Liberty .(LBTYK)2024-10-29 22:43Financial Performance - Q3 2024 revenue increased 4.4% YoY to $1,935.2 million, with a rebased increase of 2.6%[14] - Q3 2024 Adjusted EBITDA rose 11.8% YoY to $668.3 million, reflecting a 9.4% increase on a rebased basis[14] - Liberty Global's net earnings decreased 271.5% YoY to ($1,410.9 million) in Q3 2024[14] - Total revenue for the three months ended September 30, 2024, was $1,935.2 million, representing a 4.4% increase compared to $1,854.5 million in 2023[19] - Net earnings for the three months ended September 30, 2024, were ($1,410.9 million), compared to $822.7 million in 2023[17] - Adjusted EBITDA for the three months ended September 30, 2024, was $668.3 million, an increase of 11.8% from $597.7 million in 2023[20] - Adjusted EBITDA less P&E Additions for the three months ended September 30, 2024, was $282.7 million, up 21.5% from $232.6 million in 2023[21] - Adjusted Free Cash Flow (Adjusted FCF) for the three months ended September 30, 2024, was $91.1 million, compared to $(102.3) million in 2023[55] - Distributable Cash Flow for the three months ended September 30, 2024, was $91.1 million, down from $309.4 million in the same period of 2023[55] Customer Metrics - Sunrise achieved 1,300 broadband net adds and 43,200 mobile postpaid net adds in Q3 2024, with a 59% FMC penetration rate[7] - VMO2 reported a return to positive fixed customer net adds of 15,000 and fixed ARPU growth of 2.2% YoY in Q3 2024[11] - Organic customer net losses totaled 12,200 for the three months ended September 30, 2024, compared to 39,100 in 2023[16] - Consolidated Liberty Global reported 8,581,300 total RGUs and 5,932,500 total mobile subscribers as of September 30, 2024[38] - The organic change summary indicated a total decline of 85,500 RGUs for Liberty Global, with significant losses in telephony subscribers[39] - The average revenue per user (ARPU) for fixed customer relationships increased by 0.5% to $67.89 for Liberty Global, while VM Ireland saw a decrease of 2.0% to €61.76[36] - Mobile ARPU for Liberty Global, including interconnect revenue, increased by 3.0% to $27.62, while excluding interconnect revenue, it rose by 2.9% to $25.75[37] Debt and Liquidity - Liberty Global's cash balance was $3.5 billion as of September 30, expected to decrease to ~$2 billion by year-end after a $1.4 billion capital injection into Sunrise[6] - Total principal amount of debt and finance leases stood at $16.0 billion, with an average debt tenor of 4.1 years[22] - Liquidity as of September 30, 2024, was $5.0 billion, including $2.4 billion in cash[22] - The company reported a total unused borrowing capacity of $1,585.3 million, indicating strong liquidity position[45] - The company’s liquidity includes cash and cash equivalents, investments, and maximum undrawn commitments under subsidiary borrowing facilities[45] - Debt and finance lease obligations before deferred financing costs totaled $16,002.6 million, resulting in a debt to LTM Adjusted EBITDA ratio of 6.4[60] - Adjusted net debt and finance lease obligations before deferred financing costs were $11,832.9 million, leading to a net debt to LTM Adjusted EBITDA ratio of 4.9[60] Capital Expenditures and Investments - Capital expenditures for the three months ended September 30, 2024, totaled $347.1 million, representing an increase from $327.8 million in the same period last year[34] - The total capital expenditures for the nine months ended September 30, 2024, were $987.2 million, compared to $1,016.2 million in the previous year[34] - The company plans to continue expanding its market presence and investing in new technologies to enhance service offerings[35] - Liberty Global's strategic plans include investments in fiber upgrade programs in the U.K. and Belgium[23] Future Outlook - The company anticipates a CHF 240 million dividend from Sunrise in mid-2025, followed by a progressive annual dividend policy[4] - The planned spin-off of Sunrise is confirmed for November 12, 2024, with a total deleveraging of $1.7 billion anticipated by year-end[4] - The anticipated spin-off of the Swiss operating company, Sunrise, includes expected capital injection and potential dividends[23] - Future operational performance is expected to be driven by the use of AI technologies and partnerships with Vodafone and Cellnex UK[23] Joint Ventures and Subsidiaries - Telenet's revenue increased 1.3% YoY to $785.2 million, with Adjusted EBITDA rising 6.2% YoY to $360.9 million[10] - VMO2 JV reported revenue of $3,512.7 million for the three months ended September 30, 2024, a slight increase of 0.3% from $3,503.8 million in 2023[19] - VodafoneZiggo JV's revenue for the three months ended September 30, 2024, was $1,131.1 million, reflecting a 0.5% increase from $1,125.2 million in 2023[19] - VMO2 JV reported stable performance with $1,170.9 million in Q3 2024, unchanged from Q3 2023[73] - VodafoneZiggo JV saw a 1.8% increase in revenue to $527.8 million in Q3 2024 compared to $518.3 million in Q3 2023[73] Miscellaneous - The company has a portfolio of more than 75 companies and funds across the content, technology, and infrastructure industries[26] - The company aims to improve the accuracy and consistency of subscriber statistics through periodic reviews of counting policies and underlying systems[43] - Subscriber information for acquired entities remains preliminary and subject to adjustment until a thorough review is completed[44] - Share-based compensation expense amounted to $203.6 million, contributing to the overall operating loss of $(62.3) million[60] - The company’s Project Lightning network extension program connected additional homes and commercial premises to its networks[64]