Liberty Global (LBTYA) Q2 2024 earnings summary

Executive summary

• Strategic initiatives advanced, including the Sunrise spin-off on track for Q4 2024 with a planned CHF 240 million dividend in 2025 and CHF 1.5 billion deleveraging, plus a Capital Markets Day set for September 9 in Zurich.

• UK operations progressed with Vodafone spectrum/network sharing, 5 million fiber homes reached, and NetCo creation targeted for H1 2025; Benelux signed MOU with Proximus for fiber sharing and acquired 100 MHz 5G spectrum in the Netherlands.

• Ventures generated ~$650 million in asset sales since October 2023, with further disposals planned and increased stake in Formula E to 65%.

• Strong balance sheet with $3.5 billion cash, no material debt maturities until 2028, and aggressive share buyback program targeting 10% of shares by year-end.

• Stable operating and financial performance, with improving fixed ARPU trends and updated guidance for VMO2 revenue.

Financial highlights

• Q2 2024 consolidated revenue increased 1.4% YoY to $1.87 billion, with net earnings of $275.2 million, and adjusted EBITDA of $604.7 million; cash balance at $3.5 billion.

• Sunrise and Telenet posted stable or slightly positive revenue, VodafoneZiggo up 1.5%, VMO2 saw a 4% revenue decline excluding nexfibre construction.

• Adjusted EBITDA: Sunrise stable, Telenet down 9% YoY, VMO2 down 1%, VodafoneZiggo up 8%.

• Share buybacks reached 5% YTD, targeting 10% by year-end; $337.9 million spent in H1 2024.

• Gain on sale of All3Media contributed $242.9 million to net earnings in 2024.

Outlook and guidance

• All 2024 guidance metrics reaffirmed except for VMO2 revenue, which is lowered due to weaker hardware sales; VMO2 expects low- to mid-single-digit revenue decline (ex-nexfibre), but EBITDA and free cash flow guidance reiterated.

• Sunrise: Revenue growth broadly stable, Adj EBITDA stable to low-single-digit growth, Adj FCF CHF 360-400 million for 2024.

• Telenet: Revenue and Adj EBITDAAL growth broadly stable, Adj FCF €50-75 million.

• VodafoneZiggo: Continued revenue growth, Adj EBITDA low-single-digit growth, Adj FCF around €300 million.