Liberty Global (LBTYA) Q4 2023 earnings summary

Executive summary

• FY 2023 guidance achieved; excluding an unanticipated $315m litigation-related cash tax payment, DCF was $1.706bn; reported DCF was $1,390.8m.

• Q4 postpaid growth across core FMC operations and more than 80,000 aggregate net adds; broadband performance improved sequentially across most markets.

• Shares repurchased reached 18.5% of shares outstanding through January 2024; 378m shares remained, with repurchases of up to 10% targeted for 2024.

Financial highlights

• Q4 revenue was $1,920.5m, up 4.3% reported and down 1.8% rebased; FY revenue was $7,491.4m, up 4.1% reported and down 1.5% rebased.

• Q4 Adjusted EBITDA was $546.0m, down 8.6% reported and 12.0% rebased; FY Adjusted EBITDA was $2,369.6m, down 8.7% reported and 10.8% rebased.

• FY loss from continuing operations was $3,873.8m versus $1,105.3m earnings in 2022; Q4 loss narrowed 25.9% YoY to $3,471.7m.

• FY Adjusted EBITDA less P&E additions was $791.6m; Full Company Adjusted FCF was $575.6m and DCF was $1,390.8m.

• FY net cash provided by operating activities was $2.166bn versus $2.838bn in 2022; reported DCF was $1.391bn versus $1.629bn.

Outlook and guidance

• 2024 VMO2 guidance: revenue stable to declining and Adjusted EBITDA down low- to mid-single digits, excluding nexfibre; P&E additions of £2.0bn–£2.2bn, Adjusted FCF ~£500m and shareholder distributions ~£850m.

• VMO2 expects B2B fixed revenue pressure and investment in growth drivers, including Off-net; distributions are supported by CTIL proceeds, with reinvestment intended to support a return to growth in 2025.

• Sunrise 2024 guidance: broadly stable revenue, Adjusted EBITDA stable to low-single-digit growth, P&E additions at 16%–18% of sales and Adjusted FCF CHF360m–CHF400m.

• VodafoneZiggo expects continued revenue growth and ~€300m Adjusted FCF, with up to €300m available for shareholder distributions; Telenet expects broadly stable revenue and €50m–€75m Adjusted FCF.

• Network plans include 38m gigabit-capable homes by 2026, ~2m VMO2 FTTH additions and £1bn nexfibre investment in 2024; Wyre construction is set to peak at ~450,000 homes annually from 2025.