Liberty .(US:LBTYB)2026-02-18 13:43Financial Performance - The company reported a consolidated Adjusted EBITDA of $1,275.0 million for the year ended December 31, 2025, compared to $1,159.8 million in 2024, reflecting a year-over-year increase of 10%[310]. - The company experienced a significant operating loss of $7,096.7 million in 2025, compared to a profit of $1,869.1 million in 2024, indicating a substantial decline in profitability[310]. - The company reported a foreign currency transaction gain of $3,121.1 million in 2025, compared to a loss of $1,756.5 million in 2024, highlighting the impact of currency fluctuations on financial results[310]. - Total consolidated revenue increased by $536.6 million, or 12.4%, from $4,341.9 million in 2024 to $4,878.5 million in 2025[313]. - The company’s share of results from affiliates, net, was $3,186.9 million in 2025, a significant increase from $205.6 million in 2024, indicating strong performance from joint ventures[310]. - Adjusted EBITDA for total consolidated reportable segments increased by $13.6 million, or 0.9%, reaching $1,484.1 million in 2025[319]. - The company reported a loss from continuing operations of $7,096.7 million in 2025, compared to earnings of $1,869.1 million in 2024[378]. Customer and Market Metrics - The company served 11,399,700 fixed-line customers and 44,886,600 mobile subscribers as of December 31, 2025, with networks passing 29,117,600 homes[290]. - The average number of residential customers decreased by $37.3 million, while ARPU increased by $15.1 million[325]. - The VMO2 joint venture reported revenue of $13,335.2 million in 2025, down from $13,649.7 million in 2024, with adjusted EBITDA increasing to $4,662.8 million from $4,503.4 million[360][361]. - The VodafoneZiggo joint venture generated revenue of $4,518.5 million in 2025, slightly up from $4,450.5 million in 2024, while adjusted EBITDA decreased to $1,977.7 million from $2,033.9 million[363]. Revenue Breakdown - Residential fixed revenue increased by $57.1 million, or 3.3%, with broadband internet subscription revenue growing by $59.0 million, or 6.6%[323]. - B2B revenue rose by $56.3 million, or 6.7%, with subscription revenue increasing by $15.5 million, or 3.6%[323]. - Other revenue surged by $410.2 million, or 36.1%, contributing significantly to the overall revenue growth[323]. - The impact of foreign exchange (FX) contributed $136.3 million to the total revenue increase, highlighting the importance of currency fluctuations[314]. - Consolidated revenue increased by $536.6 million or 12.4% in 2025 compared to 2024, with $240.8 million from the Formula E Acquisition and $171.1 million from Sunrise Services[324]. Operating Expenses - Programming and other direct costs of services increased by $219.8 million or 15.2% in 2025, with an organic decrease of $71.2 million or 4.3%[331]. - Other operating expenses (excluding share-based compensation) rose by $122.9 million or 16.5% in 2025, with an organic increase of $59.3 million or 7.9%[334]. - SG&A expenses (excluding share-based compensation) increased by $78.7 million or 8.0% in 2025, with an organic decrease of $20.7 million or 2.0%[338]. Debt and Cash Management - The company aims to maintain a consolidated debt balance between four and six times its consolidated Adjusted EBITDA, which is a non-GAAP measure[399]. - As of December 31, 2025, the consolidated debt and finance lease obligations totaled $8.6 billion, with $0.8 billion classified as current and $3.3 billion not due until 2029 or later[401]. - The company expects to maintain significant levels of interest expense due to its debt management strategy aimed at providing attractive equity returns[380]. - The total cash and cash equivalents as of December 31, 2025, amounted to $2,081.4 million, with $914.3 million held by unrestricted subsidiaries[384]. Strategic Initiatives - The company aims to achieve organic revenue and customer growth by developing bundled services and enhancing network quality, excluding the impact of foreign currency translation and acquisitions[297]. - The company plans to roll out DOCSIS 4 technology capable of 10 Gbps starting in 2026, following successful tests on live network infrastructure[44]. - Liberty Telecom's sustainability strategy includes commitments to achieve Net Zero targets for the majority of its operations by 2040[34]. - The company aims to enhance its product offerings through strategic acquisitions and partnerships, as well as new product developments[28]. Joint Ventures and Affiliates - The net loss for the VMO2 joint venture was $5,766.5 million in 2025, compared to a net gain of $1.7 million in 2024, impacted by a goodwill impairment charge of £3.8 billion ($5.0 billion)[362]. - The VodafoneZiggo JV's revenue in 2025 decreased compared to 2024, primarily due to a decline in residential fixed revenue and mobile revenue, offset by increases in other revenue related to premium sports content and B2B fixed revenue[365]. - The VodafoneZiggo JV's Adjusted EBITDA in 2025 was affected by increased consulting costs, higher programming costs, and cost control measures, alongside the revenue changes[365]. Impairment and Valuation - The company evaluates goodwill for impairment at least annually, with assessments conducted on October 1 and whenever circumstances indicate potential impairment[417]. - The company did not record any significant impairment charges related to goodwill for the years ended December 31, 2025, 2024, and 2023[419]. - The aggregate valuation allowance against deferred tax assets was $2,088.5 million as of December 31, 2025[431]. Economic and Regulatory Risks - The company is subject to inflationary pressures and foreign currency exchange risks, which could impact operating margins if costs cannot be passed on to customers[308]. - The company is subject to risks from economic conditions, competitive pressures, and regulatory changes that could impact future performance[434]. - The company has significant uncertainties regarding future cash flows, which could lead to potential impairment charges if actual results differ from estimates[420].