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Liberty .(LBTYB) - 2025 Q1 - Quarterly Results
LBTYBLiberty .(LBTYB)2025-05-02 11:11

Financial Performance - Liberty Global's Q1 2025 total consolidated revenue increased by 7.3% year-over-year to 1,171.2million,whileconsolidatedLibertyTelecomrevenuedecreasedby1.11,171.2 million, while consolidated Liberty Telecom revenue decreased by 1.1% to 875.5 million[4]. - Adjusted EBITDA for Liberty Global increased by 14.7% year-over-year to 324.6million,withTelenet′sAdjustedEBITDAat324.6 million, with Telenet's Adjusted EBITDA at 301.6 million, down 2.2%[4]. - VMO2 reported revenue of 3,126.3million,adeclineof4.83,126.3 million, a decline of 4.8% year-over-year, while Adjusted EBITDA remained flat at 1,073.4 million[5]. - VodafoneZiggo's revenue decreased by 5.6% year-over-year to 1,052.0million,withAdjustedEBITDAdown10.81,052.0 million, with Adjusted EBITDA down 10.8% to 463.1 million[13]. - Telenet reported revenue of 759.7million,adecreaseof0.4759.7 million, a decrease of 0.4% YoY on a reported basis, but an increase of 2.7% on a rebased basis[21]. - Total revenue for the three months ended March 31, 2025, was £2,480.1 million, a decrease of 4.2% compared to £2,588.8 million in the same period of 2024[47]. - Adjusted EBITDA for the same period was £914.1 million, down 1.3% from £925.7 million year-over-year[47]. - The company reported a total revenue of €999.1 million for the three months ended March 31, 2025, down 2.6% from €1,026.1 million in the same period of 2024[55]. - Adjusted EBITDA for the same period was €439.7 million, reflecting an 8.0% decrease from €478.1 million year-over-year[55]. Customer Metrics - Telenet achieved a fixed ARPU growth of 1.6% year-over-year, demonstrating resilience in a competitive market[18]. - Total mobile subscribers for the VMO2 JV were 15,713,200, reflecting a quarterly loss of 122,800 subscribers, and a year-over-year loss of 226,800 subscribers[46]. - Fixed-line customer relationships for VMO2 JV decreased by 46,000 quarter-over-quarter, and by 34,700 year-over-year, totaling 5,790,100[46]. - Broadband subscribers for VMO2 JV were 5,694,900, with a quarterly loss of 44,000 and a year-over-year loss of 28,000[46]. - Telenet's organic fixed-line customer relationship net losses were 11,800 for the quarter ended March 31, 2025, an improvement from 14,900 losses in the previous quarter[61]. - Telenet's organic broadband net losses for the year-over-year period were 6,000 subscribers, compared to 12,900 in the previous year, showing an improvement in customer retention[72]. Debt and Financial Obligations - Telenet's total principal amount of debt and finance leases stood at 9.4 billion, with a blended cost of debt at 3.7%[30]. - As of March 31, 2025, total third-party debt and lease obligations amounted to £21,785.5 million, a decrease from £22,071.7 million as of December 31, 2024[51]. - The net carrying amount of third-party debt and lease obligations was £21,480.0 million as of March 31, 2025, compared to £20,934.9 million at the end of 2024[51]. - VodafoneZiggo's total third-party debt and finance lease obligations amounted to €11,132.7 million, a decrease from €11,961.9 million as of December 31, 2024, representing a reduction of approximately 6.9%[56]. - Telenet's total third-party debt and lease obligations were €7,165.0 million as of March 31, 2025, down from €7,307.9 million as of December 31, 2024, reflecting a decline of approximately 1.9%[64]. - The net total debt to annualized adjusted EBITDA ratio was 4.15x as of March 31, 2025[52]. - The net total debt to annualized adjusted EBITDA ratio for VodafoneZiggo was 4.98x as of March 31, 2025, indicating a stable leverage position[59]. Capital Expenditures and Investments - Liberty Global aims to realize 500−500-750 million in asset disposals and is prioritizing scale-based investments, including a successful launch of Formula E[3]. - Total consolidated property and equipment additions for the three months ended March 31, 2025, were 285.6million,comparedto285.6 million, compared to 221.0 million for the same period in 2024[91]. - Property and equipment additions as a percentage of revenue increased to 24.4% in Q1 2025 from 20.3% in Q1 2024[91]. - VodafoneZiggo's capital expenditures for the three months ended March 31, 2025, were €300.0 million, a significant increase of 51.4% compared to €198.2 million in the same period of 2024[62]. - Telenet secured a 5-year €500.0 million standalone capex facility for Wyre, priced at EURIBOR +2.75%, to support its roll-out ambitions[69]. Cash Flow and Liquidity - Cash flows from operating activities for Telenet were 185.0million,whilecashflowsfrominvestingactivitieswere−185.0 million, while cash flows from investing activities were -198.9 million[21]. - Liberty Global's liquidity includes cash and cash equivalents totaling 0.8billion,representingmaximumundrawncommitmentsundersubsidiaryborrowingfacilities[93].−Thecompanyreportedanadjustedfreecashflowof£(885.4)millionforthethreemonthsendedMarch31,2025[47].−LibertyGlobal′sAdjustedFCFforQ12025was0.8 billion, representing maximum undrawn commitments under subsidiary borrowing facilities[93]. - The company reported an adjusted free cash flow of £(885.4) million for the three months ended March 31, 2025[47]. - Liberty Global's Adjusted FCF for Q1 2025 was (141.2) million, an improvement from (151.8)millioninQ12024[137].−U.S.GAAPAdjustedFreeCashFlow(FCF)decreasedto£(923.1)millioninQ12025from£(763.2)millioninQ12024[124].−IFRSAdjustedFCFalsodeclinedto£(885.4)millioninQ12025comparedto£(738.7)millioninQ12024[124].MarketPositionandStrategy−LibertyGlobal′sfairmarketvalueofitsportfolioincreasedto(151.8) million in Q1 2024[137]. - U.S. GAAP Adjusted Free Cash Flow (FCF) decreased to £(923.1) million in Q1 2025 from £(763.2) million in Q1 2024[124]. - IFRS Adjusted FCF also declined to £(885.4) million in Q1 2025 compared to £(738.7) million in Q1 2024[124]. Market Position and Strategy - Liberty Global's fair market value of its portfolio increased to 3.3 billion, with the top seven investments comprising approximately 75% of the value[3]. - The company is focused on expanding its infrastructure and platforms to support digital transformation and innovation[82]. - Liberty Global's consolidated businesses include approximately 80 million connections across Europe, enhancing its market presence[82]. - The company is actively investing in scalable businesses across technology, media, sports, and infrastructure sectors[83]. - Liberty Global's share buyback program for 2025 allows for the repurchase of up to 10% of outstanding shares as of December 31, 2024[80]. Operational Challenges - Broadband net losses were 2,100, primarily due to elevated churn on the Telenet brand, partially offset by growth in BASE[24]. - VodafoneZiggo revised its 2025 guidance, expecting a mid to high-single digit decline in Adjusted EBITDA growth[17]. - The company experienced a 3.9% decline in total residential fixed revenue, which was £479.6 million for Q1 2025[55]. - The average tenor of third-party debt, excluding vendor financing, was 5.0 years as of March 31, 2025[53]. - The company reported an operating loss for the quarter of 44.7million,animprovementfromalossof44.7 million, an improvement from a loss of 81.2 million in the same quarter last year[141].