Liberty .(LBTYB) - 2024 Q4 - Annual Report

Corporate Actions - The company completed the Spin-off of the Sunrise Entities on November 8, 2024, and the Formula E Acquisition on October 2, 2024, acquiring a controlling interest in Formula E[293][294]. - The company increased its ownership interest in Telenet to 100% following the Telenet Takeover Bid completed in October 2023[294]. - A gain of $242.9 million was recognized from the sale of All3Media in 2024[368]. Customer and Revenue Metrics - As of December 31, 2024, the company served 2,530,900 fixed-line customers and 3,006,800 mobile subscribers, with networks passing 5,808,100 homes[296]. - Telenet's revenue decreased by $4.8 million (0.2%) to $3,084.4 million in 2024, while VM Ireland's revenue decreased by $14.7 million (2.9%) to $491.4 million[321]. - The total consolidated revenue for 2024 was $4,341.9 million, reflecting an increase of $226.1 million (5.5%) compared to $4,115.8 million in 2023[321]. - The total organic decrease in Telenet's revenue was $12.2 million, with a notable decrease in residential mobile revenue[322]. - Total residential revenue decreased by $38.6 million or 1.6% in 2024, with a significant drop in residential fixed revenue attributed to a decrease in the average number of customers[333]. Financial Performance - Earnings from continuing operations for 2024 were $1,869.1 million, a significant recovery from a loss of $3,659.1 million in 2023[318]. - Total consolidated Adjusted EBITDA for 2024 increased to $1,159.8 million, up 0.8% from $1,150.4 million in 2023[325]. - Adjusted EBITDA for 2024 was $4,503.4 million, down from $4,531.3 million in 2023, reflecting a decrease of 0.6%[365]. - The net loss for 2024 was $1,634.7 million, an improvement from a net loss of $3,438.6 million in 2023, indicating a reduction of 52.5%[365]. Operating Expenses - Programming and other direct costs of services rose by $165.2 million or 12.9% in 2024, with an organic increase of $143.9 million or 11.0%[339]. - Other operating expenses (excluding share-based compensation) decreased by $10.9 million or 1.4% in 2024, with a notable reduction in core network and IT-related costs[342]. - Share-based compensation expense increased by $6.5 million or 57.5% in 2024, reflecting higher costs associated with employee compensation[341]. - SG&A expenses (excluding share-based compensation) increased by $62.4 million or 6.7% in 2024 compared to 2023, with an organic increase of $43.2 million or 4.6%[345]. Cash Flow and Debt - Cash and cash equivalents totaled $1,816.3 million as of December 31, 2024, with $694.3 million held by Liberty Global and unrestricted subsidiaries[384]. - Net cash provided by operating activities increased to $1,331.2 million in 2024 from $1,199.3 million in 2023, a change of $131.9 million[404]. - The total amount of share repurchases in 2024 was $678.5 million[393]. - As of December 31, 2024, the outstanding principal amount of consolidated debt and finance lease obligations was $9.2 billion, with $0.9 billion classified as current[400]. Market Competition and Strategy - The company reported significant competition affecting revenue, customer numbers, and average monthly subscription revenue per fixed-line customer or mobile subscriber[305]. - The company aims to achieve organic revenue and customer growth by developing bundled services and upgrading network quality, excluding foreign currency translation effects and acquisition impacts[304]. - The company experienced competition across all markets, adversely impacting customer growth and ARPU[319]. Joint Ventures and Partnerships - The VodafoneZiggo JV reported a revenue of $4,450.5 million for 2024, unchanged from 2023, while Adjusted EBITDA increased to $2,033.9 million from $1,972.5 million, a rise of 3.1%[364]. - The VMO2 JV's revenue for 2024 was $13,649.7 million, with a significant operating income of $1,037.8 million compared to an operating loss of $2,274.5 million in 2023[365]. - VM Ireland expanded its broadband services by partnering with National Broadband Ireland to reach additional households and businesses[71]. Technological Advancements - The company introduced the "Connect Box," a next-generation Intelligent WiFi and telephony gateway, which supports DOCSIS 3.1 technology and WiFi 6, enhancing in-home WiFi service and coverage[45]. - In 2023, the company conducted the world's first test of DOCSIS 4 technology on live network infrastructure, capable of 10 Gbps speeds over HFC Plant[46]. - The Horizon 5 platform, a cloud-based multi-screen entertainment service, is available in all markets and features a user-friendly interface and 4K video content delivery[58]. Environmental and Social Responsibility - The company is committed to reducing its Scope 1, 2, and 3 greenhouse gas emissions in line with science-based targets[33]. - The company emphasizes diversity and inclusion in its workforce, supporting STEM and digital skills education[32].