Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q1 2016 Earnings Presentation
26 slides from Liberty Global's earnings presentation, May 10, 2016
Slide 1: Q1 2016 Investor Call
Q1 2016 Investor Call May 10, 2016
Slide 2: Safe Harbor
“Safe Harbor” Forward-Looking Statements programming for our digital video services and the costs associated with such programming; our ability to achieve forecasted financial and operating targets; the outcome of any pending or threatened litigation; This contains forward-looking statements within
Slide 3: Liberty Global Q1 2016 Investor Call
Liberty Global | Q1 2016 Investor Call | May 10, 2016 3
Slide 4: Key Messages
Key Messages RGU additions more than doubled YoY driven by U.K. Price increases landed well across markets New build target of 1.5 mm homes in 2016 on track Hybrid mobile strategy well underway Closing of CWC acquisition imminent All 2016 guidance targets confirmed for LBTY & LiLAC Liberty Global |
Slide 5: Liberty Global plc Highlights – Q1 2016
(1) Liberty Global plc Highlights – Q1 2016 OPERATIONS & M&A, PRODUCTS & BALANCE FINANCIALS INNOVATION SHEET Gained 156k RGUs and Received shareholder $4.4 bn of total liquidity, 100k mobile postpaid subs approvals for CWC deal including $1.0 bn of cash Revenue up 3% YoY to Ziggo/Vodafone JV Lowered
Slide 6: Liberty Global plc – Net Adds Improvement
(1) Liberty Global plc – Net Adds Improvement Delivered year-over-year gains across all three fixed products in Q1 PRICE INCREASES LANDED WELL ACROSS MARKETS DRIVERS OF Q1 RESULTS VIDEO • U.K. delivers best Q1 growth in 6 years TOTAL NET ADDS 156 • German RGU additions stable YoY (169) Q1 15 LiLAC 2
Slide 7: Liberty 3.0 is a “GO!”
Liberty 3.0 is a “GO!” Three-year plan to accelerate our revenue and OCF growth LIBERTY GO Full execution mode across the entire organization New Market Share Build Revenue drivers building momentum New Operating model will deliver scale Efficiencies Mobile Build efficiencies and improved rNPS Liber
Slide 8: 2016 Product Roadmap and New Build Update
2016 Product Roadmap and New Build Update Enhanced customer experience & new build to fuel future growth plans 2016 PRODUCT ROADMAP NEW BUILD DELIVERING GROWTH Horizon Go and Replay TV apps 1.5 mm new homes expected in expanding usage and reach Europe and Latin America this year Horizon UI enhanceme
Slide 9: Key Drivers for Future Growth
(1) Key Drivers for Future Growth Leveraging our scale and superior network to drive accretive growth MOBILE DRIVING TOP LINE B2B ACCELERATING 100k postpaid mobile adds in Q1; high 10% revenue growth in Q1 2016 take-up among our 3P customers Double-digit market share targeted BASE (2.0 mm) and CWC (
Slide 10: LiLAC – Transformational CWC Transaction
LiLAC – Transformational CWC Transaction Closing of CWC deal imminent; substantial growth potential across region TRANSACTION UPDATE Deal approved by 99% of Liberty (1) Global and CWC shareholders New regional champion with best B2C and B2B products and platform (2) Additional synergies expected bey
Slide 11: Liberty Global Q1 2016 Investor Call
Liberty Global | Q1 2016 Investor Call | May 10, 2016 11
Slide 12: Liberty Global Group – Q1 2016 Financial Results
(1) Liberty Global Group – Q1 2016 Financial Results Confirming all financial guidance targets for 2016 3% $4,229 $4,284 3% 21% 22% $1,989 $1,994 $869 $926 $356 Q1 16 Q1 15 Q1 16 Q1 15 Q1 16 Q1 15 Q1 16 Q1 15 $(105) REVENUE OCF PROPERTY & FREE CASH FLOW USD MM USD MM EQUIPMENT ADD USD MM USD MM, % O
Slide 13: Q1 2016 Rebased Results – Western Europe
(1,2) Q1 2016 Rebased Results – Western Europe Western Europe posted 4% rebased OCF growth 8% 6% 5% 5% 4% 4% 3% 2% 2% Revenue Revenue OCF Revenue OCF Revenue OCF OCF Revenue OCF (3)% UK & IRELAND GERMANY BELGIUM NETHERLANDS AUSTRIA & SWITZERLAND (1) Please see Appendix for definitions and additional
Slide 14: Liberty Global Group – Q1 2016 Leverage & Buybacks
(1) Liberty Global Group – Q1 2016 Leverage & Buybacks Borrowing cost of debt improved to record-low 4.7%; buyback moratorium lifting Borrowing Capacity $3.2bn ADJUSTED LEVERAGE RATIOS Gross 5.4x $3.7bn LIQUIDITY By Year-End 2017 $3.9bn Net 5.3x SHARE Parent Operating REPURCHASES Cash Subsidiary Cas
Slide 15: LiLAC Group – Q1 2016 Financial Results
(1) LiLAC Group – Q1 2016 Financial Results Financial performance underpinned by RGU and ARPU gains 6% $304 $288 11% $122 24% $108 20% $72 $56 $20 Q1 15 Q1 15 Q1 16 Q1 15 Q1 16 Q1 15 Q1 16 Q1 16 ($26) REVENUE OCF PROPERTY & FREE CASH FLOW USD MM USD MM EQUIPMENT ADD USD MM USD MM, % OF REVENUE (1) A
Slide 16: LiLAC Group – Q1 2016 Results & Leverage
(1) LiLAC Group – Q1 2016 Results & Leverage Robust financial results in both Chile and Puerto Rico 8% $200 4.9x 4.3x 3% 13% $104 7% $76 $47 Chile Puerto Chile Puerto Gross Net Rico Rico REVENUE GROWTH OCF GROWTH ADJUSTED BREAKDOWN BREAKDOWN LEVERAGE RATIOS USD MM USD MM USD MM (1) Please see Append
Slide 17: Conclusions
Conclusions Growth drivers of Liberty GO in place Expect accelerating RGU adds & financial results All 2016 guidance targets confirmed for LBTY and LiLAC P&E Additions set to increase through 2016 Following CWC closing, LiLAC to unlock substantial growth opportunity Liberty Global | Q1 2016 Investor
Slide 18: Liberty Global Q1 2016 Investor Call
Liberty Global | Q1 2016 Investor Call | May 10, 2016 18
Slide 19: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally accepted the average monthly cable subscription revenue comprehensive plan to drive top-line growth while in the United States. (excluding mobile services, B2B services, maintaining tight cost controls. The Liberty GO in
Slide 20: Definitions and Additional Information
Definitions and Additional Information Total B2B includes subscription (SOHO) and Rebased Mobile Revenue Growth Liberty Global non-subscription revenue. Non-subscription Group's 5.4% rebased mobile revenue growth for revenue includes the amortization of deferred Q1 2016 includes the positive impact
Slide 21: Definitions and Additional Information
Definitions and Additional Information Basic Video Subscriber is a home, residential Subscribers to enhanced video services provided Mobile Subscriber represents the number of active multiple dwelling unit or commercial unit that by our operations in Switzerland and the subscriber identification mod
Slide 22: Definitions and Additional Information
Definitions and Additional Information Information on Rebased Growth For purposes of same extent that the revenue and OCF of these with Article 11 of Regulation S-X. In addition, the calculating rebased growth rates on a comparable subscribers is excluded from our results for the rebased growth perc
Slide 23: Operating Cash Flow Definition and Reconciliation
Operating Cash Flow Definition and Reconciliation As used herein, OCF has the same meaning as the directly associated with successful and comparing our performance with the performance of term "Adjusted OIBDA" that is referenced in our 10- unsuccessful acquisitions and dispositions, other companies
Slide 24: Free Cash Flow and Free Cash Flow Definitions and Reconciliations
Free Cash Flow and Free Cash Flow Definitions and Reconciliations(*) We define free cash flow as net cash provided by our operating activities, plus (i) excess tax benefits related to the exercise of share-based incentive awards, (ii) cash payments for third-party costs directly associated with succ
Slide 25: Definitions and Additional Information
Definitions and Additional Information Free Cash Flow 6. Excess tax benefits from share-based compensation represent the excess of tax deductions over the related financial reporting share-based compensation expense. The hypothetical cash flows associated with these excess tax benefits are reported
Slide 26: Definitions and Additional Information
Definitions and Additional Information LiLAC Transaction On July 1, 2015, Liberty Global completed the "LiLAC Transaction" pursuant to which each holder of Liberty Global’s then-outstanding ordinary shares remained a holder of the same amount and class of new Liberty Global ordinary shares and recei