LBTYA
Liberty Global LTD
NASDAQ
8-K: Liberty Global Announces Q1 2025 Results: VMO2 Returns to Growth, VodafoneZiggo Revises Guidance
Sentiment:
Quarterly Report
2 May 2025 7:11 AM
Liberty Global reports its Q1 2025 financial results, highlighting progress on strategic plans and mixed performance across its operating companies.
Worse than expected
VodafoneZiggo revised its 2025 guidance, projecting a steeper than expected Adjusted EBITDA decline.
Delay expected
VMO2 announced a pause of NetCo stake sale process to align with JV partner's strategic review.
Summary
- Liberty Global announced its Q1 2025 financial results, with CEO Mike Fries outlining core strategies to create shareholder value following the Sunrise spin-off.
- Virgin Media O2 (VMO2) returned to growth in revenue and Adjusted EBITDA, while VodafoneZiggo launched initiatives to regain commercial momentum.
- Virgin Media Ireland is expected to reach 80% fiber coverage by year-end, and Telenet is in discussions to rationalize the fiber market in Flanders.
- Liberty Global paused VMO2's potential NetCo stake sale to align with its JV partner but remains opportunistic on network upgrades.
- The FMV of the Liberty Growth portfolio increased to $3.3 billion, with the top seven investments comprising approximately 75% of the value.
- Liberty Services platforms continue to scale and generate positive Adjusted EBITDA and Adjusted EBITDA less P&E Additions.
- The company resumed buybacks during the quarter, targeting up to 10% of shares in 2025.
- Sunrise continues to trade well post-spin-off, with an implied value of over $10 per share to Liberty Global shareholders.
- Liberty Global's corporate-level guidance remains unchanged, except for VodafoneZiggo, which revised its guidance to align with a new long-term growth strategy.
- Total consolidated revenue increased 7.3% to $1,171.2 million, but decreased 5.3% on a rebased basis.
- Consolidated Adjusted EBITDA increased 14.7% to $324.6 million, or 2.0% on a rebased basis.
- VMO2's revenue was $3,126.3 million, down 4.8% YoY, but Adjusted EBITDA was flat at $1,073.4 million.
- VodafoneZiggo's revenue was $1,052.0 million, down 5.6% YoY, and Adjusted EBITDA was $463.1 million, down 10.8% YoY.
- Telenet's revenue was $759.7 million, down 0.4% YoY, but Adjusted EBITDA was $301.6 million, down 2.2% YoY.
- Virgin Media Ireland's revenue was $115.8 million, down 5.9% YoY, and Adjusted EBITDA was $37.2 million, down 7.0% YoY.
Sentiment
Score: 6
Explanation: The sentiment is neutral to slightly positive. While some operating companies show growth and strategic progress, others face challenges and revised guidance, creating a mixed outlook.
Positives
- Virgin Media O2 returned to growth in revenue and Adjusted EBITDA.
- Liberty Global resumed share buybacks, targeting up to 10% of shares in 2025.
- The FMV of the Liberty Growth portfolio increased to $3.3 billion.
- Telenet delivered strong fixed ARPU growth of 2.8% supported by the June 2024 price rise.
- Virgin Media Ireland is upgrading its network to full fiber, with over half of premises upgraded at the end of Q1.
- Liberty Global's blended, fully-swapped cost of debt was 3.7%.
- VMO2 plans to acquire spectrum licenses from the VOD/3 merger.
- Liberty Services platforms continue to scale and generate positive Adjusted EBITDA and Adjusted EBITDA less P&E Additions.
- Sunrise continues to trade well post-spin-off, with an implied value of over $10 per share to Liberty Global shareholders.
Negatives
- VodafoneZiggo revised its 2025 guidance, projecting a steeper than expected Adjusted EBITDA decline.
- VMO2 experienced broadband net losses of 44,000 and postpaid net losses of 122,800.
- VodafoneZiggo experienced broadband net losses of 31,000.
- Telenet experienced broadband net losses of 2,100 and postpaid net losses of 3,700.
- Virgin Media Ireland experienced broadband net losses of 1,000.
- VMO2 paused the NetCo stake sale process.
Risks
- Intense competition in the fixed and mobile markets is impacting subscriber growth and revenue.
- VodafoneZiggo's new strategic plan and market environment will impact its 2025 guidance, driving a steeper than expected Adjusted EBITDA decline.
- The pause of VMO2's NetCo stake sale process could impact financing and monetization plans.
- The FTTH-sharing agreement between Telenet and Proximus is subject to regulatory approval.
- The company faces risks related to technological changes, regulatory changes, and general economic factors.
Future Outlook
Liberty Global's corporate-level guidance remains unchanged, except for VodafoneZiggo, which revised its 2025 guidance to align with a new long-term growth strategy. VMO2 confirms growth in revenue excluding handsets and the impact of nexfibre construction, growth in Adjusted EBITDA excluding the impact of nexfibre construction, P&E additions of 2.0 to 2.2 billion, and Adjusted FCF and cash distributions to shareholders both in the range of 350 to 400 million.
Management Comments
- CEO Mike Fries stated, 'In our year-end investor call we outlined the core strategies we are undertaking to create and deliver value to shareholders following the successful spin-off of our Swiss subsidiary Sunrise. We made good progress on these plans in the first quarter of 2025.'
Industry Context
The announcement reflects the ongoing trends in the telecommunications industry, including the focus on fiber upgrades, convergence of fixed and mobile services, and the competitive pressures in various European markets. The pause of VMO2's NetCo stake sale process highlights the strategic considerations and potential shifts in infrastructure investment approaches.
Comparison to Industry Standards
- Liberty Global's performance can be compared to other major European telecom operators such as Vodafone, Deutsche Telekom, and Orange.
- VMO2's return to growth is a positive sign, as other operators are also focusing on improving revenue and profitability through convergence and cost efficiencies.
- VodafoneZiggo's revised guidance reflects the challenges faced by operators in competitive markets, where promotional intensity and pricing pressures can impact financial performance.
- Telenet's strong ARPU growth is a key indicator of its ability to maintain and increase revenue per customer, which is a common focus for telecom operators.
- Virgin Media Ireland's fiber upgrade project aligns with the industry trend of investing in next-generation networks to support increasing bandwidth demands.
Stakeholder Impact
- Shareholders can expect continued focus on value creation through strategic management of Liberty Global's platforms and share buybacks.
- Employees may experience changes related to VodafoneZiggo's efforts to create a leaner and more agile organization.
- Customers can expect improved services and network upgrades, particularly in areas with fiber deployments.
- Suppliers and vendors may be affected by changes in capital expenditure plans and strategic priorities.
- Creditors should note the strong balance sheets of core operating businesses and the blended, fully-swapped cost of debt.
Next Steps
- Virgin Media Ireland will continue to deliver on its full fiber upgrade project, aiming to reach 80% of homes with fiber by year-end.
- Telenet will continue discussions on rationalizing the fiber market in Flanders with Proximus.
- VMO2 will progress with the upgrade of its existing network to fiber and plans to acquire spectrum licenses from the VOD/3 merger.
- VodafoneZiggo will continue to implement its new strategy with a focus on regaining commercial momentum and creating a leaner and more agile organization.
- Liberty Global will continue to prioritize its scale-based investments, including Formula E, and aims to realize $500-$750 million of asset disposals.
Key Dates
- May 2, 2025: Date of press release and earliest event reported.
- March 31, 2025: End of the reported quarter.
- April 2025: VMO2 redeemed all of its outstanding 5.00% GBP Senior Secured Notes due 2027.
Keywords
Liberty Global, financial results, VMO2, VodafoneZiggo, Telenet, Virgin Media Ireland, Adjusted EBITDA, revenue, fiber, broadband, mobile, share buyback
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.
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.
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.
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