Liberty .(US:LBTYB)2026-02-18 13:44Revenue Performance - Liberty Global reported Q4 2025 revenue of $1,231.1 million, a 9.6% increase year-over-year, and full-year revenue of $4,878.5 million, up 12.4% from 2024[4]. - Telenet achieved Q4 revenue of $842.3 million, a 7.8% increase year-over-year, and full-year revenue of $3,207.9 million, up 4.0% from 2024[4]. - VodafoneZiggo achieved revenue of $1,186.4 million in Q4, representing a 6.5% year-over-year increase on a reported basis, but a 2.3% decline on a rebased basis[19]. - Telenet reported revenue of $842.3 million in Q4, a 7.8% year-over-year increase on a reported basis, but a 1.3% decline on a rebased basis[27]. - Virgin Media Ireland's revenue was $134.0 million in Q4, a 4.2% year-over-year increase on a reported basis, but a 4.5% decline on a rebased basis[34]. - The VMO2 joint venture reported a revenue of $3,399.4 million for Q4 2025, a decrease of 2.3% from Q4 2024[39]. - Total revenue decreased by 5.9% year-over-year to £2,556.9 million for the three months ended December 31, 2025[53]. - Total revenue for Q4 2025 was €1,020.2 million, a decrease of 2.3% compared to €1,044.3 million in Q4 2024[62]. - Total revenue for Q4 2025 was €723.8 million, a decrease of 1.3% compared to €733.3 million in Q4 2024[11]. - Total revenue for Q4 2025 was €115.2 million, a decrease of 4.5% compared to €120.6 million in Q4 2024[81]. Adjusted EBITDA - Adjusted EBITDA for Liberty Global was $278.6 million in Q4, a 12.4% increase year-over-year, and $1,275.0 million for the full year, up 9.9% from 2024[4]. - Adjusted EBITDA for VodafoneZiggo was $495.7 million in Q4, reflecting a 5.8% year-over-year increase on a reported basis and a 3.4% decline on a rebased basis[19]. - Telenet's adjusted EBITDA was $305.4 million in Q4, showing a 1.8% year-over-year decline on a reported basis and a 9.9% decline on a rebased basis[27]. - Virgin Media Ireland's adjusted EBITDA reached $59.9 million in Q4, marking a 17.0% year-over-year increase on a reported basis and a 7.3% increase on a rebased basis[34]. - Adjusted EBITDA for Q4 2025 rose by 12.4% to $278.6 million, while the year-to-date figure increased by 9.9% to $1,275.0 million[40]. - The total consolidated adjusted EBITDA less P&E additions for Q4 2025 was $(145.8) million, a decrease of 62.4% compared to Q4 2024[40]. - Liberty Growth segment reported a Q4 2025 adjusted EBITDA of $(14.4) million, an improvement from $(19.1) million in Q4 2024[40]. - U.S. GAAP Adjusted EBITDA for Q4 2025 was £877.4 million, slightly down from £879.4 million in Q4 2024, while the year-end figure for 2025 was £3,536.1 million compared to £3,523.7 million in 2024[122]. - IFRS Adjusted EBITDA for Q4 2025 was £965.4 million, down from £989.1 million in Q4 2024, with a year-end total of £3,879.5 million compared to £3,896.6 million in 2024[122]. Cash Flow and Capital Expenditures - Liberty Global ended 2025 with a strong cash position of $2.2 billion, reflecting disciplined capital allocation and non-core asset disposals[3]. - Liberty Global's adjusted free cash flow for 2025 was $393.1 million, aligning with guidance of $350-400 million[14]. - Cash provided by operating activities decreased by 5.4% to $630.9 million in Q4 2025, and year-to-date cash flow decreased by 9.0% to $1,211.1 million[37]. - Distributable Cash Flow from continuing operations fell by 69.5% to $161.9 million in Q4 2025, with a year-to-date decrease of 151.1% to $(265.0) million[37]. - The company reported a significant increase in P&E additions, which rose by 35.5% to €271.9 million in Q4 2025 from €200.6 million in Q4 2024[62]. - The company reported total capital expenditures of $1,343.1 million for the year ended December 31, 2025, compared to $908.5 million in 2024, reflecting a significant increase of 47.8%[97]. - The company incurred foreign currency transaction losses of $39.8 million in Q4 2025, compared to gains of $1,958.6 million in Q4 2024[138]. - P&E Additions for the year ended December 31, 2025, totaled $(1,362.8) million, up from $(1,061.9) million in 2024, indicating increased capital expenditures[138]. Subscriber Metrics - VMO2's broadband net losses improved sequentially, with a reduction of 16,700 subscribers, despite intense competition[14]. - Telenet achieved broadband net adds of 12,400 in Q4, supported by the growth of BASE FMC in the South[29]. - Virgin Media Ireland's postpaid net adds were 1,500 in Q4, marking the fourth consecutive quarter of growth in this segment[34]. - VodafoneZiggo's broadband net losses improved to 11,900 in Q4, attributed to higher sales and lower churn from new pricing strategies[19]. - Organic broadband net additions for Q4 2025 were 12,400, compared to 3,200 in Q4 2024, indicating a positive trend in subscriber growth[71]. - Organic fixed-line customer relationship net losses were 4,200 in Q4 2025, compared to 1,900 in Q4 2024[80]. Debt and Financial Obligations - Total principal amount of debt and finance leases for Telenet was $8.6 billion, with an average debt tenor of 3.1 years[36]. - As of December 31, 2025, total third-party debt and lease obligations amounted to £22,117.4 million, slightly increasing from £22,116.9 million as of September 30, 2025[57]. - The net carrying amount of third-party debt and lease obligations was £21,510.7 million as of December 31, 2025, compared to £21,549.5 million as of September 30, 2025[57]. - The blended fully-swapped debt borrowing cost was 5.2% with an average tenor of third-party debt of 4.8 years as of December 31, 2025[55]. - The total covenant amount of third-party net debt was £16,703.9 million as of December 31, 2025, down from £16,963.0 million as of September 30, 2025[57]. - The company reported a net carrying amount of third-party debt and finance lease obligations of €10,429.7 million as of December 31, 2025, slightly up from €10,398.3 million on September 30, 2025[68]. - The leverage ratio for net total debt to annualized adjusted EBITDA was 4.99x as of December 31, 2025[69]. - The company had maximum undrawn commitments of €800 million under its Revolving Facilities as of December 31, 2025[70]. Operational Challenges and Future Outlook - The company plans to continue investing heavily in its fixed and mobile networks, with a focus on cost efficiencies to support profitability in 2026[12]. - Liberty Global's adjusted EBITDA trajectory is expected to improve, with a projected 75% decrease in corporate spend in 2026 compared to 2024[2]. - The company expects to close the sale of UPC Slovakia in the first half of 2026, which is anticipated to generate estimated proceeds[99]. - The company’s unused borrowing capacity was $0.7 billion as of December 31, 2025, which increased to approximately $0.9 billion in January 2026 after repaying borrowings[100]. - The company reported a loss from continuing operations of $2,916.2 million in Q4 2025, compared to a profit of $2,334.2 million in Q4 2024[138]. - The company’s operating loss for the year ended December 31, 2025, was $(339.7) million, compared to $(333.1) million in 2024, reflecting ongoing operational challenges[141].