Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q3 2024 Earnings Presentation
37 slides from Liberty Global's earnings presentation, Oct 30, 2024
Slide 1: Liberty Global Investor Call Q3 2024
LIBERTY GLOBAL INVESTOR CALL Q3 2024 OCTOBER 30, 2024
Slide 2: Safe Harbor: Forward-Looking Statements + Disclaimer
“SAFE HARBOR” Forward-Looking Statements + Disclaimer This presentation contains forward-looking the end of 2024; the strength of our, our affiliates' and our joint ventures’ respective balance sheets statements within the meaning of the Private Securities Litigation Reform Act of 1995, including st
Slide 3: Additional Disclaimers
ADDITIONAL DISCLAIMERS No Offer to Sell or Solicit This communication is not an offer to sell or a solicitation of offers to purchase or subscribe for shares or a solicitation of any vote or approval. This document is not a prospectus within the meaning of the Swiss Financial Services Act and not a
Slide 4: Q3'24 Highlights: Executing Against Strategic Initiatives to Unlock Value
Q3’24 HIGHLIGHTS EXECUTING AGAINST STRATEGIC INITIATIVES TO UNLOCK VALUE Delivering on initiatives to create and unlock value for shareholders Switzerland UK Sunrise spin on Nov 12th Continuing to progress NetCo separation & potential financing CHF 1.5b net debt reduction by year-end 5.6m to
Slide 5: Sunrise Spin: Transaction Approved by Shareholders, Expected Nov 12th
SUNRISE SPIN TRANSACTION APPROVED BY SHAREHOLDERS AND EXPECTED NOV 12TH SPIN TIMELINE EXECUTING FINAL STEPS AHEAD OF SPIN FEB 16 Announced Sunrise spin Hosted CMD and Investor Roadshow, strong equity story AUG 26 Registration Statement; Prelim. F4 Filing Premium and scaled challenger in attracti
Slide 6: Entering the Next Phase of Value Creation
LIBERTY GLOBAL ENTERING THE NEXT PHASE OF VALUE CREATION As with Sunrise, we remain focused on managing our Telecom assets for the benefit of shareholders over time, and rotating capital into strategic Telecom transactions and new Growth opportunities with scale advantages LIBERTY 80m connections(9)
Slide 7: Operating Highlights: Sequential Improvement in Net BB & Postpaid Adds
OPERATING HIGHLIGHTS SEQUENTIAL IMPROVEMENT ACROSS ALL MARKETS IN NET BB & POSTPAID ADDS Broadband Net Adds (k) Postpaid Net Adds (k) MARKET COMMENTARY 45 38 1 Continued positive broadband net adds since Q4’23 inflection, 32 2 22 5 1 driven by main brand churn initiatives 25 6 (5) (6) (5) (4) 0 43
Slide 8: Q3 Financials: On Track to Meet FY24 Guidance Targets
Q3 FINANCIALS (15) ON TRACK TO MEET FY24 GUIDANCE TARGETS (13)(16) (13) REVENUE GROWTH REVENUE GROWTH REVENUE GROWTH Excl. nexfibre construction REVENUE GROWTH (%, REBASED) (%, REBASED) (%, REPORTED) (%, REBASED) Includes 7.1% 2.5% 1.8% 4.5% recognition of YTD Total $18m of previously Service Revenu
Slide 9: Capital Allocation: $3.5B Cash Balance Supported by Adj FCF
CAPITAL ALLOCATION (17) $3.5B CASH BALANCE SUPPORTED BY ADJ FCF; CH SPIN HIGHLIGHTS VALUE GAP CASH FLOW GENERATION INVESTMENTS AND EQUITY WALK (18) Investments(5) Adj FCF & Cash Distributions FY 2024 YTD 2024 GUIDANCE $3.0B 0.1 $3.0B (0.0) (0.1) Sunrise Adj FCF CHF119m CHF360-370m 0.0 Telenet Adj F
Slide 10: Balance Sheet: No Material Maturities Until 2028
BALANCE SHEET NO MATERIAL MATURITIES UNTIL 2028 AFTER RECENT VZ REFINANCING (23) $15.1B $11.4B excl. Sunrise Bank Debt Bonds $11.9B $10.7B excl. Sunrise $23B $23B ~50% ~50% $8.0B $6.8B excl. Sunrise $6.9B $20B $21B $4.4B Excl. Sunrise Excl. Sunrise $0.2B 2024 2025 2026 2027 2028 2029 2030 2031 2032
Slide 11: 2024 Guidance: Reiterating All Guidance Metrics
2024 GUIDANCE REITERATING ALL GUIDANCE METRICS (24) (25) (13)(26) (13)(27) Revenue growth: Broadly stable Revenue growth: Broadly stable Revenue growth: Low to mid- Revenue growth: Continued single-digit decline (excl. growth Adj EBITDA growth: Stable to low- Adj EBITDAaL growth: Mid-sin
Slide 12: Appendix
APPENDIX
Slide 13: Liberty Growth Portfolio: FMV $3.0B, Continued Capital Rotation
LIBERTY GROWTH PORTFOLIO: (5) FMV $3.0B , CONTINUED CAPITAL ROTATION TO MAXIMIZE GROWTH TECH CONTENT INFRA STRATEGIC ~$0.5B ~$1.2B ~$1.1B ~$0.2B Other Other Other 8% 4% 12% 20% 11% 34% 48 COMPANIES 15% 27% 15 COMPANIES 7 COMPANIES 43% 34% 3 COMPANIES 65% 62% Other 38% 27% 229 29 11 1,190 (73) (85) 3
Slide 14: Liberty Growth Portfolio: Rotating Capital to Support FMCs & Invest in Growth Assets
LIBERTY GROWTH PORTFOLIO ROTATING CAPITAL TO SUPPORT FMCS & INVEST IN GROWTH ASSETS CONTINUED CAPITAL ROTATION TO MAXIMISE GROWTH DELIVERING ON LIBERTY GROWTH PORTFOLIO STRATEGY Invest, grow and rotate capital in strategic adjacencies to lay Formula E – closed deal to increase stake to 66% follo
Slide 15: Revenue Growth: Fixed Recovery in the U.K.
(15) REVENUE GROWTH: FIXED RECOVERY IN THE U.K. (28) (13)(29) (13) 2% 8% 1% 11% Consumer Fixed 21% 30% 27% 36% 20% Consumer Mobile $0.9B 26% $0.8B 44% $3.5B $1.1B 48% Revenue Revenue Revenue Revenue B2B (Fixed & Q3’24 Q3’24 Q3’24 Q3’24 Mobile, incl. WHS) 41% 24% Other 19% 42% Growth (%) Q2 24 Q3 24
Slide 16: YTD Adjusted FCF & Distributable CF
Q3 2024: YTD ADJUSTED FCF & DISTRIBUTABLE CF (18) 50-50 50-50 LIBERTY VODAFONEZIGGO VMO2 JV $M VM IRELAND TELENET SUNRISE CENTRAL(30) GLOBAL JV IFRS BASIS (13)(31) (13)(31)(32) ADJUSTED EBITDA $127 $981 $886 $(140) $1,854 $1,566 $3,714 P&E ADDITIONS (125) (612) (418) 30 (1,125) (715) (2,591) ADJUSTE
Slide 17: YTD Adj EBITDA & Adj EBITDAaL
Q3 2024: YTD ADJ EBITDA & ADJ EBITDAAL 50-50 50-50 VMO2 JV $M VM IRELAND TELENET SUNRISE CENTRAL(30) LIBERTY GLOBAL VODAFONEZIGGO JV (13)(31) IFRS BASIS (13)(31)(32) ADJUSTED EBITDA $127 $981 $886 $(140) $1,854 $1,566 $3,714 FINANCE LEASE ADJUSTMENTS – (1) (5) (2) (8) (9) (224) ADJUSTED EBITDAaL $12
Slide 18: Footnotes
FOOTNOTES Note: Certain amounts in this presentation may not sum due to rounding. 1. VMO2 is a non-consolidated 50% owned JV. Includes homes passed by the nexfibre partner network, which VMO2 JV has access to and acts as the anchor tenant. 2. Represents a CHF8.2 billion average EV on a sum-of-the-pa
Slide 19: Footnotes
FOOTNOTES 17. Includes cash and SMAs. 18. Adjusted Free Cash Flow is a non-GAAP measure. See the Glossary and Reconciliations for additional information. 19. Estimated shares outstanding on the date of the Sunrise spin. 20. Represents our $3.5 billion of cash and SMAs at September 30, 2024, as reduc
Slide 20: Glossary
GLOSSARY 10-Q or 10-K: As used herein, the terms 10-Q and 10-K refer to our most recent quarterly or annual report as filed with the Securities and Exchange Commission on Form 10-Q or Form 10-K, as applicable. Adjusted EBITDA, Adjusted EBITDA less P&E Additions and Property and Equipment Additions (
Slide 21: Glossary
GLOSSARY • Distributable Cash Flow: We define Distributable Cash Flow as Adjusted FCF plus any dividends received from our equity affiliates that are funded by activities outside of their normal course of operations, including, for example, those funded by recapitalizations (referred to as “Other Af
Slide 22: Glossary
GLOSSARY Debt and Net Debt Ratios: Our debt and net debt ratios, which are non-GAAP metrics, are defined as total debt and net debt, respectively, divided by reported net loss for the last twelve months (reported LTM net loss) and Adjusted EBITDA for the last twelve months (LTM Adjusted EBITDA). Net
Slide 23: Glossary
GLOSSARY SIM: Subscriber Identification Module. SOHO: Small or Home Office Subscribers. Tech Framework: Our centrally-managed technology and innovation function (our T&I Function) provides, and allocates charges for, certain products and services to our consolidated reportable segments (the Tech Fra
Slide 24: Rebase Information
REBASE INFORMATION Rebase growth percentages, which are non-GAAP measures, are presented as a basis for assessing growth rates on a comparable basis. For purposes of calculating rebase growth rates on a comparable basis for all businesses that we owned during 2024, we have adjusted our historical re
Slide 25: Reconciliations: Rebase Adjustments
RECONCILIATIONS REBASE ADJUSTMENTS Rebase growth percentages, which are non-GAAP measures, are presented as a basis for assessing growth rates on a comparable basis. For further details on adjustments made to arrive at our rebase growth rates for the periods below, refer to our previously issued ear
Slide 26: Reconciliations: Rebase Adjustments (Continued)
RECONCILIATIONS REBASE ADJUSTMENTS (CONTINUED) 26
Slide 27: Reconciliations: Rebase Adjustments (Continued)
RECONCILIATIONS REBASE ADJUSTMENTS (CONTINUED) 27
Slide 28: Reconciliations: Adjusted EBITDA & Adjusted EBITDA Less P&E Additions
RECONCILIATIONS ADJUSTED EBITDA & ADJUSTED EBITDA LESS P&E ADDITIONS The following table provides a reconciliation of our net loss to Adjusted EBITDA and Adjusted EBITDA less P&E for the indicated periods: 28
Slide 29: Reconciliations: Liberty Global Full Company Adjusted FCF & Distributable CF
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF & DISTRIBUTABLE CF 29
Slide 30: Reconciliations: Full Company Adjusted FCF & Distributable CF (Continued)
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF & DISTRIBUTABLE CF (CONTINUED) 30
Slide 31: Supplemental Adjusted Attributed Free Cash Flow & Attributed Distributable Cash Flow
RECONCILIATIONS SUPPLEMENTAL ADJUSTED ATTRIBUTED FREE CASH FLOW & ATTRIBUTED DISTRIBUTABLE CASH FLOW We define Adjusted FCF as net cash provided by the operating activities of our continuing operations, plus operating-related vendor financed expenses (which represents an increase in the period to ou
Slide 32: Reconciliations – VodafoneZiggo JV Adjusted Free Cash Flow
RECONCILIATIONS – VODAFONEZIGGO JV VODAFONEZIGGO JV ADJUSTED FREE CASH FLOW (VODAFONEZIGGO JV ADJ FCF) VodafoneZiggo JV Adjusted FCF is defined as net cash provided by operating activities, plus (i) operating-related vendor financed expenses (which represents an increase in the period to actual cash
Slide 33: VMO2 JV Reconciliations – Revenue
VMO2 JV RECONCILIATIONS – REVENUE The following tables provide reconciliations from VMO2 JV US GAAP revenue to Rebased IFRS revenue for the indicated periods: 33
Slide 34: VMO2 JV Reconciliations – Revenue (Continued)
VMO2 JV RECONCILIATIONS – REVENUE (CONTINUED) The following tables provide reconciliations from VMO2 JV US GAAP revenue to Rebased IFRS revenue for the indicated periods: 34
Slide 35: VMO2 JV Reconciliations – Adj EBITDA
VMO2 JV RECONCILIATIONS – ADJ EBITDA The following tables provide reconciliations from VMO2 JV US GAAP Adj EBITDA to Rebased IFRS Adj EBITDA for the indicated periods: 35
Slide 36: VMO2 JV Reconciliations – Adj EBITDA Less P&E Additions
VMO2 JV RECONCILIATIONS – ADJ EBITDA LESS P&E ADDITIONS The following table provides reconciliations from VMO2 JV US GAAP Adj EBITDA to IFRS rebased Adj EBITDA and Adj EBITDA less P&E Additions for the indicated periods: 36
Slide 37: VMO2 JV Reconciliations – Adjusted FCF
VMO2 JV RECONCILIATIONS – ADJUSTED FCF VMO2 JV ADJUSTED FREE CASH FLOW (VMO2 JV ADJ FCF) VMO2 JV Adjusted FCF is defined as net cash provided by operating activities, plus operating-related vendor financed expenses (which represents an increase in the period to actual cash available as a result of e