Liberty .(LBTYK) - 2024 Q1 - Quarterly Report

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].