Liberty .(US:LBTYA)2022-07-27 16:00Customer Base and Market Presence - As of June 30, 2022, the company served 4,105,900 fixed-line customers and 5,788,800 mobile subscribers, with networks passing 7,512,100 homes[258]. - The company’s ability to maintain or increase subscription numbers is critical for future financial performance, with a focus on customer service and new product offerings[253]. - The ongoing COVID-19 pandemic has had a relatively minimal impact on the company, with strong demand for products and services during the second quarter of 2022[260]. - The company’s operations in the U.K. were contributed to the VMO2 JV, which began accounting for its 50% interest as an equity method investment on June 1, 2021[257]. Financial Performance - Total revenue for the three months ended June 30, 2022, was $1,754.2 million, a decrease of 41.3% compared to $2,989.2 million in the same period of 2021[273]. - For the six months ended June 30, 2022, total revenue was $3,607.5 million, down 44.4% from $6,489.1 million in the prior year[274]. - Consolidated Adjusted EBITDA for the three months ended June 30, 2022, was $649.8 million, a decrease of 45.8% from $1,199.1 million in the same period of 2021[270]. - Adjusted EBITDA for the three months ended June 30, 2022, was $649.8 million, down from $1,199.1 million, a decrease of $549.3 million, or 45.8%[289]. - Adjusted EBITDA for the six months ended June 30, 2022, was $1,334.1 million, down from $2,515.3 million in the same period of 2021, a decrease of approximately 47.0%[270]. Revenue Breakdown - Total subscription revenue decreased by $861.6 million, or 55.0%, from $1,567.8 million to $706.2 million in the three months ended June 30, 2022[296]. - Residential fixed revenue decreased by $881.0 million, or 54.6%, from $1,614.4 million to $733.4 million in the same period[296]. - Residential mobile revenue decreased by $149.0 million, or 24.4%, from $611.8 million to $462.8 million[296]. - B2B revenue decreased by $220.8 million, or 39.6%, from $557.4 million to $336.6 million[296]. - The average revenue per household (ARPU) has been adversely impacted by competition and macroeconomic factors, affecting the total number of customers[259]. Regional Performance - In Switzerland, the decrease in residential fixed subscription revenue was primarily due to a decline in the average number of customers and ARPU, resulting in a total decrease of $12.6 million for the three-month period[278]. - Belgium's total revenue decreased by $85.7 million in the three-month period, attributed to a decline in subscription revenue and the impact of foreign exchange losses of $91.0 million[282]. - Ireland's revenue for the three months ended June 30, 2022, decreased significantly, with specific details pending further analysis[285]. - The Central and Other segment reported a revenue increase of 15.0% for the three-month period, totaling $180.6 million compared to $157.0 million in the prior year[273]. - The company noted a significant decline in U.K. revenue, which was $1,101.4 million in the prior year, now reported as zero due to the closure of the U.K. JV Transaction[275]. Costs and Expenses - Programming and other direct costs of services decreased by $363.3 million or 43.1% for the six months ended June 30, 2022, compared to the same period in 2021[308]. - Other operating expenses excluding share-based compensation decreased by $164.6 million or 38.3% for the three months ended June 30, 2022, and by $399.2 million or 42.6% for the six months ended June 30, 2022, compared to 2021[315]. - SG&A expenses excluding share-based compensation decreased by $157.8 million or 30.6% for the three months ended June 30, 2022, totaling $358.6 million[318]. - Total SG&A expenses excluding share-based compensation decreased by $395.3 million or 35.5% for the six months ended June 30, 2022, compared to the same period in 2021[323]. Foreign Currency Impact - The company experienced significant foreign currency transaction losses of $1,148.7 million for the three months ended June 30, 2022, compared to losses of $131.4 million in the same period of 2021[270]. - The impact of foreign exchange fluctuations resulted in a total revenue decrease of $45.5 million for the three-month period in Switzerland[278]. - Total foreign currency transaction gains for the three months ended June 30, 2022, amounted to $1,148.7 million, a significant increase from $131.4 million in the same period of 2021[338]. - The company experienced a foreign exchange impact, with 55.2% of reported revenue derived from subsidiaries using the euro and 43.7% from those using the Swiss franc[388]. Cash Flow and Debt - Consolidated cash and cash equivalents totaled $2,391.1 million as of June 30, 2022, with $1,510.3 million held by Liberty Global and unrestricted subsidiaries[360]. - The outstanding principal amount of consolidated debt and finance lease obligations was $13.3 billion as of June 30, 2022, with $0.8 billion classified as current and $12.2 billion not due until 2028 or thereafter[374]. - The company reported a net cash provided by operating activities of $1,363.0 million for the six months ended June 30, 2022, a decrease of $487.8 million from $1,850.8 million in 2021[378]. - The net cash used by investing activities was $2,581.3 million for the six months ended June 30, 2022, compared to a usage of $5,407.2 million in 2021, reflecting a change of $7,988.5 million[378]. Gains and Losses - The company reported a gain of $693.3 million from the Telenet Tower Sale during the three months ended June 30, 2022[270]. - The company recognized impairment, restructuring, and other operating items of $67.7 million for the six months ended June 30, 2022, compared to $51.2 million in the same period of 2021[328]. - The company reported a net gain on debt extinguishment of $2.8 million for the six months ended June 30, 2022, compared to a net loss of $90.6 million for the same period in 2021[341]. - The company recognized a pre-tax gain of $693.3 million from the Telenet Tower Sale during the three months ended June 30, 2022[348].