is what is driving part of the net adds well..

Yes..

So it should stay in a strong for maybe a few more quarters point of view..

Yes.

I think that was -- was that the last question, operator?.

I was asking about the German hot spots as well if you don't mind..

Yes, Diederik, do you want to -- I don't know if Balan is on, or Dietrich you want to address that?.

Diederik, do you want to address it or let me….

Yes, on the Germany hot spots -- so as Mike indicated earlier on, we are increasing the number of hot spots from the home, we've experimented as well with a number of hot spots out in the public areas. At this point, we haven't made a major decision to continue on that. But for sure, we will expand on the hot spots from within the home.

We'll probably 10 million across Europe by the end of the year..

Thank you, Matt.

Was that the last question, operator?.

We will take our next question from Ben Swinburne with Morgan Stanley..

Hey, Mike, thanks for squeezing me in..

Yes, no problem..

Two questions for, well actually one for Tom and one for you. Tom, you guys have had a lot of success with the TiVo platform and generally in video in the UK. Sky has their I think new Q box that has come out. What are you guys planning to do on the set-top side? You alluded, in the press release to a new box.

Is that TiVo or Horizon? Something new, any color you can give us as to where you're taking the product? And then, Mike, you mentioned keeping the 5.5 billion fixed cost base flat in Liberty Go.

What are you thinking of a headcount and marketing? Is marketing something you think you have savings in? Do you think headcount goes down? I am just trying to think of the levers inside that?.

Well, I think look there's no question that when you forecast flat in direct costs at that level, there's going to have to be some things that go up, and some things that go down. You can't get everything stay the same. A lot of what we're doing at Liberty Go is focused on efficiencies.

So for example the technology organizational changes that I referenced will clearly result in we think fewer headcount and a more efficient delivery of the technology services that we're providing. There are other areas where we are, that we put in place is indicating that we can do things differently and more efficiently.

So there is no question that headcount is part of that, but it's not just headcount. And I gave you three or four examples on -- it's got lots of other variables that we are focused on.

And then our goal -- because as I said, 60% of the value is coming out of revenues, we have to keep pushing the RGU growth, and we have to keep the marketing machine moving.

So, unlike perhaps some of our peers, who just pick a number and try to hit it, we're actually being much more thoughtful about what needs to rise, and what needs to fall, in terms of our investment.

Clearly marketing and sales is an area, especially as we focus on our customers more then we have in the past, that marketing and sales have to be an area where we stay say aggressive. Because we can't achieve the growth in B2B, the growth in mobile, the growth in our residential fixed space, if we just sit back and cut costs so.

I think we'll provide more color on that as these quarter goes on. But it is the right question and perhaps, off-line, we can give it a little bit more color. On the TiVo one, Tom should certainly chime in, it's largely a technical issue.

I'll let Balan also address it but EOS is a set-top we intend to rollout everywhere at some point, including in that market and it's certainly, we already have a TiVo interim plan, or medium-range plan in the UK. But perhaps one of those guys, I'm not sure who feels more willing and able to answer that question. But I'll let you guys chime in..

Okay, I will take a shot at it [indiscernible]..

Mike, I would like to briefly say -- [indiscernible]..

I like the fact that they both want to give it a shot. Okay, Tom, you start..

We are committed in the second half of this year to deploying EOS in the United Kingdom, we'll put some TiVo software on it. But that will give us a lot more functionality for our customers. We are very confident with the TV launch, relaunch that we have coming through this year, that we've remained very competitive with Sky.

So far, we have seen very little impact from the Sky Q, which of course is a very expensive decoder. And we are focused on improving the offering we have there, and EOS is going to be a big part of that..

Yes, Balan, do you want to add to that?.

Yes, I'd say exactly as Tom indicated, plus that this new box, it's going to be a 4-K box. It's a pretty high-powered box that we'll get a refreshed UI on it, in later this year. And then, in the following years, our goal is to get Horizon across all of Europe.

And the EOS box, this new 4-K box, that's going to be the engine for the next generation video for Liberty..

Yes. Thanks, Ben. All right, I think that's probably it. We are five or six past the hour. Thanks for sticking with us if you have. I would just say, look, and we sense it in your questions, and they're the right questions. We set the bar very high for ourselves, and that's how we like it.

So, we need to and when we are motivated, as I said, and ready and able to try to hit those numbers and hit those goals. So you should expect that from us. I'm particularly excited about cable and wireless. I want to welcome, if there is any shareholders on this call from cable and wireless, welcome you, and look forward to working together.

It's going to be a great opportunity for us. We will be thoughtful, as I said, about how we structure, capitalize and grow in that part of the world, as I indicated. And we have a good start to our second quarter. So we appreciate everybody's supports and commitment, and we'll speak to you very, very soon. Thank you very much..

Ladies and gentlemen, that concludes Liberty Global's first quarter 2016 results Investor Call. As a reminder, a replay of the call will be available in Investor Relations section of Liberty Global's website at www.libertyglobal.com. There you can also find a copy of today's presentation material..