Press release·05/02/2025 12:36:59

Overview of Liberty Global Ltd.

Liberty Global Ltd. is an international provider of broadband internet, video, fixed-line telephony and mobile communications services to residential customers and businesses in Europe. The company also invests in infrastructure, content and technology industries, and provides innovative technology solutions and finance services.

Liberty Global’s continuing operations include businesses that provide residential and business-to-business (B2B) communications services in Belgium, Luxembourg and Ireland. The company also owns 50% non-controlling interests in joint ventures that provide services in the UK and the Netherlands.

In the first quarter of 2025, Liberty Global completed the acquisition of a controlling interest in Formula E, a motorsports company. The company also spun off its Swiss business, Sunrise, in November 2024.

Revenue and Profit Trends

Liberty Global’s total revenue increased by 7.3% in the first quarter of 2025 compared to the same period in 2024. This increase was driven by the impact of the Formula E acquisition and the provision of services related to the spin-off of the Swiss business.

On an organic basis, which excludes the impact of acquisitions and foreign exchange, Liberty Global’s revenue decreased by 1.2%. This decline was primarily due to lower residential mobile non-subscription revenue, partially offset by increases in B2B non-subscription revenue and other revenue.

The company’s reportable segments, Telenet and VM Ireland, both experienced declines in revenue on an organic basis. Telenet’s organic revenue increased by 2.7%, while VM Ireland’s organic revenue decreased by 2.9%.

Liberty Global’s consolidated Adjusted EBITDA, a non-GAAP measure of operating performance, increased by 14.7% in the first quarter of 2025 compared to the same period in 2024. On an organic basis, Adjusted EBITDA increased by 5.1%. The increase was primarily due to cost efficiencies and a decrease in the impact of the company’s joint venture construction activities.

The company’s joint ventures, VMO2 JV and VodafoneZiggo JV, also experienced changes in their revenue and Adjusted EBITDA. VMO2 JV’s revenue decreased by 4.8%, while its Adjusted EBITDA remained flat. VodafoneZiggo JV’s revenue decreased by 5.6%, and its Adjusted EBITDA decreased by 10.8%.

Strengths and Weaknesses

One of Liberty Global’s key strengths is its diversified portfolio of businesses and investments across Europe. The company’s ownership of joint ventures in the UK and the Netherlands provides exposure to larger markets and the potential for synergies and cost efficiencies.

Another strength is the company’s focus on innovation and technology solutions, as evidenced by its acquisition of Formula E. This investment in emerging technologies and trends could provide opportunities for future growth and diversification.

However, Liberty Global faces several challenges, including increasing competition in all of its markets, which has adversely impacted its customer numbers and average revenue per user (ARPU). The company is also subject to inflationary pressures on labor, programming and other costs, which could outpace its ability to increase revenue.

The company’s significant debt levels, with a target leverage ratio of four to five times Adjusted EBITDA, also pose a risk. While Liberty Global seeks to maintain this level of leverage to achieve attractive equity returns, it could limit the company’s financial flexibility and ability to invest in future growth opportunities.

Outlook and Future Prospects

Looking ahead, Liberty Global’s ability to maintain and grow its customer base and ARPU will be crucial to its financial performance. The company will need to continue to invest in its networks and technology to stay competitive and meet evolving customer demands.

The successful integration of the Formula E acquisition and the continued performance of the company’s joint ventures will also be important factors in determining Liberty Global’s future prospects. The company’s ability to navigate the regulatory and economic environments in the countries in which it operates will also be a key consideration.

Overall, Liberty Global appears to be in a relatively stable financial position, with a diversified portfolio of businesses and investments. However, the company faces ongoing challenges related to competition, inflation, and its significant debt load. Continued execution on its strategic initiatives and the ability to adapt to changing market conditions will be crucial for the company’s long-term success.