Liberty Global (LBTYA) Q1 2025 earnings summary

Executive summary

• Strategic focus on value creation and shareholder returns, with progress across Liberty Telecom, Liberty Growth, and Liberty Services platforms, and post-Sunrise spin-off strategies emphasizing network monetization and asset disposals.

• VMO2 returned to revenue and Adjusted EBITDA growth, while Vodafone Ziggo and Telenet faced revenue and EBITDA declines amid competitive pressures and new pricing strategies.

• Group-wide share buybacks resumed, targeting up to 10% of shares in 2025, with strong liquidity and no major maturities until 2028.

• Formula E acquisition and Sunrise spin-off completed, contributing to revenue growth and portfolio value.

• Net loss attributable to shareholders was $1.34 billion, mainly due to FX and derivative losses, despite a 7.3% revenue increase to $1.17 billion.

Financial highlights

• Consolidated revenue rose 7.3% to $1.17 billion, with Adjusted EBITDA up 14.7% to $324.6 million; VMO2 returned to revenue growth, while Vodafone Ziggo and Telenet saw declines.

• Operating income was $60.7 million, reversing a prior loss; net loss from continuing operations was $1.32 billion, driven by $1.08 billion in FX losses and $164.7 million in derivative losses.

• Cash and equivalents at quarter-end were $2.1 billion, with over 60% in EUR.

• Liberty Growth portfolio FMV increased to $3.3 billion, with top 7 investments comprising ~75% of the portfolio.

• Adjusted free cash flow was $(141.2) million, a slight improvement from $(151.8) million in Q1 2024.

Outlook and guidance

• Corporate and Liberty Telecom guidance reconfirmed, while Vodafone Ziggo revised 2025 guidance to a low-single digit revenue decline and mid-to-high single digit Adjusted EBITDA decline, with adjusted FCF of €200–250 million.

• VMO2 expects revenue and Adjusted EBITDA growth (excluding handsets and nexfibre construction), P&E additions of £2.0–2.2 billion, and adjusted FCF of £350–400 million.

• Telenet expects negative adjusted FCF of €180–150 million, with Wyre to be debt funded.

• No material debt covenant compliance issues anticipated in the next 12 months; refinancing of maturing debt is expected as needed.

• Share repurchase program authorized for up to 10% of outstanding shares in 2025.