Liberty .(US:LBTYA)2025-10-30 12:07Customer Base and Market Environment - As of September 30, 2025, the company served 11,443,800 fixed-line customers and 44,970,800 mobile subscribers, with networks passing 29,073,400 homes[250] - The competitive environment has adversely impacted revenue, customer numbers, and average monthly subscription revenue per fixed-line customer or mobile subscriber[251] - The economic environment in the countries of operation is influenced by various factors beyond the company's control, potentially leading to inflation[252] - The company experienced competition across all markets, adversely impacting customer growth and ARPU[261] Financial Performance - Loss from continuing operations for Q3 2025 was $83.4 million, compared to a loss of $1,423.7 million in Q3 2024[260] - Total consolidated revenue for Q3 2025 was $1,207.1 million, representing a $137.6 million (12.9%) increase from Q3 2024[263] - For the nine months ended September 30, 2025, total consolidated revenue was $3,647.4 million, an increase of $428.7 million (13.3%) compared to the same period in 2024[263] - Total consolidated Adjusted EBITDA for Q3 2025 was $336.5 million, slightly up from $331.4 million in Q3 2024[260] - Total consolidated Adjusted EBITDA increased by $5.1 million (1.5%) to $336.5 million for the three months ended September 30, 2025, from $331.4 million in 2024[270] Revenue Breakdown - Subscription revenue for Telenet increased by $19.7 million (2.5%) in Q3 2025 compared to Q3 2024, while VM Ireland's revenue increased by $2.4 million (2.0%) in the same period[263] - Total residential revenue increased by $27.6 million (4.6%) to $624.4 million for the three months ended September 30, 2025, compared to $596.8 million in 2024[274] - Broadband internet subscription revenue rose by $18.2 million (7.9%) to $247.2 million for the three months ended September 30, 2025, from $229.0 million in 2024[274] - Total B2B revenue increased by $20.3 million (9.5%) to $233.3 million for the three months ended September 30, 2025, compared to $213.0 million in 2024[274] Cost and Expense Analysis - The company is subject to inflationary pressures on labor, programming, and other costs, which could negatively impact operating results and cash flows[252] - Programming and other direct costs of services increased by $72.5 million or 22.6% for the three months and $210.3 million or 20.0% for the nine months ended September 30, 2025, compared to the same periods in 2024[284] - Other operating expenses (excluding share-based compensation) increased by $23.6 million or 12.5% for the three months and $63.3 million or 11.5% for the nine months ended September 30, 2025, compared to the same periods in 2024[288] - SG&A expenses increased, with specific increases in core network and IT-related costs of $10.7 million or 19.4% for the three months and $19.1 million or 15.9% for the nine months ended September 30, 2025[288] Foreign Exchange Impact - Changes in foreign currency exchange rates significantly impacted reported operating results, particularly with exposure to the euro[255] - The impact of foreign exchange (FX) contributed positively to revenue, with Telenet seeing a $47.8 million increase due to FX effects in Q3 2025[265] - The company experienced a foreign exchange impact that contributed $37.5 million to residential revenue for the three months ended September 30, 2025[278] Joint Ventures and Acquisitions - The company completed the Formula E Acquisition on October 2, 2024, consolidating 100% of Formula E's results from that date[249] - The company has a 50% noncontrolling interest in both the VMO2 JV and the VodafoneZiggo JV, accounted for under the equity method[256] - VMO2 JV reported an Adjusted EBITDA of $1,250.3 million for the three months ended September 30, 2025, an increase of $79.4 million (6.8%) from $1,170.9 million in 2024[270] - The VodafoneZiggo JV generated revenue of $1,156.8 million for the three months ended September 30, 2025, compared to $1,131.1 million in the same period of 2024[318] Cash Flow and Liquidity - The total cash and cash equivalents as of September 30, 2025, amounted to $1,674.2 million, with $1,160.8 million held by borrowing groups[337] - Net cash provided by operating activities decreased to $580.2 million for the nine months ended September 30, 2025, down from $664.1 million in 2024, representing a decline of $83.9 million[358] - Net cash used in investing activities was $(607.8) million for the nine months ended September 30, 2025, a decrease of $1,327.7 million compared to $719.9 million in 2024[359] - The company aims to maintain a consolidated debt balance between four and five times its consolidated Adjusted EBITDA[353] Tax and Other Income - The income tax benefit for the three months ended September 30, 2025, was $46.9 million, compared to $11.2 million in the same period of 2024[322] - The company reported other income, net, of $27.5 million for the three months ended September 30, 2025, down from $53.1 million in 2024[321] - The company recognized a gain of $242.9 million from the sale of All3Media during the nine months ended September 30, 2024[320]