Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q1 2023 Earnings Presentation
40 slides from Liberty Global's earnings presentation, May 10, 2023
Slide 1: Liberty Global plc Investor Call Q1 2023
LIBERTY GLOBAL PLC INVESTOR CALL Q1 2023 May 10, 2023
Slide 2: Safe Harbor: Forward-Looking Statements + Disclaimer
“SAFE HARBOR” Forward-Looking Statements + Disclaimer from competition, to manage rapid technological change or to maintain or increase rates to subscribers or to pass through increased costs to subscribers; the potential continued impact of pandemic and epidemics This presentation contains forward-
Slide 3: Q1 Highlights: Advancing All Three Pillars of Our Value Creation Strategy
Q1 HIGHLIGHTS: ADVANCING ALL THREE PILLARS OF OUR VALUE CREATION STRATEGY FMC LIBERTY CAPITAL CHAMPIONS VENTURES ALLOCATION Solid commercial momentum, Value today of $3.4 billion(1) Announced two strategic with 90k postpaid mobile and driven by VOD stake & AtlasEdge initiatives; offer to buy T
Slide 4: Q1 Connectivity Trends Solid Across the Group Despite Competitive Pressures
Q1 CONNECTIVITY TRENDS SOLID ACROSS THE GROUP DESPITE COMPETITIVE PRESSURES Postpaid Mobile Net Adds Broadband Net Adds VMO2 (1) BROADBAND SUNRISE BROADBAND VMO2 AND POSTPAID MOBILE AND POSTPAID MOBILE NET ADDS (000’S) NET ADDS (000’S) ◆ Broadband: Strong Q1 additions especially given timing of pric
Slide 5: Revenue Growth Stable and Supported by Strong Performance in Mobile & B2B
REVENUE GROWTH STABLE AND SUPPORTED BY (1) STRONG PERFORMANCE IN MOBILE & B2B (2)(3) (3) (2) Diverse revenue mix % of Q1 Rev % of Q1 Rev % of Q1 Rev % of Q1 Rev supports overall stable Rev Growth Rev Growth Rev Growth Rev Growth growth in Q1 Fixed revenues under Total 100% +2.9% 100% +3.9% (4) 1
Slide 6: Clear Pricing Roadmap to Offset Inflation
CLEAR PRICING ROADMAP TO OFFSET INFLATION MARCH / APRIL JULY APRIL / MAY JULY UK Fixed / Mobile NL Fixed UK Fixed / Mobile NL Fixed 6.5% / 9% 3.5% ~14% / 17% ~8.5% JUNE JUNE 2022 BE Fixed / Mobile OCTOBER NL Mobile 2023 BE Fixed / Mobile JULY CH Fixed / Mobile 4.7% 2.7% 6% 4% Leveraging our 1 GIG ne
Slide 7: Recent Strategic Announcements Support Strategic Plans
RECENT STRATEGIC ANNOUNCEMENTS SUPPORT STRATEGIC PLANS 1 TELENET MINORITY BUYOUT 2 REDOMICILING TO BERMUDA TRANSACTION SUMMARY TRANSACTION SUMMARY ◆ Voluntary & conditional public takeover bid for TNET at €22 / share ◆ Liberty Global plc to change its place of incorporation from the United Kingdom t
Slide 8: Financial Results
INVESTOR CALL Q1 2023 FINANCIAL RESULTS
Slide 9: Hot Topic #1: VMO2 Financial Impact of nexfibre
HOT TOPIC #1: VMO2 FINANCIAL IMPACT OF NEXFIBRE STRUCTURE OVERVIEW UPDATED FINANCIAL IMPACT 50% DEAL RECAP HoldCo 50% ◆ VMO2 to provide managed services to nexfibre (including 50% 50% construction, IT, technology and corporate services) Wholesale Customers ◆ Attractive build costs (£550-650 CPP) and
Slide 10: Hot Topic #2: Updating on LG Central
HOT TOPIC #2: UPDATING ON LG CENTRAL TARGET RECURRING ~$200-250M UNDERLYING NET CENTRAL SPEND LIBERTY TECH OPS CORPORATE VENTURES Centralized Tech operations providing Typical head office and specialist Central ventures team managing services to OpCo’s including functions including management, portf
Slide 11: Q1 2023 Revenue: Broadly Stable Revenue Trends
Q1 2023 REVENUE: BROADLY STABLE REVENUE TRENDS(1) VMO2(2)(3) SUNRISE VMO2 (3) REVENUE GROWTH (%) REVENUE GROWTH (%) ◆ Stable revenue in Q1 (excluding impact of nexfibre construction revenues) 3.9% driven by mobile service revenue growth and handset revenues, offset by declining fixed Incl. construct
Slide 12: Q1 2023 Adj. EBITDA: Anticipated Phasing Given Inflationary Pressures
Q1 2023 ADJ. EBITDA: ANTICIPATED PHASING GIVEN INFLATIONARY PRESSURES (1) VMO2(2)(3) SUNRISE VMO2 (3) ADJ. EBITDA GROWTH (%) ADJ. EBITDA GROWTH (%) ◆ Adj. EBITDA in Q1 impacted by phasing including delayed fixed price rise, 10.1% Includes synergy comparative and opex inflation 8.2% $25M CTC 9.6% ◆ A
Slide 13: Capital Allocation: Strong Liquidity Profile
CAPITAL ALLOCATION: STRONG LIQUIDITY PROFILE Q1 CAPITAL INTENSITY IN LINE WITH GUIDANCE (1) FY Q1 $FULL COMPANY DISTRIBUTABLE CF 25% Includes ROU Additions 2022 2023 20% ADJ EBITDA LESS P&E ADDITIONS $1,032 $235 15% NET INTEREST (415) (196) 10% CASH TAX (171) (99) 5% 0% DIVIDENDS & INTEREST FROM JV’
Slide 14: 2023 Guidance: On Track
2023 GUIDANCE(1): ON TRACK (2) (4) ◆ Revenue growth ◆ Low-single digit revenue decline ◆ Mid-single digit Adj. EBITDA growth (excl. CTC) ◆ Low to Mid-single digit Adj. EBITDA decline (incl. CTC) ◆ Opex and Capex CTC ~£150m ◆ Opex and Capex CTC ~CHF50m (~CHF 10m in opex) ◆ P&E additions of around £2.
Slide 15: Appendix
INVESTOR CALL Q1 2023 APPENDIX
Slide 16: Ventures: Portfolio FMV $3.4B
VENTURES: PORTFOLIO FMV $3.4B (1) VENTURES FAIR MARKET VALUE(2) ($B) VENTURES PORTFOLIO GREW in Q1’23, ending with $3.4B FMV (+~$0.4B vs Dec-2022) $3.0B $3.4B CONTENT ◆ ITV Share price continues recovery in Q1 along with Lionsgate TECH / INFRASTRUCTURE ◆ Tech valuations remain broadly stable, ~$40m
Slide 17: Central: Impact of New Central TSAs
CENTRAL: IMPACT OF NEW CENTRAL TSAS (1) Q1 2022 Q1 2022 Q1 2022 Q1 2023 as reported as revised difference as reported REVENUE (2) $169 $229 $60 $231 TOTAL OPERATING COSTS (3) (191) (210) (19) (204) OPEX ALLOCATION 11 2 (9) - ADJUSTED EBITDA $(11) $21 $32 $27 P&E ADDITIONS (58) (58) - (48) ADJUSTED E
Slide 18: Q1 2023: Adj Attributed FCF & Distributable CF
Q1 2023: ADJ ATTRIBUTED FCF & DISTRIBUTABLE CF 50-50 50-50 LIBERTY VODAFONEZIGGO VMO2 JV $M IRELAND BELGIUM SWITZERLAND CENTRAL (1) JV GLOBAL IFRS BASIS (2) (3) (2) (3) (4) ADJUSTED EBITDA $42 $303 $263 $17 $625 $472 $1,130 P&E ADDITIONS (33) (173) (149) (35) (390) (251) (650) ADJUSTED EBITDA LESS P
Slide 19: Q1 2023: Adj EBITDA & Adj EBITDAaL
Q1 2023: ADJ EBITDA & ADJ EBITDAAL (1) 50-50 50-50 LIBERTY VODAFONEZIGGO VMO2 JV $M IRELAND BELGIUM SWITZERLAND CENTRAL (2) JV GLOBAL IFRS BASIS (3) (4) (3) (4) (5) ADJUSTED EBITDA $42 $303 $263 $17 $625 $472 $1,130 FINANCE LEASE ADJUSTMENTS - (20) (1) (3) (24) (2) (69) ADJUSTED EBITDAaL $42 $283 $2
Slide 20: 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 2023, we have adjusted our historical re
Slide 21: 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 22: 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 23: 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 24: Glossary
GLOSSARY SIM: Subscriber Identification Module. SOHO: Small or Home Office Subscribers. Telephony Subscriber: A home, residential multiple dwelling unit or commercial unit that receives voice services over our networks, or that we service through a partner network. Telephony Subscribers exclude mobi
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 to Adjusted EBITDA and Adjusted EBITDA less P&E Additions for the three months ended March 31, 2023 (in millions): 28
Slide 29: Reconciliations: Adjusted EBITDA & Adjusted EBITDA less P&E Additions (Continued)
RECONCILIATIONS ADJUSTED EBITDA & ADJUSTED EBITDA LESS P&E ADDITIONS (CONTINUED) The following table provides a reconciliation of our net earnings to Adjusted EBITDA and Adjusted EBITDA less P&E Additions for the year ended December 31, 2022 (in millions): 29
Slide 30: Reconciliations: Adjusted EBITDA & Adjusted EBITDAaL
RECONCILIATIONS ADJUSTED EBITDA & ADJUSTED EBITDAAL The following table provides a reconciliation of Adjusted EBITDA attributable to our continuing operations and the VodafoneZiggo JV to Adjusted EBITDAaL for the three months ended March 31, 2023 (in millions): 30
Slide 31: Reconciliations: Full Company Adjusted FCF & Distributable CF
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF & DISTRIBUTABLE CF 31
Slide 32: Reconciliations: Full Company Adjusted FCF & Distributable CF (Continued)
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF & DISTRIBUTABLE CF (CONTINUED) 32
Slide 33: Reconciliations: Supplemental Adjusted Attributed FCF & 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 34: Reconciliations – VodafoneZiggo JV
RECONCILIATIONS – VODAFONEZIGGO JV VODAFONEZIGGOJV 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 35: 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: 35
Slide 36: 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: 36
Slide 37: VMO2 JV Reconciliations – Revenue (Continued)
VMO2 JV RECONCILIATIONS – REVENUE (CONTINUED) The following tables provide reconciliations from VMO2 JV US GAAP revenue to IFRS rebased revenue for the indicated periods: 37
Slide 38: 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: 38
Slide 39: 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: 39
Slide 40: 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