LBTYA
Liberty Global LTD
NASDAQ
8-K: Liberty Global Reports Q4 and FY 2024 Results, Meeting Guidance Targets and Announcing New Share Buyback
Sentiment:
Quarterly and Full Year Results
18 February 2025 4:16 PM
Liberty Global announces its Q4 2024 financial results, highlighting the achievement of full-year guidance targets, a new share buyback program, and strategic advancements in its telecom and growth portfolios.
Capital raise
Liberty Global will focus on the inherent value of its fixed networks and, specifically, seek to raise capital for its fiber NetCos in Belgium and the U.K.
Summary
- Liberty Global reported its Q4 2024 financial results, achieving full-year guidance targets across its Liberty Telecom businesses, with the exception of stable revenue at VodafoneZiggo.
- Fixed ARPU grew across all core Liberty Telecom assets during both the quarter and the full year.
- The company successfully completed the Sunrise spin-off in November, resulting in a CHF 3.0 billion tax-free dividend to shareholders.
- Liberty Global reported a cash balance of $2.2 billion, supported by ~$900 million of non-core asset disposals, with a further $500 million to $750 million targeted in 2025.
- A new buyback program of up to 10% of shares outstanding in 2025 was announced, building on the ~$700 million buyback completed in 2024.
- VMO2 achieved its synergy target of 540 million ahead of schedule.
- Liberty Global's Q4 revenue increased 9.7% YoY on a reported basis and 7.7% on a rebased basis to $1,123.2 million.
- Q4 Adjusted EBITDA increased 3.4% YoY on a reported basis and 3.2% on a rebased basis to $247.8 million.
- The company's blended, fully-swapped borrowing cost is 3.7% on a debt balance of $9.2 billion.
Sentiment
Score: 7
Explanation: The document presents a generally positive outlook, highlighting the achievement of guidance targets, strategic advancements, and shareholder returns. However, some negative aspects, such as revenue declines in certain segments, temper the overall sentiment.
Positives
- Telenet delivered on all 2024 financial guidance.
- VMO2 achieved 2024 guidance and delivered synergies ahead of schedule.
- VodafoneZiggo delivered a stable revenue result and achieved all other 2024 guidance.
- Liberty Global's balance sheet remains strong with over $2.2 billion of consolidated cash.
- The company successfully increased its stake in Formula E to 66%.
Negatives
- VodafoneZiggo did not achieve stable revenue results.
- Telenet's revenue of $781.5 million in Q4 2024 decreased 1.4% YoY on a reported basis.
- Telenet's Adjusted EBITDA decreased 4.7% YoY on a reported basis to $311.0 million in Q4.
- VMO2's revenue of $3,478.8 million in Q4 2024 decreased 1.1% YoY on a reported basis and 4.0% YoY on a rebased basis.
- VMO2's Adjusted EBITDA decreased 5.8% YoY on a reported basis and 8.6% YoY on a rebased basis to $1,126.5 million in Q4.
- VodafoneZiggo's revenue decreased 3.4% YoY on a reported basis and 2.5% YoY on a rebased basis to $1,113.8 million in Q4.
- VodafoneZiggo's Adjusted EBITDA decreased 5.9% YoY on a reported basis and 4.8% on a rebased basis to $468.4 million in Q4.
Risks
- The company faces challenges from competition and rapid technological change.
- The company's ability to maintain or increase rates to subscribers or to pass through increased costs to subscribers is a risk.
- The company's ability to obtain regulatory approval for its fiber sharing agreement with Proximus is a risk.
- Fluctuations in currency exchange and interest rates could impact financial performance.
- The ability of suppliers, vendors and contractors to timely deliver quality products, equipment, software, services and access is a risk.
Future Outlook
In 2025, Liberty Global will focus on unlocking further value for shareholders by positioning Liberty Telecom assets for opportunistic transactions, raising capital for fiber NetCos in Belgium and the U.K., and continuing its share buyback program.
Management Comments
- CEO Mike Fries stated, 'In 2024 we successfully managed through what continues to be a challenging competitive environment, including difficult prior year comparisons in Q4, to achieve all full-year guidance metrics across our Liberty Telecom businesses, with the exception of the stable revenue result at VodafoneZiggo.'
Industry Context
The announcement reflects Liberty Global's efforts to navigate a competitive telecom landscape by investing in fiber-rich networks, expanding 5G coverage, and optimizing its portfolio through strategic transactions and asset disposals.
Comparison to Industry Standards
- Liberty Global's strategy of investing in fiber-rich networks aligns with industry trends, as companies like Verizon, AT&T, and Vodafone are also focusing on fiber deployments to meet increasing bandwidth demands.
- The company's focus on converged services (fixed and mobile) is similar to strategies employed by companies like BT Group and Orange S.A., which offer bundled packages to enhance customer loyalty and ARPU.
- The spin-off of Sunrise and the potential capital raise for fiber NetCos are similar to infrastructure-focused strategies seen with companies like Cellnex Telecom and American Tower, which focus on owning and operating telecom infrastructure assets.
- The company's share buyback program is a common practice among large telecom companies like Comcast and Charter Communications, which use excess cash flow to return value to shareholders.
Stakeholder Impact
- Shareholders will benefit from the share buyback program and potential value creation from strategic transactions.
- Customers will benefit from continued investments in fiber and 5G networks.
- Employees may be affected by potential restructuring or strategic changes within the company.
Next Steps
- Continue to position Liberty Telecom assets for opportunistic transactions.
- Seek to raise capital for fiber NetCos in Belgium and the U.K.
- Continue share buyback program of up to 10% of shares outstanding in 2025.
- Advance 5G network in the U.K. and acquire spectrum from Vodafone-Three.
Key Dates
- October 2023: Start of non-core asset disposals, generating ~$900 million in proceeds since then.
- June last year: Nationwide launch of the BASE FMC offer by Telenet.
- July: Fixed price indexation in July supported fixed ARPU growth at VodafoneZiggo.
- November 2024: Successful spin-off of Sunrise, resulting in a CHF 3 billion tax-free dividend to shareholders.
- December 31, 2024: Date of Q4 and FY 2024 financial results.
- February 18, 2025: Date of the press release announcing Q4 and FY 2024 results.
- 2025: Targeting a further $500 million to $750 million in proceeds from non-core asset disposals.
- Later this year: VMO2 will acquire spectrum from Vodafone-Three following completion of the merger.
Keywords
LBTYA
Liberty Global LTD
NASDAQ
Sector: Communication Services
Filings with Classifications
Better than expected
29 May 2025 5:21 PM
Insider Transaction Report
- Director Daniel E. Sanchez increased his direct beneficial ownership of Liberty Global common shares through the vesting of previously granted Restricted Share Units.
- He received substantial new grants of Restricted Share Units and stock options, indicating continued alignment of his interests with the company's long-term performance and growth.
Delay expected
2 May 2025 7:11 AM
Quarterly Report
- VMO2 announced a pause of NetCo stake sale process to align with JV partner's strategic review.
Worse than expected
2 May 2025 7:11 AM
Quarterly Report
- VodafoneZiggo revised its 2025 guidance, projecting a steeper than expected Adjusted EBITDA decline.
Worse than expected
2 May 2025 7:10 AM
Quarterly Report
- The company reported a net loss attributable to Liberty Global shareholders of $1,337.3 million for Q1 2025, compared to net earnings of $510.0 million for the same period in 2024.
- The company experienced significant foreign currency transaction losses of $1,081.0 million in Q1 2025.
Capital raise
18 February 2025 4:40 PM
Preliminary Results
- Wyre secured commitments for a standalone 500 million capex facility for its roll-out ambitions.
- Telenet implemented a trade receivables securitization program resulting in net proceeds of 189.2 million.
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
- Liberty Global will focus on the inherent value of its fixed networks and, specifically, seek to raise capital for its fiber NetCos in Belgium and the U.K.
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
- The pro forma statements show a loss from continuing operations for the nine months ended September 30, 2024, and the year ended December 31, 2023, indicating a negative impact from the spin-off on the remaining business.
Worse than expected
29 October 2024 6:43 PM
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.
- Adjusted Free Cash Flow declined by 61.3% year-over-year, indicating a significant deterioration in cash generation.
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
29 October 2024 4:08 PM
Quarterly Report
- The company reported a significant net loss of $1.41 billion in Q3 2024, compared to a net income of $822.7 million in the same period last year, indicating worse than expected financial performance.
Worse than expected
9 September 2024 9:03 AM
Spin-off Announcement
- The 2024 Adjusted Free Cash Flow guidance was lowered from CHF 360-400 million to CHF 360-370 million due to one-off spin-off related costs.
Worse than expected
25 July 2024 4:32 PM
Quarterly Report
- The company's Adjusted EBITDA decreased by 7.8% year-over-year, indicating a decline in profitability compared to the previous year.
- The Adjusted EBITDA margin contracted from 50.8% to 47.0%, reflecting a decrease in profitability.
- Adjusted EBITDA less P&E Additions declined significantly due to higher CAPEX intensity and lower Adjusted EBITDA.
Worse than expected
25 July 2024 4:29 PM
Quarterly Results
- VM Ireland's net earnings decreased by 32.3% year-over-year, indicating a significant downturn in profitability.
- Sunrise Holding Group's net loss increased by 12.3% year-over-year, suggesting a worsening financial position.
Worse than expected
25 July 2024 4:11 PM
Quarterly Report
- VMO2's full-year revenue guidance was revised down to a 'low to mid-single-digit decline', indicating worse than expected performance in that area.
Better than expected
25 July 2024 4:10 PM
Quarterly Report
- The company's net earnings attributable to shareholders improved significantly compared to the same period last year.
Better than expected
2 May 2024 4:49 PM
Earnings Call Transcript
- The company expects the spin-off to create a fully distributed local valuation for Sunrise, which will represent a meaningful premium to our stock trades.
- Analysts have estimated a preliminary value for Sunrise of approximately $11 per Liberty share, which is significant in relation to the current stock price.
Better than expected
2 May 2024 4:48 PM
Earnings Call Update
- The spin-off is expected to unlock significant value for shareholders by establishing a separate, higher valuation for Sunrise.
- Analysts have estimated a preliminary value for Sunrise at approximately $11 per Liberty Global share, which is a significant premium to the current trading price.
- The company expects a re-rating of the remaining Liberty Global business after the spin-off.
Worse than expected
1 May 2024 4:26 PM
Quarterly Results
- VM Ireland's revenue and Adjusted EBITDA decreased year-over-year, indicating worse than expected performance.
- Sunrise Holding's rebased revenue and Adjusted EBITDA growth was flat, indicating worse than expected performance.
Worse than expected
1 May 2024 4:15 PM
Quarterly Report
- The company's Adjusted EBITDA decreased by 6.9% YoY on a reported basis and 6.8% on a rebased basis, indicating a worse performance than expected in terms of profitability.
Better than expected
1 May 2024 4:14 PM
Quarterly Report
- The company's net earnings were significantly better than the same period last year, moving from a loss to a profit.
Better than expected
16 February 2024 4:43 PM
Strategic Announcement
- The spin-off of Sunrise is expected to unlock significant value for shareholders.
- The company is investing $1.7 billion to deleverage Sunrise, increasing its equity value.
- The company is committed to shareholder remuneration through buybacks and distributions.
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
- Sunrise Holding experienced a delay in activations which impacted broadband performance.
Delay expected
15 February 2024 4:16 PM
Quarterly Report
- Sunrise experienced a delay in activations, which impacted their broadband performance in Q4.
- Telenet's results were impacted by continued IT platform migration issues throughout 2023.
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.
- The company also reported a significant loss from continuing operations, further highlighting the worse than expected results.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.