Liberty .(US:LBTYK)2023-07-23 16:00Customer Base - As of June 30, 2023, the company served 4,124,200 fixed-line customers and 5,874,800 mobile subscribers, with networks passing 7,895,200 homes[230]. Financial Performance - For the three months ended June 30, 2023, the company reported an Adjusted EBITDA of $601.4 million, a decrease from $649.8 million in the same period of 2022[240]. - The company experienced a loss from continuing operations of $511.3 million for the three months ended June 30, 2023, compared to a profit of $2,282.2 million in the same period of 2022[240]. - Total revenue for the three months ended June 30, 2023, was $1,848.0 million, an increase of $93.8 million or 5.3% compared to $1,754.2 million in 2022[243]. - The total revenue for the six months ended June 30, 2023, was $3,716.4 million, an increase of $108.9 million or 3.0% compared to $3,607.5 million in 2022[243]. - The total revenue for the VMO2 JV for the three months ended June 30, 2023, was $3,391.5 million, an increase of 5.9% from $3,202.6 million in 2022[243]. - The VodafoneZiggo joint venture generated $1,088.4 million in revenue for the three months ended June 30, 2023, reflecting a $22.8 million or 2.1% increase from 2022[243]. Revenue Breakdown - In Switzerland, revenue increased by $50.1 million or 6.5% to $816.2 million for the three months ended June 30, 2023, compared to $766.1 million in 2022[243]. - Belgium's revenue rose by $77.9 million or 11.3% to $767.0 million for the three months ended June 30, 2023, compared to $689.1 million in 2022[243]. - The total residential revenue for the three months ended June 30, 2023, was $1,243.0 million, reflecting an increase of $60.9 million, or 5.2%[258]. - The total B2B revenue for the three months ended June 30, 2023, increased by $34.6 million, or 10.3%, totaling $371.2 million[258]. - The total residential fixed revenue for the three months ended June 30, 2023, was $746.8 million, an increase of $27.5 million, or 3.8%[258]. Cost and Expenses - The company’s revenue was significantly impacted by inflationary pressures, particularly in labor, programming, and energy costs, which have increased in the countries of operation[232]. - Other operating expenses increased by $56.8 million or 21.4% for the three months ended June 30, 2023, compared to the same period in 2022[278]. - Business service costs rose by $21.0 million or 52.7% for the three months and $27.3 million or 36.8% for the six months, mainly due to higher consulting and energy costs[279]. - Personnel costs increased by $10.7 million or 12.7% for the three months and $12.0 million or 7.0% for the six months, driven by higher average costs per employee[279]. - Programming and other direct costs of services increased by $109.0 million or 10.7% for the six months ended June 30, 2023, compared to the same period in 2022, with $62.7 million attributable to acquisitions[273]. Foreign Exchange Impact - Foreign currency exchange rates had a significant impact on reported operating results, with 57.8% of revenue derived from subsidiaries using the euro and 44.2% from those using the Swiss franc[235]. - The impact of foreign exchange in Switzerland contributed $55.8 million to revenue growth for the six months ended June 30, 2023[244]. - The impact of foreign exchange (FX) for the three months ended June 30, 2023, contributed an increase of $2.8 million to total revenue[258]. Joint Ventures - The company holds a 50% noncontrolling interest in the VMO2 JV and VodafoneZiggo JV, consolidating 100% of their revenue and Adjusted EBITDA in its financial statements[236]. - Adjusted EBITDA for VodafoneZiggo JV was $484.9 million for the three months ended June 30, 2023, down from $490.9 million in 2022, primarily due to inflation-related increases in energy and staff costs[1][2]. - VMO2 JV's Adjusted EBITDA increased to $1,138.8 million for the three months ended June 30, 2023, compared to $1,059.4 million in the same period of 2022, driven by synergies and consumer price rises[3][4]. Cash Flow and Liquidity - Total cash and cash equivalents as of June 30, 2023, amounted to $1,565.2 million, with $1,126.9 million held by borrowing groups[9]. - The company reported a net cash provided by operating activities of $999.6 million for the six months ended June 30, 2023, a decrease of $363.4 million compared to $1,363.0 million in 2022[342]. - Adjusted free cash flow for the six months ended June 30, 2023, was $150.3 million, a decrease of 71.7% from $531.4 million in the same period of 2022[350]. - The company experienced a decrease in cash provided by operations primarily due to lower dividend distributions from joint ventures and higher interest payments[342]. Tax and Other Income - Income tax expense for the three months ended June 30, 2023, was $159.2 million, up from $63.6 million in the same period of 2022[7]. - Other income, net, was $75.8 million for the three months ended June 30, 2023, compared to $29.4 million in the same period of 2022, indicating a significant increase[6].