LBTYA
Liberty Global LTD
NASDAQ
8-K: Virgin Media Ireland Reports Preliminary Q4 and FY 2024 Results: Fiber Upgrade Accelerates
Sentiment:
Preliminary Results
18 February 2025 4:38 PM
Virgin Media Ireland reports progress on its fiber upgrade program and B2B revenue growth, but faces challenges in residential revenue amid a competitive environment.
Worse than expected
Overall revenue decreased YoY for both FY 2024 and Q4 2024, indicating underperformance compared to the previous year.
Residential fixed and mobile revenue decreased YoY in Q4 2024, suggesting challenges in the core business segments.
Fixed-line customer relationships decreased by 9,500 YoY, reflecting customer losses.
Summary
- Liberty Global released preliminary unaudited financial and operating information for Virgin Media Ireland (VM Ireland) for Q4 and FY 2024.
- Approximately half of VM Ireland's premises have been upgraded to full fiber by the end of Q4, with nearly 50,000 fiber customers.
- The company is expanding its reach by selling services in areas covered by NBI and SIRO, now covering 1.4 million addressable homes.
- FY 2024 revenue decreased by 2.9% YoY to €454.3 million, while Q4 revenue decreased by 3.0% YoY to €120.6 million.
- B2B revenue showed strong growth, increasing by 14.7% YoY in Q4 to €10.9 million.
- FY 2024 net earnings increased 153.4% YoY to €4.7 million, and Q4 net earnings increased 134.6% YoY to €11.9 million.
- FY 2024 Adjusted EBITDA decreased 1.6% YoY to €165.0 million, but Q4 Adjusted EBITDA increased 10.6% YoY to €48.0 million.
- Fixed customer net losses were 1,900 in Q4, showing sequential and YoY improvement.
- Mobile postpaid net losses were 400 in Q4.
- At the end of 2024, the ratio of Net Senior Debt and Net Total Debt to Annualized EBITDA were both 5.12x.
- VM Ireland had €88.9 million of undrawn commitments available at December 31, 2024.
Sentiment
Score: 6
Explanation: The sentiment is neutral to slightly positive. While there are positive aspects like fiber upgrades and B2B revenue growth, the overall revenue decline and customer losses temper the optimism. The company is facing challenges but making strategic investments.
Positives
- Significant progress in the full fiber upgrade project, reaching approximately half of premises.
- Strong growth in B2B revenue, driven by wholesale access.
- Sequential and YoY improvement in fixed customer net losses.
- Increase in net earnings for both FY 2024 and Q4 2024.
- Increase in Q4 Adjusted EBITDA.
- Expansion of addressable homes through off-net footprint.
Negatives
- Overall revenue decreased YoY for both FY 2024 and Q4 2024.
- Residential fixed and mobile revenue decreased YoY in Q4 2024.
- Mobile postpaid net losses of 400 in Q4 2024.
- Fixed-line customer relationships decreased by 9,500 YoY.
- Total RGUs decreased by 72,000 YoY.
Risks
- Intense competition in the Irish market is impacting fixed and mobile revenue.
- Elevated capital expenditure is expected to continue in 2025.
- Lower customer volumes and ARPU are affecting residential revenue.
- Potential risks and uncertainties related to technological changes, regulatory changes, and economic factors could impact future results.
Future Outlook
While capex will remain elevated in 2025, investments in strategic initiatives are expected to maintain market share and drive long-term growth.
Management Comments
- Tony Hanway, CEO of Virgin Media Ireland, stated that 2024 was an important year for transforming Virgin Media Ireland into a full fiber operator.
- He noted the continued momentum in deploying fiber and selling fiber connections.
- He also mentioned the success in selling services in NBI and SIRO areas.
Industry Context
The announcement reflects the ongoing trend in the telecommunications industry of investing in fiber infrastructure to meet increasing demand for high-speed broadband. Virgin Media Ireland is competing with other providers in the Irish market, including those in NBI and SIRO areas, to maintain and grow its customer base.
Comparison to Industry Standards
- Comparable companies such as eir in Ireland and VodafoneZiggo in the Netherlands are also investing heavily in fiber upgrades.
- The debt to EBITDA ratio of 5.12x is within the typical range for leveraged telecommunications companies, but it's important to monitor this ratio in the context of ongoing capital expenditures.
- The pace of fiber deployment, with approximately half of premises upgraded, is a key metric to compare against industry benchmarks for fiber rollout speed and efficiency.
Stakeholder Impact
- Shareholders: The results provide insights into the company's performance and strategic direction.
- Employees: The fiber upgrade project and strategic initiatives may impact job roles and opportunities.
- Customers: The fiber upgrades aim to provide improved services and connectivity.
- Suppliers: The ongoing capital expenditures may create opportunities for suppliers of network equipment and services.
- Creditors: The debt levels and financial performance are relevant to creditors.
Next Steps
- Continue the full fiber upgrade project.
- Drive momentum in selling services in NBI and SIRO areas.
- Focus on maintaining market share in a competitive environment.
- Issue the December 31, 2024 audited financial statements for VM Ireland prior to the end of April 2025.
Key Dates
- February 18, 2025: Date of report and press release regarding preliminary Q4 and FY 2024 results.
- December 31, 2024: End of the reporting period for the preliminary Q4 and FY 2024 results.
- April 2025: Expected date for issuing the December 31, 2024 audited financial statements for VM Ireland.
- 2029: Term Loan B1 due date.
- 2027: Revolving Facility due date.
Keywords
LBTYA
Liberty Global LTD
NASDAQ
Sector: Communication Services
Filings with Classifications
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Insider Transaction Report
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Delay expected
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Worse than expected
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Quarterly Report
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Capital raise
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Worse than expected
18 February 2025 4:38 PM
Preliminary Results
- Overall revenue decreased YoY for both FY 2024 and Q4 2024, indicating underperformance compared to the previous year.
- Residential fixed and mobile revenue decreased YoY in Q4 2024, suggesting challenges in the core business segments.
- Fixed-line customer relationships decreased by 9,500 YoY, reflecting customer losses.
Capital raise
18 February 2025 4:16 PM
Quarterly and Full Year Results
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Better than expected
18 February 2025 4:16 PM
Annual Report
- The company reported earnings from continuing operations of $1,869.1 million for 2024, a significant improvement compared to the loss of $3,659.1 million in 2023.
Worse than expected
15 November 2024 5:10 PM
Spin-off Announcement
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Worse than expected
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Quarterly Report
- The company reported a net loss of 15.1 million compared to a net profit of 439.2 million in the same quarter last year, primarily due to significant net finance expenses.
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Worse than expected
29 October 2024 4:27 PM
Quarterly Results
- VM Ireland's revenue and profitability declined year-over-year, with a significant increase in net loss.
- VM Ireland's adjusted EBITDA decreased by 10.7% year-over-year, indicating weaker operational performance.
Worse than expected
29 October 2024 4:11 PM
Quarterly Report
- The company reported a significant net loss of $1,410.9 million for Q3 2024, a substantial decrease compared to the $822.7 million profit in Q3 2023.
Worse than expected
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Quarterly Report
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Worse than expected
9 September 2024 9:03 AM
Spin-off Announcement
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Worse than expected
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Quarterly Report
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Worse than expected
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Quarterly Results
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Worse than expected
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Quarterly Report
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Better than expected
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Quarterly Report
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Better than expected
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Earnings Call Transcript
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Better than expected
2 May 2024 4:48 PM
Earnings Call Update
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Worse than expected
1 May 2024 4:26 PM
Quarterly Results
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Worse than expected
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Quarterly Report
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Better than expected
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Quarterly Report
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Better than expected
16 February 2024 4:43 PM
Strategic Announcement
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Worse than expected
15 February 2024 4:32 PM
Quarterly Results
- VM Ireland's full year and Q4 net earnings were significantly worse than the previous year.
- VM Ireland's full year Adjusted EBITDA decreased year-over-year.
- Sunrise Holding's full year Adjusted EBITDA decreased year-over-year.
Delay expected
15 February 2024 4:32 PM
Quarterly Results
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Delay expected
15 February 2024 4:16 PM
Quarterly Report
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Worse than expected
15 February 2024 4:16 PM
Quarterly Report
- The consolidated results show a decrease in revenue and Adjusted EBITDA on a rebased basis, indicating worse than expected performance.
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