Liberty .(US:LBTYK)2023-10-30 16:00Customer Base and Revenue - As of September 30, 2023, the company served 4,085,100 fixed-line customers and 5,894,300 mobile subscribers, with networks passing 7,916,000 homes[225]. - Total revenue for Q3 2023 was $1,854.5 million, an increase of 6.2% compared to $1,746.3 million in Q3 2022[238]. - Revenue from Switzerland increased by $69.5 million (8.8%) in Q3 2023, while Belgium's revenue rose by $110.1 million (16.6%) during the same period[238]. - The VMO2 joint venture reported revenue of $3,503.8 million in Q3 2023, an increase of 15.2% from $3,042.1 million in Q3 2022[238]. - Total revenue for the nine months ended September 30, 2023, was $5,570.9 million, reflecting an increase of $217.1 million, or 4.1%, compared to $5,353.8 million in 2022[238]. - Total residential revenue rose by $131.2 million or 3.6% for the nine months ended September 30, 2023, driven by a $76.8 million increase in residential mobile subscription revenue[258]. - B2B revenue increased by $75.5 million or 7.3% for the nine months ended September 30, 2023, with subscription revenue growing by $31.3 million or 8.1%[257]. - The total organic increase in residential mobile revenue was $37.9 million (7.8%) for the three months ended September 30, 2023[253]. Financial Performance - Earnings from continuing operations for Q3 2023 were $822.7 million, a decrease from $2,431.7 million in Q3 2022[235]. - Adjusted EBITDA for Q3 2023 was $597.7 million, down from $664.0 million in Q3 2022, representing a decline of 10%[235]. - The company reported a loss from continuing operations of $(402.1) million for the nine months ended September 30, 2023, compared to a profit of $5,789.6 million in 2022[235]. - Net earnings for the three months ended September 30, 2023, reported a loss of $386.6 million, compared to a profit of $832.2 million in 2022[296]. - Adjusted EBITDA for the VMO2 joint venture increased by $110.4 million (10.4%) to $1,170.9 million for the three months ended September 30, 2023[248]. - The VodafoneZiggo JV reported revenue of $1,125.2 million for the three months ended September 30, 2023, an increase from $1,041.7 million in 2022[298]. Cost and Expense Management - The company experienced significant inflationary pressures, impacting labor, programming, and operating costs, which could negatively affect operating results and cash flows[227]. - Other operating expenses (excluding share-based compensation) increased by $61.7 million or 22.5% for the three months ended September 30, 2023, compared to the same period in 2022[273]. - SG&A expenses (excluding share-based compensation) increased by $47.1 million or 14.6% for the three months ended September 30, 2023, compared to the same period in 2022[279]. - Programming and other direct costs of services increased by $174.7 million or 11.6% for the nine months ended September 30, 2023, with $88.5 million of this increase attributed to acquisitions[269]. - Depreciation and amortization expense increased to $584.0 million for Q3 2023, a 15.4% rise from $506.0 million in Q3 2022, primarily due to network expansions and acquisitions[283]. Joint Ventures and Affiliates - The company holds a 50% noncontrolling interest in the VMO2 JV and VodafoneZiggo JV, presenting 100% of their revenue and Adjusted EBITDA in financial reports[231]. - The share of results from affiliates showed a loss of $240.8 million in Q3 2023, compared to a profit of $501.0 million in Q3 2022, indicating a significant decline[295]. - The VMO2 joint venture reported revenue of $3,335.6 million for the nine months ended September 30, 2023, a decrease of $179.6 million or 5.1% from 2022[249]. - VodafoneZiggo joint venture revenue was $1,474.7 million for the nine months ended September 30, 2023, down $55.4 million or 3.6% year-over-year[249]. Cash Flow and Liquidity - Cash and cash equivalents totaled $1,741.6 million as of September 30, 2023[317]. - The company reported a net cash provided by operating activities of $1,326.7 million for the nine months ended September 30, 2023, a decrease of $576.8 million compared to $1,903.5 million in 2022[338]. - The net cash used by investing activities was $(966.4) million, a significant decrease of $2,914.2 million from $1,947.8 million in 2022, primarily due to the sale of UPC Poland in 2022[339]. - Liberty Global's total outstanding principal debt, including finance lease obligations, was $15.3 billion as of September 30, 2023, with $7.3 billion not due until 2029 or later[335]. - Adjusted free cash flow for the nine months ended September 30, 2023, was $48.0 million, a significant decrease from $678.9 million in the same period of 2022[345]. Market and Competitive Environment - The competitive environment and macroeconomic factors have adversely impacted revenue, customer numbers, and average monthly subscription revenue per customer[226]. - The company is focused on managing rapid technological changes and maintaining or increasing subscription numbers and average revenue per household[221]. - The total number of fixed-line customers and mobile subscribers is impacted by competition, affecting the ability to maintain or increase ARPU[236]. - The company is subject to risks related to government regulations, including potential requirements to open broadband distribution networks to competitors[220].