Customer Metrics - As of June 30, 2024, the company served 4,017,500 fixed-line customers and 5,906,000 mobile subscribers, with networks passing 8,573,400 homes[207]. - The company’s ability to maintain or increase subscriptions and average revenue per household is critical for future performance[203]. - The average number of fixed-line customers for Sunrise decreased, contributing to a revenue decline of $6.2 million in Q2 2024[220]. - The company experienced competition across all markets, adversely affecting revenue and average monthly subscription revenue per customer[208]. Revenue Performance - Total revenue for Q2 2024 increased to $1,873.7 million, up 1.4% from $1,848.0 million in Q2 2023[219]. - Sunrise's total revenue for Q2 2024 was $815.8 million, a slight decrease of 0.4% compared to $816.2 million in Q2 2023[220]. - Telenet's revenue for Q2 2024 decreased by $11.9 million, or 1.6%, to $755.1 million from $767.0 million in Q2 2023[219]. - The total revenue for the six months ended June 30, 2024, was $3,818.8 million, reflecting a 2.8% increase from $3,716.4 million in the same period of 2023[219]. - The organic revenue increase for Central and Other segments was $51.9 million, representing a 25.2% growth in Q2 2024[219]. Adjusted EBITDA - Adjusted EBITDA for the six months ended June 30, 2024, was $1,186.1 million, compared to $1,225.9 million for the same period in 2023, reflecting a decrease of 3.2%[216]. - Adjusted EBITDA for the three months ended June 30, 2024, was $604.7 million, slightly up from $601.4 million in the same period of 2023[216]. - Telenet's Adjusted EBITDA decreased by $34.1 million (9.9%) to $311.9 million in the three-month period ended June 30, 2024[227]. - VM Ireland's Adjusted EBITDA for the three months ended June 30, 2024, was $45.7 million, a decrease of $1.6 million (3.4%) from $47.3 million in 2023[227]. Operating Expenses - Programming and other direct costs of services increased by $107.2 million or 9.3% during the six months ended June 30, 2024, compared to the same period in 2023, with an organic increase of $95.3 million or 8.2%[246]. - Other operating expenses (excluding share-based compensation) decreased by $7.2 million or 2.4% for the three months ended June 30, 2024, and by $3.3 million or 0.6% for the six months ended June 30, 2024, compared to the same periods in 2023[249]. - SG&A expenses (excluding share-based compensation) increased by $23.8 million or 6.5% for the three months ended June 30, 2024, and by $38.3 million or 5.2% for the six months ended June 30, 2024, compared to the corresponding periods in 2023[254]. - Share-based compensation expense for the three months ended June 30, 2024, was $49.5 million, a decrease of $26.3 million or 34.7% compared to $75.8 million in the same period of 2023[255]. Net Earnings and Losses - Net earnings for Q2 2024 were $275.2 million, a significant improvement from a loss of $511.3 million in Q2 2023[216]. - The company reported a net loss of $15.4 million for Q2 2024, an improvement from a net loss of $127.5 million in Q2 2023[273]. - For the six months ended June 30, 2024, net earnings were $802.2 million, a significant improvement from a net loss of $1,224.8 million in the same period of 2023[287]. Foreign Currency Impact - Changes in foreign currency exchange rates significantly impact reported operating results, with primary exposure to euro and Swiss franc fluctuations[211]. - Foreign currency transaction gains amounted to $228.9 million for the three months and $298.0 million for the six months ended June 30, 2024, compared to losses in the same periods of 2023[268]. Capital Expenditures and Cash Flow - Capital expenditures, net for the six months ended June 30, 2024, were $640.1 million, compared to $688.4 million in 2023, reflecting a decrease in property and equipment additions[315]. - Net cash provided by operating activities for the six months ended June 30, 2024, was $791.8 million, a decrease of $207.8 million compared to $999.6 million in 2023[313]. - Adjusted free cash flow for the six months ended June 30, 2024, was $73.1 million, down from $150.3 million in 2023[320]. Acquisitions and Joint Ventures - The company completed the Telenet Takeover Bid in October 2023, increasing its ownership interest in Telenet to 100%[206]. - The VodafoneZiggo JV reported revenue of $1,091.6 million for Q2 2024, a slight increase from $1,088.4 million in Q2 2023, and Adjusted EBITDA of $518.7 million, up from $484.9 million in the same period[273]. - The VMO2 joint venture reported revenue of $3,375.4 million for Q2 2024, a decrease of $16.1 million or 0.5% from the previous year[219]. Future Outlook - The company anticipates continued increases in programming and copyright costs due to higher expenses associated with digital video content expansion and live sporting events[244]. - The company aims to maintain a consolidated debt balance between four and five times its consolidated Adjusted EBITDA, which is a non-GAAP measure[308]. - The company anticipates significant liquidity requirements over the next 12 to 24 months due to various commitments, including programming and operating costs[305].

Revenue Performance - Q1 2024 revenue of €113.3 million decreased 1.2% YoY, with lower fixed and handset revenues partially offset by growth in programming and mobile subscription revenue[9] - Q1 2024 revenue of €797.9 million increased by 4.4% YoY, while rebased revenue decreased by 0.1% YoY[22] - Total revenue for the three months ended March 31, 2024, was CHF 746.8 million, showing a slight decrease of 0.04% compared to CHF 747.1 million for the same period in 2023[33] Earnings and Adjusted EBITDA - Q1 net earnings increased 257.1% YoY to €5.5 million, primarily due to higher realized and unrealized gains on derivative instruments[9] - Q1 Adjusted EBITDA of €36.8 million decreased 4.9% YoY, impacted by revenue decrease and costs associated with off-net business[9] - Segment Adjusted EBITDA for Q1 was €261.4 million, up 4.7% YoY on a reported basis and 0.2% YoY on a rebased basis[22] - Segment Adjusted EBITDA for the same period was CHF 244.3 million, a marginal increase of 0.4% from CHF 243.3 million year-over-year[33] Customer Metrics - Q1 residential fixed revenue of €72.5 million decreased 4.2% YoY, primarily due to lower customer volumes[11] - Q1 residential mobile revenue of €9.9 million decreased 2.0% YoY, with mobile subscription revenue increasing 3.9% YoY driven by strong mobile ARPU growth[9] - Fixed Customer Relationships decreased by 800 in Q1 2024, with a total of 1,642,600[26] - The total number of customer relationships for Sunrise Holding reached 1,642,600 as of March 31, 2024, with a total of 3,691,900 RGUs[41] - The company reported a decrease of 12,100 in total customer relationships for Sunrise in Q1 2024, with a net organic subscriber variance of 9,100 across the group[41] Subscriber Growth - Q1 broadband net adds were 6,200, supported by customer loyalty initiatives and trading momentum in flanker brands[20] - Mobile postpaid net adds in Q1 reached 26,000, continuing the momentum from previous quarters[20] - The company has a total of 2,854,200 mobile subscribers as of March 31, 2024, with an increase of 17,900 subscribers in Q1 2024[41] - In Q1 2024, Sunrise Holding experienced a net organic increase of 17,900 total mobile subscribers, with a decrease of 8,100 prepaid subscribers and an increase of 26,000 postpaid subscribers compared to Q4 2023[45] Capital Expenditures and Investments - Q1 property and equipment additions of €36.3 million were up 17.5% YoY, reflecting increased investment in fiber upgrade and wholesale programs[9] - Property and equipment additions were 17.5% of revenue in Q1, compared to 18.4% in the prior year[22] - Sunrise launched new offerings including a "Workplace as a Service" solution and enhanced cybersecurity services for business customers[20] Debt and Liquidity - At March 31, 2024, the ratio of Net Senior Debt to Annualized EBITDA was 5.23x, reflecting compliance with the most restrictive covenants[9] - The company had €100.0 million of undrawn commitments available as of March 31, 2024, indicating strong liquidity[9] - Total third-party debt and finance lease obligations amounted to €5,947.7 million as of March 31, 2024, compared to €5,896.6 million as of December 31, 2023, reflecting an increase of €51.1 million[32] - Total covenant amount of third-party net debt is €5,532.2 million as of March 31, 2024, down from €5,823.5 million as of December 31, 2023, indicating a decrease of €291.3 million[32] Guidance and Future Outlook - FY 2024 financial guidance indicates stable revenue growth and stable to low-single-digit growth in Segment Adjusted EBITDA[24] Other Metrics - Q1 Customer ARPU was CHF 62.67, a decrease of 1.0% YoY due to competitive pressures[20] - The company emphasizes that organic figures exclude customer relationships and subscribers from acquired entities at the date of acquisition, focusing on net organic changes[48] - The average revenue per mobile subscriber (ARPU) is calculated by dividing mobile subscription revenue by the average number of mobile subscribers for the period[52] - Fixed-mobile convergence penetration is defined as the number of customers subscribing to both fixed broadband and postpaid mobile services, divided by the total number of fixed broadband customers[58] - The company’s homes passed count does not include homes serviceable through partner networks, which limits the reported potential market reach[59] - Sunrise Holding's capital expenditures do not include amounts financed under vendor financing or finance lease arrangements, reflecting only cash additions to property and equipment[48] - The company’s customer churn rate is calculated based on the number of disconnects over the preceding 12 months divided by the average number of customer relationships[56] - Total Revenue Generating Units (RGUs) include Internet, Video, and Telephony Subscribers, counted on a unique premises basis[62] - Non-paying subscribers are counted as RGUs during their free promotional service period, potentially affecting future RGU counts[62] - The company does not include subscriptions to mobile services in its externally reported RGU counts, focusing solely on broadband and telephony services[62]

Customer Base - As of March 31, 2024, the company served 4,036,700 fixed-line customers and 5,887,500 mobile subscribers, with networks passing 8,552,900 homes[209]. Financial Performance - The company reported a net earnings of $527.0 million for the three months ended March 31, 2024, compared to a net loss of $713.5 million in the same period of 2023[219]. - Total revenue for the company was $1,945.1 million, reflecting an increase of $76.7 million or 4.1% compared to $1,868.4 million in 2023[222]. - Revenue for the three months ended March 31, 2024, was $3,282.8 million, an increase of 3.8% compared to $3,162.7 million in 2023[265]. - Adjusted EBITDA for the same period was $1,073.6 million, up from $1,025.9 million, reflecting a year-over-year increase of 4.6%[265]. - The total Adjusted EBITDA for the company decreased by $43.1 million or 6.9% to $581.4 million from $624.5 million in 2023[230]. - Net earnings for Q1 2024 were $22.7 million, a substantial recovery from a loss of $352.1 million in Q1 2023[265]. Revenue Breakdown - Sunrise's revenue for the three months ended March 31, 2024, was $854.0 million, an increase of $46.6 million or 5.8% compared to $807.4 million in 2023[222]. - Telenet's revenue increased by $8.1 million or 1.1% to $762.6 million for the same period, up from $754.5 million in 2023[222]. - VM Ireland's revenue remained unchanged at $123.0 million, with a decrease in residential fixed subscription revenue of $3.6 million[222]. - Total residential revenue rose by $36.0 million, with a total of $1,258.4 million, reflecting a 2.4% increase, despite an organic decrease of $14.4 million or 1.2%[234]. - B2B revenue increased by $18.7 million or 5.2%, totaling $375.9 million, with subscription revenue up by $11.5 million or 8.6%[234][237]. - Other revenue saw a significant increase of $29.0 million or 10.3%, reaching $310.8 million, primarily driven by sales related to CPE[239]. Cost and Expenses - Programming and other direct costs of services rose by $101.4 million or 17.8%, totaling $672.1 million, with an organic increase of $80.7 million or 14.1%[242]. - Other operating expenses (excluding share-based compensation) increased by $3.9 million or 1.3%, totaling $303.3 million, while organic expenses decreased by $5.8 million or 1.9%[245]. - SG&A expenses (excluding share-based compensation) increased by $14.5 million or 3.9% to $388.3 million for the three months ended March 31, 2024, compared to $373.8 million in 2023[248]. - Depreciation and amortization expense decreased by $60.3 million or 11.4% to $480.7 million in Q1 2024, primarily due to certain assets becoming fully depreciated[252]. - Interest expense increased by $49.0 million or 24.4% to $253.5 million in Q1 2024, attributed to a higher weighted average interest rate[256]. Foreign Exchange Impact - Approximately 57.8% of the company's reported revenue during the three months ended March 31, 2024, was derived from subsidiaries with functional currencies in euros, and 43.9% from Swiss francs[213]. - The impact of foreign exchange contributed $46.9 million to Sunrise's total revenue increase, highlighting the significance of FX fluctuations[224]. - The company experienced significant foreign exchange impacts, with 57.8% of revenue derived from euros and 43.9% from Swiss francs, affecting reported operating results[213]. Debt and Cash Flow - As of March 31, 2024, the consolidated debt and finance lease obligations totaled $15.7 billion, with $0.7 billion classified as current and $1.6 billion not due until 2030 or later[295]. - The company aims to maintain a consolidated debt balance between four and five times its consolidated Adjusted EBITDA[293]. - Net cash provided by operating activities decreased to $245.7 million for the three months ended March 31, 2024, down from $307.8 million in the same period of 2023, a decline of $62.1 million[298]. - Net cash used by investing activities significantly decreased to $211.7 million in Q1 2024 from $1,423.2 million in Q1 2023, reflecting a change of $1,211.5 million[298]. - The company anticipates refinancing or extending debt maturities as maturing debt grows in later years, with no assurance of successful refinancing transactions[296]. Shareholder Actions - The company repurchased shares totaling $170.5 million during the three months ended March 31, 2024, under a program allowing for up to 10% of total outstanding shares[288].

Company Overview - The company completed the Telenet Takeover Bid in October 2023, increasing its ownership interest in Telenet to 100%[291]. - As of December 31, 2023, the company served 4,055,500 fixed-line customers and 5,881,200 mobile subscribers, with networks passing 7,946,400 homes[293]. - The company has significant investments in various media and technology firms, including ITV and Televisa Univision[298]. Financial Performance - The company reported a loss from continuing operations of $3,873.8 million in 2023, compared to a profit of $1,105.3 million in 2022, indicating a significant decline in performance[315]. - Adjusted EBITDA for 2023 was $2,369.6 million, down 8.7% from $2,595.4 million in 2022[327]. - Total revenue increased by 4.1% to $7,491.4 million in 2023 from $7,195.7 million in 2022, with Telenet showing a notable 10.0% increase in revenue[318]. - The company experienced competition that adversely affected revenue and average monthly subscription revenue per customer[303]. - The company reported realized and unrealized losses of $557.3 million due to changes in fair values of certain investments in 2023, compared to losses of $323.5 million in 2022[365]. Revenue Breakdown - Sunrise's revenue rose by 6.3% to $3,380.4 million, while Telenet's revenue increased by 10.0% to $3,089.2 million[318]. - Total residential revenue rose to $5,081.3 million, a 5.2% increase, despite a slight organic decrease of $2.8 million or 0.1%[333][335]. - B2B subscription revenue increased by $26.7 million or 5.2% on an organic basis, driven by growth at Telenet[337]. - Other revenue decreased by $146.7 million or 13.4% on an organic basis, mainly due to lower earnings from U.K. and NL JV Services[339]. Cost and Expenses - Programming and other direct costs of services rose by $299.0 million or 14.3%, with an organic increase of $131.5 million or 6.1%[341]. - Other operating expenses (excluding share-based compensation) increased by $112.1 million or 10.3%, with an organic increase of $23.5 million or 2.1%[344]. - SG&A expenses (excluding share-based compensation) increased by $110.4 million or 7.7% in 2023 compared to 2022, with an organic increase of $18.5 million or 1.3%[348]. - Personnel costs rose by $33.6 million or 5.4%, primarily due to higher average costs per employee and increased incentive compensation costs[348]. Market and Competition - The company aims to achieve organic revenue and customer growth by developing bundled services and enhancing network quality[301]. - The company noted adverse impacts from competition across all markets, affecting customer growth and average revenue per user (ARPU)[316]. - The impact of foreign exchange contributed $220.8 million to the total increase in residential revenue[335]. Future Outlook - Future outlook includes a focus on market expansion and potential acquisitions to enhance revenue streams and mitigate competitive pressures[316]. - The company plans to market and sell certain internally-developed software to third parties, which may influence future revenue streams[342]. Cash Flow and Liquidity - As of December 31, 2023, total cash and cash equivalents amounted to $1,415.9 million, with $498.6 million held by unrestricted subsidiaries and $917.3 million by borrowing groups[391][394]. - Net cash provided by operating activities decreased to $2,165.9 million in 2023 from $2,786.7 million in 2022, a decline of $620.8 million[411]. - The liquidity of borrowing groups is primarily sourced from cash provided by operations and borrowing availability under debt instruments[401]. Debt and Financing - The consolidated debt, including finance lease obligations, was $15.9 billion, with $0.8 billion classified as current and $7.5 billion not due until 2029 or thereafter[407]. - The company expects to continue reporting significant levels of interest expense due to its strategy of maintaining debt at levels that provide attractive equity returns[387]. Impairments and Taxation - The company recognized impairment, restructuring, and other operating items of $67.9 million in 2023, down from $85.1 million in 2022[353]. - The income tax expense for 2023 was $149.6 million, a decrease from $318.9 million in 2022[381].

Customer Base and Revenue - As of September 30, 2023, the company served 4,085,100 fixed-line customers and 5,894,300 mobile subscribers, with networks passing 7,916,000 homes[225]. - Total revenue for Q3 2023 was $1,854.5 million, an increase of 6.2% compared to $1,746.3 million in Q3 2022[238]. - Revenue from Switzerland increased by $69.5 million (8.8%) in Q3 2023, while Belgium's revenue rose by $110.1 million (16.6%) during the same period[238]. - The VMO2 joint venture reported revenue of $3,503.8 million in Q3 2023, an increase of 15.2% from $3,042.1 million in Q3 2022[238]. - Total revenue for the nine months ended September 30, 2023, was $5,570.9 million, reflecting an increase of $217.1 million, or 4.1%, compared to $5,353.8 million in 2022[238]. - Total residential revenue rose by $131.2 million or 3.6% for the nine months ended September 30, 2023, driven by a $76.8 million increase in residential mobile subscription revenue[258]. - B2B revenue increased by $75.5 million or 7.3% for the nine months ended September 30, 2023, with subscription revenue growing by $31.3 million or 8.1%[257]. - The total organic increase in residential mobile revenue was $37.9 million (7.8%) for the three months ended September 30, 2023[253]. Financial Performance - Earnings from continuing operations for Q3 2023 were $822.7 million, a decrease from $2,431.7 million in Q3 2022[235]. - Adjusted EBITDA for Q3 2023 was $597.7 million, down from $664.0 million in Q3 2022, representing a decline of 10%[235]. - The company reported a loss from continuing operations of $(402.1) million for the nine months ended September 30, 2023, compared to a profit of $5,789.6 million in 2022[235]. - Net earnings for the three months ended September 30, 2023, reported a loss of $386.6 million, compared to a profit of $832.2 million in 2022[296]. - Adjusted EBITDA for the VMO2 joint venture increased by $110.4 million (10.4%) to $1,170.9 million for the three months ended September 30, 2023[248]. - The VodafoneZiggo JV reported revenue of $1,125.2 million for the three months ended September 30, 2023, an increase from $1,041.7 million in 2022[298]. Cost and Expense Management - The company experienced significant inflationary pressures, impacting labor, programming, and operating costs, which could negatively affect operating results and cash flows[227]. - Other operating expenses (excluding share-based compensation) increased by $61.7 million or 22.5% for the three months ended September 30, 2023, compared to the same period in 2022[273]. - SG&A expenses (excluding share-based compensation) increased by $47.1 million or 14.6% for the three months ended September 30, 2023, compared to the same period in 2022[279]. - Programming and other direct costs of services increased by $174.7 million or 11.6% for the nine months ended September 30, 2023, with $88.5 million of this increase attributed to acquisitions[269]. - Depreciation and amortization expense increased to $584.0 million for Q3 2023, a 15.4% rise from $506.0 million in Q3 2022, primarily due to network expansions and acquisitions[283]. Joint Ventures and Affiliates - The company holds a 50% noncontrolling interest in the VMO2 JV and VodafoneZiggo JV, presenting 100% of their revenue and Adjusted EBITDA in financial reports[231]. - The share of results from affiliates showed a loss of $240.8 million in Q3 2023, compared to a profit of $501.0 million in Q3 2022, indicating a significant decline[295]. - The VMO2 joint venture reported revenue of $3,335.6 million for the nine months ended September 30, 2023, a decrease of $179.6 million or 5.1% from 2022[249]. - VodafoneZiggo joint venture revenue was $1,474.7 million for the nine months ended September 30, 2023, down $55.4 million or 3.6% year-over-year[249]. Cash Flow and Liquidity - Cash and cash equivalents totaled $1,741.6 million as of September 30, 2023[317]. - The company reported a net cash provided by operating activities of $1,326.7 million for the nine months ended September 30, 2023, a decrease of $576.8 million compared to $1,903.5 million in 2022[338]. - The net cash used by investing activities was $(966.4) million, a significant decrease of $2,914.2 million from $1,947.8 million in 2022, primarily due to the sale of UPC Poland in 2022[339]. - Liberty Global's total outstanding principal debt, including finance lease obligations, was $15.3 billion as of September 30, 2023, with $7.3 billion not due until 2029 or later[335]. - Adjusted free cash flow for the nine months ended September 30, 2023, was $48.0 million, a significant decrease from $678.9 million in the same period of 2022[345]. Market and Competitive Environment - The competitive environment and macroeconomic factors have adversely impacted revenue, customer numbers, and average monthly subscription revenue per customer[226]. - The company is focused on managing rapid technological changes and maintaining or increasing subscription numbers and average revenue per household[221]. - The total number of fixed-line customers and mobile subscribers is impacted by competition, affecting the ability to maintain or increase ARPU[236]. - The company is subject to risks related to government regulations, including potential requirements to open broadband distribution networks to competitors[220].

Customer Base - As of June 30, 2023, the company served 4,124,200 fixed-line customers and 5,874,800 mobile subscribers, with networks passing 7,895,200 homes[230]. Financial Performance - For the three months ended June 30, 2023, the company reported an Adjusted EBITDA of $601.4 million, a decrease from $649.8 million in the same period of 2022[240]. - The company experienced a loss from continuing operations of $511.3 million for the three months ended June 30, 2023, compared to a profit of $2,282.2 million in the same period of 2022[240]. - Total revenue for the three months ended June 30, 2023, was $1,848.0 million, an increase of $93.8 million or 5.3% compared to $1,754.2 million in 2022[243]. - The total revenue for the six months ended June 30, 2023, was $3,716.4 million, an increase of $108.9 million or 3.0% compared to $3,607.5 million in 2022[243]. - The total revenue for the VMO2 JV for the three months ended June 30, 2023, was $3,391.5 million, an increase of 5.9% from $3,202.6 million in 2022[243]. - The VodafoneZiggo joint venture generated $1,088.4 million in revenue for the three months ended June 30, 2023, reflecting a $22.8 million or 2.1% increase from 2022[243]. Revenue Breakdown - In Switzerland, revenue increased by $50.1 million or 6.5% to $816.2 million for the three months ended June 30, 2023, compared to $766.1 million in 2022[243]. - Belgium's revenue rose by $77.9 million or 11.3% to $767.0 million for the three months ended June 30, 2023, compared to $689.1 million in 2022[243]. - The total residential revenue for the three months ended June 30, 2023, was $1,243.0 million, reflecting an increase of $60.9 million, or 5.2%[258]. - The total B2B revenue for the three months ended June 30, 2023, increased by $34.6 million, or 10.3%, totaling $371.2 million[258]. - The total residential fixed revenue for the three months ended June 30, 2023, was $746.8 million, an increase of $27.5 million, or 3.8%[258]. Cost and Expenses - The company’s revenue was significantly impacted by inflationary pressures, particularly in labor, programming, and energy costs, which have increased in the countries of operation[232]. - Other operating expenses increased by $56.8 million or 21.4% for the three months ended June 30, 2023, compared to the same period in 2022[278]. - Business service costs rose by $21.0 million or 52.7% for the three months and $27.3 million or 36.8% for the six months, mainly due to higher consulting and energy costs[279]. - Personnel costs increased by $10.7 million or 12.7% for the three months and $12.0 million or 7.0% for the six months, driven by higher average costs per employee[279]. - Programming and other direct costs of services increased by $109.0 million or 10.7% for the six months ended June 30, 2023, compared to the same period in 2022, with $62.7 million attributable to acquisitions[273]. Foreign Exchange Impact - Foreign currency exchange rates had a significant impact on reported operating results, with 57.8% of revenue derived from subsidiaries using the euro and 44.2% from those using the Swiss franc[235]. - The impact of foreign exchange in Switzerland contributed $55.8 million to revenue growth for the six months ended June 30, 2023[244]. - The impact of foreign exchange (FX) for the three months ended June 30, 2023, contributed an increase of $2.8 million to total revenue[258]. Joint Ventures - The company holds a 50% noncontrolling interest in the VMO2 JV and VodafoneZiggo JV, consolidating 100% of their revenue and Adjusted EBITDA in its financial statements[236]. - Adjusted EBITDA for VodafoneZiggo JV was $484.9 million for the three months ended June 30, 2023, down from $490.9 million in 2022, primarily due to inflation-related increases in energy and staff costs[1][2]. - VMO2 JV's Adjusted EBITDA increased to $1,138.8 million for the three months ended June 30, 2023, compared to $1,059.4 million in the same period of 2022, driven by synergies and consumer price rises[3][4]. Cash Flow and Liquidity - Total cash and cash equivalents as of June 30, 2023, amounted to $1,565.2 million, with $1,126.9 million held by borrowing groups[9]. - The company reported a net cash provided by operating activities of $999.6 million for the six months ended June 30, 2023, a decrease of $363.4 million compared to $1,363.0 million in 2022[342]. - Adjusted free cash flow for the six months ended June 30, 2023, was $150.3 million, a decrease of 71.7% from $531.4 million in the same period of 2022[350]. - The company experienced a decrease in cash provided by operations primarily due to lower dividend distributions from joint ventures and higher interest payments[342]. Tax and Other Income - Income tax expense for the three months ended June 30, 2023, was $159.2 million, up from $63.6 million in the same period of 2022[7]. - Other income, net, was $75.8 million for the three months ended June 30, 2023, compared to $29.4 million in the same period of 2022, indicating a significant increase[6].

Customer Base - As of March 31, 2023, the company served 4,153,500 fixed-line customers and 5,879,000 mobile subscribers, with networks passing 7,872,200 homes[216] Financial Performance - Consolidated Adjusted EBITDA for the three months ended March 31, 2023, was $624.5 million, a decrease from $684.3 million in the same period of 2022, reflecting a decline of approximately 8.6%[226] - The company reported a loss from continuing operations of $713.5 million for the three months ended March 31, 2023, compared to a profit of $1,075.7 million in the same period of 2022[226] - Total revenue for the three months ended March 31, 2023, was $1,868.4 million, an increase of $15.1 million or 0.8% compared to $1,853.3 million in 2022[229] - Adjusted EBITDA for the total reportable segments was $624.5 million, a decrease of $59.8 million or 8.7% from $684.3 million in 2022[239] - Consolidated revenue increased by $15.1 million or 0.8% for the three months ended March 31, 2023, compared to the same period in 2022[245] - Earnings from continuing operations for Q1 2023 were reported at a loss of $713.5 million, compared to earnings of $1,075.7 million in Q1 2022[282] Revenue Breakdown - Switzerland's revenue decreased by $14.0 million or 1.7% to $807.4 million, with an organic decrease of $15.2 million or 1.8%[229] - Belgium's revenue increased by $30.1 million or 4.2% to $754.5 million, with an organic increase of $16.4 million or 2.1%[229] - Ireland's revenue decreased by $4.8 million or 3.8% to $123.0 million, with an organic increase of $0.9 million or 0.7%[229] - Total residential revenue decreased by $38.6 million or 3.1%, with a total residential fixed revenue decline of $30.4 million or 4.0%[245] - Residential mobile subscription revenue increased by $9.0 million or 2.5%, primarily driven by growth in Belgium[246] - B2B subscription revenue rose by $5.1 million or 3.8%, also mainly due to an increase in Belgium[248] - Other revenue grew by $23.8 million or 8.6%, attributed to higher broadcasting revenue in Belgium, Switzerland, and Ireland[249] Costs and Expenses - Inflationary pressures have increased operating costs, including labor and programming, which may negatively impact operating results and cash flows[218] - Programming and other direct costs of services increased by $33.9 million or 6.3%, with an organic increase of $19.8 million or 3.5%[253] - Other operating expenses (excluding share-based compensation) rose by $26.5 million or 9.7%, with an organic increase of $22.4 million or 7.8%[256] - Core network and IT-related costs increased by $8.7 million or 14.2%, primarily due to higher expenses in Central and Other, Switzerland, and Ireland[257] - SG&A expenses (excluding share-based compensation) increased by $14.5 million or 4.0% to $373.8 million for the three months ended March 31, 2023, compared to $359.3 million in the same period of 2022[259] - External sales and marketing costs rose by $8.4 million or 10.8%, primarily due to higher advertising campaign costs in Switzerland[259] Joint Ventures - The company holds a 50% noncontrolling interest in the VMO2 joint venture and the VodafoneZiggo joint venture, consolidating 100% of their revenue and Adjusted EBITDA in its financial statements[222] - VMO2 JV reported revenue of $3,162.7 million, a decrease of $235.3 million or 6.9% compared to $3,398.0 million in 2022[229] - VodafoneZiggo JV reported revenue of $1,083.4 million, a decrease of $46.6 million or 4.1% compared to $1,130.0 million in 2022[229] - Adjusted EBITDA for VodafoneZiggo JV decreased to $471.5 million in Q1 2023 from $537.8 million in Q1 2022, a decline of about 12.3%[276] Foreign Currency and Economic Factors - The company experienced significant foreign currency transaction losses of $302.9 million for the three months ended March 31, 2023, compared to gains of $575.0 million in the same period of 2022[226] - The primary exposure to foreign exchange risk was to the euro and Swiss franc, with 58.6% and 43.2% of reported revenue derived from these currencies, respectively[221] - The impact of foreign exchange fluctuations resulted in a $28.1 million decrease in residential revenue[245] Debt and Liquidity - As of March 31, 2023, the consolidated debt and finance lease obligations totaled $15.2 billion, with $0.8 billion classified as current and $7.7 billion not due until 2029 or thereafter[308] - The company aims to maintain a consolidated debt balance between four and five times its consolidated Adjusted EBITDA[306] - The company believes it has sufficient resources to repay or refinance the current portion of its debt and finance lease obligations over the next 12 months[309] - The company does not foresee any instances of non-compliance with debt covenants that would materially impact liquidity in the next 12 months[307] Shareholder Actions - The company repurchased shares totaling $236.8 million during the three months ended March 31, 2023, under a program authorized to repurchase 10% of total outstanding shares[300] Other Financial Metrics - Cash and cash equivalents totaled $1,446.2 million as of March 31, 2023, with $1,106.7 million held by borrowing groups[290] - Adjusted free cash flow for the three months ended March 31, 2023, was $(178.4) million, compared to $104.4 million in the same period of 2022[319] - Net cash provided by operating activities decreased to $307.8 million for the three months ended March 31, 2023, down from $605.6 million in the same period of 2022, representing a decline of $297.8 million[311] - Net cash used by investing activities increased significantly to $(1,423.2) million in Q1 2023, compared to $(39.4) million in Q1 2022, a change of $(1,383.8) million[312]

Customer and Market Overview - As of December 31, 2022, the company served 4,083,200 fixed-line customers and 5,850,300 mobile subscribers, with networks passing 7,553,400 homes[272]. - The company reported significant competition affecting revenue, customer numbers, and average revenue per user (ARPU) across all markets[282]. - The impact of the COVID-19 pandemic on the company remained minimal in 2022, with strong demand for products and services[281]. - The company aims to achieve organic revenue growth by enhancing bundled services and increasing customer penetration in broadband internet, video, and mobile services[280]. - The company is focused on building national fixed-mobile converged communications businesses for future growth[279]. Financial Performance - Total revenue for 2022 was $7,195.7 million, representing a decrease of 30.2% compared to $10,311.3 million in 2021[297]. - Earnings from continuing operations for 2022 were $1,105.3 million, a significant decrease from $13,527.5 million in 2021[294]. - Adjusted EBITDA for 2022 was $2,595.4 million, down 34.5% from $3,963.1 million in 2021[307]. - The company experienced significant foreign currency transaction losses of $1,407.2 million in 2022, impacting overall financial results[294]. - The share of results from affiliates increased to $1,267.8 million in 2022, up from $175.4 million in 2021[294]. Revenue Breakdown - Total consolidated revenue decreased by $3,115.6 million or 30.2% in 2022, with an organic increase of $126.3 million or 1.7%[316]. - Residential fixed revenue dropped by $2,274.3 million or 43.7%, while residential mobile revenue decreased by $446.4 million or 18.7% in 2022 compared to 2021[313]. - B2B subscription revenue increased by $18.6 million or 3.4% in 2022, primarily due to growth in Belgium[318]. - The VMO2 joint venture saw a revenue increase of 50.9%, reaching $12,857.2 million in 2022 from $8,522.9 million in 2021[297]. - The VodafoneZiggo joint venture reported revenue of $4,284.6 million in 2022, down from $4,824.2 million in 2021, reflecting a decline of 11.2%[360]. Expenses and Costs - Other operating expenses (excluding share-based compensation) decreased by $387.6 million or 26.4% in 2022 compared to 2021, with a significant impact from the U.K. JV Transaction[327]. - SG&A expenses (excluding share-based compensation) decreased by $428.4 million or 23.0% in 2022 compared to 2021, also influenced by the U.K. JV Transaction[332]. - Programming and other direct costs of services decreased by $931.9 million or 30.9% in 2022, with an organic increase of $60.0 million or 2.7%[322]. - Share-based compensation expense decreased to $192.1 million in 2022 from $308.1 million in 2021, reflecting a reduction in both non-performance and performance-based incentive awards[335]. - The company recognized a $39.6 million provision in Central and Other related to a legal contingency in 2022[340]. Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $2,786.7 million in 2022, a decrease of $577.3 million compared to 2021[396]. - The total outstanding principal amount of consolidated debt and finance lease obligations was $13.8 billion as of December 31, 2022[391]. - The company plans to repurchase up to 10% of its total outstanding shares in 2023, following aggregate share repurchases of $1,702.6 million in 2022[384]. - The liquidity of borrowing groups is primarily sourced from cash provided by operations and borrowing availability under their respective debt instruments[385]. - The company experienced a significant increase in cash used by financing activities, totaling $(3,273.4) million in 2022, compared to $(1,512.6) million in 2021[396]. Investments and Acquisitions - The company has significant investments in various media and technology companies, including ITV and Lionsgate[277]. - The company completed the sale of its operations in Poland on April 1, 2022, which is reflected as discontinued operations[270]. - The company recognized a pre-tax gain of $700.5 million from the Telenet Tower Sale in 2022[362]. - The company anticipates potential impairment charges in future periods if equity values decline or if adverse economic conditions impact operations[342]. - The company did not record any significant impairment charges related to goodwill during the three years ended December 31, 2022[410]. Tax and Deferred Tax Assets - The income tax expense decreased to $318.9 million in 2022 from $473.3 million in 2021, a reduction of 32.7%[366]. - As of December 31, 2022, the aggregate valuation allowance against deferred tax assets was $1,586.5 million, indicating a significant assessment of future taxable income and tax planning strategies[421]. - The amount of unrecognized tax benefits as of December 31, 2022, was $435.2 million, with $337.9 million potentially favorably impacting the effective income tax rate if recognized[422].

Customer Base and Market Presence - As of September 30, 2022, the company served 4,089,900 fixed-line customers and 5,830,200 mobile subscribers, with networks passing 7,527,000 homes[232]. - The company holds a 50% noncontrolling interest in the VMO2 JV and VodafoneZiggo JV, which provide residential and B2B communications services in the U.K. and the Netherlands, respectively[229]. Financial Performance - Earnings from continuing operations for Q3 2022 were $2,431.7 million, a significant increase from $315.6 million in Q3 2021[245]. - Total revenue for Q3 2022 was $1,901.4 million, a decrease of $155.1 million (8.2%) compared to Q3 2021[249]. - Total revenue for the nine months ended September 30, 2022, was $5,353.8 million, a decrease of 36.2% compared to $8,390.5 million in 2021[249]. - Adjusted EBITDA for the nine months ended September 30, 2022, was $1,998.1 million, down from $3,273.2 million in the same period of 2021[245]. - The company experienced a $3,036.7 million (36.2%) decrease in total revenue for the nine months ended September 30, 2022, compared to the same period in 2021[249]. Revenue Breakdown - For the three months ended September 30, 2022, 53.6% of reported revenue was derived from subsidiaries with euro as the functional currency, and 45.2% from those with Swiss franc[239]. - Total residential revenue for the three months ended September 30, 2022, was $1,193.7 million, down $138.2 million, or 10.4%, from $1,331.9 million in the prior year[265]. - Residential fixed revenue decreased by $95.5 million or 11.9% for the three months and $2,186.4 million or 49.6% for the nine months ended September 30, 2022[265]. - B2B revenue showed a slight decrease of $5.1 million or 1.5% for the three months but a decrease of $461.1 million or 30.9% for the nine months ended September 30, 2022[266]. Cost and Expense Management - The total other operating expenses for the nine months ended September 30, 2022, were $816.1 million, down from $1,225.6 million in 2021, a decrease of $409.5 million or 33.4%[282]. - Share-based compensation expense decreased by $14.7 million or 26.1% for the three months and by $70.2 million or 33.4% for the nine months compared to the same periods in 2021[285]. - Other operating expenses excluding share-based compensation decreased by $3.3 million or 1.2% for the three months ended September 30, 2022, and by $402.5 million or 33.1% for the nine months ended September 30, 2022, compared to the same periods in 2021[282]. Market Challenges - The competitive environment has adversely affected the company's revenue, customer numbers, and average revenue per user (ARPU) across all markets[233]. - The company noted competition in all markets, adversely impacting customer growth and average revenue per user (ARPU)[247]. - The company experienced significant inflationary pressures, particularly in labor, programming, and energy costs, impacting operating results and cash flows[235][236]. Joint Ventures and Affiliates - The VMO2 joint venture generated revenue of $3,042.1 million for the three months ended September 30, 2022, down from $3,614.0 million in 2021, with adjusted EBITDA of $1,060.5 million compared to $1,180.3 million[311]. - The VodafoneZiggo joint venture reported revenue of $1,041.7 million for the three months ended September 30, 2022, a decrease from $1,206.1 million in 2021, with adjusted EBITDA of $501.4 million compared to $578.1 million[312]. Cash Flow and Liquidity - Total cash and cash equivalents as of September 30, 2022, amounted to $1,594.1 million, with $656.9 million held by Liberty Global and unrestricted subsidiaries[333]. - The company reported net cash provided by operating activities of $1,903.5 million for the nine months ended September 30, 2022, a decrease of $510.5 million compared to the same period in 2021[351]. - Liberty Global aims to maintain a consolidated debt balance between four and five times its consolidated Adjusted EBITDA to ensure attractive equity returns[345]. Foreign Exchange Impact - Changes in foreign currency exchange rates significantly impact reported operating results, particularly with exposure to euro and Swiss franc[239]. - The cash flow from subsidiaries is affected by exchange rate fluctuations, particularly between euros and Swiss francs against the U.S. dollar[338]. Strategic Outlook - Future strategies may include addressing competitive pressures and optimizing pricing and service bundling to improve ARPU[248]. - The company anticipates no adverse impact on corporate liquidity from tax considerations over the next 12 months[337].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35961 Liberty Global plc (Exact name of Registrant as specified in its charter) England and Wales 98-1112770 (State or other jurisdiction of ...