Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q2 2024 Earnings Presentation
36 slides from Liberty Global's earnings presentation, Jul 26, 2024
Slide 1: Investor Call Q2 2024
INVESTOR CALL Q2 2024 €®) © & of
Slide 2: Forward-Looking Statements + Disclaimer
Forward-Looking Statements + Disclaimer This presentation contains forward-looking amount and tenor of our third-party debt and anticipated borrowing capacity; and other information and statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements statem
Slide 3: No Offer to Sell or Solicit
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 prospectus under any ot
Slide 4: Q2 2024 key highlights
❖ Sunrise spin-off on track for ❖ Agreement with Vodafone for ❖ MOU with Proximus for fiber ❖ ~$650m(4) of asset sales since Q4’24 spectrum & mobile network network sharing in BE 10/23; more planned sharing ❖ CMD scheduled for September ❖ Successful 5G spectrum auction ❖ Increasing stake in Formula
Slide 5: Operating trends: broadband, postpaid and ARPU
Broadband Net Adds (k) Postpaid Net Adds (k) 38 22 32 5 ▪ driven 2 25 6 by churn reduction and dual brand strategy 20 0 (5) (5) (5) (6) (1) (1) ▪ supported by 33 (14) (3) 29 26 (5) (7) (5) 2023 price rise and lower UPC migration impact 23 25 (11) ▪ by main/flanker brand acquisition mix (4) (3) (7) (
Slide 6: Fiber and network infrastructure initiatives
▪ Up and running with sector leading penetration of 50% supported by long term OBEL wholesale agreement ▪ value of digital ‘infra’ assets ▪ Wyre and Proximus to split fiber build in 2m medium-dense ▪ to monetize assets and TIM / KKR areas, with reciprocal wholesale access; accelerate build-out progr
Slide 7: Ventures portfolio and Formula E
▪ since October ▪ LG stake increasing from ▪ ‘23 against our $0.5B-$1.0B target by year-end 2024 ~19% in 2023 to $270m ▪ and expected to generate an ▪ 16 races per ▪ additional $100-$150m by year-end season across 10 countries on 30% faster than a current F1 4 continents car 0-60mph; GEN4 in ▪ like
Slide 8: Revenue and Adjusted EBITDA growth by operating company
(6)(12) (6) REVENUE GROWTH REVENUE GROWTH REVENUE GROWTH REVENUE GROWTH (%, REBASED) (%, REBASED) (%, REPORTED) (%, REBASED) Excl. nexfibre construction 4.5% 7.1% 2.5% 1.8% 6.2% 1.3% 5.2% 1.0% 3.7% 1.6% 1.5% 0.5% (0.5%) (1.4%) 1.2% 1.0% 1.3% 0.0% (0.2%) (2.9%) 0.1% (0.2%) (0.3%) (4.3%) (0.5%) (4.1%)
Slide 9: Adjusted FCF, cash and investments value
(9) $3.4B Sunrise Adj FCF CHF113m CHF360-400m (0.4) $3.0B 0.1 (0.1) Telenet Adj FCF €138m €50-€75m Driven by Increase in EC investments / ITV offset by Central Adj EBITDA less P&E ($69m) ($200)-(250m) A3M Sale into unicorns Tech VMO2 cash distributions to S/H - ~£850m VZ cash distributions to S/H
Slide 10: Debt maturity profile
$14.7B $11.8B $7.9B $6.8B $3.7B $0.8B 2024 2025 2026 2027 2028 2029 2030 2031 2032 Credit Facilities Sec. Notes Unsec. Notes ▪ ; long-term fixed rate debt profile ~5 years(1), FX matched ▪ Blended, cost of debt of ~3% LG consolidated, VZ ~4% and VMO2 ~5% ▪ No near-term maturities; debt re-pricing pr
Slide 11: 2024 guidance
(20) (6)(21) (6)(22) ▪ Broadly stable ▪ Broadly stable ▪ Low to ▪ Continued mid-single-digit decline (excl. growth ▪ Stable to low- ▪ Mid-single- nexfibre); previously stable to single-digit growth digit EBITDAaL decline decline (excl. nexfibre) ▪ Low-single- digit growth ▪ 16-18% ▪ Around ▪ Low to
Slide 12: Appendix
APPENDIX
Slide 13: Revenue mix and growth by segment
1% 8% 1% 10% 20% 30% 27% 38% 20% 26% 44% 48% Revenue Revenue Revenue Revenue Q2’24 Q2’24 Q2’24 Q2’24 41% 24% 20% 42% Total Revenue 0.0% +0.5% (0.5%) (0.9%) (4.3%) (4.1%) +1.6% +1.5% Consumer (2.3%) (2.7%) (1.9%) (0.3%) (0.1%) +3.7% (0.6%) (0.4%) Fixed Consumer (1.0%) +2.0% +4.1% (2.2%) (5.9%) (7.5%)
Slide 14: Investment portfolio fair value movements
8% 4% 13% Other 25% Other 10% 39% Other 42% 32% Other 23% 58% 57% 17% 40% 32% 52 (4) 36 64 (85) (429) (13) 647 1,036 206 (1) 1,567 13 9 (2) 570 1,224 963 193 Q1’24 FMV FMV Investments Disposals Q2’24 FMV Q1’24 FMV FMV Investments Disposals FX Q2’24 FMV Q1’24 FMV FMV Investments FX Q2’24 FMV Q1’24 FM
Slide 15: Financial results by operating company
(25) (6)(26) (6)(26)(27) $86 $620 $567 $(87) $1,186 $1,038 $2,421 (81) (385) (290) 16 (740) (500) (1,532) $5 $235 $277 $(71) $446 $538 $889 (19) (100) (109) 82 (146) (232) (732) - (90) (1) (100) (191) (48) (4) - - - - - - - - - - 28 28 - - - - - 35 35 - - $(14) $45 $167 $(26) $172 $258 $153 (4) 103
Slide 16: Financial results table
(25) (6)(26) (6)(26)(27) $86 $620 $567 $(87) $1,186 $1,038 $2,421 - - (3) (2) (5) (6) (142) $86 $620 $564 $(89) $1,181 $1,032 $2,279 16
Slide 17: Footnotes
1. Long-term debt profile represents borrowings under notes and bank facilities. Includes consolidated and non-consolidated VMO2 and VodafoneZiggo JVs. 2. Includes cash and SMAs. 3. Represents repurchases through July 19, 2024. 4. Includes $419m cash received from the sale of All3Media, including th
Slide 18: Footnotes (continued)
20. Telenet guidance on an IFRS basis. US GAAP guidance for Telenet is broadly the same as their separate IFRS guidance. 21. VMO2 guidance on an IFRS basis as guided by the VMO2 JV with the exception of Adj FCF. US GAAP guidance for the VMO2 JV is not provided as this cannot be provided without unre
Slide 19: Definitions: Adjusted EBITDA and P&E Additions
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 (P&E Addit
Slide 20: Definitions: Adjusted FCF and Distributable Cash Flow
• 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 Affiliate D
Slide 21: Debt ratios and customer definitions
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 debt is
Slide 22: Glossary of terms
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 Framework).
Slide 23: 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 revenue, Adjusted EBI
Slide 24: Rebase information (continued)
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 earnings releases which can be found o
Slide 25: Reconciliations: rebase adjustments
RECONCILIATIONS REBASE ADJUSTMENTS (CONTINUED) Acquisitions & Dispositions... Foreign Currency, Total increase, Acquisitions & Dispositions... $ Foreign Currency. Total increase. Acquisitions & Dispositions... $ Foreign Currency. Total increase. Revenue Three months ended March 31, 2023 BE CH vz vMo
Slide 26: Reconciliations: rebase adjustments (continued)
RECONCILIATIONS REBASE ADJUSTMENTS (CONTINUED) Revenue Three months ended September 30, 2022 BE CH A74 VMO2 in millions Acquisitions & Dispositions... $ 587 $ 22 $ = 195.7 Foreign Currency. 53.8 74.6 81.9 228.2 Total increase. $ 1125 $ 78 $ En 421.9 Revenue Three months ended June 30, 2022 BE CH vz
Slide 27: Net earnings to Adjusted EBITDA reconciliation
The following table provides a reconciliation of our net earnings (loss) to Adjusted EBITDA and Adjusted EBITDA less P&E for the indicated periods: 27
Slide 28: Full company Adjusted FCF & Distributable CF
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF & DISTRIBUTABLE CF Adjusted Free Cash Flow (Adjusted FCF) & Distributable Cash Flow: Adjusted FCF: We define Adjusted FCF as net cash provided by operating activities, plus operating-related vendor financed expenses (which represents an increa
Slide 29: Full company Adjusted FCF (continued)
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF & DISTRIBUTABLE CF (CONTINUED) Six months ended June 30, 2024 in millions ‘Net cash provided by operating activities. §$ 718 = §$ 999.6 Operating-related vendor financing additions 324.4 276.7 Cash capital expenditures, net... (640.1) (688.4)
Slide 30: Adjusted FCF definition and Other Affiliate Dividends
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 our actual cash available as a result of extending vendor payment terms beyond normal payment terms, wh
Slide 31: VodafoneZiggo JV Adjusted 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 available as a result of extending vendor payment terms beyond normal payment terms, which are typical
Slide 32: VMO2 JV revenue reconciliation
The following tables provide reconciliations from VMO2 JV US GAAP revenue to Rebased IFRS revenue for the indicated periods: 32
Slide 33: VMO2 JV revenue reconciliation (continued)
The following tables provide reconciliations from VMO2 JV US GAAP revenue to Rebased IFRS revenue for the indicated periods: 33
Slide 34: VMO2 JV Adj EBITDA reconciliation
The following tables provide reconciliations from VMO2 JV US GAAP Adj EBITDA to Rebased IFRS Adj EBITDA for the indicated periods: 34
Slide 35: VMO2 JV Adj EBITDA to IFRS rebased
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: 35
Slide 36: VMO2 JV Adjusted FCF definition
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 extending vendor payment terms beyond normal payment terms, which are typically 90 days or