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Liberty Global CEO Michael Fries on the cable company’s growth overseas, particularly in Europe.
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All right well some of the biggest names in global business and government are exchanging ideas that the -- World Economic Forum in Davos Switzerland was -- Is in the thick of it all live.
-- -- if you watch fox in Europe there's a good bet you're watching it thanks to Liberty Global it's the world's second largest cable company.
And I'm joined now by the president and CEO -- trees and if you do business in fourteen countries eleven of which are in Europe this morning Treasury Secretary Geithner here in Davos gave a speech and he said that.
Growth in the US should be fine now if in Europe continues to progress.
And if we don't have trouble out of Iran those -- two huge debts aren't -- They are they are but I'm an optimistic about Europe 90% of our revenue 90% or customers -- in Europe.
In fact the last two years we reposition our business into Europe.
Two years ago -- half.
Four of our biggest countries -- Germany Netherlands Belgium and Switzerland which are in northern European strong markets but our fastest growing markets Ireland.
Which is in the news all the time so -- for the death.
And fortunately our products are relatively inexpensive so we're not out there gouging consumers so we've had great success -- record year growth so -- an optimist about Europe.
It's interesting that we're telling Europeans have to do their economy.
You know after.
Our own situations but but on an optimist.
If you just completed a four billion dollar of acquisition -- with the German cable company called Kabul what you expect to glean from that aside from such.
-- -- -- -- -- second acquisition evening in the last one for much in Germany a total of about eight billion dollars and it sets the policy that best cable market I've seen in my chairman John Malone is seen in our in our history really.
This low penetration of broadband and digital TV services this great consumer.
But demographics.
We have great scale.
It's that by far the best -- in Europe the largest marketing here so -- We're anxious to its 40% of our growth at this point Germany so it's -- good place -- yesterday.
What do you say -- not dipping my telling their which part of the club are you staying away -- ten years ago we were in 26 countries.
With about a billion -- revenue today were in fourteen with ten billion of revenue so we have we have kind of redefined scale.
-- -- -- -- And an in country saw much rather be bigger in Germany -- for other markets in a small way -- competing with the Telecom which is nationwide ubiquitous.
And very large so our our mingle with scale and to get scale you've got to focus in certain markets.
You have third quarter numbers that actually even with the exposure that you happen what some would say is distressed areas like Europe.
You -- about 19% growth there how did you make those very respectable numbers.
So two things part of it is currency exchange -- currencies so we -- based on numbers for foreign exchange our growth was about 5%.
Revenue 5% ebitda for the year.
Which is pretty good in our space but we added more customers in the third quarter than all the US public cable operators combined.
Through our volume growth in our unit growth.
Issued and we're doing that you know with really good margins and efficiencies and -- that margins -- efficiencies but what do you offer the customer that's different OK good question.
Our average beating Europe is about 25 negatives so we're a step ahead of the US in terms of broadband speeds.
100% of our 35 million homes can get a hundred -- today -- we've really ramped up the broad band that next generation networks.
Secondly we're rolling out this year -- new device that we think will make people fall in love with cable operators that we can -- -- with apple.
It's a device that's -- street problems it allows us to -- content from the TV to other other devices and screens.
It allows you to integrate content from the web and apps on the TV.
And it's a beautiful user interface as a.
All the horizon box -- she rolled out that you at least announced two years ago at CES and I saw that rollout I thought that's amazing -- -- send Mike.
A lot of TVs have much of this -- tent they're Smart TVs everywhere which I saw this year at the consumer electronic.
Now we make Smart -- brilliant.
Smart -- not enough because -- -- just been the least amount of technology Samsung LG will put in there to differentiate themselves from the other guys.
And Smart TVs -- not the answer to a consumer on the back.
You had announced a pretty significant share repurchase program of about a billion.
A lot of companies do that they make the big announcement the stock gets a nice pop -- -- ever really seen them follow through with it are you -- -- to complete.
With us it's religion.
Since we in the last five years we repurchased eight billion dollar with the stock over half our equity and we're on pace for about a billion a year -- -- the best use of our cash that in the making acquisitions to build scale.
-- I have to tell you I've -- -- kindergarten.
We are really perhaps.
I'm proud of -- I don't know I know you're gonna be that they got back into kindergarten.
My reasons the president and CEO of Liberty Global thanks so much frequency -- a -- journey back to you Colorado where you are based -- back to you in New York.
