Liberty Global Reports Q4 and FY 2024 Results

Achieved all full-year guidance targets at Telenet and VMO2, while VodafoneZiggo delivered stable revenue and met all other metrics

$2.2 billion cash balance supported by $900 million of non-core asset disposals; further $500 million to $750 million targeted in 2025

Successfully completed Sunrise spin in November; representing a CHF 3.0 billion(1) tax-free dividend to Liberty Global shareholders

Record year for shareholder remuneration supported by $700 million buyback in 2024; announcing a further buyback program of up to 10% of shares outstanding in 2025

DENVER, Colorado--(BUSINESS WIRE)--February 18, 2025-- 

Liberty Global Ltd. today announced its Q4 2024 financial results.

CEO Mike Fries stated, "In 2024 we successfully managed through what continues to be a challenging competitive environment, including difficult prior year comparisons in Q4, to achieve all full-year guidance metrics across our Liberty Telecom businesses, with the exception of the stable revenue result at VodafoneZiggo. Fixed ARPU grew across all of our core Liberty Telecom assets during both the quarter and the full year, and in Belgium and the U.K. we delivered growth in broadband net adds for Q4. We're well-positioned to defend and grow market share, with our main brands underpinning value in premium segments and our flanker brands driving growth in low-cost segments, all underpinned by customer centricity, digital and AI initiatives, and our next-generation networks.

We continue to invest in our fiber-rich networks, with FTTH programs ramping across the U.K., Belgium, and Ireland. In the U.K., we now reach 6.4 million(2) premises with fiber, and preparations for a fixed NetCo are progressing on track with a perimeter now defined. In Belgium, our fiber sharing agreement with Proximus is pending regulatory approval, and we've successfully secured commitments for a standalone EUR500 million capex facility for our NetCo in that market called Wyre. In mobile, VMO2 continues to advance its 5G network, with outdoor coverage now reaching 75% of the U.K., and further improvements to be underpinned by the acquisition of spectrum from Vodafone-Three, which is expected to occur later this year.

During the quarter, we successfully increased our stake in Formula E to 66%. As a global championship with 400 million racing fans, the business is on an impressive trajectory, and with our control position we're excited to unlock its future growth potential. Elsewhere in our Liberty Growth portfolio, we continue rotating capital into scale-based businesses with unique opportunities to create value. Our top seven investments now account for 75% of the portfolio's FMV, and following the $900 million(3) in proceeds from non-core asset disposals since October 2023, we're targeting a further $500 million to $750 million in 2025.

Our balance sheet remains strong, with over $2.2 billion(i) of consolidated cash, an average long-term debt tenor of 5 years(4) , and no material debt repayments until 2028. The year-end cash balance reflects the $1.6 billion capital injection into Sunrise ahead of its November spin, funded by less than $1 billion of corporate cash, $420 million from the sale of our stake in All3Media, and Sunrise Adj FCF. Dividend distributions of $600 million were received from VMO2 and VodafoneZiggo during Q4.

2024 was a record year for shareholder remuneration at Liberty Global. In November we successfully distributed 100% of the shares of our Swiss subsidiary Sunrise to shareholders, resulting in a CHF 3 billion tax-free dividend. The combined trading performance of both LBTY and Sunrise has demonstrated the inherent value embedded in our telco businesses, with Sunrise now trading at nearly 8x Adj EBITDA (versus 5.5x for Liberty Global). On top of this, we completed a $700 million buyback program to repurchase 10% of our shares during the year, ending with 349 million shares outstanding.

In 2025 we remain laser-focused on unlocking further value for shareholders. We'll continue to position our Liberty Telecom assets for opportunistic transactions that crystallize and, in time, distribute value to shareholders. We will focus on the inherent value of our fixed networks and, specifically, seek to raise capital for our fiber NetCos in Belgium and the U.K. Finally, we continue to see compelling value in our stock and we're announcing today a buyback program of up to 10% of shares outstanding in 2025.

 
(i)     Including amounts held under separately managed accounts (SMAs). 
 

Q4 Operating Company Highlights

Telenet (Consolidated)

Telenet delivers on all 2024 financial guidance

Operating highlights: During Q4, Telenet delivered a return to positive broadband net adds of 3,200, supported by the nationwide launch of the BASE FMC offer in June last year. Since launching, BASE has sold over 25,000 broadband subscriptions. In mobile, the postpaid base declined modestly by 1,800, reflecting the intensely competitive market environment. FMC households increased by 12,200 to reach 861,000, Telenet's best quarterly performance in two years.

Financial highlights: Revenue of $781.5 million in Q4 2024 decreased 1.4% YoY on a reported basis and 0.4% on a rebased(5) basis. The rebased decrease was primarily driven by a decline in the customer base, partially offset by (i) the 3.5% price rise and (ii) the continued shift towards higher tier broadband plans. Adjusted EBITDA decreased 4.7% YoY on a reported basis and 3.9% on a rebased basis to $311.0 million in Q4. The rebased decrease was primarily due to (a) higher staff-related expenses and (b) higher programming costs. Reported and rebased Adjusted EBITDA less P&E Additions decreased 50.1% and 49.5%, respectively, to $45.9 million in Q4.

VMO2 (Nonconsolidated Joint Venture)

VMO2 achieves 2024 guidance, delivering synergies ahead of schedule and strong progress in network evolution

Operating highlights: VMO2 ended the year with another quarter of fixed customer growth, delivering net adds of 9,900 and fixed ARPU growth of 2.0%. Growth in the customer base was driven by improved performance on the nexfibre footprint, where quarterly net additions increased sequentially through the year, supported by build momentum and investment in sales and marketing. Positive growth in fixed ARPU continued, with a 2.0% increase YoY. In mobile, postpaid performance continued to improve through the year and returned to growth in Q4, with 15,600 net additions during the quarter.

VMO2 achieved record footprint expansion in 2024, growing its reach by an additional 1.3 million homes serviceable, and bringing the total gigabit footprint to 18.3 million homes at the end of the year. Expansion was primarily through build on behalf of nexfibre, including the transfer of Upp premises following the successful integration of the altnet. Meanwhile, the upgrade of VMO2's existing fixed network to fiber also continued apace across the year, with a total fiber footprint of 6.4 million premises when including the nexfibre footprint. Significant progress was also made in the evolution of VMO2's mobile network to 5G, with U.K. outdoor population coverage standing at 75% at the end of 2024. Later this year, VMO2 will acquire spectrum from Vodafone-Three following completion of the merger. The target of GBP540 million of annualized run-rate synergies five years post closing was achieved by the end of 2024, approximately 18 months ahead of the original target.

Financial highlights (in U.S. GAAP)(6) : Revenue(12) of $3,478.8 million in Q4 2024 decreased 1.1% YoY on a reported basis and 4.0% YoY on a rebased basis. The rebased decrease was primarily due to the net effect of (i) a decrease in mobile revenue due to lower handset sales, (ii) a decrease in B2B revenue and (iii) an increase in residential fixed revenue, with each revenue category as defined and reported by the VMO2 JV. Q4 Adjusted EBITDA(12) decreased 5.8% YoY on a reported basis and 8.6% YoY on a rebased basis to $1,126.5 million, including $27 million of opex costs to capture(7) . The YoY decrease in Adjusted EBITDA was primarily due to the net effect of (a) the aforementioned changes in revenue, (b) a handset inventory-related adjustment increasing cost of sales by approximately $27 million in Q4 2024, (c) a reduction in costs of $19 million in Q4 2023 due to a change in the contract terms of services provided by a related-party and (d) a benefit of approximately $16 million during Q4 2024 related to higher capitalized costs by the VMO2 JV due to a change in the terms of a related-party contract. Q4 Adjusted EBITDA less P&E Additions(12) decreased 36.2% YoY on a reported basis and 38.2% YoY on a rebased basis to $424.8 million, including $53 million of opex and capex costs to capture.

Financial highlights (in IFRS): Revenue of GBP2,716.2 million ($3,478.8 million) in Q4 2024 decreased 4.0% YoY on a rebased basis. Q4 Adjusted EBITDA of GBP989.1 million ($1,267.0 million), including costs to capture, decreased 7.0% YoY on a rebased basis. Q4 Adjusted EBITDA less P&E Additions of GBP374.8 million ($480.1 million), including costs to capture, decreased 33.6% YoY on a rebased basis. The drivers of these IFRS changes are largely consistent with those under U.S. GAAP detailed above.

2025 Guidance (in IFRS, as guided by the VMO2 JV): Expect to deliver growth in revenue (excluding handsets and the impact of nexfibre construction) and growth in Adjusted EBITDA (excluding the impact of nexfibre construction). Expect support from pricing, nexfibre penetration, and step down in the one-off opex investment in 2024. Expect P&E additions of GBP2.0 to GBP2.2 billion (excluding ROU additions), with continued elevated 5G and FTTH spend through Fibre Up. Expect Adjusted FCF and cash distributions to shareholders both in the range of GBP350 to GBP400 million.

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