Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q2 2023 Earnings Presentation
36 slides from Liberty Global's earnings presentation, Jul 25, 2023
Slide 1: Liberty Global Investor Call Q2 2023
LIBERTY GLOBAL PLC INVESTOR CALL Q2 2023 July 25, 2023
Slide 2: Safe Harbor: Forward-Looking Statements and Disclaimer
“SAFE HARBOR” Forward-Looking Statements + Disclaimer and uncertainties include events that are outside of our control, such as the continued use by subscribers and potential subscribers of our and our affiliates’ services and their willingness to upgrade to our more This presentation contains forwa
Slide 3: Q2 Highlights: Executing on Growth and Value Creation Initiatives
Q2 HIGHLIGHTS: EXECUTING ON GROWTH AND VALUE CREATION INITIATIVES VALUE CREATION STRATEGIES • Maximize inherent equity value of FMC Champions; seek to crystallize value for the benefit of shareholders • Invest in strategic adjacencies to create next wave of value creation • Manage a dynamic capital
Slide 4: Accelerating Stock Buyback: Increasing from 10% to At Least 15% of Shares in 2023
ACCELERATING STOCK BUYBACK: INCREASING FROM 10% TO AT LEAST 15% OF SHARES IN 2023(1) INCREASING BUYBACK PROGRAM 900 10% • Repurchased 8.4% of 800 shares outstanding 9% YTD(2) (~$740M) 700 • Increasing program to 16% buyback at least 15% of shares by YE (1) 600 9% • Would result in a nearly 10% 60% r
Slide 5: VMO2: Price Increases Impact Net Add Growth in Q2, But Will Drive H2 Revenue
VMO2(1): PRICE INCREASES IMPACT NET ADD GROWTH IN Q2, BUT WILL DRIVE H2 REVENUE BROADBAND NET ADDS Q2 GROWTH (%) Q2 RESULTS (000’S) TOTAL • Broadband net adds 29 45% REVENUE(2) +6.2% impacted by price adjustment 23 FMC 19 MACRO 16 FIXED -5.0% • Postpaid net adds broadly CONSUMER(3) stable, with a mo
Slide 6: Sunrise: Continued Postpaid Growth Despite Announced Price Increases for H2
SUNRISE(1): CONTINUED POSTPAID GROWTH DESPITE ANNOUNCED PRICE INCREASES FOR H2 BROADBAND NET ADDS Q2 GROWTH (%) Q2 RESULTS (000’S) 58% TOTAL • Broadband net adds softer 9 FMC REVENUE -1.0% due to reduced promotional 7 intensity on the main brand MACRO FIXED CONSUMER -3.8% and a slight increase in ch
Slide 7: Telenet: Formally Launched Netco; Price Rises to Impact H2
TELENET(1): FORMALLY LAUNCHED NETCO; PRICE RISES TO IMPACT H2 BROADBAND NET ADDS Q2 GROWTH (%) Q2 RESULTS (000’S) TOTAL • Broadband and postpaid 52% REVENUE +1.0% net adds impacted by June FMC FIXED price rise, temporary IT MACRO -0.1% system issue, and intense CONSUMER 2 competitive environment • I
Slide 8: VodafoneZiggo: Momentum in Mobile Drives Operating Results; Price Rise to Help H2
VODAFONEZIGGO(1): MOMENTUM IN MOBILE DRIVES OPERATING RESULTS; PRICE RISE TO HELP H2 BROADBAND NET ADDS(2) Q2 GROWTH (%) Q2 RESULTS (000’S) 47% TOTAL • Broadband net add decline 7 FMC REVENUE -0.2% due to continued competitive FIXED environment MACRO -2.7% CONSUMER • Postpaid net adds supported • In
Slide 9: Q2 Financials: Improved Sequential Adj. EBITDA Performance and Stable Revenue Trends
Q2 FINANCIALS: IMPROVED SEQUENTIAL ADJ. EBITDA PERFORMANCE AND STABLE REVENUE TRENDS VMO2 (1)(2) VODAFONEZIGGO (1)(3) TELENET(3) SUNRISE(3) REVENUE GROWTH (%) REVENUE GROWTH (%) REVENUE GROWTH (%) REVENUE GROWTH (%) 6.2% 3.1% 2.9% 1.5% 3.9% 1.0% Incl. construct. 1.7% 1.5% revenue 0.3% 0.0% 1.0% 0.7%
Slide 10: Capital Allocation: Strong Liquidity Profile
CAPITAL ALLOCATION: STRONG LIQUIDITY PROFILE Q2 CAPITAL INTENSITY IN LINE WITH GUIDANCE (1) FULL COMPANY DISTRIBUTABLE CF FY H1 $ millions 2022 2023 Includes ROU Additions 25% ADJ EBITDA LESS P&E ADDITIONS $1,032 $483 20% 15% NET INTEREST (415) (166) 10% CASH TAX (171) (175) 5% DIVIDENDS & INTEREST
Slide 11: Attractive Debt Position: No Material Maturities Until 2028
ATTRACTIVE DEBT POSITION(1): NO MATERIAL MATURITIES UNTIL 2028 DEBT MATURITY PROFILE (2) 13.9bn BY ASSET ($) 10.9bn 6.8bn 6.6bn 4.3bn 2.3bn 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 TNET VodafoneZiggo VMIE UPC VMED O2 STRONG BALANCE SHEET • On track for $1.6B Distributable CF generation in 2
Slide 12: Ventures: FMV Decline from Listed Stakes; Focused on Smart Divestitures
VENTURES(1): FMV DECLINE FROM LISTED STAKES; FOCUSED ON SMART DIVESTITURES 4 VERTICALS FMV% FMV Q2 FV HIGHLIGHTS LONG TERM STRATEGY Change Lower ITV share price during • Web3 • Sports CONTENT 46% $(101)m quarter and FE FMV • Studio • Gaming • FTA Further tech write downs given • AI • Cloud TECH 25%
Slide 13: 2023 Guidance: On Track
2023 GUIDANCE(1): ON TRACK (3) (4) (2) (3) Revenue growth Low-single digit revenue Improved Revenue profile Revenue growth between decline 1-2% Mid-single digit Adj. EBITDA Low to Mid-single digit Adj. growth (excl. CTC) Low to Mid-single digit Adj. EBITDA decline Adjusted EBITDAaL: EBITDA decline (
Slide 14: Appendix
LIBERTY GLOBAL PLC APPENDIX July 25, 2023
Slide 15: Central Update: Continuing to Target $200-$250M of Net Central Spend
CENTRAL UPDATE : CONTINUING TO TARGET $200- (1) $250M OF NET CENTRAL SPEND $ millions Q1 2023 Q2 2023 Revenue decline effective Q2 primarily the result of our determination to market, and plan to sell, certain of our internally-developed software to third parties, whereby proceeds received from REVE
Slide 16: YTD 2023: Adjusted FCF & Distributable CF
YTD 2023: ADJUSTED FCF & DISTRIBUTABLE CF 50-50 50-50 LIBERTY VODAFONEZIGGO VMO2 JV $m IRELAND BELGIUM SWITZERLAND CENTRAL (1) GLOBAL JV IFRS BASIS (2,3) (2,3,4) ADJUSTED EBITDA $89 $649 $550 $(62) $1,226 $956 $2,379 P&E ADDITIONS (85) (335) (271) (52) (743) (507) (1,374) ADJUSTED EBITDA LESS P&E $4
Slide 17: YTD 2023: Adj EBITDA & Adj EBITDAaL
YTD 2023: ADJ EBITDA & ADJ EBITDAAL(1) LIBERTY 50-50 50-50 GLOBAL VodafoneZiggo VMO2 JV $m IRELAND BELGIUM SWITZERLAND CENTRAL (2) CONTINUING JV IFRS Basis OPERATIONS (3,4) (3,4,5) ADJUSTED EBITDA $89 $649 $550 $(62) $1,226 $956 $2,379 FINANCE LEASE ADJUSTMENTS - (23) (3) (4) (30) (4) (139) ADJUSTED
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: Reconciliations: Rebase Adjustments (Continued)
RECONCILIATIONS REBASE ADJUSTMENTS (CONTINUED) 24
Slide 25: 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 six months ended June 30, 2023 (in millions): 25
Slide 26: 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): 26
Slide 27: Reconciliations: Adjusted EBITDA & Adjusted EBITDAaL
RECONCILIATIONS ADJUSTED EBITDA & ADJUSTED EBITDAAL The following table provides a reconciliation of Adjusted EBITDA attributable to our continuing operations to Adjusted EBITDAaL for the six months ended June 30, 2023 (in millions): 27
Slide 28: Reconciliations: Full Company Adjusted FCF & Distributable CF
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF & DISTRIBUTABLE CF 28
Slide 29: Reconciliations: Full Company Adjusted FCF & Distributable CF (Continued)
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF & DISTRIBUTABLE CF (CONTINUED) 29
Slide 30: 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 31: 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 32: 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: 32
Slide 33: 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: 33
Slide 34: 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: 34
Slide 35: 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: 35
Slide 36: 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