Liberty .(US:LBTYB)2024-07-25 20:29Revenue Performance - Q2 2024 revenue was €111.5 million, a decrease of 1.9% year-over-year, primarily due to lower fixed revenue, partially offset by strong B2B wholesale revenue growth of 15.4%[9] - Sunrise Holding reported Q2 2024 revenue of €769.5 million, an increase of 1.1% YoY on a reported basis and 0.5% YoY on a rebased basis[22] - Total revenue for the three months ended June 30, 2024, was €769.5 million, representing a 1.1% increase compared to €761.3 million in 2023[27] - Total revenue for the three months ended June 30, 2024, was CHF 737.5 million, a slight increase of 0.5% compared to CHF 733.6 million in the same period of 2023[33] Customer Metrics - Residential fixed revenue decreased by 3.9% year-over-year to €71.9 million, driven by lower customer volumes[9] - Fixed customer net losses were 4,100 in Q2, influenced by elevated churn rates[7] - The company achieved 32,900 net additions in mobile postpaid subscribers in Q2, reflecting improved performance and reduced churn[20] - Broadband net additions were positive for the second consecutive quarter, with an increase of 5,000 subscribers in Q2[20] - The total number of mobile subscribers for Sunrise Holding reached 2,880,300, with a net increase of 26,100 subscribers in Q2 2024[46] - Sunrise Holding's fixed-line customer relationships totaled 1,640,000, with a total of 3,671,500 RGUs as of June 30, 2024[42] Financial Performance - Q2 net earnings decreased by 32.3% year-over-year to €10.9 million, mainly due to higher interest expenses[9] - Adjusted EBITDA for Q2 was €42.5 million, down 2.1% year-over-year, impacted by revenue decline and increased labor costs[9] - Segment Adjusted EBITDA for Q2 was €271.8 million, up 1.3% YoY on a reported basis and 0.7% YoY on a rebased basis[22] - The net loss for Q2 increased by 12.3% YoY to €75.0 million, primarily due to lower foreign currency gains and increased income tax expense[22] - Segment Adjusted EBITDA for the three months ended June 30, 2024, was €271.8 million, a 1.3% increase from €268.3 million in 2023[28] - The net loss for the three months ended June 30, 2024, was €75.0 million, compared to a net loss of €66.8 million in 2023[28] Debt and Liquidity - At June 30, 2024, the ratio of Net Senior Debt to Annualized EBITDA was 5.28x, reflecting compliance with restrictive covenants[9] - The company had €100.0 million of undrawn commitments available as of June 30, 2024, indicating potential for future borrowing capacity[9] - At June 30, 2024, the company had €707.0 million of undrawn commitments available, indicating strong liquidity[22] - The ratio of Net Senior Debt to Annualized EBITDA was 4.36x, reflecting the company's leverage position[22] - Total third-party debt and finance lease obligations as of June 30, 2024, amounted to €6,005.9 million, an increase from €5,947.7 million as of March 31, 2024[30] - Total third-party net debt increased to €5,599.4 million from €5,532.2 million in the previous quarter[32] Capital Expenditures - Property and equipment additions for the three months ended June 30, 2024, totaled €131.6 million, up from €114.6 million in 2023, representing a 14.0% increase[29] - The total capital expenditures for the six months ended June 30, 2024, were €243.1 million, compared to €200.2 million in 2023[29] - Property and equipment additions as a percentage of revenue for the three months ended June 30, 2024, was 17.1%, up from 15.1% in 2023[29] Strategic Initiatives - The fiber upgrade program resulted in nearly 40% of premises upgraded to full fiber by the end of Q2 2024[5] - Sunrise plans to more than double the speed on its HFC network from 1 Gig to 2.5 Gig starting in August 2024[20] - The company plans to upgrade its fiber network in Virgin Media Ireland, which is expected to enhance broadband speed and service offerings[35] Performance Metrics - Adjusted EBITDA is a key performance measure, reflecting net earnings before various expenses, providing a transparent view of recurring operating performance[54] - Average Revenue Per Unit (ARPU) for mobile subscribers is calculated by dividing mobile subscription revenue by the average number of mobile subscribers for the period[53] - Customer churn is calculated as the number of disconnects over the preceding 12 months divided by the average number of customer relationships[56] - The company defines Adjusted Free Cash Flow (Adjusted FCF) as net cash from operating activities, adjusted for capital expenditures and vendor financing[52] - Fixed-Mobile Convergence (FMC) penetration is measured by the number of customers subscribing to both fixed broadband and postpaid mobile services[58]