LBTYA
Liberty Global LTD
NASDAQ
8-K: Liberty Global Reports Q1 2024 Results, Highlights Strategic Progress and Shareholder Value
Sentiment:
Quarterly Report
1 May 2024 4:15 PM
Liberty Global announced its Q1 2024 financial results, demonstrating progress on strategic initiatives including the planned spin-off of Sunrise and a focus on shareholder returns.
Worse than expected
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.
Summary
- Liberty Global reported its Q1 2024 financial results, showing a mixed performance across its operating companies.
- The company's consolidated revenue increased by 4.1% year-over-year (YoY) on a reported basis and 1.9% on a rebased basis, reaching $1,945.1 million.
- Net earnings were $527.0 million, a significant increase from a loss of $713.5 million in the same quarter last year.
- Adjusted EBITDA decreased by 6.9% YoY on a reported basis and 6.8% on a rebased basis to $581.4 million.
- The company's balance sheet remains strong with $3.9 billion in cash and liquid securities, and a total liquidity of $4.7 billion.
- Liberty Global has proactively refinanced over $2 billion of 2027 maturities at VMO2.
- The company is on track to meet its full-year 2024 guidance metrics across all operating companies.
- A share repurchase program is underway, with approximately 3% of shares repurchased through April 26th, against a target of up to 10% by year-end.
- The spin-off of Sunrise is on track for Q4 2024.
- Investments in fixed and mobile networks continue, with FTTH programs progressing in the U.K., Belgium, and Ireland.
Sentiment
Score: 6
Explanation: The sentiment is moderately positive due to the improved net earnings and strategic progress, but the decline in Adjusted EBITDA and some subscriber losses temper the overall outlook. The company is making progress on its strategic goals, but there are some financial challenges.
Positives
- Liberty Global's net earnings significantly improved, turning from a loss to a profit of $527.0 million.
- The company's balance sheet is strong with substantial cash and liquid securities.
- The share repurchase program demonstrates a commitment to returning value to shareholders.
- The Sunrise spin-off is on track, which could unlock further value.
- VMO2's fiber build is accelerating, reaching one million premises built by nexfibre.
- VodafoneZiggo showed strong Adjusted EBITDA growth of 8.8% on a rebased basis.
- Sunrise returned to positive broadband net adds, indicating improved customer acquisition.
- The company is on track to meet its full-year 2024 guidance metrics across all operating companies.
- Liberty Global has proactively refinanced over $2 billion of 2027 maturities at VMO2.
Negatives
- Consolidated Adjusted EBITDA decreased by 6.9% YoY on a reported basis and 6.8% on a rebased basis.
- Telenet experienced a decline in its broadband base by 6,000 subscribers.
- VMO2's postpaid mobile base declined by 74,500 in Q1.
- Liberty Global experienced organic customer net losses of 18,800.
- Adjusted EBITDA less P&E Additions decreased 2.5% on a rebased basis.
Risks
- The company faces challenges from competition and rapid technological change.
- There are risks associated with the ability to maintain or increase rates to subscribers.
- The company is exposed to general economic factors and fluctuations in currency exchange and interest rates.
- The company's ability to achieve forecasted financial and operating targets is not guaranteed.
- There are risks associated with the ability of suppliers to deliver quality products and services on time.
- The company's ability to adequately forecast and plan future network requirements is a risk.
- The company is exposed to the potential impact of pandemics and epidemics on its businesses and customers.
Future Outlook
Liberty Global is on track to meet its full-year 2024 guidance metrics across all operating companies and anticipates the spin-off of Sunrise in Q4 2024. The company will continue to invest in its fiber-rich, fixed and 5G mobile networks.
Management Comments
- CEO Mike Fries stated, 'On our extended fourth quarter results call we presented a clear pivot in our strategy which will see us not only focus on maximizing the long-term value of our core FMC assets, but also delivering that value directly to shareholders over time.'
- Mike Fries also noted, 'During Q1 we made significant progress on the initiatives we announced, including our plan to spin-off Sunrise, which is on track for Q4 this year.'
Industry Context
The announcement reflects the ongoing trend in the telecommunications industry of investing in fiber and 5G networks to enhance service offerings and customer experience. The focus on shareholder returns through buybacks is also a common practice among mature telecom companies.
Comparison to Industry Standards
- Liberty Global's performance is mixed when compared to industry peers. While the company has shown strong revenue growth in some areas, the decline in Adjusted EBITDA is a concern.
- Companies like Vodafone and Deutsche Telekom, which are mentioned in the document, are also undergoing similar transformations, focusing on fiber rollouts and cost efficiencies.
- The VMO2 JV's fiber build pace is comparable to other major UK providers, but the decline in mobile subscribers is a point of concern.
- VodafoneZiggo's strong Adjusted EBITDA growth is a positive sign, outperforming some of its European peers in the quarter.
- The share repurchase program is in line with industry trends of returning capital to shareholders, similar to what other large telecom companies are doing.
Stakeholder Impact
- Shareholders will benefit from the share repurchase program and the potential value creation from the Sunrise spin-off.
- Employees are impacted by the company's focus on diversity, equity, and inclusion.
- Customers will benefit from continued investments in network upgrades and new services.
- Suppliers are impacted by the new Responsible Supplier Code of Conduct and assessment procedure.
- Creditors are impacted by the company's strong balance sheet and proactive debt refinancing.
Next Steps
- Liberty Global will continue to execute its strategic plan, including the spin-off of Sunrise in Q4 2024.
- The company will continue to invest in its fiber and 5G networks.
- The share repurchase program will continue, with a target of up to 10% of shares by year-end.
- The company will publish its annual Liberty Global Corporate Responsibility Report this summer.
Related Party Transactions
- The document mentions a change in the terms of a related-party contract at VMO2, which resulted in a benefit of approximately $15 million during 2024 related to higher capitalized costs.
Key Dates
- May 1, 2024: Date of the press release announcing Q1 2024 results.
- April 26, 2024: Date through which approximately 3% of shares were repurchased.
- Q4 2024: Anticipated date for the spin-off of Sunrise.
Keywords
Liberty Global, Financial Results, Q1 2024, Adjusted EBITDA, Share Repurchase, Sunrise Spin-off, Fiber Networks, VMO2, VodafoneZiggo, Telenet, Broadband, Mobile, FTTH
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.
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