Liberty .(LBTYK) - 2024 Q4 - Annual Report

Corporate Actions and Acquisitions - 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][307]. - The company increased its ownership interest in Telenet to 100% following the Telenet Takeover Bid completed in October 2023[294]. - A gain of $190.7 million was recognized from the Formula E acquisition in 2024[369]. 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 revenue for 2024 was $4,341.9 million, an increase of 5.5% from $4,115.8 million in 2023[321]. - The net loss for 2024 was $1,634.7 million, improved from a net loss of $3,438.6 million in 2023[365]. - Adjusted EBITDA for 2024 was $4,503.4 million, down from $4,531.3 million in 2023[365]. - The company experienced a foreign currency transaction loss of $1,756.5 million in 2024, impacting overall financial performance[318]. Revenue Streams and Customer 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]. - The company’s B2B services include voice, broadband internet, data, video, wireless, and cloud services, contributing to its diversified revenue streams[300]. - 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]. - The mobile subscriber count stands at 3,006,800, with Telenet contributing 2,870,100 subscribers, VM Ireland 136,700, and UPC Slovakia not reporting mobile subscribers[36]. Operational Efficiency and Costs - Total consolidated Adjusted EBITDA for 2024 was $1,159.8 million, reflecting a slight increase of 0.8% from $1,150.4 million in 2023[326]. - Adjusted EBITDA margin for Telenet was 41.9% in 2024, down from 42.6% in 2023, indicating a slight decline in operational efficiency[327]. - 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]. - 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]. Investments and Strategic Initiatives - The company has significant investments in various sectors, including technology, media, and sports, aimed at enhancing growth and market presence[301]. - The company aims to enhance its product offerings through strategic acquisitions and partnerships, focusing on delivering a world-class suite of products and services[28]. - The company is committed to reducing its environmental footprint by targeting a decrease in Scope 1, 2, and 3 greenhouse gas emissions in line with science-based targets[33]. Debt and Liquidity - As of December 31, 2024, the outstanding principal amount of consolidated debt and finance lease obligations was $9.2 billion[400]. - The company anticipates no instances of non-compliance with debt covenants that would materially impact liquidity in the next 12 months[399]. - The liquidity of borrowing groups is primarily used to fund property and equipment additions, debt service requirements, and income tax payments[395]. Technology and Product Development - The "ONE Connect" ecosystem is designed to provide seamless connectivity and is built on a fiber-rich broadband network, enabling fast introduction of new services[44]. - The company introduced the "Connect Box," a next-generation Intelligent WiFi and telephony gateway, enabling reliable wireless connectivity and supporting speeds up to 10 Gbps with DOCSIS 3.1 and WiFi 6 technologies[45]. - The company achieved the world's first test of DOCSIS 4 technology in 2023, capable of delivering 10 Gbps speeds over HFC Plant, with plans to introduce a DOCSIS 4 Network Termination Unit in 2024[46]. Joint Ventures and Collaborations - The VMO2 JV provides gigabit internet to 16.2 million homes and has over 12 million fixed RGUs, including approximately 5.7 million broadband subscribers[80]. - Telenet signed a 15-year commercial wholesale agreement with Orange Belgium, achieving a wholesale market share of approximately 65%[69]. - The intended collaboration between Telenet and Proximus is subject to regulatory approvals and could enhance service delivery in low-density areas[70].