LBTYA
Liberty Global LTD
NASDAQ
8-K: Liberty Global Provides Preliminary Q3 Results for VM Ireland and Sunrise Holding
Sentiment:
Quarterly Results
29 October 2024 4:27 PM
Liberty Global released preliminary unaudited financial and operating results for its VM Ireland and Sunrise Holding fixed-income borrowing groups for the third quarter of 2024.
Worse than expected
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.
Summary
- Liberty Global has released preliminary Q3 2024 results for VM Ireland and Sunrise Holding.
- VM Ireland saw a 5.6% year-over-year revenue decrease to 108.9 million, with a net loss of 23.6 million, primarily due to derivative losses.
- VM Ireland's adjusted EBITDA decreased by 10.7% year-over-year to 37.7 million.
- VM Ireland upgraded approximately 45% of its premises to full fiber by the end of Q3.
- Sunrise Holding reported a slight revenue decrease of 0.2% year-over-year to 799.1 million, with a net loss of 2.7 million.
- Sunrise Holding's adjusted EBITDA increased by 1.6% year-over-year to 293.9 million.
- Sunrise Holding achieved strong mobile postpaid net additions of 43,200 in Q3.
- Liberty Global's capital injection will result in a gross debt retirement of CHF 1.2 billion for Sunrise.
- Sunrise is expected to be spun off and begin trading on the SIX Swiss Exchange on November 15, 2024.
Sentiment
Score: 5
Explanation: The document presents mixed results with some positive operational highlights offset by concerning financial declines, particularly for VM Ireland. The Sunrise spin-off is a positive strategic move, but the overall sentiment is neutral to slightly negative due to the financial performance.
Positives
- VM Ireland experienced strong B2B revenue growth due to its entry into wholesale access.
- VM Ireland saw sequential and year-over-year improvement in fixed and mobile postpaid net additions.
- Sunrise Holding achieved strong net growth in mobile postpaid customers and growth in internet customers for the fourth consecutive quarter.
- Sunrise Holding's financial results are in line with expectations and they have confirmed their 2024 guidance.
- Sunrise Holding is set to pay a dividend of at least CHF 240 million in mid-2025.
- Sunrise Holding's debt paydown of CHF 1.2 billion is imminent.
- Sunrise Holding's adjusted EBITDA less P&E additions increased 7.4% year-over-year.
Negatives
- VM Ireland's revenue decreased by 5.6% year-over-year.
- VM Ireland's net loss significantly increased by 281.5% year-over-year.
- VM Ireland's adjusted EBITDA decreased by 10.7% year-over-year.
- VM Ireland experienced fixed customer net losses of 2,200 in Q3.
- Sunrise Holding's revenue decreased by 0.2% year-over-year.
- Sunrise Holding's customer ARPU decreased by 4.8% year-over-year.
Risks
- VM Ireland faces a highly competitive market environment which is impacting financial performance.
- VM Ireland's financial performance is being impacted by investments into its growth plan.
- Sunrise Holding experienced a decrease in mobile roaming revenue.
- Sunrise Holding's customer ARPU decreased due to the annualization of a previous price rise.
Future Outlook
VM Ireland is focused on building fiber and customer experience for long-term growth, while Sunrise Holding confirms its 2024 guidance, including a dividend payment in mid-2025 and a debt paydown by year end. Sunrise is also preparing for its spin-off and listing on the SIX Swiss Exchange.
Management Comments
- Tony Hanway, CEO of VM Ireland, stated that they are continuing their drive towards becoming a full fiber operator and are confident that their efforts are building strong foundations for sustainable long-term growth.
- Andr Krause, CEO of Sunrise, commented that they were able to accelerate customer growth and achieved very strong net growth in mobile postpaid customers and growth in internet customers for the fourth consecutive quarter.
Industry Context
The results reflect the ongoing trends in the telecommunications industry, including the push for fiber upgrades and the importance of mobile services. The spin-off of Sunrise is a strategic move to allow it to operate as a standalone Swiss company.
Comparison to Industry Standards
- VM Ireland's fiber upgrade progress of 45% is comparable to other European operators focusing on FTTH deployments, but the financial results are weaker than some peers.
- Sunrise Holding's mobile postpaid growth of 43,200 net adds is strong compared to industry averages, indicating a successful strategy in customer acquisition and retention.
- The debt to EBITDA ratios for both VM Ireland and Sunrise Holding are relatively high compared to some global benchmarks, indicating a need for continued deleveraging efforts.
- The planned spin-off of Sunrise is similar to other strategic moves by large telecom groups to unlock value and focus on core markets.
Stakeholder Impact
- Shareholders will be impacted by the financial performance of VM Ireland and the strategic spin-off of Sunrise.
- Customers of VM Ireland will benefit from the ongoing fiber upgrades.
- Customers of Sunrise Holding will benefit from improved mobile and internet services.
- Employees of both VM Ireland and Sunrise Holding will be affected by the ongoing strategic and operational changes.
Next Steps
- VM Ireland will continue its full fiber upgrade project.
- Sunrise Holding will proceed with its spin-off and listing on the SIX Swiss Exchange.
- Sunrise Holding will pay a dividend of at least CHF 240 million in mid-2025.
- Sunrise Holding will continue to focus on customer growth and stable financial performance.
Key Dates
- October 29, 2024: Date of the press release and 8-K filing.
- September 30, 2024: End of the reporting period for Q3 2024 results.
- November 4, 2024: Record date for Liberty Global common shares for the Sunrise spin-off.
- November 12, 2024: Issuance of Sunrise shares in the form of Sunrise ADSs.
- November 13, 2024: First regular trading day of Sunrise Class A ADSs on the NASDAQ.
- November 14, 2024: Start of the exchange option of Sunrise ADSs for underlying Sunrise shares.
- November 15, 2024: Listing and first day of trading of Sunrise Class A shares on the SIX Swiss Exchange.
- November 22, 2024: Expected inclusion of Sunrise Class A shares in the Swiss Performance Index (SPI).
- Mid-2025: Expected payment of a dividend of at least CHF 240 million by Sunrise.
Keywords
Liberty Global, VM Ireland, Sunrise Holding, Fixed Income, Q3 2024, Financial Results, Operating Results, Fiber Upgrade, Mobile Postpaid, Spin-off, Debt Paydown, Adjusted EBITDA
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.
Worse than expected
2 May 2025 7:11 AM
Quarterly Report
- VodafoneZiggo revised its 2025 guidance, projecting a steeper than expected Adjusted EBITDA decline.
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 7:10 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.
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