LBTYA
Liberty Global LTD
NASDAQ
8-K: Liberty Global Provides Preliminary Q4 2023 Results for Sunrise Holding and VM Ireland
Sentiment:
Quarterly Results
15 February 2024 4:32 PM
Liberty Global released preliminary, unaudited financial and operating results for its Sunrise Holding Group and VM Ireland fixed-income borrowing groups for the quarter ended December 31, 2023.
Worse than expected
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
Sunrise Holding experienced a delay in activations which impacted broadband performance.
Summary
- Liberty Global has released preliminary Q4 2023 results for Sunrise Holding Group, which includes operations in Switzerland and Slovakia, and VM Ireland, which includes operations in Ireland.
- VM Ireland reported a 0.4% decrease in full year revenue to 468.1 million and a 1.8% decrease in Q4 revenue to 124.3 million year-over-year.
- VM Ireland's full year net loss was 8.8 million, and Q4 net loss was 34.4 million, a 279.2% decrease year-over-year.
- VM Ireland's full year Adjusted EBITDA decreased 10.7% year-over-year, but Q4 Adjusted EBITDA increased 6.1% on a rebased basis.
- VM Ireland's full fiber upgrade project is progressing, with almost one third of the network upgraded by the end of Q4.
- Sunrise Holding reported a 5.8% increase in Q4 revenue to 845.1 million and a 2.4% increase on a rebased basis.
- Sunrise Holding's Q4 earnings from continuing operations increased 18.3% year-over-year to a loss of 138.8 million.
- Sunrise Holding's Q4 Adjusted EBITDA increased 5.8% year-over-year and 5.4% on a rebased basis.
- Sunrise Holding achieved approximately 70% of its run-rate synergies by the end of 2023.
- Sunrise Holding's 2024 financial guidance includes broadly stable revenue and stable to low-single-digit growth in Adjusted EBITDA.
Sentiment
Score: 5
Explanation: The document presents mixed results, with some positive developments in mobile and fiber upgrades, but also significant declines in net earnings and some EBITDA metrics. The forward-looking statements are cautiously optimistic, but the overall sentiment is neutral to slightly negative.
Positives
- VM Ireland experienced continued growth in mobile subscription revenue.
- VM Ireland launched wholesale network access to Sky customers.
- VM Ireland is progressing with its full fiber upgrade project.
- VM Ireland's Q4 Adjusted EBITDA increased on a rebased basis.
- Sunrise Holding achieved all 2023 financial guidance.
- Sunrise Holding experienced strong revenue and Adjusted EBITDA growth in Q4.
- Sunrise Holding returned to stable broadband net additions.
- Sunrise Holding continued to see growth in mobile postpaid.
- Sunrise Holding achieved approximately 70% of its run-rate synergies by the end of 2023.
- Sunrise Holding was awarded the Outstanding rating in the connect Mobile Network Test 2024 for the eighth consecutive time.
Negatives
- VM Ireland's full year revenue decreased by 0.4% year-over-year.
- VM Ireland's Q4 revenue decreased by 1.8% year-over-year.
- VM Ireland's full year net earnings decreased to a loss of 8.8 million.
- VM Ireland's Q4 net earnings decreased 279.2% year-over-year to a loss of 34.4 million.
- VM Ireland's full year Adjusted EBITDA decreased 10.7% year-over-year.
- VM Ireland experienced fixed customer net losses in Q4.
- Sunrise Holding's Q4 earnings from continuing operations decreased to a loss of 138.8 million.
- Sunrise Holding's full year Adjusted EBITDA decreased 1.7% year-over-year.
Risks
- VM Ireland faces challenges from lower acquisitions and higher churn due to overbuild.
- VM Ireland's heavy investment in fiber upgrades will impact both opex and capex in 2024.
- Sunrise Holding faces a competitive environment which has impacted customer ARPU.
- Sunrise Holding experienced a delay in activations which impacted broadband performance.
- Both VM Ireland and Sunrise Holding are subject to risks related to macroeconomic dynamics, technological changes, and regulatory conditions.
Future Outlook
VM Ireland will continue to invest heavily in its fiber upgrade, expand its footprint, grow its wholesale business, and enhance customer experience. Sunrise Holding anticipates Adjusted EBITDA growth and continued capital discipline in 2024, underpinning another year of Adjusted FCF growth. Sunrise Holding's 2024 financial guidance includes broadly stable revenue and stable to low-single-digit growth in Adjusted EBITDA.
Management Comments
- Tony Hanway, CEO of VM Ireland, stated that 2023 was a crucial year for Virgin Media as they successfully delivered on key growth initiatives.
- Tony Hanway also mentioned that heavy investment will continue in 2024 as they execute against strategic priorities.
- Andr Krause, CEO of Sunrise, commented that they delivered a strong Q4 with a return to topline growth and mid-single digit Adjusted EBITDA growth, allowing them to comfortably achieve all financial guidance for 2023.
Industry Context
This announcement reflects the ongoing trends in the telecommunications industry, including the push for fiber upgrades, the importance of mobile services, and the need to manage costs and improve profitability. The competitive environment in both Ireland and Switzerland is also a key factor influencing the results.
Comparison to Industry Standards
- VM Ireland's fiber upgrade progress is comparable to other European telcos investing in next-generation networks, such as Vodafone and Deutsche Telekom.
- VM Ireland's mobile subscriber growth is in line with industry trends, but the fixed customer losses highlight the competitive pressures in the Irish market.
- Sunrise Holding's strong mobile performance and synergy execution are similar to other telcos that have undergone mergers or acquisitions, such as the merger of Virgin Media and O2 in the UK.
- Sunrise Holding's focus on cost management and capital discipline is a common theme among European telcos seeking to improve profitability.
- The debt levels of both VM Ireland and Sunrise Holding are within the range of other European telcos, but the leverage ratios are something to monitor.
Stakeholder Impact
- Shareholders may be concerned about the decreased net earnings and Adjusted EBITDA for VM Ireland and the decreased full year Adjusted EBITDA for Sunrise Holding.
- Customers of VM Ireland will benefit from the ongoing fiber upgrades and new service offerings.
- Customers of Sunrise Holding will benefit from the increased 5G bandwidths and new entertainment options.
- Employees of both companies will be impacted by the ongoing strategic initiatives and cost management efforts.
Next Steps
- VM Ireland will continue its full fiber upgrade project and focus on strategic priorities.
- Sunrise Holding will continue to drive synergy execution and focus on mobile and B2B growth.
- Both groups will complete their Q4 compliance reporting requirements.
- Liberty Global will issue audited financial statements for each of its fixed-income borrowing groups prior to the end of April 2024.
Key Dates
- February 15, 2024: Date of the report and press release providing preliminary Q4 2023 results.
- December 31, 2023: End of the reporting period for the preliminary Q4 2023 results.
- April 2024: Expected date for the issuance of audited financial statements for the fixed-income borrowing groups.
- Mid-2025: Sunrise plans to increase its basic 5G bandwidths by 50%.
Keywords
Liberty Global, Sunrise Holding, VM Ireland, Fixed Income, Broadband, Mobile, Fiber Upgrade, Adjusted EBITDA, Revenue, Synergies
LBTYA
Liberty Global LTD
NASDAQ
Sector: Communication Services
Filings with Classifications
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Worse than expected
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Preliminary Results
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Capital raise
18 February 2025 4:16 PM
Quarterly and Full Year Results
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Better than expected
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Annual Report
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Worse than expected
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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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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
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.
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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.
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Worse than expected
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Quarterly Results
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Worse than expected
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Better than expected
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Quarterly Report
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Better than expected
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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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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.
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.