Liberty Global looks to extract value from European business
November 3, 2026 13.28 Europe/London By Julian Clover


Liberty Global is putting shareholder returns and debt reduction at the centre of its strategy, advancing the planned Ziggo Group spin-off and asset disposals while backing a major cost-cutting programme at Virgin Media O2.

The third-quarter update sets out a sharper focus on extracting value from its European businesses, with network investment increasingly judged against cash generation and returns.

“We remain intensely focused on disciplined capital allocation and executing our unlock strategy to deliver value directly to shareholders,” said CEO Mike Fries.

Liberty Global repurchased $100 million of shares during the quarter and expects to buy back a further $100 million in the final three months of 2026.

The most significant restructuring is in the Benelux, where Liberty completed the acquisition of Vodafone’s 50% stake in VodafoneZiggo and progressed the formation of Ziggo Group, bringing together the Dutch operator and Belgium’s Telenet.

The spin-off remains scheduled for the second quarter of 2027. Liberty intends to make initial confidential submissions to US and Dutch regulators in December, with the management team led by CEO Stephen van Rooyen and CFO Jany Fruytier.

Operating and financial synergies are now expected to exceed the previous €1 billion net present value estimate.

An agreed €669 million sale of VodafoneZiggo’s mobile towers will contribute to a broader €1.2 billion–€1.4 billion target for disposals of non-core Ziggo Group assets. The tower proceeds will be used to reduce VodafoneZiggo’s debt.

In the UK, Virgin Media O2’s strategic reset targets £800 million in annual cost savings by 2029, supported partly by a 30% reduction in people costs. The company has not translated that percentage into a headcount target.

VMO2 will concentrate capital spending on fewer projects and halt further fibre upgrades beyond existing partner commitments, while continuing to support nexfibre. Liberty explicitly linked the measures to reducing leverage.

Cash returns from the UK venture are also less certain. Planned distributions of around £200 million to shareholders in 2026 are under review, with an update expected alongside full-year results in the first quarter of 2027, once the outcome of the Netomnia transaction is known.

The operating picture was stronger in the Benelux. VodafoneZiggo added 11,800 broadband subscribers, its second consecutive positive quarter and strongest performance since the second quarter of 2019. Telenet added 4,100, extending its run of broadband growth to six quarters, supported by BASE’s combined fixed and mobile offering.

Cable technology remains part of the investment case. Liberty said VodafoneZiggo had become the first major provider globally to offer 8Gbps over DOCSIS 4.0, demonstrating scope to increase speeds over its existing network.

The UK fibre decision does not represent a group-wide retreat from fibre. Belgian network business Wyre accelerated investment in its fibre rollout and continued implementing its network cooperation agreement following regulatory approval in July.

Television also contributed to the commercial strategy. Telenet’s expanded sports offering brought additional Jupiler Pro League programming revenue, although costs associated with its new DAZN agreement weighed on earnings. Higher programming costs were also among the pressures at VodafoneZiggo.

Ziggo Group revenue increased 1.4% on a rebased basis to €1.66 billion, but adjusted EBITDA fell 6.8% to €586 million on the same basis. The figures underline why improving customer momentum is being accompanied by asset sales and a drive for greater efficiency.

VMO2 remained under pressure, losing 22,100 consumer broadband subscribers during the quarter. Fixed average revenue per user declined 5%, reflecting promotional activity and the timing of annual price increases.

Liberty’s priorities are consequently clear: improve commercial performance, release capital from assets and make the remaining investment work harder, while continuing to return cash to its own shareholders.