Liberty .(US:LBTYK)2024-02-14 16:00Company Overview - The company completed the Telenet Takeover Bid in October 2023, increasing its ownership interest in Telenet to 100%[291]. - As of December 31, 2023, the company served 4,055,500 fixed-line customers and 5,881,200 mobile subscribers, with networks passing 7,946,400 homes[293]. - The company has significant investments in various media and technology firms, including ITV and Televisa Univision[298]. Financial Performance - The company reported a loss from continuing operations of $3,873.8 million in 2023, compared to a profit of $1,105.3 million in 2022, indicating a significant decline in performance[315]. - Adjusted EBITDA for 2023 was $2,369.6 million, down 8.7% from $2,595.4 million in 2022[327]. - Total revenue increased by 4.1% to $7,491.4 million in 2023 from $7,195.7 million in 2022, with Telenet showing a notable 10.0% increase in revenue[318]. - The company experienced competition that adversely affected revenue and average monthly subscription revenue per customer[303]. - The company reported realized and unrealized losses of $557.3 million due to changes in fair values of certain investments in 2023, compared to losses of $323.5 million in 2022[365]. Revenue Breakdown - Sunrise's revenue rose by 6.3% to $3,380.4 million, while Telenet's revenue increased by 10.0% to $3,089.2 million[318]. - Total residential revenue rose to $5,081.3 million, a 5.2% increase, despite a slight organic decrease of $2.8 million or 0.1%[333][335]. - B2B subscription revenue increased by $26.7 million or 5.2% on an organic basis, driven by growth at Telenet[337]. - Other revenue decreased by $146.7 million or 13.4% on an organic basis, mainly due to lower earnings from U.K. and NL JV Services[339]. Cost and Expenses - Programming and other direct costs of services rose by $299.0 million or 14.3%, with an organic increase of $131.5 million or 6.1%[341]. - Other operating expenses (excluding share-based compensation) increased by $112.1 million or 10.3%, with an organic increase of $23.5 million or 2.1%[344]. - SG&A expenses (excluding share-based compensation) increased by $110.4 million or 7.7% in 2023 compared to 2022, with an organic increase of $18.5 million or 1.3%[348]. - Personnel costs rose by $33.6 million or 5.4%, primarily due to higher average costs per employee and increased incentive compensation costs[348]. Market and Competition - The company aims to achieve organic revenue and customer growth by developing bundled services and enhancing network quality[301]. - The company noted adverse impacts from competition across all markets, affecting customer growth and average revenue per user (ARPU)[316]. - The impact of foreign exchange contributed $220.8 million to the total increase in residential revenue[335]. Future Outlook - Future outlook includes a focus on market expansion and potential acquisitions to enhance revenue streams and mitigate competitive pressures[316]. - The company plans to market and sell certain internally-developed software to third parties, which may influence future revenue streams[342]. Cash Flow and Liquidity - As of December 31, 2023, total cash and cash equivalents amounted to $1,415.9 million, with $498.6 million held by unrestricted subsidiaries and $917.3 million by borrowing groups[391][394]. - Net cash provided by operating activities decreased to $2,165.9 million in 2023 from $2,786.7 million in 2022, a decline of $620.8 million[411]. - The liquidity of borrowing groups is primarily sourced from cash provided by operations and borrowing availability under debt instruments[401]. Debt and Financing - The consolidated debt, including finance lease obligations, was $15.9 billion, with $0.8 billion classified as current and $7.5 billion not due until 2029 or thereafter[407]. - The company expects to continue reporting significant levels of interest expense due to its strategy of maintaining debt at levels that provide attractive equity returns[387]. Impairments and Taxation - The company recognized impairment, restructuring, and other operating items of $67.9 million in 2023, down from $85.1 million in 2022[353]. - The income tax expense for 2023 was $149.6 million, a decrease from $318.9 million in 2022[381].