Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q3 2015 Earnings Presentation
24 slides from Liberty Global's earnings presentation, Nov 6, 2015
Slide 1: Q3 2015 Investor Call
Q3 2015 Investor Call November 6, 2015
Slide 2: Safe Harbor
“Safe Harbor” Forward-Looking Statements generally, on the availability, terms and deployment of capital, fluctuations in currency exchange and interest rates; the ability of This presentation contains forward-looking statements within the suppliers and vendors (including our third-party wireless ne
Slide 3: Agenda
Agenda In progress Executive Summary Finance Appendix Liberty Global | Q3 2015 Investor Call | November 6, 2015 3
Slide 4: Key Themes
Key Themes Subscriber growth accelerating New revenue drivers picking up pace Competitive position strengthening Liberty 3.0 implementation underway Levered-equity strategy on track All 2015 financial guidance confirmed Liberty Global | Q3 2015 Investor Call | November 6, 2015 4
Slide 5: Highlights Liberty Global plc
(1) Highlights Liberty Global plc Operating & M&A | Balance Financial Highlights Products & Innovation Sheet • RGU adds of 320k in Q3; • Diversified and accretive • Liquidity of $5.1 bn, boosting YTD to 526k M&A pipeline including $1.1 bn of cash • Revenue of $13.7 bn YTD; • Record Next-Gen TV • Gro
Slide 6: Liberty Global plc – Ramping Net Additions
(1) Liberty Global plc – Ramping Net Additions Accelerating subscriber growth in Q3 fueled by broadband growth in Western Europe Video Data Voice Total (332,000) 511,000 347,000 526,000 TOTAL YTD TOTAL YTD TOTAL YTD TOTAL YTD Q1 Q1 Q1 Q1 (169) 2015 2015 154 2015 83 2015 33 36 68 EUROPE LATAM Q2 Q2 Q
Slide 7: Rebased Revenue Growth
(1) Rebased Revenue Growth YTD acceleration in majority of markets UK & Ireland Germany Belgium 7.0% 6.5% 6.3% 6.4% 6.1% 4.5% 4.6% 3.4% 2.5% Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Netherlands Switzerland, Austria LiLAC & CEE 7.3% 0.6% 6.7% 5.1% 2.7% 2.2% 2.2% (2.2%) (2.1%) Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 (1) Please
Slide 8: Next-Gen TV & Mobile Momentum Building
(1) Next-Gen TV & Mobile Momentum Building Enhancing customer experience with our Horizon TV platform & 4G mobile rollouts Next-Generation TV Mobile Strategy • Rapid rollout of next-generation TV platforms; • Improved MVNO rates with certain new and now available across 43 million homes existing MNO
Slide 9: Key Operational Developments
(1) Key Operational Developments Leveraging scale opportunities to accelerate future organic growth L3.0 in Lift-off Mode New Build Ramping Ziggo Trends Improving • Three year company-wide • Project Lightning on-track; • Improvement in operational transformation program targeting 250,000 new quality
Slide 10: Agenda
Agenda In progress Executive Summary Finance Appendix Liberty Global | Q3 2015 Investor Call | November 6, 2015 10
Slide 11: Liberty Global Group – YTD 2015 Results
(1) Liberty Global Group – YTD 2015 Results Western Europe delivered 3% rebased revenue and 4% OCF growth YTD Revenue OCF Growth Growth YTD YTD 2014 $12,727 2014 $6,035 3% YTD 3% YTD $12,773 $6,111 2015 2015 Property & Equipment Additions Free Cash Flow YTD YTD 20% 2014 $2,591 2014 $1,334 YTD YTD 22
Slide 12: Q3 2015 Rebased Results | Western Europe
(1,2) Q3 2015 Rebased Results | Western Europe Best revenue & OCF growth in over one year at Germany; steady growth in U.K. and Belgium Revenue 4.5% Revenue 7% Revenue 6% OCF 4% OCF 9% OCF 7% Revenue (2%) Revenue 3% OCF (1%) OCF 7% (1) Please see Appendix for definitions and additional information.
Slide 13: Liberty Global Group - Leverage & Buybacks
(1) Liberty Global Group - Leverage & Buybacks Total Liquidity of $4.7bn | Average debt maturity of nearly eight years Q4’14 Q3’15 GROSS 5.0x GROSS 5.0x Q4’14 Q3’15 NET 4.8x NET 4.9x (1) Please see Appendix for definitions and additional information. Share Repurchases(2) (2) Please see LiLAC Transac
Slide 14: LiLAC Group – YTD 2015 Results
(1) LiLAC Group – YTD 2015 Results Strong results fueled by operations in both Chile & Puerto Rico Revenue OCF Growth Growth YTD YTD 2014 $906 2014 $348 6% YTD 10% YTD $908 $364 2015 2015 Property & Equipment Additions Free Cash Flow YTD YTD 2014 $198 $29 22% 2014 YTD YTD 20% $185 $40 2015 2015 (1)
Slide 15: LiLAC Group – Q3 2015 Results and Leverage
(1) LiLAC Group – Q3 2015 Results and Leverage VTR’s CLP hedges re-struck, resulting in savings on interest but higher leverage 7% $204 11% Chile Chile $83 6% Puerto 9% Puerto Rico $105 Rico $46 Q3’15 GROSS 4.4x Q3’15 NET 3.9x (1) Amounts are in millions, except % amounts. Revenue and OCF growth is
Slide 16: Conclusions
Conclusions Subscriber growth rebound driven by broadband and bundling Fall campaigns gaining traction in Q4 Liberty 3.0 program and Project Lighting ramping All full-year 2015 Financial Guidance confirmed Liberty Global | Q3 2015 Investor Call | November 6, 2015 16
Slide 17: Agenda
Agenda Executive Summary Finance Appendix Liberty Global | Q3 2015 Investor Call | November 6, 2015 17
Slide 18: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally accepted Customer Relationships are the number of Mobile Subscriber count represents the number of in the United States. customers who receive at least one of our video, active subscriber identification module (“SIM”) ca
Slide 19: Definitions and Additional Information
Definitions and Additional Information Next-Generation TV Subscribers in this receives our video service in one premises is we service through a partner network. Telephony presentation includes our Horizon TV, TiVo and generally counted as just one subscriber. An Subscribers exclude mobile telephony
Slide 20: Definitions and Additional Information
Definitions and Additional Information Profit Forecast We are currently in an offer period results for the three and nine months ended and local generally accepted accounting principles, (as defined in the City Code on Takeovers and September 30, 2015, (iv) exclude the revenue and (b) any significan
Slide 21: 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 22: 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 suc
Slide 23: Definitions and Additional Information
Definitions and Additional Information Free Cash Flow 5. 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 24: 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 Liberty Global ordinary shares and received