Liberty Global Q2: ‘Well positioned to achieve FY guidance’
July 25, 2023
Liberty Global has announced its Q2 2023 financial results, with CEO Mike Fries stating: “We saw improved sequential Adjusted EBITDA performance in Q2, underpinning the confirmation of all full-year guidance targets across our core FMC operations. Demand for reliable high-speed connectivity remains strong and despite communicating price adjustments across our footprint, we delivered broadly stable aggregate net adds in the second quarter. Looking forward to H2, these price adjustments should increasingly help to offset anticipated headwinds from energy and labour costs currently affecting our FMC businesses. Despite tough macro conditions, we continue to invest heavily in future-proofing our fixed and mobile networks and position ourselves for long-term value creation. Given our ample liquidity at Q2, as well as confidence in our 2023 distributable cash flow outlook, we are announcing an increase of our share repurchase programme to a minimum of 15 per cent of shares outstanding from 10 per cent previously.”
“Commercial momentum in Q2 was affected by the announcement and/or implementation of price increases throughout our markets. While these adjustments will support Adjusted EBITDA through the second half of the year, we have already seen an impact on our Q2 subscriber activity, reporting an aggregate loss of 60,000 net broadband subscribers. Mobile trends have shown more resiliency and we added 50,500 aggregate postpaid net subscribers in Q2 across our footprint. On the financial front, we have yet to see the full impact of the aforementioned price actions. As expected, the previously-flagged phasing related to the timing of prices increases together with continued cost inflation impacted our Adjusted EBITDA result in the second quarter.”
“On the strategic front, Q2 was another busy quarter. We are pleased with the strong shareholder support for the now pending transition of our jurisdiction of incorporation from England and Wales to Bermuda. This change will greatly facilitate the planning and execution of corporate transactions aimed at enhancing shareholder value. Despite this change, which is expected to take effect in Q4, we maintain our unwavering commitment to our businesses in the UK and the rest of Europe. We will continue to provide market-leading products and services to our customers, prioritise in-country employment, and make crucial investments in critical infrastructure. Additionally, in July we acquired over 93 per cent of Telenet’s shares in the tender offer that we launched in Q2, and the offer will reopen in late August to allow investors who missed the initial acceptance period the opportunity to tender their shares. Results of the upcoming acceptance period will be announced during the third quarter.”
“We are well positioned to achieve all of the 2023 full-year guidance metrics at our operating companies, as well as $1.6 billion of Distributable Cash Flow at Liberty Global. This positive outlook is backed by shareholder distributions from our joint ventures in the U.K. and the Netherlands and Adjusted Free Cash Flow from our consolidated operating companies in Switzerland and Belgium. Furthermore, our balance sheet remains robust, with approximately $5.5 billion of total liquidity, including $2.7 billion in corporate cash, and no material debt maturities until 2028. Our stock continues to offer appealing value at its current price levels. We have already repurchased ~$740 million worth of stock as of July 21 and we are announcing an increase to our buyback target to a minimum of at least 15 per cent of shares outstanding for 2023.”