Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q2 2017 Earnings Presentation
22 slides from Liberty Global's earnings presentation, Aug 8, 2017
Slide 1: Liberty Global Group Investor Call Q2 2017
LIBERTY GLOBAL GROUP INVESTOR CALL Q2 2017 | AUGUST 8, 2017
Slide 2: Safe Harbor: Forward-Looking Statements + Disclaimer
“SAFE HARBOR” Forward-Looking Statements + Disclaimer companies' and affiliates’ future financial performance, or market conditions generally, on the availability, terms and deployment of capital; fluctuations in This presentation contains forward-looking statements within the meaning of currency ex
Slide 3: Executive Summary
Slide 4: Key Messages
KEY MESSAGES 1 ACHIEVING SIGNIFICANT 2 MATERIALLY IMPROVED VIDEO 3 VIRGIN MEDIA REGAINING 4 ACCELERATED SHARE 5 2017 FULL-YEAR OPERATIONAL SUBSCRIBER OPERATING REPURCHASES GUIDANCE LEVERAGE TRENDS TRACTION IN H1 2017 UPDATE DELIVERING ON NEXT-GEN PRODUCTS TOP-LINE POISED FOR $2.2 BILLION OF CONFIRMI
Slide 5: Liberty Go Scorecard: Cost Efficiencies & B2B Plan
LIBERTY GO SCORECARD Delivering On Cost Efficiencies & Aggressive B2B Plan COST EFFICIENCIES REINVESTING OPEX SAVINGS STRONG B2B RESULTS OCF MARGIN IMPROVING YOY H1 2017 REBASED OPEX GROWTH RATES YOY TOTAL B2B REBASED REVENUE GROWTH 46.5% OCF MARGIN OCF MARGIN (1) 45.1% 4% 14% Q2 Rebased Revenue $2.
Slide 6: Liberty Go Scorecard: New Build & Mobile
LIBERTY GO SCORECARD New Build Progressing I Challenging Mobile Environment H1 2017 NEW BUILD CONSUMER MOBILE PREMISES BUILT (IN 000’S) REBASED REVENUE GROWTH Q2 Rebased CEE Revenue 194 Growth Q1 Q2 (by Segment) TOTAL 2017 2017 SUBSCRIPTION VIRGIN MEDIA 504K (4%) 229 INTERCONNECT (9%) REST OF HANDSE
Slide 7: Liberty Go Scorecard: Subscriber Additions
LIBERTY GO SCORECARD (1) Subscriber Additions Remain at Robust Levels FIRST HALF NET ADDITIONS H1 2017 (IN 000’S) 434 • Organic RGU additions in 406 Western Europe up 16% YoY CENTRAL & to 323,000 EASTERN EUROPE • Best H1 video performance 262 since 2006, driven by new build WESTERN EUROPE and next-g
Slide 8: Virgin Media U.K. Q2 2017 Update
VIRGIN MEDIA U.K. | Q2 2017 UPDATE Accelerating Volume Growth Offset by ARPU Headwinds U.K. RGU ADDITIONS UP YOY U.K. ARPU TREND 2017 U.K. PRICE INCREASE TAKING MORE THAN OUR FAIR MARKET SHARE PRICING BENEFIT OFFSET BY HEADWINDS MORE TARGETED APPROACH RGU ADDITIONS (IN ‘000) ARPU TREND (IN £) 2017 P
Slide 9: Virgin Media Project Lightning Update
VIRGIN MEDIA | PROJECT LIGHTNING UPDATE New Leadership Team and Overhauled Processes Supporting Transformation NEW PREMISES | U.K. & IRELAND ACTIVE CUSTOMER PENETRATION U.K. (000s) QUARTERLY ADDITIONS AS PERCENTAGE OF CONNECTED PREMISES 33% 750 127 29% 102 28% 600 26% 86 25% 23% 450 81 22% 86 19% 30
Slide 10: Financial Results
Liberty Global plc Investor Call | Liberty Global Group Q2 2017 | August 8, 2017
Slide 11: Q2 2017 Financial Results
Q2 2017 FINANCIAL RESULTS Solid OCF Growth | Aggressive Share Repurchases | Substantial Liquidity of ~$5bn REVENUE OCF P&E ADDITIONS USD BN USD BN USD BN 2% REBASED GROWTH 6% REBASED GROWTH 25% 33% AS % OF REVENUE $3.8 $3.7 $1.7 $1.7 $1.0 $1.2 Excl. Excl. Excl. Ziggo Ziggo Ziggo Q2 2016 Q2 2017 Q2 2
Slide 12: Q2 2017 Results by Segment
Q2 2017 RESULTS BY SEGMENT (1,2) Western Europe Delivered 4% Rebased OCF Growth; Tight Cost Controls Support Performance U.K. & GERMANY BELGIUM SWITZERLAND CEE IRELAND & AUSTRIA 7% 6% 6% 5% 5% 4% 2% 1% 1% REVENUE REVENUE OCF REVENUE OCF REVENUE OCF OCF REVENUE OCF (1.5%) (1) Please see Appendix for
Slide 13: Liberty Global Group Conclusions
LIBERTY GLOBAL GROUP CONCLUSIONS Product Innovation, Network Expansion and Cost Efficiencies to Drive Organic Growth POSTED SOLID H1 ORGANIC SUBSCRIBER AND REBASED OCF GROWTH ROBUST CUSTOMER PROPOSITION & LIGHTNING TO REVIVE U.K. TOPLINE DELIVERING LIBERTY GO COST EFFICIENCIES ACROSS THE ORGANIZATIO
Slide 14: Appendix
Liberty Global plc Investor Call | Liberty Global Group Q2 2017 | August 8, 2017
Slide 15: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION U.S. GAAP means accounting principles generally Organic RGU additions exclude RGUs of acquired accepted in the United States. entities at the date of acquisition and other nonorganic adjustments, but include the impact of changes in Revenue Generating Unit "RGU
Slide 16: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION Basic Video Subscriber is a home, residential Subscribers to enhanced video services provided by Mobile Subscriber represents the number of active multiple dwelling unit or commercial unit that receives our operations in Switzerland over partner networks subscr
Slide 17: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION Homes Passed are homes, residential multiple agreement with the VodafoneZiggo JV and certain acquisition accounting adjustments, (c) any significant dwelling units or commercial units that can be associated operating and SG&A expenses that had differences betwe
Slide 18: Definitions and Additional Information: Rebased Growth
DEFINITIONS AND ADDITIONAL INFORMATION Information on Rebased Growth: The following table provides adjustments made to the 2016 amounts to derive our rebased growth rates for the Liberty Global Group: a) In connection with the December 31, 2016 closing of the VodafoneZiggo JV transaction, we entered
Slide 19: Definitions and Additional Information: Revenue
DEFINITIONS AND ADDITIONAL INFORMATION Information on Revenue: Beginning April 1, 2017, we changed the categories for our revenue in order to align to our internal categories. We also applied these changes retroactively to the prior-year periods. The new categories are: • Residential cable subscript
Slide 20: Operating Cash Flow Definition and Reconciliation
OPERATING CASH FLOW DEFINITION AND RECONCILIATION As used herein, OCF has the same meaning as the substitute for, operating income, net earnings or loss, term "Adjusted OIBDA" that is referenced in our form cash flow from operating activities and other U.S. 10-Q. OCF is the primary measure used by o
Slide 21: Adjusted Free Cash Flow Definition and Reconciliations
ADJUSTED FREE CASH FLOW DEFINITION AND RECONCILIATIONS(*) We define Adjusted Free Cash Flow as net cash remove the operating cash outflows and financing provided by our operating activities, plus (i) cash cash inflows associated with excess tax benefits from payments for third-party costs directly a
Slide 22: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION Adjusted Free Cash Flow For purposes of our Adjusted Free Cash Flow definition, we add back the hypothetical operating cash outflow when these financed expenses are incurred and deduct the financing cash outflows when we pay the financing intermediary. Property