Liberty Global Reports Q2 2024 Results
Liberty Global reported Q2 2024 financial results, highlighting strategic progress and strong financial performance. Key points include:
- Sunrise spin-off on track for Q4 2024
- $3.5 billion consolidated cash balance
- Strong performance in Netherlands, momentum in Switzerland, and fixed ARPU recovery in UK
- Revenue of $1,873.7 million, up 2.2% YoY on a rebased basis
- Net earnings of $275.2 million, up 153.8% YoY
- Adjusted EBITDA of $604.7 million, up 1.0% YoY on a rebased basis
The company updated VMO2's full-year revenue guidance to 'low to mid-single-digit decline' due to lower handset sales, but remains on track for other OpCo guidance targets. Liberty Global continues to focus on maximizing FMC value, leveraging its Ventures portfolio, and delivering shareholder value.
Liberty Global ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando progressi strategici e una forte performance finanziaria. I punti salienti includono:
- Scissione di Sunrise prevista per il quarto trimestre 2024
- Saldo di cassa consolidato di 3,5 miliardi di dollari
- Buona performance nei Paesi Bassi, slancio in Svizzera e recupero dell'ARPU fisso nel Regno Unito
- Ricavi di 1.873,7 milioni di dollari, in aumento del 2,2% anno su anno su base ricalibrata
- Utile netto di 275,2 milioni di dollari, in aumento del 153,8% anno su anno
- EBITDA rettificato di 604,7 milioni di dollari, in aumento dell'1,0% anno su anno su base ricalibrata
L'azienda ha aggiornato le previsioni di fatturato per l'intero anno di VMO2 a 'declino basso o medio a una cifra' a causa di minori vendite di telefoni cellulari, ma rimane sulla buona strada per gli altri obiettivi di guida delle OpCo. Liberty Global continua a concentrarsi sul massimizzare il valore FMC, sfruttando il suo portafoglio di Ventures e offrendo valore agli azionisti.
Liberty Global reportó los resultados financieros del segundo trimestre de 2024, destacando avances estratégicos y un sólido desempeño financiero. Los puntos clave incluyen:
- Separación de Sunrise prevista para el cuarto trimestre de 2024
- Saldo de efectivo consolidado de 3.5 mil millones de dólares
- Fuerte desempeño en los Países Bajos, impulso en Suiza y recuperación del ARPU fijo en el Reino Unido
- Ingresos de 1,873.7 millones de dólares, un aumento del 2.2% interanual en una base ajustada
- Utilidad neta de 275.2 millones de dólares, un incremento del 153.8% interanual
- EBITDA ajustado de 604.7 millones de dólares, un aumento del 1.0% interanual en una base ajustada
La empresa actualizó la guía de ingresos para todo el año de VMO2 a 'declive de baja a media cifra' debido a menores ventas de teléfonos, pero sigue en camino de cumplir otros objetivos de guía de las OpCo. Liberty Global continúa enfocándose en maximizar el valor de FMC, aprovechando su portafolio de Ventures y generando valor para los accionistas.
리버티 글로벌은 2024년 2분기 재무 결과를 보고하며 전략적 진전과 강력한 재무 성과를 강조했습니다. 주요 내용은 다음과 같습니다:
- 2024년 4분기 선샤인 분사가 예정되어 있습니다.
- 35억 달러의 통합 현금 잔고
- 네덜란드에서의 강력한 성과, 스위스에서의 상승세, 영국에서의 고정 ARPU 회복
- 매출 18억 7,370만 달러, 조정 기준으로 전년 대비 2.2% 증가
- 순이익 2억 7,520만 달러, 전년 대비 153.8% 증가
- 조정 EBITDA 6억 470만 달러, 조정 기준으로 전년 대비 1.0% 증가
회사는 핸드폰 판매 감소로 인해 VMO2의 연간 매출 전망을 '1~2% 감소'로 업데이트했지만, 다른 OpCo의 목표는 여전히 순조롭게 진행되고 있습니다. 리버티 글로벌은 FMC 가치를 극대화하고, Ventures 포트폴리오를 활용하며, 주주 가치를 제공하는 데 집중하고 있습니다.
Liberty Global a annoncé les résultats financiers du deuxième trimestre 2024, mettant en avant des progrès stratégiques et une forte performance financière. Les points clés comprennent :
- Scission de Sunrise prévue pour le quatrième trimestre 2024
- Solde de trésorerie consolidé de 3,5 milliards de dollars
- Bonne performance aux Pays-Bas, dynamique en Suisse et reprise de l'ARPU fixe au Royaume-Uni
- Chiffre d'affaires de 1.873,7 millions de dollars, en hausse de 2,2 % par rapport à l'année précédente sur une base révisée
- Bénéfice net de 275,2 millions de dollars, en hausse de 153,8 % par rapport à l'année précédente
- EBITDA ajusté de 604,7 millions de dollars, en hausse de 1,0 % par rapport à l'année précédente sur une base révisée
La société a mis à jour les prévisions de revenus de VMO2 pour l'ensemble de l'année à 'baisse faible à moyenne à un chiffre' en raison de la baisse des ventes de téléphones, mais reste sur la bonne voie pour d'autres objectifs de guidance des OpCo. Liberty Global continue de se concentrer sur la maximisation de la valeur FMC, en tirant parti de son portefeuille de Ventures et en offrant de la valeur aux actionnaires.
Liberty Global berichtete über die Finanzergebnisse des 2. Quartals 2024 und hob strategische Fortschritte sowie starke finanzielle Leistungen hervor. Die wichtigsten Punkte umfassen:
- Abspaltung von Sunrise auf Kurs für das 4. Quartal 2024
- Konsolidierter Geldbestand von 3,5 Milliarden US-Dollar
- Starke Leistung in den Niederlanden, Aufschwung in der Schweiz und Erholung des fixen ARPU im Vereinigten Königreich
- Einnahmen von 1.873,7 Millionen US-Dollar, ein Anstieg von 2,2 % im Vergleich zum Vorjahr auf rebasierter Basis
- Nettoergebnis von 275,2 Millionen US-Dollar, ein Anstieg von 153,8 % im Vergleich zum Vorjahr
- Bereinigtes EBITDA von 604,7 Millionen US-Dollar, ein Anstieg von 1,0 % im Vergleich zum Vorjahr auf rebasierter Basis
Das Unternehmen hat die Prognose für den Jahresumsatz von VMO2 auf 'Rückgang im niedrigen bis mittleren einstelligen Bereich' aktualisiert, bedingt durch geringere Handysverkäufe, ist jedoch weiterhin auf Kurs für andere Zielvorgaben der OpCo. Liberty Global konzentriert sich weiterhin darauf, den FMC-Wert zu maximieren, sein Ventures-Portfolio zu nutzen und den Aktionärswert zu steigern.
- Sunrise spin-off on track for Q4 2024, with planned CHF 240 million dividend in 2025
- Strong $3.5 billion consolidated cash balance
- Revenue increased 2.2% YoY on a rebased basis to $1,873.7 million
- Net earnings increased 153.8% YoY to $275.2 million
- Adjusted EBITDA increased 1.0% YoY on a rebased basis to $604.7 million
- Successful implementation of price rises in UK and Netherlands
- Strong broadband net adds and solid financial performance in Switzerland
- VodafoneZiggo sustained solid financial performance, confirming 2024 guidance
- VMO2 revenue guidance updated to 'low to mid-single-digit decline' due to lower handset sales
- Fixed customer base declined by 13,600 in VMO2
- Mobile postpaid base declined by 118,400 in VMO2
- Telenet's postpaid mobile base declined by 500 and broadband base declined by 4,800
- VodafoneZiggo's mobile postpaid net adds declined by 18,400
- VodafoneZiggo's broadband base contracted by 22,600
Liberty Global's Q2 2024 results present a mixed picture with some positive developments but also ongoing challenges. The company reported revenue of
Key positives include:
- Strong cash position of
$3.5 billion , bolstered by$420 million from the All3Media sale - Progress on network strategies, including fiber deployments and strategic agreements
- Sunrise spin-off on track for Q4 2024
- Improved fixed ARPU in the UK
Challenges remain, particularly in the UK market where VMO2 saw declines in both fixed and mobile customers. The company revised VMO2's revenue guidance downward to a 'low to mid-single-digit decline' for the full year.
From an investor perspective, Liberty Global's focus on value creation through strategic initiatives and shareholder returns (including a
Liberty Global's Q2 results highlight the ongoing transformation in the telecom sector. The company's focus on network upgrades, particularly fiber deployments, is important in a market where infrastructure quality is becoming a key differentiator. The strategic network sharing agreements with Vodafone in the UK and Proximus in Belgium are smart moves to manage costs while expanding capabilities.
The planned spin-off of Sunrise in Switzerland is an interesting strategic shift, potentially allowing for more focused operations and unlocking shareholder value. However, it's worth noting that this comes at a time when many telecom operators are pursuing convergence strategies.
Customer trends remain challenging across markets, with net losses in fixed and mobile segments. This reflects the highly competitive nature of European telecom markets and the ongoing cord-cutting trend. The company's focus on value over volume in the UK market is a rational response, but it's a delicate balance to maintain ARPU while stemming customer losses.
The acquisition of 5G spectrum in the Netherlands at an 'attractive price' is positive, as 5G capabilities will be important for future competitiveness. However, investors should monitor the return on these investments carefully, as 5G monetization remains a challenge for many operators globally.
Overall, Liberty Global is making necessary strategic moves, but the path to sustainable growth in a mature, competitive market remains challenging.
Liberty Global's Q2 results provide insights into broader market trends in the European telecom sector. The company's experience reflects several key industry dynamics:
- Infrastructure focus: The emphasis on fiber deployments and network sharing agreements aligns with industry-wide trends towards infrastructure improvement and cost optimization.
- Competitive pressures: Customer losses across markets highlight the intense competition, particularly in mobile services where market saturation is high.
- Convergence strategies: The growth in FMC (Fixed-Mobile Convergence) penetration, particularly in Switzerland, underscores the importance of bundled offerings in customer retention.
- Price sensitivity: The impact of price rises on ARPU and customer numbers demonstrates the delicate balance operators must strike in a price-sensitive market.
- 5G rollout: The continued investment in 5G, including spectrum acquisition, reflects the industry's focus on next-generation services, despite uncertain short-term returns.
The planned spin-off of Sunrise is an interesting counter-trend to the consolidation seen elsewhere in the industry. This move could provide a case study in the benefits of focused operations versus scale advantages.
For investors, Liberty Global's results suggest that while the European telecom market remains challenging, opportunities exist for operators who can effectively manage network investments, pricing strategies and customer propositions. The company's venture into Formula E also highlights the potential for telecom operators to diversify revenue streams through content and entertainment partnerships.
Sunrise spin-off on track for Q4'24 and Capital Markets Day to be held in
Significant progress on our fixed and mobile network strategies including fiber deployments in the
Strong financial performance in
Updating full-year revenue guidance at VMO2 to 'low to mid-single-digit decline' reflecting lower handset sales; on track for all remaining OpCo guidance targets
CEO Mike Fries stated, "Q2 has been another active quarter as we've continued to drive our strategic priorities; maximizing the value of our FMCs, leveraging our Ventures portfolio, and taking steps to deliver that value directly to shareholders over time.
-
Our plan to spin-off Sunrise remains on track for Q4 this year and the Sunrise management team will host a Capital Markets Day in
Zurich on September 9. We have also confirmed our intention to pay aCHF 240 million dividend in 2025. -
In the
U.K. we announced a new, long-term mobile network sharing and spectrum acquisition agreement with Vodafone, and our fiber reach is now over 5 million2 homes and ramping. Preparations for the formation of our fixed NetCo are progressing well. -
We've reached a fixed network sharing MOU with Proximus in
Belgium , secured 5G spectrum inthe Netherlands at an attractive price, and excited to welcome Stephen van Rooyen, formerly of Sky, as CEO at VodafoneZiggo. -
We continue to rotate capital in our Ventures portfolio, independently valued at
3, following the$3.0 billion ~ in proceeds we received from the sale of our stake in All3Media. We also announced our intention to take a controlling position in the world's fastest growing motorsport, Formula E.$420 million
Our value creation strategy is supported by our robust balance sheet and disciplined capital allocation model. We have
Against a highly competitive backdrop in the
(i) |
Including amounts held under separately managed accounts (SMAs). |
Q2 Operating Company Highlights
Sunrise (Consolidated)
Sunrise delivered strong broadband net adds and a solid financial performance in Q2
Operating highlights: During Q2, Sunrise delivered a second consecutive quarter of broadband growth, achieving 5,000 net adds, primarily driven by reduced churn on the main brand. In mobile, growth in postpaid accelerated, as Sunrise delivered 32,900 postpaid net adds, supported by an improved main brand performance and reduced churn. FMC penetration across the Sunrise broadband base continues to grow steadily, reaching
Financial highlights: Revenue of
Telenet (Consolidated)
Telenet performance impacted by tough comparison base against Q2 last year, on track to deliver on full-year guidance
Operating highlights: During Q2, Telenet's postpaid mobile base declined by 500 while its broadband base declined by 4,800. Despite the intensely competitive market environment, the sequential improvement was driven by successful marketing campaigns and the launch of BASE Internet and BASE TV in early June. Following the launch of the fixed BASE product in Wallonia as well as in the Flemish and
Financial highlights: Revenue of
VMO2 (Non-consolidated Joint Venture)
VMO2 advances network evolution as targeted investments in future growth drivers continue
Operating highlights: VMO2's fixed customer base declined by 13,600 in Q2. Customer growth in the nexfibre footprint continues to build steadily and is expected to rise as marketing increases, however, this was offset by a moderate loss on the VMO2 footprint during the quarter when price rises were implemented. Having stabilized in recent quarters, fixed ARPU returned to growth in Q2, growing by
Financial highlights (in
Financial highlights (in IFRS): Revenue of
For more information regarding the VMO2 JV, including full IFRS disclosures, please visit its investor relations page to access the Q2 earnings release.
VodafoneZiggo (Non-consolidated Joint Venture)
VodafoneZiggo sustains solid financial performance, confirming 2024 guidance
Operating highlights: During Q2, mobile postpaid net adds declined by 18,400, driven by B2B government contract losses. The broadband base contracted by 22,600 in the quarter, as a 27,400 decline in Consumer was only partially offset by a 4,800 increase in B2B. Both mobile and fixed ARPU continued to grow in the quarter, supported by the benefit of the price indexation implemented in October. The FMC7 broadband households penetration remained stable at
Financial highlights: Revenue increased
Liberty Global Consolidated Q2 Highlights
-
Q2 revenue increased
1.4% YoY on a reported basis and2.2% on a rebased basis to$1,873.7 million -
Q2 net earnings (loss) increased
153.8% YoY on a reported basis to$275.2 million -
Q2 Adjusted EBITDA increased
0.5% YoY on a reported basis and1.0% on a rebased basis to$604.7 million -
Q2 property & equipment additions were
20.0% of revenue, as compared to19.1% in Q2 2023 -
Balance sheet with
of total liquidity8$5.0 billion -
Comprised of nearly
of cash,$2.0 billion of investments held under SMAs and$1.5 billion of unused borrowing capacity9$1.5 billion
-
Comprised of nearly
-
Blended, fully-swapped borrowing cost of
3.45% on a debt balance of$15.6 billion
Liberty Global |
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Q2 2024 |
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Q2 2023 |
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YoY Change (reported) |
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YoY Change (rebased) |
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YTD 2024 |
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YoY Change (reported) |
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YoY Change (rebased) |
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Customers |
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Organic customer net losses |
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|
(19,200 |
) |
|
|
(29,300 |
) |
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|
|
(38,000 |
) |
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Financial |
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(in millions, except percentages) |
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Revenue |
|
$ |
1,873.7 |
|
|
$ |
1,848.0 |
|
|
1.4 |
% |
|
2.2 |
% |
|
$ |
3,818.8 |
|
|
2.8 |
% |
|
2.0 |
% |
Net earnings (loss) |
|
$ |
275.2 |
|
|
$ |
(511.3 |
) |
|
153.8 |
% |
|
|
|
$ |
802.2 |
|
|
165.5 |
% |
|
|
||
Adjusted EBITDA |
|
$ |
604.7 |
|
|
$ |
601.4 |
|
|
0.5 |
% |
|
1.0 |
% |
|
$ |
1,186.1 |
|
|
(3.2 |
%) |
|
(3.0 |
%) |
P&E additions |
|
$ |
374.7 |
|
|
$ |
352.7 |
|
|
6.2 |
% |
|
|
|
$ |
739.8 |
|
|
(0.4 |
%) |
|
|
||
Adjusted EBITDA less P&E Additions |
|
$ |
230.0 |
|
|
$ |
248.7 |
|
|
(7.5 |
%) |
|
(7.7 |
%) |
|
$ |
446.3 |
|
|
(7.7 |
%) |
|
(5.3 |
%) |
|
|
|
|
|
|
|
|
|
|
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|
|
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Cash provided by operating activities |
|
$ |
546.1 |
|
|
$ |
691.8 |
|
|
(21.1 |
%) |
|
|
|
$ |
791.8 |
|
|
(20.8 |
%) |
|
|
||
Cash provided (used) by investing activities |
|
$ |
522.4 |
|
|
$ |
(63.1 |
) |
|
927.9 |
% |
|
|
|
$ |
310.7 |
|
|
120.9 |
% |
|
|
||
Cash used by financing activities |
|
$ |
(189.3 |
) |
|
$ |
(518.8 |
) |
|
63.5 |
% |
|
|
|
$ |
(473.3 |
) |
|
(260.4 |
%) |
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Adjusted FCF |
|
$ |
258.5 |
|
|
$ |
328.7 |
|
|
(21.4 |
%) |
|
|
|
$ |
73.1 |
|
|
(51.4 |
%) |
|
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Distributable Cash Flow |
|
$ |
258.5 |
|
|
$ |
533.9 |
|
|
(51.6 |
%) |
|
|
|
$ |
73.1 |
|
|
(86.8 |
%) |
|
|
Customer Growth
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Organic customer net losses by market |
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|
Sunrise |
(1,000) |
|
(8,100) |
|
(1,800) |
|
(5,800) |
Telenet |
(12,500) |
|
(13,100) |
|
(27,400) |
|
(28,200) |
VM Ireland |
(4,100) |
|
(6,800) |
|
(5,400) |
|
(9,300) |
UPC Slovakia |
(1,600) |
|
(1,300) |
|
(3,400) |
|
(2,500) |
Total |
(19,200) |
|
(29,300) |
|
(38,000) |
|
(45,800) |
|
|
|
|
|
|
|
|
VMO2 JV(i) |
(13,600) |
|
(24,700) |
|
(15,600) |
|
(3,800) |
VodafoneZiggo JV(ii) |
(31,600) |
|
(33,900) |
|
(66,800) |
|
(37,400) |
______________________ |
||
(i) |
Fixed-line customer counts for the VMO2 JV exclude Upp customers. |
|
(ii) |
Fixed-line customer counts for the VodafoneZiggo JV include certain B2B customers. |
Net earnings (loss)
Net earnings (loss) was
Financial Highlights
The following tables present (i) Revenue, Adjusted EBITDA and Adjusted EBITDA less P&E Additions for each of our reportable segments, including the non-consolidated VMO2 JV and VodafoneZiggo JV, for the comparative periods and (ii) the percentage change from period to period on both a reported and rebased basis. Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA less P&E Additions are non-GAAP measures. For additional information on how these measures are defined and why we believe they are meaningful, see the Glossary.
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Three months ended |
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Increase/(decrease) |
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Six months ended |
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Increase/(decrease) |
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June 30, |
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June 30, |
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Revenue |
2024 |
|
2023 |
|
Reported % |
|
Rebased % |
|
2024 |
|
2023 |
|
Reported % |
|
Rebased % |
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in millions, except % amounts |
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Sunrise |
$ |
815.8 |
|
|
$ |
816.2 |
|
|
— |
|
|
0.5 |
|
|
$ |
1,669.8 |
|
|
$ |
1,623.6 |
|
|
2.8 |
|
|
0.2 |
|
Telenet |
|
755.1 |
|
|
|
767.0 |
|
|
(1.6 |
) |
|
(0.9 |
) |
|
|
1,517.7 |
|
|
|
1,521.5 |
|
|
(0.2 |
) |
|
(0.7 |
) |
VM Ireland |
|
120.0 |
|
|
|
123.9 |
|
|
(3.1 |
) |
|
(1.9 |
) |
|
|
243.0 |
|
|
|
246.9 |
|
|
(1.6 |
) |
|
(1.6 |
) |
Central and Other |
|
255.4 |
|
|
|
206.2 |
|
|
23.9 |
|
|
25.0 |
|
|
|
525.0 |
|
|
|
450.7 |
|
|
16.5 |
|
|
22.6 |
|
Intersegment eliminations(i) |
|
(72.6 |
) |
|
|
(65.3 |
) |
|
N.M. |
|
|
N.M. |
|
|
|
(136.7 |
) |
|
|
(126.3 |
) |
|
N.M. |
|
|
N.M. |
|
Total |
$ |
1,873.7 |
|
|
$ |
1,848.0 |
|
|
1.4 |
|
|
2.2 |
|
|
$ |
3,818.8 |
|
|
$ |
3,716.4 |
|
|
2.8 |
|
|
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
VMO2 JV(ii) |
$ |
3,375.4 |
|
|
$ |
3,391.5 |
|
|
(0.5 |
) |
|
(1.4 |
) |
|
$ |
6,658.2 |
|
|
$ |
6,554.2 |
|
|
1.6 |
|
|
(0.9 |
) |
VodafoneZiggo JV(ii) |
$ |
1,091.6 |
|
|
$ |
1,088.4 |
|
|
0.3 |
|
|
1.5 |
|
|
$ |
2,205.6 |
|
|
$ |
2,171.8 |
|
|
1.6 |
|
|
1.5 |
|
_______________ |
||
N.M. - Not Meaningful |
||
(i) |
Amounts primarily relate to the revenue recognized within our T&I Function related to the Tech Framework. For additional information on the Tech Framework, see the Glossary. |
|
(ii) |
Amounts reflect |
|
Three months ended |
|
Increase/(decrease) |
|
Six months ended |
|
Increase/(decrease) |
||||||||||||||||||||
|
June 30, |
|
|
June 30, |
|
||||||||||||||||||||||
Adjusted EBITDA |
2024 |
|
2023 |
|
Reported % |
|
Rebased % |
|
2024 |
|
2023 |
|
Reported % |
|
Rebased % |
||||||||||||
|
in millions, except % amounts |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sunrise |
$ |
288.0 |
|
|
$ |
287.1 |
|
|
0.3 |
|
|
0.9 |
|
|
$ |
567.3 |
|
|
$ |
550.1 |
|
|
3.1 |
|
|
0.7 |
|
Telenet |
|
311.9 |
|
|
|
346.0 |
|
|
(9.9 |
) |
|
(9.2 |
) |
|
|
620.3 |
|
|
|
648.9 |
|
|
(4.4 |
) |
|
(4.8 |
) |
VM Ireland |
|
45.7 |
|
|
|
47.3 |
|
|
(3.4 |
) |
|
(2.1 |
) |
|
|
85.7 |
|
|
|
88.8 |
|
|
(3.5 |
) |
|
(3.4 |
) |
Central and Other(i) |
|
(25.8 |
) |
|
|
(63.8 |
) |
|
59.6 |
|
|
58.2 |
|
|
|
(56.8 |
) |
|
|
(31.7 |
) |
|
(79.2 |
) |
|
(8.7 |
) |
Intersegment eliminations(ii) |
|
(15.1 |
) |
|
|
(15.2 |
) |
|
N.M. |
|
|
N.M. |
|
|
|
(30.4 |
) |
|
|
(30.2 |
) |
|
N.M. |
|
|
N.M. |
|
Total |
$ |
604.7 |
|
|
$ |
601.4 |
|
|
0.5 |
|
|
1.0 |
|
|
$ |
1,186.1 |
|
|
$ |
1,225.9 |
|
|
(3.2 |
) |
|
(3.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
VMO2 JV(iii)(iv) |
$ |
1,132.4 |
|
|
$ |
1,138.8 |
|
|
(0.6 |
) |
|
(1.5 |
) |
|
$ |
2,206.0 |
|
|
$ |
2,164.7 |
|
|
1.9 |
|
|
(0.6 |
) |
VodafoneZiggo JV(iii) |
$ |
518.7 |
|
|
$ |
484.9 |
|
|
7.0 |
|
|
8.2 |
|
|
$ |
1,037.7 |
|
|
$ |
956.4 |
|
|
8.5 |
|
|
8.5 |
|
_______________ |
||
N.M. - Not Meaningful |
||
(i) |
Amounts include development costs related to our internally-developed software subsequent to our decision in May 2023 to externally market such software. |
|
(ii) |
Amounts relate to the Adjusted EBITDA impact within our T&I Function related to the Tech Framework. For additional information on the Tech Framework, see the Glossary. |
|
(iii) |
Amounts reflect |
|
(iv) |
2024 amounts for the VMO2 JV include the benefit of approximately |
|
Three months ended |
|
Increase/(decrease) |
|
Six months ended |
|
Increase/(decrease) |
||||||||||||||||||||
Adjusted EBITDA less P&E Additions |
June 30, |
|
|
June 30, |
|
||||||||||||||||||||||
2024 |
|
2023 |
|
Reported % |
|
Rebased % |
|
2024 |
|
2023 |
|
Reported % |
|
Rebased % |
|||||||||||||
|
in millions, except % amounts |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sunrise |
$ |
148.0 |
|
|
$ |
164.7 |
|
|
(10.1 |
) |
|
(9.5 |
) |
|
$ |
277.4 |
|
|
$ |
278.7 |
|
|
(0.5 |
) |
|
(2.4 |
) |
Telenet |
|
110.7 |
|
|
|
184.0 |
|
|
(39.8 |
) |
|
(39.5 |
) |
|
|
235.4 |
|
|
|
313.9 |
|
|
(25.0 |
) |
|
(25.5 |
) |
VM Ireland |
|
4.1 |
|
|
|
(4.2 |
) |
|
197.6 |
|
|
197.4 |
|
|
|
4.7 |
|
|
|
4.2 |
|
|
11.9 |
|
|
10.3 |
|
Central and Other |
|
(32.8 |
) |
|
|
(95.8 |
) |
|
65.8 |
|
|
65.0 |
|
|
|
(71.2 |
) |
|
|
(113.5 |
) |
|
37.3 |
|
|
47.4 |
|
Total |
$ |
230.0 |
|
|
$ |
248.7 |
|
|
(7.5 |
) |
|
(7.7 |
) |
|
$ |
446.3 |
|
|
$ |
483.3 |
|
|
(7.7 |
) |
|
(5.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
VMO2 JV(i) |
$ |
546.4 |
|
|
$ |
468.0 |
|
|
16.8 |
|
|
15.7 |
|
|
$ |
934.2 |
|
|
$ |
903.3 |
|
|
3.4 |
|
|
0.8 |
|
VodafoneZiggo JV(i) |
$ |
263.8 |
|
|
$ |
228.3 |
|
|
15.5 |
|
|
16.9 |
|
|
$ |
538.1 |
|
|
$ |
449.4 |
|
|
19.7 |
|
|
19.7 |
|
_______________ |
||
N.M. - Not Meaningful |
||
(i) |
Amounts reflect |
Leverage and Liquidity
-
Total principal amount of debt and finance leases:
$15.6 billion -
Average debt tenor10: 4.4 years, with ~
10% not due until 2030 or thereafter -
Borrowing costs: Blended, fully-swapped cost of debt was
3.45% -
Liquidity:
, including (i)$5.0 billion of cash at June 30, 2024, (ii)$2.0 billion of investments held under SMAs and (iii)$1.5 billion of aggregate unused borrowing capacity under our credit facilities$1.5 billion
Forward-Looking Statements and Disclaimer
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements with respect to our strategies, future growth prospects and opportunities; expectations regarding our and our businesses' financial performance, including Revenue and Rebased Revenue, Adjusted EBITDA, Adjusted EBITDA less P&E Additions, operating and capital expenses, property and equipment additions, Adjusted Free Cash Flow and Distributable Cash Flow, as well as the 2024 financial guidance, including revisions, provided by us and our operating companies and joint ventures, which includes expected capital intensity; our future strategies for maximizing and creating value for our shareholders; the anticipated spin-off of our Swiss operating company, Sunrise, including the timing and location of the anticipated closing and the hosting of a capital markets day, as well as any anticipated dividends to be paid from Sunrise and the timing thereof; the pricing strategies at our operating companies and our joint ventures; the expected drivers of future financial performance at our operating companies and our joint ventures; expectations with respect to a new memorandum of understanding by our subsidiaries in
Share Repurchase Program
Our share buyback plan for 2024 authorized the repurchase of up to
About Liberty Global
Liberty Global (NASDAQ: LBTYA, LBTYB and LBTYK) is a world leader in converged broadband, video and mobile communications services. We deliver next-generation products through advanced fiber and 5G networks, and currently provide over 85 million* connections across
Liberty Global's consolidated businesses generate annual revenue of more than
Liberty Global Ventures, our global investment arm, has a portfolio of more than 75 companies and funds across the content, technology and infrastructure industries, including stakes in companies like ITV, Televisa Univision, Plume, AtlasEdge and the Formula E racing series.
* Represents aggregate consolidated and
** Revenue figures above are provided based on full year 2023 Liberty Global consolidated results and the combined as reported full year 2023 results for the VodafoneZiggo JV and full year 2023 U.S. GAAP results for the VMO2 JV.
Sunrise, Telenet, the VMO2 JV and the VodafoneZiggo JV deliver mobile services as mobile network operators. Virgin Media Ireland delivers mobile services as a mobile virtual network operator through third-party networks. UPC Slovakia delivers mobile services as a reseller of SIM cards.
Liberty Global Ltd. is listed on the Nasdaq Global Select Market under the symbols "LBTYA", "LBTYB" and "LBTYK".
Balance Sheets, Statements of Operations and Statements of Cash Flows
The condensed consolidated balance sheets, statements of operations and statements of cash flows of Liberty Global are in our 10-Q.
Rebase Information
Rebase growth percentages, which are non-GAAP measures, are presented as a basis for assessing growth rates on a comparable basis. For purposes of calculating rebase growth rates on a comparable basis for all businesses that we owned during 2024, we have adjusted our historical revenue, Adjusted EBITDA and Adjusted EBITDA less P&E Additions for the three and six months ended June 30, 2023 to (i) include the pre-acquisition revenue, Adjusted EBITDA and P&E additions to the same extent these entities are included in our results for the three and six months ended June 30, 2024, (ii) exclude from our rebased amounts the revenue, Adjusted EBITDA and P&E additions of entities disposed of to the same extent these entities are excluded in our results for the three and six months ended June 30, 2024, (iii) include in our rebased amounts the revenue and costs for the temporary elements of transitional and other services provided to iliad, Vodafone and Deutsche Telekom, to reflect amounts related to these services equal to those included in our results for the three and six months ended June 30, 2024 and (iv) reflect the translation of our rebased amounts at the applicable average foreign currency exchange rates that were used to translate our results for the three and six months ended June 30, 2024. We have reflected the revenue, Adjusted EBITDA and P&E additions of these acquired entities in our 2023 rebased amounts based on what we believe to be the most reliable information that is currently available to us (generally pre-acquisition financial statements), as adjusted for the estimated effects of (a) any significant differences between
The following table provides adjustments made to the 2023 amounts (i) in aggregate for our consolidated reportable segments and (ii) for the non-consolidated VMO2 JV and VodafoneZiggo JV to derive our rebased growth rates:
|
Three months ended June 30, 2023 |
|
Six months ended June 30, 2023 |
||||||||||||||||||||
|
Revenue |
|
Adjusted EBITDA |
|
Adjusted EBITDA less P&E Additions |
|
Revenue |
|
Adjusted EBITDA |
|
Adjusted EBITDA less P&E Additions |
||||||||||||
|
in millions |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated Liberty Global: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisitions and dispositions(i) |
$ |
1.3 |
|
|
$ |
3.8 |
|
|
$ |
3.9 |
|
|
$ |
(18.3 |
) |
|
$ |
(16.7 |
) |
|
$ |
(16.7 |
) |
Foreign currency |
|
(15.7 |
) |
|
|
(6.3 |
) |
|
|
(3.3 |
) |
|
|
44.4 |
|
|
|
13.5 |
|
|
|
4.5 |
|
Total |
$ |
(14.4 |
) |
|
$ |
(2.5 |
) |
|
$ |
0.6 |
|
|
$ |
26.1 |
|
|
$ |
(3.2 |
) |
|
$ |
(12.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
VMO2 JV(ii): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency |
$ |
30.1 |
|
|
$ |
10.7 |
|
|
$ |
4.2 |
|
|
$ |
167.8 |
|
|
$ |
55.5 |
|
|
$ |
23.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
VodafoneZiggo JV(ii): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency |
$ |
(12.5 |
) |
|
$ |
(5.5 |
) |
|
$ |
(2.6 |
) |
|
$ |
0.2 |
|
|
$ |
— |
|
|
$ |
— |
|
_______________ |
||
(i) |
In addition to our acquisitions and dispositions, these rebase adjustments include amounts related to agreements to provide transitional and other services to iliad, Vodafone and Deutsche Telekom. These adjustments result in an equal amount of fees in both the 2024 and 2023 periods for those services that are deemed to be temporary in nature. |
|
(ii) |
Amounts reflect |
Liquidity
The following table(i) details the
|
Cash |
|
|
|
Unused |
|
|
||||||||
|
and Cash |
|
|
|
Borrowing |
|
Total |
||||||||
|
Equivalents |
|
SMAs(ii) |
|
Capacity(iii) |
|
Liquidity |
||||||||
|
in millions |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Liberty Global and unrestricted subsidiaries |
$ |
977.0 |
|
$ |
1,505.7 |
|
$ |
— |
|
|
$ |
2,482.7 |
|||
Telenet |
|
1,022.4 |
|
|
|
— |
|
|
|
659.0 |
|
|
1,681.4 |
|
|
Sunrise Holding |
|
10.9 |
|
|
|
— |
|
|
|
757.7 |
|
|
|
768.6 |
|
VM Ireland |
|
1.0 |
|
|
|
— |
|
|
|
107.2 |
|
|
|
108.2 |
|
Total |
$ |
2,011.3 |
|
|
$ |
1,505.7 |
|
|
$ |
1,523.9 |
|
|
$ |
5,040.9 |
|
_______________ |
||
(i) |
Except as otherwise indicated, the amounts reported in the table include the named entity and its subsidiaries. |
|
(ii) |
Represents investments held under SMAs which are maintained by investment managers acting as agents on our behalf. |
|
(iii) |
Our aggregate unused borrowing capacity of |
Summary of Debt & Finance Lease Obligations
The following table(i) details the June 30, 2024 U.S. dollar equivalents of the (i) outstanding principal amounts of our debt and finance lease obligations, (ii) expected principal-related derivative cash payments or receipts and (iii) swapped principal amounts of our debt and finance lease obligations:
|
|
|
Finance |
|
Total Debt |
|
Principal Related |
|
Swapped Debt |
||||||||||
|
|
|
Lease |
|
& Finance Lease |
|
Derivative |
|
& Finance Lease |
||||||||||
|
Debt(ii) |
|
Obligations |
|
Obligations |
|
Cash Payments |
|
Obligations |
||||||||||
|
in millions |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Sunrise Holding |
$ |
6,407.4 |
|
$ |
28.5 |
|
$ |
6,435.9 |
|
$ |
385.4 |
|
|
$ |
6,821.3 |
||||
Telenet |
|
6,849.9 |
|
|
|
3.4 |
|
|
|
6,853.3 |
|
|
|
(161.3 |
) |
|
|
6,692.0 |
|
VM Ireland |
|
964.5 |
|
|
|
— |
|
|
|
964.5 |
|
|
|
— |
|
|
|
964.5 |
|
Other(iii) |
|
1,358.2 |
|
|
|
20.4 |
|
|
|
1,378.6 |
|
|
|
— |
|
|
|
1,378.6 |
|
Total |
$ |
15,580.0 |
|
|
$ |
52.3 |
|
|
$ |
15,632.3 |
|
|
$ |
224.1 |
|
|
$ |
15,856.4 |
|
_______________ |
||
(i) |
Except as otherwise indicated, the amounts reported in the table include the named entity and its subsidiaries. |
|
(ii) |
Debt amounts for Sunrise Holding include notes issued by special purpose entities that are consolidated by Sunrise Holding. |
|
(iii) |
Debt amount includes a loan of |
Property and Equipment Additions and Capital Expenditures
The table below highlights the categories of property and equipment additions for the indicated periods and reconciles those additions to the capital expenditures that are presented in the condensed consolidated statements of cash flows in our 10-Q.
|
Three months ended |
|
Six months ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
in millions, except % amounts |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Customer premises equipment (CPE) |
$ |
52.1 |
|
|
$ |
70.7 |
|
|
$ |
104.2 |
|
|
$ |
140.0 |
|
New build & upgrade |
|
75.6 |
|
|
|
53.7 |
|
|
|
147.0 |
|
|
|
81.8 |
|
Capacity |
|
52.7 |
|
|
|
38.5 |
|
|
|
88.8 |
|
|
|
94.5 |
|
Baseline |
|
120.8 |
|
|
|
96.8 |
|
|
|
261.1 |
|
|
|
233.8 |
|
Product & enablers |
|
73.5 |
|
|
|
93.0 |
|
|
|
138.7 |
|
|
|
192.5 |
|
Total P&E additions |
|
374.7 |
|
|
|
352.7 |
|
|
|
739.8 |
|
|
|
742.6 |
|
Reconciliation of P&E additions to capital expenditures: |
|
|
|
|
|
|
|
||||||||
Assets acquired under capital-related vendor financing arrangements(i) |
|
(26.5 |
) |
|
|
(56.0 |
) |
|
|
(66.3 |
) |
|
|
(98.3 |
) |
Assets acquired under finance leases |
|
(0.1 |
) |
|
|
(9.6 |
) |
|
|
(0.6 |
) |
|
|
(16.9 |
) |
Changes in current liabilities related to capital expenditures |
|
(58.8 |
) |
|
|
24.1 |
|
|
|
(32.8 |
) |
|
|
61.0 |
|
Total capital expenditures, net(ii) |
$ |
289.3 |
|
|
$ |
311.2 |
|
|
$ |
640.1 |
|
|
$ |
688.4 |
|
|
|
|
|
|
|
|
|
||||||||
P&E additions as % of revenue |
|
20.0 |
% |
|
|
19.1 |
% |
|
|
19.4 |
% |
|
|
20.0 |
% |
_______________ |
||
(i) |
Amounts exclude related VAT of |
|
(ii) |
The capital expenditures that we report in our condensed consolidated statements of cash flows do not include amounts that are financed under vendor financing or finance lease arrangements. Instead, these expenditures are reflected as non-cash additions to our property and equipment when the underlying assets are delivered, and as repayments of debt when the related principal is repaid. |
ARPU per Fixed Customer Relationship
The following table provides ARPU per fixed customer relationship and percentage change from period to period on both a reported and rebased basis for the indicated periods:
|
ARPU per Fixed Customer Relationship |
||||||||||||
|
Three months ended June 30, |
|
Increase/(decrease) |
||||||||||
|
2024 |
|
2023 |
|
Reported % |
|
Rebased % |
||||||
|
|
|
|
|
|
|
|
||||||
Liberty Global |
$ |
65.62 |
|
$ |
64.80 |
|
1.3 |
% |
|
2.2 |
% |
||
VM Ireland |
€ |
62.04 |
|
|
€ |
61.68 |
|
|
0.6 |
% |
|
0.6 |
% |
Telenet |
€ |
62.10 |
|
|
€ |
59.24 |
|
|
4.8 |
% |
|
4.8 |
% |
Sunrise Holding |
€ |
59.30 |
|
|
€ |
59.28 |
|
|
— |
% |
|
(0.5 |
%) |
Mobile ARPU
The following tables provide ARPU per mobile subscriber and percentage change from period to period on both a reported and rebased basis for the indicated periods:
|
ARPU per Mobile Subscriber |
||||||||||||
|
Three months ended June 30, |
|
Increase/(decrease) |
||||||||||
|
2024 |
|
2023 |
|
Reported % |
|
Rebased % |
||||||
|
|
|
|
|
|
|
|
||||||
Liberty Global: |
|
|
|
|
|
|
|
||||||
Including interconnect revenue |
$ |
26.38 |
|
$ |
26.96 |
|
(2.2 |
%) |
|
(1.1 |
%) |
||
Excluding interconnect revenue |
$ |
24.46 |
|
|
$ |
25.10 |
|
|
(2.5 |
%) |
|
— |
% |
|
Operating Data — June 30, 2024 |
|||||||||||||||||||||||
|
Homes Passed |
|
Fixed-Line Customer Relationships |
|
Internet Subscribers(i) |
|
Video Subscribers (ii) |
|
Telephony Subscribers(iii) |
|
Total RGUs |
|
|
Postpaid Mobile Subscribers |
|
Total Mobile Subscribers(iv) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Consolidated Liberty Global: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sunrise(v) |
2,733,300 |
|
1,466,200 |
|
|
1,191,600 |
|
|
1,186,300 |
|
|
908,200 |
|
|
3,286,100 |
|
|
|
2,526,000 |
|
|
2,880,300 |
|
|
Telenet(vi) |
4,202,400 |
|
|
1,980,100 |
|
|
1,719,600 |
|
|
1,619,400 |
|
|
892,300 |
|
|
4,231,300 |
|
|
|
2,676,000 |
|
|
2,890,100 |
|
VM Ireland |
993,900 |
|
|
397,400 |
|
|
365,400 |
|
|
217,200 |
|
|
176,200 |
|
|
758,800 |
|
|
|
135,600 |
|
|
135,600 |
|
UPC Slovakia |
643,800 |
|
|
173,800 |
|
|
143,000 |
|
|
155,900 |
|
|
86,500 |
|
|
385,400 |
|
|
|
— |
|
|
— |
|
Total Liberty Global |
8,573,400 |
|
|
4,017,500 |
|
|
3,419,600 |
|
|
3,178,800 |
|
|
2,063,200 |
|
|
8,661,600 |
|
|
|
5,337,600 |
|
|
5,906,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
VMO2 JV(vii) |
16,209,700 |
|
|
5,811,200 |
|
|
5,710,700 |
|
|
|
|
|
|
12,505,700 |
|
|
|
15,870,200 |
|
|
35,656,500 |
|
||
VodafoneZiggo JV(viii) |
7,549,500 |
|
|
3,486,200 |
|
|
3,161,000 |
|
|
3,459,900 |
|
|
1,379,600 |
|
|
8,000,500 |
|
|
|
5,296,100 |
|
|
5,615,500 |
|
|
Subscriber Variance Table — June 30, 2024 vs. March 31, 2024 |
|||||||||||||||||||||||
|
Homes Passed |
|
Fixed-Line Customer Relationships |
|
Internet Subscribers(ii) |
|
Video Subscribers(i) |
|
Telephony Subscribers(iii) |
|
Total RGUs |
|
|
Postpaid Mobile Subscribers |
|
Total Mobile Subscribers(iv) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Organic Change Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Consolidated Liberty Global: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sunrise(v) |
10,900 |
|
|
(1,000 |
) |
|
5,000 |
|
|
(7,600 |
) |
|
(13,500 |
) |
|
(16,100 |
) |
|
|
32,900 |
|
|
26,100 |
|
Telenet(vi) |
1,800 |
|
|
(12,500 |
) |
|
(4,800 |
) |
|
(17,700 |
) |
|
(20,600 |
) |
|
(43,100 |
) |
|
|
(500 |
) |
|
(9,000 |
) |
VM Ireland |
6,800 |
|
|
(4,100 |
) |
|
(2,800 |
) |
|
(5,600 |
) |
|
(14,800 |
) |
|
(23,200 |
) |
|
|
1,400 |
|
|
1,400 |
|
UPC Slovakia |
1,000 |
|
|
(1,600 |
) |
|
(800 |
) |
|
(3,000 |
) |
|
(500 |
) |
|
(4,300 |
) |
|
|
— |
|
|
— |
|
Total Liberty Global |
20,500 |
|
|
(19,200 |
) |
|
(3,400 |
) |
|
(33,900 |
) |
|
(49,400 |
) |
|
(86,700 |
) |
|
|
33,800 |
|
|
18,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
VMO2 JV(vii) |
4,100 |
|
|
(13,600 |
) |
|
(12,200 |
) |
|
|
|
|
|
(123,300 |
) |
|
|
(118,400 |
) |
|
283,000 |
|
||
VodafoneZiggo JV(viii) |
16,300 |
|
|
(31,600 |
) |
|
(22,600 |
) |
|
(31,800 |
) |
|
(55,100 |
) |
|
(109,500 |
) |
|
|
(18,400 |
) |
|
(26,500 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Q2 2024 Joint Ventures Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
VodafoneZiggo JV(viii) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(9,600 |
) |
|
(9,600 |
) |
Total adjustments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(9,600 |
) |
|
(9,600 |
) |
Footnotes for Operating Data and Subscriber Variance Tables
(i) |
At Sunrise, we offer a 10 Mbps internet service to our Video Subscribers without an incremental recurring fee. Our Internet Subscribers at Sunrise include approximately 38,200 subscribers who have requested and received this service. | |
(ii) |
We have approximately 28,700 “lifeline” customers that are counted on a per connection basis, representing the least expensive regulated tier of video service, with only a few channels. |
|
(iii) |
At Sunrise, we offer a basic phone service to our Video Subscribers without an incremental recurring fee. Our Telephony Subscribers at Sunrise include approximately 89,700 subscribers who have requested and received this service. |
|
(iv) |
In a number of countries, our mobile subscribers receive mobile services pursuant to prepaid contracts. As of June 30, 2024, our mobile subscriber count included approximately 354,300, 214,100, 7,558,600 and 319,400 prepaid mobile subscribers at Sunrise, Telenet, the VMO2 JV and the VodafoneZiggo JV, respectively. Prepaid mobile customers are excluded from the VMO2 JV's and the VodafoneZiggo JV's mobile subscriber counts after a period of inactivity of three months and nine months, respectively. The mobile subscriber count for the VMO2 JV includes IoT connections, which are Machine-to-Machine contract mobile connections, including Smart Metering contract connections. The mobile subscriber count presented above for the VMO2 JV excludes wholesale mobile connections of approximately 9,829,900 that are included in the total mobile subscriber count as defined and presented by the VMO2 JV. |
|
(v) |
Pursuant to service agreements, Sunrise offers broadband internet, video and telephony services over networks owned by third-party operators (“partner networks”), and following the acquisition of Sunrise, also services homes through Sunrise's existing agreements with Swisscom, Swiss Fibre Net and local utilities. Under these agreements, RGUs are only recognized if there is a direct billing relationship with the customer. Homes passed or serviceable through the above service agreements are not included in Sunrise's homes passed count as we do not own these networks. Including these arrangements, our operations at Sunrise have the ability to offer fixed services to the national footprint. |
|
(vi) |
Includes our business in Luxembourg as a result of Telenet's January 2023 acquisition of Eltrona. |
|
(vii) |
Fixed-line customer counts for the VMO2 JV exclude Upp customers. |
|
(viii) |
Fixed-line counts for the VodafoneZiggo JV include certain B2B customers and subscribers. |
Additional General Notes to Tables:
Most of our broadband communications subsidiaries provide broadband internet, telephony, data, video or other B2B services. Certain of our B2B revenue is derived from SOHO subscribers that pay a premium price to receive enhanced service levels along with internet, video or telephony services that are the same or similar to the mass marketed products offered to our residential subscribers. All mass marketed products provided to SOHOs, whether or not accompanied by enhanced service levels and/or premium prices, are included in the respective RGU and customer counts of our broadband communications operations, with only those services provided at premium prices considered to be “SOHO RGUs” or “SOHO customers”. To the extent our existing customers upgrade from a residential product offering to a SOHO product offering, the number of SOHO RGUs or SOHO customers will increase, but there is no impact to our total RGU or customer counts. With the exception of our B2B SOHO subscribers and mobile subscribers at medium and large enterprises, we generally do not count customers of B2B services as customers or RGUs for external reporting purposes.
In
While we take appropriate steps to ensure that subscriber statistics are presented on a consistent and accurate basis at any given balance sheet date, the variability from country to country in (i) the nature and pricing of products and services, (ii) the distribution platform, (iii) billing systems, (iv) bad debt collection experience and (v) other factors add complexity to the subscriber counting process. We periodically review our subscriber counting policies and underlying systems to improve the accuracy and consistency of the data reported on a prospective basis. Accordingly, we may from time to time make appropriate adjustments to our subscriber statistics based on those reviews.
Subscriber information for acquired entities is preliminary and subject to adjustment until we have completed our review of such information and determined that it is presented in accordance with our policies.
Footnotes
1 |
Represents |
|
2 |
Includes homes passed by the nexfibre partner network, which VMO2 JV has access to and acts as the anchor tenant. |
|
3 |
Amounts exclude SMAs and include the book values for |
|
4 |
The indicated growth rates are rebased for acquisitions, dispositions, FX and other items that impact the comparability of our year-over-year results. See the Rebase Information section for more information on rebased growth. |
|
5 |
Costs to capture generally include incremental, third-party operating and capital related costs that are directly associated with integration activities, restructuring activities and certain other costs associated with aligning an acquiree to our business processes to derive synergies. These costs are necessary to combine the operations of a business being acquired (or joint venture being formed) with ours or are incidental to the acquisition. As a result, costs to capture may include certain (i) operating costs that are included in Adjusted EBITDA, (ii) capital-related costs that are included in property and equipment additions and Adjusted EBITDA less P&E Additions and (iii) certain integration-related restructuring expenses that are not included within Adjusted EBITDA or Adjusted EBITDA less P&E Additions. Given the achievement of synergies occurs over time, certain of our costs to capture are recurring by nature, and generally incurred within a few years of completing the transaction. |
|
6 |
This release includes the actual |
|
7 |
Converged households or converged SIMs represent customers in either our Consumer or SOHO segment that subscribe to both a fixed-line digital TV and an internet service and Vodafone and/or hollandsnieuwe postpaid mobile telephony service. |
|
8 |
Liquidity refers to cash and cash equivalents and investments held under separately managed accounts plus the maximum undrawn commitments under subsidiary borrowing facilities, without regard to covenant compliance calculations or other conditions precedent to borrowing. |
|
9 |
Our aggregate unused borrowing capacity of |
|
10 |
For purposes of calculating our average tenor, total third-party debt excludes vendor financing, certain debt obligations that we assumed in connection with various acquisitions, and liabilities related to Telenet's acquisition of mobile spectrum licenses. The percentage of debt not due until 2030 or thereafter includes all of these amounts. |
|
11 |
The |
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
in millions |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
|
$ |
3,375.4 |
|
|
$ |
3,391.5 |
|
$ |
6,658.2 |
|
|
$ |
6,554.2 |
||
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
IFRS revenue |
$ |
3,375.4 |
|
|
$ |
3,391.5 |
|
|
$ |
6,658.2 |
|
|
$ |
6,554.2 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
|
$ |
1,132.4 |
|
|
$ |
1,138.8 |
|
|
$ |
2,206.0 |
|
|
$ |
2,164.7 |
|
|
|
114.7 |
|
|
|
108.7 |
|
|
|
215.0 |
|
|
|
210.5 |
|
IFRS Adjusted EBITDA (including costs to capture) |
$ |
1,247.1 |
|
|
$ |
1,247.5 |
|
|
$ |
2,421.0 |
|
|
$ |
2,375.2 |
|
|
|
|
|
|
|
|
|
||||||||
Property & equipment additions: |
|
|
|
|
|
|
|
||||||||
|
$ |
586.0 |
|
|
$ |
670.8 |
|
|
$ |
1,271.8 |
|
|
$ |
1,261.4 |
|
|
|
124.4 |
|
|
|
53.3 |
|
|
|
259.7 |
|
|
|
112.4 |
|
IFRS P&E additions (including costs to capture) |
$ |
710.4 |
|
|
$ |
724.1 |
|
|
$ |
1,531.5 |
|
|
$ |
1,373.8 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA less P&E additions: |
|
|
|
|
|
|
|
||||||||
|
$ |
546.4 |
|
|
$ |
468.0 |
|
|
$ |
934.2 |
|
|
$ |
903.3 |
|
|
|
(9.7 |
) |
|
|
55.4 |
|
|
|
(44.7 |
) |
|
|
98.1 |
|
IFRS Adjusted EBITDA less P&E additions (including costs to capture) |
$ |
536.7 |
|
|
$ |
523.4 |
|
|
$ |
889.5 |
|
|
$ |
1,001.4 |
|
_______________ |
||
(i) |
|
Glossary
10-Q or 10-K: As used herein, the terms 10-Q and 10-K refer to our most recent quarterly or annual report as filed with the Securities and Exchange Commission on Form 10-Q or Form 10-K, as applicable.
Adjusted EBITDA, Adjusted EBITDA less P&E Additions and Property and Equipment Additions (P&E Additions):
-
Adjusted EBITDA: Adjusted EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and is also a key factor that is used by our internal decision makers to (i) determine how to allocate resources to segments and (ii) evaluate the effectiveness of our management for purposes of annual and other incentive compensation plans. As we use the term, Adjusted EBITDA is defined as net earnings (loss) before net income tax benefit (expense), other non-operating income or expenses, net share of results of affiliates, net gains (losses) on debt extinguishment, net realized and unrealized gains (losses) due to changes in fair values of certain investments, net foreign currency transaction gains (losses), net gains (losses) on derivative instruments, net interest expense, depreciation and amortization, share-based compensation, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items. Other operating items include (a) gains and losses on the disposition of long-lived assets, (b) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (c) other acquisition-related items, such as gains and losses on the settlement of contingent consideration. Our internal decision makers believe Adjusted EBITDA is a meaningful measure because it represents a transparent view of our recurring operating performance that is unaffected by our capital structure and allows management to (1) readily view operating trends, (2) perform analytical comparisons and benchmarking between segments and (3) identify strategies to improve operating performance in the different countries in which we operate. We believe our consolidated Adjusted EBITDA measure, which is a non-GAAP measure, is useful to investors because it is one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measure may not be directly comparable to similar measures used by other public companies. Consolidated Adjusted EBITDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for,
U.S. GAAP measures of income included in our condensed consolidated statements of operations.
-
Adjusted EBITDA less P&E Additions: We define Adjusted EBITDA less P&E Additions, which is a non-GAAP measure, as Adjusted EBITDA less property and equipment additions on an accrual basis. Adjusted EBITDA less P&E Additions is a meaningful measure because it provides (i) a transparent view of Adjusted EBITDA that remains after our capital spend, which we believe is important to take into account when evaluating our overall performance and (ii) a comparable view of our performance relative to other telecommunications companies. Our Adjusted EBITDA less P&E Additions measure may differ from how other companies define and apply their definition of similar measures. Adjusted EBITDA less P&E Additions should be viewed as a measure of operating performance that is a supplement to, and not a substitute for,
U.S. GAAP measures of income included in our condensed consolidated statements of operations.
- P&E Additions: Includes capital expenditures on an accrual basis, amounts financed under vendor financing or finance lease arrangements and other non-cash additions. A reconciliation of Net Earnings (loss) to Adjusted EBITDA less P&E Additions is presented in the following table:
|
Three months ended |
|
Six months ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
in millions |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) |
$ |
275.2 |
|
|
$ |
(511.3 |
) |
|
$ |
802.2 |
|
|
$ |
(1,224.8 |
) |
Income tax expense |
|
60.7 |
|
|
|
159.2 |
|
|
|
87.6 |
|
|
|
171.7 |
|
Other income, net |
|
(83.7 |
) |
|
|
(75.8 |
) |
|
|
(127.2 |
) |
|
|
(119.7 |
) |
Gain on All3Media Sale |
|
(242.9 |
) |
|
|
— |
|
|
|
(242.9 |
) |
|
|
— |
|
Share of results of affiliates, net |
|
25.6 |
|
|
|
(138.3 |
) |
|
|
33.6 |
|
|
|
100.3 |
|
Realized and unrealized losses (gains) due to changes in fair values of certain investments, net |
|
30.1 |
|
|
|
410.8 |
|
|
|
(84.8 |
) |
|
|
416.3 |
|
Foreign currency transaction losses (gains), net |
|
(228.9 |
) |
|
|
(56.4 |
) |
|
|
(298.0 |
) |
|
|
246.5 |
|
Realized and unrealized gains on derivative instruments, net |
|
(68.5 |
) |
|
|
(51.1 |
) |
|
|
(633.8 |
) |
|
|
(16.7 |
) |
Interest expense |
|
251.5 |
|
|
|
213.7 |
|
|
|
505.0 |
|
|
|
414.6 |
|
Operating income (loss) |
|
19.1 |
|
|
|
(49.2 |
) |
|
|
41.7 |
|
|
|
(11.8 |
) |
Impairment, restructuring and other operating items, net |
|
4.7 |
|
|
|
3.9 |
|
|
|
38.2 |
|
|
|
20.3 |
|
Depreciation and amortization |
|
531.4 |
|
|
|
570.9 |
|
|
|
1,012.1 |
|
|
|
1,097.8 |
|
Share-based compensation expense |
|
49.5 |
|
|
|
75.8 |
|
|
|
94.1 |
|
|
|
119.6 |
|
Adjusted EBITDA |
|
604.7 |
|
|
|
601.4 |
|
|
|
1,186.1 |
|
|
|
1,225.9 |
|
Property and equipment additions |
|
(374.7 |
) |
|
|
(352.7 |
) |
|
|
(739.8 |
) |
|
|
(742.6 |
) |
Adjusted EBITDA less P&E Additions |
$ |
230.0 |
|
|
$ |
248.7 |
|
|
$ |
446.3 |
|
|
$ |
483.3 |
|
Adjusted EBITDA after leases (Adjusted EBITDAaL): We define Adjusted EBITDAaL as Adjusted EBITDA as further adjusted to include finance lease related depreciation and interest expense. Our internal decision makers believe Adjusted EBITDAaL is a meaningful measure because it represents a transparent view of our recurring operating performance that includes recurring lease expenses necessary to operate our business. We believe Adjusted EBITDAaL, which is a non-GAAP measure, is useful to investors because it is one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measure may not be directly comparable to similar measures used by other public companies. Adjusted EBITDAaL should be viewed as a measure of operating performance that is a supplement to, and not a substitute for,
Adjusted Free Cash Flow (Adjusted FCF) & Distributable Cash Flow:
-
Adjusted FCF: We define Adjusted FCF as net cash provided by operating activities, plus operating-related vendor financed expenses (which represents an increase in the period to our actual cash available as a result of extending vendor payment terms beyond normal payment terms, which are typically 90 days or less, through non-cash financing activities), less (i) cash payments in the period for capital expenditures, (ii) principal payments on operating- and capital-related amounts financed by vendors and intermediaries (which represents a decrease in the period to our actual cash available as a result of paying amounts to vendors and intermediaries where we previously had extended vendor payments beyond the normal payment terms), and (iii) principal payments on finance leases (which represents a decrease in the period to our actual cash available), each as reported in our condensed consolidated statements of cash flows. Net cash provided by operating activities includes cash paid for third-party costs directly associated with successful and unsuccessful acquisition and dispositions of
and$0.7 million during the three months ended June 30, 2024 and 2023, respectively, and$4.5 million and$5.9 million during the six months ended June 30, 2024 and 2023, respectively.$16.1 million
-
Distributable Cash Flow: We define Distributable Cash Flow as Adjusted FCF plus any dividends received from our equity affiliates that are funded by activities outside of their normal course of operations, including, for example, those funded by recapitalizations (referred to as “Other Affiliate Dividends”).
We believe our presentation of Adjusted FCF and Distributable Cash Flow, each of which is a non-GAAP measure, provides useful information to our investors because these measures can be used to gauge our ability to (i) service debt and (ii) fund new investment opportunities after consideration of all actual cash payments related to our working capital activities and expenses that are capital in nature, whether paid inside normal vendor payment terms or paid later outside normal vendor payment terms (in which case we typically pay in less than 365 days). Adjusted FCF and Distributable Cash Flow should not be understood to represent our ability to fund discretionary amounts, as we have various mandatory and contractual obligations, including debt repayments, that are not deducted to arrive at these amounts. Investors should view Adjusted FCF and Distributable Cash Flow as supplements to, and not substitutes for,U.S. GAAP measures of liquidity included in our condensed consolidated statements of cash flows. Further, our Adjusted FCF and Distributable Cash Flow may differ from how other companies define and apply their definition of Adjusted FCF or other similar measures. The following table provides a reconciliation of our net cash provided by operating activities to Adjusted FCF and Distributable Cash Flow for the indicated periods.
|
Three months ended |
|
Six months ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
in millions |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
546.1 |
|
|
$ |
691.8 |
|
|
$ |
791.8 |
|
|
$ |
999.6 |
|
Operating-related vendor financing additions(i) |
|
164.6 |
|
|
|
135.3 |
|
|
|
324.4 |
|
|
|
276.7 |
|
Cash capital expenditures, net |
|
(289.3 |
) |
|
|
(311.2 |
) |
|
|
(640.1 |
) |
|
|
(688.4 |
) |
Principal payments on operating-related vendor financing |
|
(131.1 |
) |
|
|
(125.4 |
) |
|
|
(322.1 |
) |
|
|
(268.9 |
) |
Principal payments on capital-related vendor financing |
|
(30.2 |
) |
|
|
(57.7 |
) |
|
|
(75.3 |
) |
|
|
(162.2 |
) |
Principal payments on finance leases |
|
(1.6 |
) |
|
|
(4.1 |
) |
|
|
(5.6 |
) |
|
|
(6.5 |
) |
Adjusted FCF |
|
258.5 |
|
|
|
328.7 |
|
|
|
73.1 |
|
|
|
150.3 |
|
Other affiliate dividends |
|
— |
|
|
|
205.2 |
|
|
|
— |
|
|
|
403.5 |
|
Distributable Cash Flow |
$ |
258.5 |
|
|
$ |
533.9 |
|
|
$ |
73.1 |
|
|
$ |
553.8 |
|
_______________ |
||
(i) |
For purposes of our condensed consolidated statements of cash flows, operating-related vendor financing additions represent operating-related expenses financed by an intermediary that are treated as constructive operating cash outflows and constructive financing cash inflows when the intermediary settles the liability with the vendor. When we pay the financing intermediary, we record financing cash outflows in our condensed consolidated statements of cash flows. For purposes of our Adjusted FCF definition, we (i) add in the constructive financing cash inflow when the intermediary settles the liability with the vendor as our actual net cash available at that time is not affected and (ii) subsequently deduct the related financing cash outflow when we actually pay the financing intermediary, reflecting the actual reduction to our cash available to service debt or fund new investment opportunities. |
ARPU: Average Revenue Per Unit is the average monthly subscription revenue per average fixed customer relationship or mobile subscriber, as applicable. ARPU per average fixed-line customer relationship is calculated by dividing the average monthly subscription revenue from residential fixed and SOHO services by the average number of fixed-line customer relationships for the period. ARPU per average mobile subscriber is calculated by dividing mobile subscription revenue for the indicated period by the average number of mobile subscribers for the period. Unless otherwise indicated, ARPU per fixed customer relationship or mobile subscriber is not adjusted for currency impacts. ARPU per RGU refers to average monthly revenue per average RGU, which is calculated by dividing the average monthly subscription revenue from residential and SOHO services for the indicated period, by the average number of the applicable RGUs for the period. Unless otherwise noted, ARPU in this release is considered to be ARPU per average fixed customer relationship or mobile subscriber, as applicable. Fixed-line customer relationships, mobile subscribers and RGUs of entities acquired during the period are normalized. In addition, for purposes of calculating the percentage change in ARPU on a rebased basis, which is a non-GAAP measure, we adjust the prior-year subscription revenue, fixed-line customer relationships, mobile subscribers and RGUs, as applicable, to reflect acquisitions, dispositions and FX on a comparable basis with the current year, consistent with how we calculate our rebased growth for revenue and Adjusted EBITDA, as further described in the body of this release.
ARPU per Mobile Subscriber: Our ARPU per mobile subscriber calculation that excludes interconnect revenue refers to the average monthly mobile subscription revenue per average mobile subscriber and is calculated by dividing the average monthly mobile subscription revenue (excluding handset sales and late fees) for the indicated period, by the monthly average of the opening and closing balances of mobile subscribers in service for the period. Our ARPU per mobile subscriber calculation that includes interconnect revenue increases the numerator in the above-described calculation by the amount of mobile interconnect revenue during the period.
Blended, fully-swapped debt borrowing cost (or WACD): The weighted average interest rate on our aggregate variable- and fixed-rate indebtedness (excluding finance leases and including vendor financing obligations), including the effects of derivative instruments, original issue premiums or discounts and commitment fees, but excluding the impact of financing costs. The weighted average interest rate calculation includes principal amounts outstanding associated with all of our secured and unsecured borrowings.
B2B: Business-to-Business.
Customer Churn: The rate at which customers relinquish their subscriptions. The annual rolling average basis is calculated by dividing the number of disconnects during the preceding 12 months by the average number of customer relationships. For the purpose of computing churn, a disconnect is deemed to have occurred if the customer no longer receives any level of service from us and is required to return our equipment. A partial product downgrade, typically used to encourage customers to pay an outstanding bill and avoid complete service disconnection, is not considered to be disconnected for purposes of our churn calculations. Customers who move within our footprint and upgrades and downgrades between services are also excluded from the disconnect figures used in the churn calculation.
Debt and Net Debt Ratios: Our debt and net debt ratios, which are non-GAAP metrics, are defined as total debt and net debt, respectively, divided by reported net loss for the last twelve months (reported LTM net loss) and Adjusted EBITDA for the last twelve months (LTM Adjusted EBITDA). Net debt is defined as total debt less cash and cash equivalents and investments held under SMAs. For purposes of these calculations, debt is measured using swapped foreign currency rates, consistent with the covenant calculation requirements of our subsidiary debt agreements. The following table details the calculation of our debt and net debt to reported LTM net loss and LTM Adjusted EBITDA ratios as of and for the twelve months ended June 30, 2024 (in millions, except ratios):
Reconciliation of reported LTM net loss to LTM Adjusted EBITDA: |
|
||
Reported LTM net loss |
$ |
(1,846.8 |
) |
Income tax expense |
|
65.5 |
|
Other income, net |
|
(233.0 |
) |
Gain associated with the Telenet Wyre Transaction |
|
(377.8 |
) |
Gain on All3Media sale |
|
(242.9 |
) |
Share of results of affiliates, net |
|
1,952.6 |
|
Loss on debt extinguishment, net |
|
1.4 |
|
Realized and unrealized loss due to changes in fair values of certain investments, net |
|
56.2 |
|
Foreign currency transaction gain, net |
|
(473.7 |
) |
Realized and unrealized gain on derivative instruments, net |
|
(90.8 |
) |
Interest expense |
|
998.3 |
|
Operating loss |
|
(191.0 |
) |
Impairment, restructuring and other operating items, net |
|
85.8 |
|
Depreciation and amortization |
|
2,229.5 |
|
Share-based compensation expense |
|
205.5 |
|
LTM Adjusted EBITDA |
$ |
2,329.8 |
|
|
|
||
Debt to reported LTM net loss and LTM Adjusted EBITDA: |
|
||
Debt and finance lease obligations before deferred financing costs, discounts and premiums |
$ |
15,632.3 |
|
Principal related projected derivative cash payments |
|
224.1 |
|
Vodafone Collar Loan |
|
(1,348.0 |
) |
Adjusted debt and finance lease obligations before deferred financing costs, discounts and premiums |
$ |
14,508.4 |
|
|
|
||
Reported LTM net loss |
$ |
(1,846.8 |
) |
Debt to reported LTM net loss ratio |
|
(7.9 |
) |
|
|
||
LTM Adjusted EBITDA |
$ |
2,329.8 |
|
Debt to LTM Adjusted EBITDA ratio |
|
6.2 |
|
|
|
||
Net Debt to reported LTM net loss and LTM Adjusted EBITDA: |
|
||
Adjusted debt and finance lease obligations before deferred financing costs, discounts and premiums |
$ |
14,508.4 |
|
Cash and cash equivalents and investments held under SMAs |
|
(3,517.0 |
) |
Adjusted net debt and finance lease obligations before deferred financing costs, discounts and premiums |
$ |
10,991.4 |
|
|
|
||
Reported LTM net loss |
$ |
(1,846.8 |
) |
Net debt to reported LTM net loss ratio |
|
(6.0 |
) |
|
|
||
LTM Adjusted EBITDA |
$ |
2,329.8 |
|
Net debt to LTM Adjusted EBITDA ratio |
|
4.7 |
|
Fixed-Line Customer Relationships: The number of customers who receive at least one of our internet, video or telephony services that we count as RGUs, without regard to which or to how many services they subscribe. Fixed-Line Customer Relationships generally are counted on a unique premises basis. Accordingly, if an individual receives our services in two premises (e.g., a primary home and a vacation home), that individual generally will count as two Fixed-Line Customer Relationships. We exclude mobile-only customers from Fixed-Line Customer Relationships.
Fixed-Mobile Convergence (FMC): Fixed-mobile convergence penetration represents the number of customers who subscribe to both a fixed broadband internet service and postpaid mobile telephony service, divided by the total number of customers who subscribe to our fixed broadband internet service.
Homes Passed: Homes, residential multiple dwelling units or commercial units that can be connected to our networks without materially extending the distribution plant. Certain of our Homes Passed counts are based on census data that can change based on either revisions to the data or from new census results.
Internet Subscriber: A home, residential multiple dwelling unit or commercial unit that receives internet services over our networks, or that we service through a partner network.
Lightning Premises: Includes homes, residential multiple dwelling units and commercial premises that potentially could subscribe to our residential or SOHO services, which have been connected to the VMO2 JV's networks in the
Mobile Subscriber Count: For residential and business subscribers, the number of active SIM cards in service rather than services provided. For example, if a mobile subscriber has both a data and voice plan on a smartphone this would equate to one mobile subscriber. Alternatively, a subscriber who has a voice and data plan for a mobile handset and a data plan for a laptop would be counted as two mobile subscribers. Customers who do not pay a recurring monthly fee are excluded from our mobile telephony subscriber counts after periods of inactivity ranging from 30 to 90 days, based on industry standards within the respective country. In a number of countries, our mobile subscribers receive mobile services pursuant to prepaid contracts.
MVNO: Mobile Virtual Network Operator.
RGU: A Revenue Generating Unit is separately an Internet Subscriber, Video Subscriber or Telephony Subscriber. A home, residential multiple dwelling unit, or commercial unit may contain one or more RGUs. For example, if a residential customer subscribed to our broadband internet service, video service and fixed-line telephony service, the customer would constitute three RGUs. Total RGUs is the sum of Internet, Video and Telephony Subscribers. RGUs generally are counted on a unique premises basis such that a given premise does not count as more than one RGU for any given service. On the other hand, if an individual receives one of our services in two premises (e.g., a primary home and a vacation home), that individual will count as two RGUs for that service. Each bundled internet, video or telephony service is counted as a separate RGU regardless of the nature of any bundling discount or promotion. Non-paying subscribers are counted as subscribers during their free promotional service period. Some of these subscribers may choose to disconnect after their free service period. Services offered without charge on a long-term basis (e.g., VIP subscribers or free service to employees) generally are not counted as RGUs. We do not include subscriptions to mobile services in our externally reported RGU counts. In this regard, our RGU counts exclude our separately reported postpaid and prepaid mobile subscribers.
SIM: Subscriber Identification Module.
SOHO: Small or Home Office Subscribers.
Tech Framework: Our centrally-managed technology and innovation function (our T&I Function) provides, and allocates charges for, certain products and services to our consolidated reportable segments (the Tech Framework). These products and services include CPE hardware and related essential software, maintenance, hosting and other services. Our consolidated reportable segments capitalize the combined cost of the CPE hardware and essential software as property and equipment additions and the corresponding amounts charged by our T&I Function are reflected as revenue when earned.
Telephony Subscriber: A home, residential multiple dwelling unit or commercial unit that receives voice services over our networks, or that we service through a partner network. Telephony Subscribers exclude mobile telephony subscribers.
Video Subscriber: A home, residential multiple dwelling unit or commercial unit that receives our video service over our broadband network or through a partner network.
YoY: Year-over-year.
Appendix - Supplemental Adjusted EBITDAaL Information
The following table presents (i) Adjusted EBITDA, (ii) finance lease-related depreciation and interest expense adjustments, (iii) Adjusted EBITDAaL and (iv) the percentage change from period to period for Adjusted EBITDA and Adjusted EBITDAaL on both a reported and rebased basis for each of our reportable segments.
|
Three months ended June 30, |
|
Increase/(decrease) |
|
Six months ended June 30, |
|
Increase/(decrease) |
||||||||||||||||||||
|
2024 |
|
2023 |
|
Reported % |
|
Rebased % |
|
2024 |
|
2023 |
|
Reported % |
|
Rebased % |
||||||||||||
|
in millions, except % amounts |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sunrise |
$ |
288.0 |
|
|
$ |
287.1 |
|
|
0.3 |
|
|
0.9 |
|
|
$ |
567.3 |
|
|
$ |
550.1 |
|
|
3.1 |
|
|
0.7 |
|
Telenet |
|
311.9 |
|
|
|
346.0 |
|
|
(9.9 |
) |
|
(9.2 |
) |
|
|
620.3 |
|
|
|
648.9 |
|
|
(4.4 |
) |
|
(4.8 |
) |
VM Ireland |
|
45.7 |
|
|
|
47.3 |
|
|
(3.4 |
) |
|
(2.1 |
) |
|
|
85.7 |
|
|
|
88.8 |
|
|
(3.5 |
) |
|
(3.4 |
) |
Central and Other(i) |
|
(25.8 |
) |
|
|
(63.8 |
) |
|
59.6 |
|
|
58.2 |
|
|
|
(56.8 |
) |
|
|
(31.7 |
) |
|
(79.2 |
) |
|
(8.7 |
) |
Intersegment eliminations(ii) |
|
(15.1 |
) |
|
|
(15.2 |
) |
|
N.M. |
|
|
N.M. |
|
|
|
(30.4 |
) |
|
|
(30.2 |
) |
|
N.M. |
|
|
N.M. |
|
Total Adjusted EBITDA |
$ |
604.7 |
|
|
$ |
601.4 |
|
|
0.5 |
|
|
1.0 |
|
|
$ |
1,186.1 |
|
|
$ |
1,225.9 |
|
|
(3.2 |
) |
|
(3.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
VMO2 JV(iii) |
$ |
1,132.4 |
|
|
$ |
1,138.8 |
|
|
(0.6 |
) |
|
(1.5 |
) |
|
$ |
2,206.0 |
|
|
$ |
2,164.7 |
|
|
1.9 |
|
|
(0.6 |
) |
VodafoneZiggo JV(iii) |
$ |
518.7 |
|
|
$ |
484.9 |
|
|
7.0 |
|
|
8.2 |
|
|
$ |
1,037.7 |
|
|
$ |
956.4 |
|
|
8.5 |
|
|
8.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Finance lease adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sunrise |
$ |
(1.7 |
) |
|
$ |
(1.7 |
) |
|
|
|
|
|
$ |
(3.4 |
) |
|
$ |
(2.9 |
) |
|
|
|
|
||||
Telenet |
|
(0.2 |
) |
|
|
(2.9 |
) |
|
|
|
|
|
|
(0.5 |
) |
|
|
(23.2 |
) |
|
|
|
|
||||
Central and Other |
|
(0.9 |
) |
|
|
(2.1 |
) |
|
|
|
|
|
|
(1.6 |
) |
|
|
(4.1 |
) |
|
|
|
|
||||
Total finance lease adjustments |
$ |
(2.8 |
) |
|
$ |
(6.7 |
) |
|
|
|
|
|
$ |
(5.5 |
) |
|
$ |
(30.2 |
) |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
VMO2 JV(ii) |
$ |
(7.1 |
) |
|
$ |
(2.0 |
) |
|
|
|
|
|
$ |
(9.3 |
) |
|
$ |
(4.1 |
) |
|
|
|
|
||||
VodafoneZiggo JV(ii) |
$ |
(3.0 |
) |
|
$ |
(2.1 |
) |
|
|
|
|
|
$ |
(5.9 |
) |
|
$ |
(4.5 |
) |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted EBITDAaL: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sunrise |
$ |
286.3 |
|
|
$ |
285.4 |
|
|
0.3 |
|
|
0.8 |
|
|
$ |
563.9 |
|
|
$ |
547.2 |
|
|
3.1 |
|
|
0.6 |
|
Telenet |
|
311.7 |
|
|
|
343.1 |
|
|
(9.2 |
) |
|
(10.6 |
) |
|
|
619.8 |
|
|
|
625.7 |
|
|
(0.9 |
) |
|
(5.5 |
) |
VM Ireland |
|
45.7 |
|
|
|
47.3 |
|
|
(3.4 |
) |
|
(2.1 |
) |
|
|
85.7 |
|
|
|
88.8 |
|
|
(3.5 |
) |
|
(3.4 |
) |
Central and Other(i) |
|
(26.7 |
) |
|
|
(65.9 |
) |
|
59.5 |
|
|
58.3 |
|
|
|
(58.4 |
) |
|
|
(35.8 |
) |
|
(63.1 |
) |
|
(3.6 |
) |
Intersegment eliminations(ii) |
|
(15.1 |
) |
|
|
(15.2 |
) |
|
N.M. |
|
|
N.M. |
|
|
|
(30.4 |
) |
|
|
(30.2 |
) |
|
N.M. |
|
|
N.M. |
|
Total Adjusted EBITDAaL |
$ |
601.9 |
|
|
$ |
594.7 |
|
|
1.2 |
|
|
0.3 |
|
|
$ |
1,180.6 |
|
|
$ |
1,195.7 |
|
|
(1.3 |
) |
|
(3.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
VMO2 JV(iii) |
$ |
1,125.3 |
|
|
$ |
1,136.8 |
|
|
(1.0 |
) |
|
(1.9 |
) |
|
$ |
2,196.7 |
|
|
$ |
2,160.6 |
|
|
1.7 |
|
|
(0.9 |
) |
VodafoneZiggo JV(iii) |
$ |
515.7 |
|
|
$ |
482.8 |
|
|
6.8 |
|
|
8.1 |
|
|
$ |
1,031.8 |
|
|
$ |
951.9 |
|
|
8.4 |
|
|
8.4 |
|
______________________ |
||
N.M. - Not Meaningful |
||
(i) |
Amounts include development costs related to our internally-developed software subsequent to our decision in May 2023 to externally market such software. |
|
(ii) |
Amounts relate to the Adjusted EBITDA impact within our T&I Function related to the Tech Framework. |
|
(iii) |
Amounts reflect |
Appendix - Foreign Currency Information
The following table presents the relationships between the primary currencies of the countries in which we operate and the
|
June 30, 2024 |
|
December 31, 2023 |
||||||||
|
|
|
|
||||||||
Spot rates: |
|
|
|
||||||||
Euro |
0.9332 |
|
0.9038 |
||||||||
Swiss franc |
0.8986 |
|
|
0.8392 |
|
||||||
British pound sterling |
0.7910 |
|
|
0.7835 |
|
||||||
Polish zloty |
4.0225 |
|
|
3.9272 |
|
||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|
|
||||
Average rates: |
|
|
|
|
|
|
|
||||
Euro |
0.9289 |
|
0.9183 |
|
0.9250 |
|
|
0.9252 |
|
||
Swiss franc |
0.9041 |
|
|
0.8988 |
|
|
0.8894 |
|
|
0.9120 |
|
British pound sterling |
0.7922 |
|
|
0.7987 |
|
|
0.7904 |
|
|
0.8108 |
|
Polish zloty |
3.9953 |
|
|
4.1726 |
|
|
3.9925 |
|
|
4.2811 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725321217/en/
For more information, please visit www.libertyglobal.com or contact:
Investor Relations
Michael Bishop +44 20 8483 6246
Corporate Communications
Bill Myers +1 303 220 6686
Matt Beake +44 20 8483 6428
Source: Liberty Global Ltd.
FAQ
What was Liberty Global's revenue for Q2 2024?
How much did Liberty Global's net earnings increase in Q2 2024?
What is the status of Sunrise's spin-off from Liberty Global (LBTYA)?
Why did Liberty Global (LBTYA) update VMO2's revenue guidance for 2024?