Liberty Global‘s LBTYA loss from continuing operations in Q4 2023 amounted to $3.471 billion, up 25.9% year over year. Revenues increased 4.3% year over year to $1.920 billion. On a rebased basis, revenues declined 1.8% year over year. These divergent figures are like a ship braving stormy weather, with the loss growing while the revenues bucked the trend and made headway.
The Zacks Consensus Estimate for the bottom line was a loss of 35 cents per share, while that for the top line was $1.88 billion. Surpassing predictions, the financial data for Liberty Global is nothing if not a rollercoaster ride, with twists and turns that keep investors guessing and on edge.
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 7.5% year over year to $66.63. On a rebased basis, the figure increased 1.5%. The figure beat the Zacks Consensus Estimate of $62. It’s like riding a boat on choppy waters, with unexpected rises and falls in ARPU keeping the balance unsteady.
Mobile ARPU (including interconnect revenues), on a reported basis, rose 6.4% to $26.86. On a rebased basis, the figure dropped 1%. Mobile ARPU (excluding interconnect revenues), on a reported basis, increased 8.9% to $25.08. These contrasting changes in mobile ARPU resemble the ebb and flow of the tide, reflecting fluctuating consumer dynamics.
As of Dec 31, 2023, the total mobile subscriber count included approximately 2.8 million subscribers in Switzerland, 2.9 million in Belgium, 35 million from the VMO2 JV, and 5.6 million from the VodafoneZiggo JV. These large numbers are akin to an armada navigating through the telecom industry, each vessel representing a unique market and consumer base.
Joint Venture Details
Sunrise revenues of $897.5 million in Q4 2023 increased 11.7% year over year on a reported basis and 2.5% on a rebased basis. The rebased increase was largely driven by growth in mobile subscription revenues, a favorable phasing impact in mobile non-subscription revenues, continued trading momentum in flanker brands and business-to-business (B2B), and the positive impact of the July price increase. It’s like watching the solar eclipse, as the interplay of these factors creates a complex and awe-inspiring financial spectacle.
The fixed customer base grew by 2,600 in Q4, driven by 9,500 broadband net adds. Postpaid mobile also continued to grow, delivering 19,000 net adds. The average download speed across the company’s broadband base increased 19% year over year to 358 Mbps, approximately 5x higher than the national average. These growth figures in the joint ventures are reminiscent of a fertile garden, with each seed of success germinating into a flourishing harvest of subscribers and technological advancement.
Operating Details
Adjusted EBITDA declined 8.6% year over year to $546 million in the third quarter. On a rebased basis, EBITDA decreased 12%. These figures resemble a seesaw, swinging back and forth, reflecting the inherent volatility in the operational aspects of Liberty Global’s business.
Balance Sheet & Cash Flow
As of Dec 31, 2023, Liberty Global had $5.3 billion of cash, investments under SMAs, and unused borrowing capacity, including $1.4 billion in corporate cash and no material debt maturities until 2029. This compares favorably with $5 billion of cash, investments under SMAs, and unused borrowing capacity in the previous quarter. It’s as if Liberty Global has found a treasure chest amidst the financial turmoil, providing a solid financial foundation for the future.
Cash provided by operating activities was $839.2 million, down 5% year over year. Moreover, adjusted free cash flow was $527.6 million in Q4 against a negative adjusted free cash flow of $102.3 million in the previous quarter and $439.1 million in the year-ago quarter. The cash flow figures paint a picture of financial resilience, as Liberty Global seeks to weather the storm and emerge stronger than before.
Zacks Rank & Stocks to Consider
Liberty Global currently has a Zacks Rank #3 (Hold). Like a captain steering a ship, investors must weigh the various factors at play and carefully navigate their investment decisions in this turbulent financial market.
Playtika PLTK, Light & Wonder LNW, and American Public Education APEI are some better-ranked stocks that investors can consider in the broader sector. PLTK, LNW, and APEI sport a Zacks Rank
