Liberty .(LBTYK) - 2025 Q4 - Annual Results

Revenue 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] - VMO2 JV reported Q4 revenue of $3,399.4 million, a 2.3% decrease year-over-year, with full-year revenue of $13,335.2 million, also down 2.3%[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, marking 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, which is a 4.2% year-over-year increase on a reported basis, but a 4.5% decline on a rebased basis[34] 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, reflecting a 17.0% year-over-year increase on a reported basis and a 7.3% increase on a rebased basis[34] - Adjusted EBITDA for total consolidated operations rose by 12.4% to $278.6 million in Q4 2025, compared to $247.8 million in Q4 2024[40] Cash Flow and Liquidity - Liberty Global's cash position at the end of 2025 was $2.2 billion, reflecting disciplined capital allocation and upstreaming of JV dividends[3] - The company achieved an Adjusted Free Cash Flow of £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 compared to $667.1 million in Q4 2024[37] - Distributable Cash Flow from continuing operations fell by 69.5% to $161.9 million in Q4 2025 from $530.6 million in Q4 2024[37] - Adjusted Free Cash Flow from continuing operations decreased by 52.8% to $152.9 million in Q4 2025 compared to $324.2 million in Q4 2024[37] Subscriber Metrics - Liberty Global's broadband net losses improved sequentially to 16,700, despite ongoing competitive pressures[14] - VodafoneZiggo's broadband net losses improved to 11,900 in Q4, indicating higher sales and lower churn due to new pricing strategies[19] - 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] - Total mobile subscribers for consolidated reportable segments reached 2,966,400 as of December 31, 2025, showing a decrease of 6,300 from the previous quarter[45] 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 blended fully-swapped debt borrowing cost was 5.2% with an average tenor of third-party debt at 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[57] - The net senior debt to annualized adjusted EBITDA ratio was 3.71x as of December 31, 2025[58] Capital Expenditures - Total consolidated property and equipment additions were $1,362.8 million for the year ended December 31, 2025, up from $1,061.9 million in 2024, representing a 28.4% increase[97] - Capital expenditures (P&E Additions) increased by 35.5% in Q4 2025, totaling €271.9 million compared to €200.6 million in Q4 2024[62] - Total P&E additions, including ROU asset additions, decreased by 6.6% to £573.9 million[53] - P&E Additions for the year ended December 31, 2025, were $1,362.8 million, up from $1,061.9 million in 2024, an increase of 28.3%[138] Operational Performance - 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 incurred foreign currency transaction losses of $39.8 million in Q4 2025, compared to gains of $1,958.6 million in Q4 2024[138] - Adjusted EBITDA less P&E Additions for the year ended December 31, 2025, was $(87.8) million, compared to $97.9 million in 2024, indicating a decline in operational efficiency[138] Market Position and Strategy - The company plans to continue investing heavily in its fixed and mobile networks while streamlining its B2B product portfolio[12] - VMO2 expanded its full fiber footprint to 8.3 million premises and increased 5G outdoor coverage to 87%, a 12 percentage point increase year-over-year[7] - The company expects to close the sale of UPC Slovakia in the first half of 2026, contributing estimated proceeds to future financials[99]