Liberty .(LBTYB) - 2025 Q2 - Quarterly Report

Customer and Subscriber Metrics - As of June 30, 2025, the company served 11,412,000 fixed-line customers and 44,577,800 mobile subscribers, with networks passing 29,062,700 homes[245]. Acquisitions and Investments - The company completed the Formula E Acquisition on October 2, 2024, consolidating 100% of Formula E's results from that date[244]. - The company is actively investing across infrastructure, content, and technology industries, providing innovative technology solutions and finance services[241]. Financial Performance - For the three months ended June 30, 2025, the total consolidated Adjusted EBITDA was $335.3 million, compared to $297.6 million for the same period in 2024, reflecting an increase of 12.6%[256]. - The total consolidated revenue for the three months ended June 30, 2025, was $1,269.1 million, representing a 20.0% increase from $1,057.9 million in the same period of 2024[259]. - Telenet's revenue for the three months ended June 30, 2025, was $801.0 million, up 6.1% from $755.1 million in 2024, with an organic increase of 0.6%[261]. - The total consolidated reportable segments' revenue for the six months ended June 30, 2025, was $2,440.3 million, a 13.5% increase from $2,149.2 million in 2024[259]. - The total consolidated Adjusted EBITDA for the six months ended June 30, 2025, was $659.9 million, compared to $580.6 million in 2024, marking a 13.6% increase[256]. Revenue Breakdown - Residential fixed revenue increased by $24.5 million (5.8%) to $443.8 million, driven by broadband internet revenue growth of $19.3 million (8.8%)[271]. - B2B revenue grew by $14.3 million (6.8%) to $225.9 million, with subscription revenue up by $5.3 million (4.9%)[271]. - The revenue from the "all other category" for the three months ended June 30, 2025, was $383.4 million, a significant increase of 50.0% from $255.6 million in 2024[259]. Cost and Expense Analysis - The company is subject to inflationary pressures on labor, programming, and other costs, which may rise faster than revenue[247]. - Programming and other direct costs of services increased by $128.9 million or 38.3% for the three months ended June 30, 2025, compared to the same period in 2024[279]. - Other operating expenses (excluding share-based compensation) increased by $32.1 million or 18.1% and $39.7 million or 11.0% during the three and six months ended June 30, 2025, respectively[283]. - SG&A expenses increased by $12.5 million or 5.1% for the three months ended June 30, 2025, compared to the same period in 2024, and by $34.3 million or 7.2% for the six months ended June 30, 2025[290]. Foreign Currency Impact - Changes in foreign currency exchange rates significantly impacted reported operating results, particularly with exposure to the euro[250]. - The company’s primary exposure to foreign exchange risk was to the euro, affecting reported revenue significantly during the period[250]. - Foreign currency transaction gains for the three months ended June 30, 2025, amounted to $2,089.9 million, compared to losses of $173.5 million in the same period of 2024[256]. Joint Ventures Performance - The VMO2 joint venture reported revenue of $3,373.5 million for the three months ended June 30, 2025, a slight decrease from $3,375.4 million in 2024[307]. - The VodafoneZiggo joint venture generated revenue of $1,123.3 million for the three months ended June 30, 2025, compared to $1,091.6 million in the same period of 2024[310]. - VMO2 JV reported Adjusted EBITDA of $1,172.3 million, an increase of $39.9 million (3.5%) compared to $1,132.4 million in 2024[268]. Losses and Impairments - For the three months ended June 30, 2025, the company reported a loss from continuing operations of $2,773.8 million compared to earnings of $324.1 million in the same period of 2024[322]. - The company recognized impairment, restructuring, and other operating items of $5.5 million for the three months ended June 30, 2025, compared to $4.5 million for the same period in 2024[294]. - The company reported a net loss of $119.9 million for the three months ended June 30, 2025, compared to a loss of $15.4 million in 2024[310]. Cash Flow and Liquidity - As of June 30, 2025, total cash and cash equivalents amounted to $1,816.5 million, with $1,217.8 million held by borrowing groups[330]. - Net cash provided by operating activities decreased to $278.4 million in the six months ended June 30, 2025, down from $345.0 million in 2024, a decline of $66.6 million[349]. - Adjusted free cash flow for the six months ended June 30, 2025, was $(342.4) million, a decline from $(91.2) million in 2024, indicating a worsening cash position[355]. Debt and Interest Expenses - The company has a total consolidated debt of $9.9 billion as of June 30, 2025, including $2.0 billion classified as current[346]. - The company expects to maintain significant levels of interest expense due to its capital structure and debt levels[325]. - Interest expense decreased by $21.7 million or 15.0% for the three months ended June 30, 2025, compared to the same period in 2024[297].