Liberty .(LBTYK)2025-05-02 11:10Customer Metrics - As of March 31, 2025, the company served 11,512,200 fixed-line customers and 44,212,600 mobile subscribers, with networks passing 29,056,700 homes[229]. - The average number of residential fixed customers decreased, contributing to a decline in subscription revenue[255]. Financial Performance - Earnings from continuing operations for Q1 2025 were $(1,323.3) million, compared to $634.5 million in Q1 2024[240]. - Total consolidated Adjusted EBITDA for Q1 2025 was $324.6 million, an increase of 14.7% from $283.0 million in Q1 2024[250]. - Total consolidated revenue increased by $79.9 million (7.3%) to $1,171.2 million in Q1 2025, driven by a $61.3 million increase in the "all other" category[243]. - The net loss for the company in Q1 2025 was $70.5 million, compared to a net loss of $13.6 million in Q1 2024[288]. - Income tax benefit for Q1 2025 was $70.0 million, contrasting with an expense of $42.8 million in Q1 2024[293]. Revenue Breakdown - Revenue from Telenet decreased by $2.9 million (0.4%) to $759.7 million in Q1 2025, while VM Ireland's revenue decreased by $7.2 million (5.9%) to $115.8 million[243]. - Total residential revenue decreased by $27.8 million or 4.7% during the same period, with organic decreases primarily in mobile subscription and non-subscription revenues[255]. - VM Ireland experienced a total revenue decrease of $7.2 million, with a $6.4 million decrease in subscription revenue[247]. - The total organic increase in Telenet's residential fixed revenue was $5.5 million, while the impact of foreign exchange was a decrease of $23.3 million[245]. Joint Ventures - The company has a 50% noncontrolling interest in both the VMO2 JV and the VodafoneZiggo JV, accounted for as equity method investments[236]. - The VMO2 JV reported Adjusted EBITDA of $1,073.4 million, nearly unchanged from $1,073.6 million in Q1 2024[250]. - VodafoneZiggo JV's Adjusted EBITDA decreased by $55.9 million (10.8%) to $463.1 million in Q1 2025[250]. - VMO2 JV's revenue decreased to $1,052.0 million in Q1 2025 from $1,114.0 million in Q1 2024, a decline of approximately 5.6%[288]. - The share of results from affiliates showed a total loss of $148.0 million in Q1 2025, compared to a loss of $7.0 million in Q1 2024[285]. Costs and Expenses - The company is experiencing inflationary pressures on labor, programming, and other costs, which may negatively impact operating results and cash flows[231]. - Programming and other direct costs of services increased by $8.9 million or 2.3%, with an organic decrease of $33.5 million or 7.6% due to lower CPE sales[261]. - Other operating expenses (excluding share-based compensation) rose by $2.8 million or 1.5%, with an organic increase of $3.6 million or 1.9% driven by higher personnel costs[265]. - SG&A expenses were impacted by an increase in personnel costs of $4.4 million or 7.6%, primarily due to higher average costs per employee[265]. - Share-based compensation expense decreased to $30.5 million in Q1 2025 from $34.4 million in Q1 2024, a decline of $3.9 million or 11.3%[271]. Foreign Exchange Impact - Changes in foreign currency exchange rates significantly impacted reported operating results, primarily due to exposure to the euro[234]. - The company experienced a significant impact from foreign exchange, resulting in a $18.8 million decrease in residential revenue[255]. - Foreign currency transaction losses totaled $1,081.0 million in Q1 2025, compared to gains of $559.3 million in Q1 2024[281]. Capital Expenditures and Cash Flow - Capital expenditures for the three months ended March 31, 2025, totaled $243.3 million, up from $206.1 million in 2024, reflecting increased investments in new build and upgrade projects[328]. - The net cash provided by operating activities for the three months ended March 31, 2025, was $129.2 million, an increase of $37.9 million compared to $91.3 million in 2024[326]. - The company maintained compliance with its debt covenants as of March 31, 2025, and does not anticipate any material adverse impacts on liquidity in the next 12 months[322]. - Adjusted free cash flow for the three months ended March 31, 2025, was $(141.2) million, compared to $(151.8) million in 2024, indicating a slight improvement[332]. Debt and Interest - As of March 31, 2025, the consolidated debt amounted to $9.4 billion, with $1.1 billion classified as current and $3.0 billion not due until 2029 or thereafter[323]. - Interest expense decreased to $127.5 million in Q1 2025 from $145.5 million in Q1 2024, a reduction of $13.9 million or 9.6%[276]. - The company expects to maintain significant levels of interest expense due to its capital structure and debt management strategy[301].