Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q1 2024 Earnings Presentation
37 slides from Liberty Global's earnings presentation, May 2, 2024
Slide 1: Investor Call Q1 2024
INVESTOR CALL Q12024 €0) eo
Slide 2: Safe Harbor: Forward-Looking Statements + Disclaimer
“SAFE HARBOR” Forward-Looking Statements + Disclaimer This presentation contains forward-looking forward-looking statements involve certain risks and uncertainties that could cause actual results to differ statements within the meaning of the Private Securities Litigation Reform Act of 1995, includi
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: Q1 Highlights: Squarely Focused on Growth and Value Creation for Shareholders
Q1 HIGHLIGHTS: WE ARE SQUARELY FOCUSED ON GROWTH AND VALUE CREATION FOR SHAREHOLDERS 1 Significant progress on announced steps to deliver value to shareholders § Sunrise spin-off to Liberty shareholders scheduled for Q4’24 § Other value-accretive strategies and transactions on track 2 Strong balance
Slide 5: Strategic Plan Update: Significant Progress on All Five Announced Initiatives
STRATEGIC PLAN UPDATE: SIGNIFICANT PROGRESS ON ALL FIVE ANNOUNCED INITIATIVES Maximizing FMC’s LG Benelux • Validating synergies • Progress on network Deliver Value sharing in Belgium to shareholders and • Interest from Private Equity shrink the value gap Maximizing FMC’s Ventures Strategy Use Ventu
Slide 6: Sunrise Spin: On Track for Q4 Listing in Switzerland
SUNRISE SPIN: ON TRACK FOR Q4 LISTING IN SWITZERLAND TRANSACTION RATIONALE TRANSACTION UPDATE Shrink LBTY Valuation Gap: Establishes fully- Timing: Anticipated for early Q4’24 distributed, local valuation for Sunrise Mechanics: Multi-share structure, listing on the SIX Compelling Equity Story: Best-
Slide 7: Operating Highlights: Mixed Results Impacted by Soft Market Conditions and Competition
OPERATING HIGHLIGHTS: MIXED RESULTS IMPACTED BY SOFT MARKET CONDITIONS AND COMPETITION Broadband Net Adds (k) Postpaid Net Adds (k) MARKET BY MARKET COMMENTARY (1) 91 § Soft overall fixed market in Q1 but VMO2 continues to take 43 increased share of gross adds on footprint 41 7 8 29 22 32 § Weak han
Slide 8: Investment in Platforms to Support Long-Term Growth and Competitiveness
INVESTMENT IN PLATFORMS TO SUPPORT LONG-TERM GROWTH AND COMPETITIVENESS INVESTING IN OUR NETWORKS FOR GROWTH(10) LEVERAGING DIGITAL & AI WHS Off-Net On-Net FTTH HFC ~40m Increasingly employing Digital and AI into our business: HOMES ~36m PASSED ~32m § Driving digital customer experiences at VMO2 and
Slide 9: Q1 Financials: Stable Revenue
Q1 FINANCIALS: STABLE REVENUE (7) Reported growth Excl. nexfibre construction Rebased growth VMO2 (1)(11) VODAFONEZIGGO (1) TELENET SUNRISE REVENUE GROWTH (%) REVENUE GROWTH (%) REVENUE GROWTH (%) REVENUE GROWTH (%) 7.1% 4.5% 6.2% 2.9% 2.5% 5.2% 3.9% 3.7% 1.8% 1.3% 1.6% 1.0% 0.0% 1.0% 1.3% (0.5%) 1.
Slide 10: Strong Capital Allocation Model Drives Inherent Asset Value
STRONG CAPITAL ALLOCATION MODEL DRIVES INHERENT ASSET VALUE CASH FLOW GENERATION VENTURES AND EQUITY WALK FY 2024 Ventures(12) Adj FCF & Cash Distributions Q1 2024 $3.4B GUIDANCE Sunrise Adj FCF (CHF56m) CHF360-400m 0.1 $3.3B 0.0 Telenet Adj FCF €12m €50-€75m Investments Central Adj EBITDA less P&E
Slide 11: Attractive Debt Position: No Material Maturities Until 2028
ATTRACTIVE DEBT POSITION: NO MATERIAL MATURITIES UNTIL (18)(19) 2028 FOLLOWING VMO2 REFINANCING $14.7B Bank Debt Bonds $11.8B $23B $23B ~50% ~50% $7.9B $6.8B $3.7B $0.9B 2024 2025 2026 2027 2028 2029 2030 2031 2032 Credit Facilities Sec. Notes Unsec. Notes TREASURY UPDATE § Siloed levered capital st
Slide 12: 2024 Guidance: Reiterating All Metrics
2024 GUIDANCE: REITERATING ALL METRICS (21) (1)(22) (1)(23) (24) § Revenue growth: Stable to § Revenue growth: Broadly stable § Revenue growth: Continued § Revenue growth: Broadly stable decline (excl. nexfibre) growth § Adj EBITDA growth: Stable to § Adj EBITDAaL growth: Mid- § Adj EBITDA growth: L
Slide 13: Appendix
APPENDIX
Slide 14: Revenue Growth: Mobile and B2B Offset Pressure in Fixed Revenue
REVENUE GROWTH: MOBILE AND B2B CONTINUE TO OFFSET PRESSURE IN FIXED REVENUE (7) (1)(8) (1) (9) 8% 2% 1% 10% Consumer Fixed 20% 30% 27% 20% Consumer Mobile $3.3B $0.9B 38% $1.1B 48% 26% $0.8B 44% B2B (Fixed & Revenue Revenue Revenue Revenue Mobile, incl. WHS) Q1’24 Q1’24 Q1’24 Q1’24 40% 24% Other 42%
Slide 15: Ventures: FMV $3.4bn, Supporting Core FMCs and Creating Unicorns
VENTURES : FMV $3.4BN, SUPPORTING CORE FMCS AND (12) CREATING UNICORNS TECH CONTENT INFRA FINANCIAL ~$0.6B ~$1.6B ~$1.0B ~$0.2B 7% 4% 9% Other Other 26% 10% Other 37% 25% 41% 16% 60 Other COMPANIES 15 7 3 COMPANIES COMPANIES COMPANIES 58% 59% 16% 24% 42% 26% (10) (14) 35 (3) 59 (85) 8 48 63 730 963
Slide 16: Adjusted Free Cash Flow & Distributable Cash Flow for Q1
ADJUSTED FREE CASH FLOW & DISTRIBUTABLE CASH FLOW FOR Q1 50-50 50-50 VMO2 JV $M VM IRELAND TELENET SUNRISE CENTRAL (25) LIBERTY GLOBAL VODAFONEZIGGO JV (1)(26) IFRS BASIS (1)(26)(27) ADJUSTED EBITDA $40 $308 $279 $(46) $581 $519 $1,174 P&E ADDITIONS (39) (184) (150) 8 (365) (245) (821) ADJUSTED EBIT
Slide 17: Q1 2024 Adj EBITDA & Adj EBITDAaL
Q1 2024 ADJ EBITDA & ADJ EBITDAAL 50-50 50-50 VMO2 JV $M VM IRELAND TELENET SUNRISE CENTRAL (25) LIBERTY GLOBAL VODAFONEZIGGO JV (1)(26) IFRS BASIS (1)(26)(27) ADJUSTED EBITDA $40 $308 $279 $(46) $581 $519 $1,174 FINANCE LEASE ADJUSTMENTS - - (2) - (2) (3) (72) ADJUSTED EBITDAaL $40 $308 $277 $(46)
Slide 18: Footnotes
FOOTNOTES 1. VMO2 and VodafoneZiggo represent non-consolidated 50% owned JVs. Reflects 100% of VMO2 and VodafoneZiggo. 2. Broadband additions include certain B2B as defined by VodafoneZiggo. 3. Includes cash and SMAs. 4. Represents shares outstanding as of and shares repurchased through April 26, 20
Slide 19: Footnotes
FOOTNOTES 17. Based on the fair value of our ventures portfolio (excluding listed stakes and our investment in All3Media) as of March 31, 2024, divided by the assumed 350m shares outstanding. 18. Amounts include the impact of the March and April refinancing transactions at VMO2. 19. Amounts include
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 earnings (loss) to Adjusted EBITDA and Adjusted EBITDA less P&E for the indicated periods: 28
Slide 29: Reconciliations: 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: Reconciliations: Supplemental Adjusted Attributed FCF
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
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