Back to top

Image: Bigstock

Liberty Global (LBTYA) Q2 Earnings and Revenues Rise Y/Y

Read MoreHide Full Article

Liberty Global's (LBTYA - Free Report) profit from continuing operations in the second quarter of 2024 amounted to $275.2 million, up 153.8% year over year.

Revenues increased 1.4% year over year to $1.873 billion. On a rebased basis, revenues rose 2.2% year over year.

The Zacks Consensus Estimate for the top line was pegged at $1.87 billion.

Liberty Global Ltd Price, Consensus and EPS Surprise

Liberty Global Ltd Price, Consensus and EPS Surprise

Liberty Global Ltd price-consensus-eps-surprise-chart | Liberty Global Ltd Quote

Top-Line Details

Total average revenue per unit (ARPU) per fixed customer relationship increased 1.3% year over year to $65.62. On a rebased basis, the figure rose 2.2%.

Mobile ARPU (including interconnect revenues), on a reported basis, declined 2.2% to $26.38. On a rebased basis, the figure dropped 1.1%. Mobile ARPU (excluding interconnect revenues), on a reported basis, decreased 2.5% to $24.46.

As of Jun 30, 2024, the total mobile subscriber count included approximately 2.8 million subscribers in Switzerland, 2.9 million in Belgium, 35 million from the VMO2 Joint Venture (JV) and 5.6 million from the VodafoneZiggo JV.

In total, Liberty Global lost 19,200 customer relationships in the second quarter compared with a loss of 29,300 in the year-ago quarter.

Belgium’s revenues, on a reported basis, decreased 1.6% year over year to $755.1 million.

In Belgium, Liberty Global lost 12,500 customer relationships compared with a loss of 13,100 in the year-ago quarter.

Switzerland’s revenues, on a reported basis, remained unchanged at $816 million.

In Switzerland, LBTYA lost 1,000 customer relationships against a gain of 8,100 in the year-ago quarter.

Ireland’s revenues, on a reported basis, declined 3.1% to $120 million.

The company lost 4,100 customer relationships in Ireland compared with a loss of 6,800 in the year-ago quarter.

Central and other revenues, on a reported basis, climbed 255.4% to $206.2 million.

In Slovakia, Liberty Global lost 1,600 customer relationships compared with a loss of 1,300 in the year-ago quarter.

Joint Venture Details

Sunrise revenues of $815.8 million in the second quarter of 2024 were flat year over year on a reported basis and increased 0.5% on a rebased basis. The improvement was mainly due to the positive impact of last year's July price rise and continued momentum in mobile subscription and B2B revenues.

Telenet revenues of $755.1 million decreased 1.6% year over year on a reported basis and 0.9% on a rebased basis. The rebased decrease was primarily due to a fall in B2B wholesale revenues following the expected loss of the VOO MVNO contract and a decline in mobile revenues because of lower interconnect revenues and handset sales, partially offset by the benefit of the June 2023 price rise.

Liberty Global’s non-consolidated joint venture, Virgin Media O2, reported revenues of $3.375 billion, which decreased 0.5% year over year on a reported basis and 1.4% on a rebased basis. The decrease was primarily due to a fall in mobile revenues because of lower handset sales and a decline in B2B fixed revenues.

The fixed customer base declined 13,600 in the reported quarter, primarily due to a reduction in gross adds, as a slowdown in customer activity in the fixed market offset growth in nexfibre areas. 

VodafoneZiggo revenues rose 0.3% on a reported basis and 1.5% on a rebased basis to $1.091 billion. The increase was primarily driven by continued growth in mobile and B2B fixed revenues, partially offset by a decline in the business-to-consumer fixed customer base.

In July, VodafoneZiggo successfully acquired a 100 MHz spectrum license in the 3.5 GHz band. FMC penetration remained stable at 48% year over year. 

Mobile postpaid net adds decreased 18,400, alongside growth in mobile and fixed ARPU in the quarter, supported by the price indexation implemented in October. The broadband base contracted by 22,600 in the quarter, as a decline of 27,400 in consumers was partially offset by an increase of 4,800 in B2B

Operating Details

Adjusted EBITDA increased 0.5% year over year to $604.7 million in the second quarter. On a rebased basis, EBITDA increased 1%.

Switzerland’s EBITDA, on a rebased basis, increased 0.9% from the year-ago quarter.

Belgium’s EBITDA, on a rebased basis, decreased 9.2% year over year.

Ireland’s EBITDA, on a rebased basis, declined 2.1% year over year.

The company reported an operating income of $19.1 million in the reported quarter against an operating loss of $49.2 million in the year-ago quarter.

Balance Sheet & Cash Flow

As of Mar 31, 2024, Liberty Global had $5 billion of cash, investments under SMAs and unused borrowing capacity, including $1.5 billion in corporate cash and no material debt maturities until 2030. This compares with $4.7 billion of cash, investments under SMAs and unused borrowing capacity in the previous quarter.

In the second quarter, the total principal amount of debt and finance leases was $15.6 billion for continuing operations compared with $15.7 billion in the previous quarter. The average debt tenor is 4.4 years, with approximately 10% not due until 2030 or later.

Cash provided by operating activities was $546.1 million, down 21.1% year over year.

The adjusted free cash flow was $258.5 million in the second quarter against a negative adjusted free cash flow of $185.4 million in the previous quarter. The adjusted free cash flow in the year-ago quarter was $328.7 million.

Zacks Rank & Stocks to Consider

Liberty Global currently carries a Zacks Rank #3 (Hold).

Bally’s (BALY - Free Report) , Cinemark (CNK - Free Report) and Crocs (CROX - Free Report) are some better-ranked stocks that investors can consider in the Zacks Consumer Discretionary sector. BALY, CNK and CROX carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Bally’s have gained 21.3% year to date. BALY is set to report second-quarter 2024 results on Jul 31.

Shares of Cinemark have jumped 51.2% year to date. CNK is slated to report second-quarter 2024 results on Aug 2.

Shares of Crocs have gained 34% year to date. CROX is set to report second-quarter 2024 results on Aug 1.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in