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Vodafone Group Plc
Morgan Stanley
BNP Paribas Exane
Bank of America Merrill Lynch
New Street Research
Deutsche Numis
Forward-looking statements
Barclays
JP Morgan
Citigroup
UBS
Berenberg
It is unclear whether this discussion will ever become a draft law, and it is unclear at this point when this draft law will become law. But assuming if it happens at some point in 2026, you need to keep in mind - and I am going to the next part of your question - that by then, OXG will be already marketing, anyway, to millions of customers in the housing associations. So standing back, I do not see this as a major impact on whatever speculation is going on, definitely. The other point I would say is that, actually, if you take all the discussions that are going on in Germany across the Telco Act and across the copper switch off, again, I think it is moving in the right direction overall and it will be supportive for telecoms overall. You asked about OXG economics, I think. And so on the equity injections, these are very small. I mean, obviously, Luka could add any detail. But I think we said this when we were setting up the JV because of, I would call it self-financing over time, it’s really at the margin in terms of equity requirements. Very, very small. On the front of the wholesale costs and revenues, depending on which side of the equation you look at, I know that there has been some work going on, on trying to, from an analytics perspective, get to this calculation. I think it’s really important that you keep in mind. Let me say there are three nuances to the calculations that maybe are worth sharing, and IR can help you bringing them to life more precisely than I can do in a call. The first point is that there is no commitment or obligation whatsoever for Vodafone cable customers to be migrated to fibre into OXG. That just is not there. The second aspect is that 20% of the OXG footprint will be actually outside the cable areas. Then finally, obviously, penetration into the OXG households will build over time. So it will build during the six years of rollout, which are exactly planned as you were describing, but it will also obviously continue to build after that. So all this is very gradual and I think brings to, I would say, a different conclusion than some of the calculations we have seen, but I would let, really, the IR team to help you out on where to go. I would just say that we are really happy with the progress now with OXG. You know that the first year, year and a half, obviously were challenging to set things up. But we have now already built to 350,000 households, we have opened the sales to one million households, we have connected the first customers. We have also opened wholesale, 1&1 and regional operator are already connected, and three million households are already, let us say, committed in the construction orders. We have more than 30 construction partners. I mean it is a big building site across many, many cities in Germany, and we now look forward to see this coming through in our numbers. Just very quickly on the equity. So in three years, the equity contribution and injection was just above €70 million. So it is really to underscore the point for Margherita, very, very small. My question yet again this quarter is on Vodafone Türkiye. On my numbers, it represents, I think almost half of the organic EBITDAaL growth that we have seen since last year. I guess most notable is the EBITDAaL margin uptick at your Turkish business. So could you talk a little bit about the top line trends you are seeing there and expect to see. And on your cost management programme, if you could say a few words on that. Perhaps I can take this because indeed, I mean, Türkiye has been a tremendous success story in the last couple of years, not only in terms of the financial success, which has been clearly there.
Luka Mucic Vodafone
Emmet Kelly Morgan Stanley
Luka Mucic Vodafone
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