Liberty .(US:LBTYB)2025-08-01 12:15Revenue Performance - Liberty Global's Q2 2025 revenue increased by 20.0% year-over-year to $1,269.1 million, with consolidated Liberty Telecom revenue rising 5.6% to $923.8 million[5]. - Telenet reported revenue of $801.0 million, a 6.1% year-over-year increase on a reported basis[25]. - The VMO2 joint venture reported revenue of $3,373.5 million for Q2 2025, a slight decrease of 0.1% from $3,375.4 million in Q2 2024[37]. - The VodafoneZiggo joint venture reported revenue of $1,123.3 million for Q2 2025, a 2.9% increase from $1,091.6 million in Q2 2024[37]. - As of June 30, 2025, the total revenue decreased by 5.5% year-over-year to £2,526.8 million, compared to £2,673.7 million in the same period of 2024[50]. Adjusted EBITDA - Telenet's Adjusted EBITDA grew by 8.3% year-over-year to $337.9 million, while VM Ireland's Adjusted EBITDA decreased by 9.4% to $41.4 million[5]. - Adjusted EBITDA of $496.7 million, down 4.2% year-over-year on a reported basis and 9.1% on a rebased basis[18]. - Adjusted EBITDA for Telenet was $337.9 million in Q2 2025, reflecting an 8.3% increase from $311.9 million in Q2 2024[37]. - The adjusted EBITDA for the three months ended June 30, 2025, was €341.5 million, a 3.6% increase from the previous year, while the six-month adjusted EBITDA was €665.3 million, up 3.2%[65]. - U.S. GAAP Adjusted EBITDA for Q2 2025 was £878.4 million, a decrease of 2.0% from £897.0 million in Q2 2024[123]. Cash Flow and Capital Expenditures - Cash flows from operating activities totaled $251.7 million, while cash flows from investing and financing activities were -$118.8 million and -$134.5 million, respectively[18]. - The company reported total capital expenditures of $319.3 million for the three months ended June 30, 2025, compared to $185.0 million in 2024, marking a 72.5% increase[93]. - Adjusted Free Cash Flow (Adjusted FCF) for the six months ended June 30, 2025, included cash payments for third-party costs associated with acquisitions totaling $1.1 million, compared to $5.9 million in the same period of 2024[98]. - Adjusted Free Cash Flow (FCF) was negative at $(201.2) million for the three months ended June 30, 2025, compared to positive $60.6 million in the same period of 2024[138]. Debt and Financial Obligations - Total principal amount of debt and finance leases stood at $9.9 billion, with a blended cost of debt at 3.7%[33]. - The net carrying amount of third-party debt and lease obligations was €9,142.2 million as of June 30, 2025[61]. - The total covenant amount of third-party net debt was £16,394.5 million as of June 30, 2025[54]. - The leverage ratio, Net Total Debt to Annualized Adjusted EBITDA, was 5.37x as of June 30, 2025[78]. Subscriber Metrics - Broadband net losses for VMO2 were 51,400, and postpaid mobile net losses were 73,600, attributed to intense market competition[14]. - The total number of fixed-line homes passed by Telenet was 4,229,600 as of June 30, 2025[39]. - The total mobile subscribers for Telenet reached 2,844,200 as of June 30, 2025[39]. - Organic broadband net losses were 51,400 for the quarter, leading to a total of 5,643,500 broadband subscribers[49]. Strategic Initiatives and Future Outlook - Liberty Global is targeting $500-750 million in non-core asset disposals in 2025 following the exit from the Vodafone collar position[3]. - Liberty Global is exploring opportunities for further spin-offs and tracking stocks within the next 12 to 24 months to unlock shareholder value[3]. - The acquisition of 78.8 MHz of spectrum by VMO2 for £343 million is expected to enhance its mobile spectrum share to approximately 30%[11]. Market Competition and Churn - VodafoneZiggo reported improved commercial momentum in fixed broadband, with churn rates decreasing as a result of new strategic initiatives[15]. - The organic fixed-line customer relationship net losses decreased year-over-year from (61,100) to (32,900), indicating improved retention[64]. - Customer churn is calculated on an annual rolling average basis, reflecting the number of disconnects over the past 12 months relative to the average number of customer relationships[107].