Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q1 2019 Earnings Presentation
22 slides from Liberty Global's earnings presentation, May 7, 2019
Slide 1: Liberty Global plc Investor Call Q1 2019
LIBERTY GLOBAL PLC INVESTOR CALL | Q1 2019 May 7, 2019
Slide 2: Safe Harbor
“SAFE HARBOR” The term “Excluding Switzerland” represents our continuing operations excluding UPC Switzerland and certain holding companies Forward-Looking Statements + Disclaimer within the UPC Holding borrowing group (together, the “Switzerland Disposal Group”), including the UPC Holding borrowing
Slide 3: Executive Summary, Financial Results, Appendix
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX 3
Slide 4: Q1 2019 Highlights
Q1 2019 HIGHLIGHTS REPORTED BASIS Q1 2019 Continuing Operations including Switzerland RGU Net Adds 25k • Vodafone transaction on track for summer completion Revenue Growth (rebased) (0.6%) • Sale of UPC Switzerland on track for Q4 2019 completion OCF Growth (rebased) (0.5%) Adjusted FCF ( ($625m) $6
Slide 5: Q1 Net Additions
Q1 NET ADDITIONS Improved subscriber trends both sequentially and year-over-year for our Continuing Operations FIXED-LINE RGU NET ADDS BROADBAND (Excluding Switzerland) (000s) • Continued speed leadership across our footprint, including the launch of 500 Mbps in the U.K. nationwide, and gigabit spee
Slide 6: Virgin Media: Overview
VIRGIN MEDIA: OVERVIEW Balancing price and volume to deliver growth; 1.7 million Lightning homes built to date, including 102k in Q1 PRICE / VOLUME PROJECT LIGHTNING CUSTOMER & RGU NET ADDS CUSTOMER ARPU U.K. PENETRATION 35% (000s) REBASED GROWTH YOY 31% 112 30% 28% 105 27% 28% 28% 28% CUSTOMERS 1.9
Slide 7: Virgin Media: Consumer Strategy
VIRGIN MEDIA: CONSUMER STRATEGY Product innovation to drive growth while investing in digitization to reduce SAC and increase efficiency FMC BUNDLES 1 PRODUCT 2 SALES 3 DIGITIZATION 4 MANAGEMENT EFFICIENCY • Early response from April’s • Introduced Personal • Moving to lower cost sales • Simplifying
Slide 8: UPC Switzerland: Overview
UPC SWITZERLAND: OVERVIEW Green shoots emerging but 2019 remains a transition year with significant investment SUBSCRIBER TRENDS IMPROVING KEY INITIATIVES ON TRACK NET RGU LOSSES CUSTOMER ARPU (1) NET MOBILE POSTPAY ADDS (000s) REBASED GROWTH YOY (000s) Initiative Status 1 NEW VIDEO PLATFORM Q1 '18
Slide 9: UPC Switzerland: H1 2019 Commercial Initiatives
UPC SWITZERLAND: H1 2019 COMMERCIAL INITIATIVES Encouraging early signs from launch of new video platform and enhanced mobile offers 1 >100,000 “UPC TV” BOXES IN THE FIELD 2 FMC GAINING TRACTION 15% CUMULATIVE BOXES DEPLOYED % OF SUBSCRIBERS THAT TAKE A (000s) BROADBAND & MOBILE SUBSCRIPTION 14% 100
Slide 10: EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX 10
Slide 11: Revenue & OCF Growth: Continuing Operations
REVENUE & OCF GROWTH: CONTINUING OPERATIONS (1) Mixed rebased OCF performance as known headwinds in the U.K. were partially offset by Belgian result LIBERTY GLOBAL U.K. & IRELAND BELGIUM (Continuing Operations) 5.2% 2.7% 2.8% 4.1% 4.1% REVENUE REVENUE REVENUE 1.9% 1.2% (0.2%) 2.4% ex-Switzerland (1.
Slide 12: Cash, Leverage and Liquidity
CASH, LEVERAGE AND LIQUIDITY Over $200 million of equity repurchased in Q1 and over $3 billion of available liquidity ADJUSTED FCF LIQUIDITY (2) CONTINUING OPERATIONS Cash REPORTED BASIS PROFORMA ADJUSTMENTS GUIDANCE BASIS Q1 ‘18 Q1 ‘19 Q1 ‘19 Revolving TOTAL $0.9B Credit LIQUIDITY $65M Facilities ~
Slide 13: Q1 P&E Additions / Operating Free Cash Flow
Q1 P&E ADDITIONS / OPERATING FREE CASH FLOW Continuing operations 29% lower than Q1 2018; significant year-over-year OFCF growth P&E Additions Operating Free Cash Flow Q1 2019 % Revenue vs 2018 Q1 2019 vs 2018 U.K. & IRELAND $395m 23.8% (29%) $313m +54% BY BELGIUM $142m 19.9% (24%) $197m +14% SEGMEN
Slide 14: Pro Forma FCF
PRO FORMA FCF (1) Guidance Basis (Continuing Operations excluding Switzerland) Q1 2019 OCF (Pro forma) $1,082m • Pro forma for TSAs: VOD $40m, Sunrise $24m, DTH $1m P&E ADDITIONS (640) OFCF (Pro forma) 442 • Includes ~$75m negative incremental OFCF contribution from Lightning INTEREST / DERIVATIVES
Slide 15: Conclusions
CONCLUSIONS Operations performing in-line with expectations • Transactions with Vodafone & Sunrise remain on track • Robust U.K. subscriber growth • Switzerland beginning to show green shoots of turnaround plan • Declining capital intensity drives strong OFCF growth year-over-year • Confirming all 2
Slide 16: EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX 16
Slide 17: Rebase Information
REBASE INFORMATION For purposes of calculating rebased growth rates on a comparable basis for all businesses that The following table provides adjustments made to the 2018 amounts to derive our rebased we owned during 2019, we have adjusted our historical revenue and OCF for the three months growth
Slide 18: 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 Free Cash Flow (FCF): net cash provided by our operating activities, plus (i) cas
Slide 19: Glossary
GLOSSARY (v) Represents our preliminary estimate of the net cash flows that we would calculating the percentage change in ARPU on a rebased basis, we on a unique premises basis. Accordingly, if an individual receives our have received from transitional services agreements if the sale of the adjust t
Slide 20: Glossary
GLOSSARY Internet Subscriber: a home, residential multiple dwelling unit or commercial unit that receives internet represents a transparent view of our recurring operating performance that is unaffected by our capital services over our networks, or that we service through a partner network. Our Inte
Slide 21: Glossary
GLOSSARY RGU: A Revenue Generating Unit is separately a Basic Video Subscriber, Enhanced Video Subscriber, DTH Subscriber, Internet Subscriber or Telephony Subscriber. A home, residential multiple dwelling unit, or commercial unit may contain one or more RGUs. For example, if a residential customer
Slide 22: Appendix - Lightning
APPENDIX - LIGHTNING The presentation of OCF growth and OCF margins for UKIE’s Project Lightning represents “Incremental OCF”, which is supplemental non-GAAP information that has a different meaning than the OCF we report for our operating segments that are used by our chief operating decision maker