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The average revenue per unit (ARPU) per cable customer relationship declined 8.5% to $61.69.
Mobile ARPU (including interconnect revenues), on a reported basis, decreased 10.2% to $25.25. On a rebased basis, the figure dropped 1.8%.
Mobile ARPU (excluding interconnect revenues), on a reported basis, decreased 6.8% to $23.02.
As of Dec 31, 2022, the mobile subscriber count included approximately 440,000 subscribers in Switzerland, 271,000 subscribers in Belgium, 7,968,300 subscribers from the VMO2 JV and 370,700 prepaid mobile subscribers from the VodafoneZiggo JV.
In total, Liberty Global lost 6,700 customer relationships in the fourth quarter compared with a loss of 5,200 in the year-ago quarter.
In Belgium, Liberty Global lost 5,900 customer relationships compared with a loss of 2,700 in the year-ago quarter.
Belgium’s revenues, on a reported basis, declined 4.5% year over year to $728.7 million. On a rebased basis, revenues inched up 1.7%.
In Switzerland, Liberty Global added 2,800 customer relationships compared with the loss of 100 in the year-ago quarter.
Switzerland’s revenues, on a reported basis, declined 2.5% year over year to $803.6 million. On a rebased basis, revenues decreased 2.2%.
The company lost 2,900 customer relationships in Ireland compared with a loss of 1,600 in the year-ago quarter.
Ireland’s revenues, on a reported basis, fell 10.1% to $129.3 million.
In Slovakia, Liberty Global lost 700 customer relationships compared with a loss of 800 in the year-ago quarter.
Central and other revenues, on a reported basis, decreased 3.7% to $183 million. On a rebased basis, the top line increased 13.9%.
Joint Venture Details
Sunrise revenues of $803.6 million in fourth-quarter 2022 decreased 2.5% year over year on a reported basis and 2.2% year over year on a rebased basis largely because of a decrease in fixed subscription revenues due to ARPU pressure on main brand offerings that was only partially offset by strong trading momentum in yallo and a decrease in low margin business wholesale revenues. In the fourth quarter, Sunrise achieved 44,000 mobile postpaid net adds, driven by the Sunrise Up and yallo propositions and 9,200 broadband net adds, demonstrating positive acquisition activity through promotional periods and strong contributions from yallo offerings.
Telenet revenues of $728.7 million in fourth-quarter 2022 decreased 4.5% year over year on a reported basis and increased 1.7% on a rebased basis. The increase in rebased revenues was primarily driven by higher mobile and fixed subscription revenues owing to the June 2022 price rise and an increase in business wholesale revenues.
Liberty Global’s non-consolidated joint venture — Virgin Media O2 — reported revenues of $3.214 billion, which decreased 13.1% year over year on a reported basis and 0.7% year over year on a rebased basis due to a decline in B2B fixed revenues. Continued customer growth in both fixed and mobile driven by demand for connectivity, resulted in 71,100 postpaid mobile net adds and 22,700 broadband net adds in the fourth quarter. Average speed across the broadband base increased 41% year over year to 301 Mbps, approximately 5x higher than the national average.
Vodafone Ziggo revenues declined 11.7% on a reported basis and 1.1% on a rebased basis year over year to $1.047.3 billion. The decrease in rebased revenues was primarily due to a lower B2C fixed customer base, partially offset by a 6.3% increase in mobile service revenues driven by customer and ARPU growth.
Operating Details
Adjusted EBITDA declined 13.4% year over year to $597.3 million in the third quarter. On a rebased basis, EBITDA decreased 4.4%.
Switzerland’s EBITDA, on a rebased basis, declined 8.1% from the year-ago quarter.
Belgium’s EBITDA, on a rebased basis, increased 4.7% year over year.
Ireland’s EBITDA, on a rebased basis, decreased 12.3% year over year.
Operating loss was $45.4 million in the reported quarter compared with operating income of $80.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Liberty Global had $6.046 billion of cash, investments under SMAs and unused borrowing capacity compared with $3.968 billion in the previous quarter.
In the fourth quarter, the total principal amount of debt and finance leases was $13.8 billion for continuing operations compared with $13.263 billion in the previous quarter. The average debt tenor is six years, with approximately 93% not due until 2028 or later.
Cash provided by operating activities was $883.2 million, down 7% year over year.
Moreover, adjusted free cash flow was $439.1 million in the fourth quarter compared with a free cash flow of $147.5 million in the previous quarter and $434 million in the year-ago quarter.
Zacks Rank & Stocks to Consider
Liberty Global currently has a Zacks Rank #3 (Hold).
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Liberty Global (LBTYA) Q4 Earnings, Revenues Decline Y/Y
Liberty Global's (LBTYA - Free Report) loss from continuing operations in fourth-quarter 2022 amounted to $4.68 billion, down 833.9% year over year.
Revenues declined 4.1% year over year to $1.84 billion. On a rebased basis, revenues declined 2.2% year over year.
The Zacks Consensus Estimate for earnings and revenues were pegged at 64 cents per share and $1.74 billion, respectively.
Liberty Global PLC Price, Consensus and EPS Surprise
Liberty Global PLC price-consensus-eps-surprise-chart | Liberty Global PLC Quote
Top-Line Details
The average revenue per unit (ARPU) per cable customer relationship declined 8.5% to $61.69.
Mobile ARPU (including interconnect revenues), on a reported basis, decreased 10.2% to $25.25. On a rebased basis, the figure dropped 1.8%.
Mobile ARPU (excluding interconnect revenues), on a reported basis, decreased 6.8% to $23.02.
As of Dec 31, 2022, the mobile subscriber count included approximately 440,000 subscribers in Switzerland, 271,000 subscribers in Belgium, 7,968,300 subscribers from the VMO2 JV and 370,700 prepaid mobile subscribers from the VodafoneZiggo JV.
In total, Liberty Global lost 6,700 customer relationships in the fourth quarter compared with a loss of 5,200 in the year-ago quarter.
In Belgium, Liberty Global lost 5,900 customer relationships compared with a loss of 2,700 in the year-ago quarter.
Belgium’s revenues, on a reported basis, declined 4.5% year over year to $728.7 million. On a rebased basis, revenues inched up 1.7%.
In Switzerland, Liberty Global added 2,800 customer relationships compared with the loss of 100 in the year-ago quarter.
Switzerland’s revenues, on a reported basis, declined 2.5% year over year to $803.6 million. On a rebased basis, revenues decreased 2.2%.
The company lost 2,900 customer relationships in Ireland compared with a loss of 1,600 in the year-ago quarter.
Ireland’s revenues, on a reported basis, fell 10.1% to $129.3 million.
In Slovakia, Liberty Global lost 700 customer relationships compared with a loss of 800 in the year-ago quarter.
Central and other revenues, on a reported basis, decreased 3.7% to $183 million. On a rebased basis, the top line increased 13.9%.
Joint Venture Details
Sunrise revenues of $803.6 million in fourth-quarter 2022 decreased 2.5% year over year on a reported basis and 2.2% year over year on a rebased basis largely because of a decrease in fixed subscription revenues due to ARPU pressure on main brand offerings that was only partially offset by strong trading momentum in yallo and a decrease in low margin business wholesale revenues. In the fourth quarter, Sunrise achieved 44,000 mobile postpaid net adds, driven by the Sunrise Up and yallo propositions and 9,200 broadband net adds, demonstrating positive acquisition activity through promotional periods and strong contributions from yallo offerings.
Telenet revenues of $728.7 million in fourth-quarter 2022 decreased 4.5% year over year on a reported basis and increased 1.7% on a rebased basis. The increase in rebased revenues was primarily driven by higher mobile and fixed subscription revenues owing to the June 2022 price rise and an increase in business wholesale revenues.
Liberty Global’s non-consolidated joint venture — Virgin Media O2 — reported revenues of $3.214 billion, which decreased 13.1% year over year on a reported basis and 0.7% year over year on a rebased basis due to a decline in B2B fixed revenues. Continued customer growth in both fixed and mobile driven by demand for connectivity, resulted in 71,100 postpaid mobile net adds and 22,700 broadband net adds in the fourth quarter. Average speed across the broadband base increased 41% year over year to 301 Mbps, approximately 5x higher than the national average.
Vodafone Ziggo revenues declined 11.7% on a reported basis and 1.1% on a rebased basis year over year to $1.047.3 billion. The decrease in rebased revenues was primarily due to a lower B2C fixed customer base, partially offset by a 6.3% increase in mobile service revenues driven by customer and ARPU growth.
Operating Details
Adjusted EBITDA declined 13.4% year over year to $597.3 million in the third quarter. On a rebased basis, EBITDA decreased 4.4%.
Switzerland’s EBITDA, on a rebased basis, declined 8.1% from the year-ago quarter.
Belgium’s EBITDA, on a rebased basis, increased 4.7% year over year.
Ireland’s EBITDA, on a rebased basis, decreased 12.3% year over year.
Operating loss was $45.4 million in the reported quarter compared with operating income of $80.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Liberty Global had $6.046 billion of cash, investments under SMAs and unused borrowing capacity compared with $3.968 billion in the previous quarter.
In the fourth quarter, the total principal amount of debt and finance leases was $13.8 billion for continuing operations compared with $13.263 billion in the previous quarter. The average debt tenor is six years, with approximately 93% not due until 2028 or later.
Cash provided by operating activities was $883.2 million, down 7% year over year.
Moreover, adjusted free cash flow was $439.1 million in the fourth quarter compared with a free cash flow of $147.5 million in the previous quarter and $434 million in the year-ago quarter.
Zacks Rank & Stocks to Consider
Liberty Global currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Consumer Discretionary sector are Six Flags Entertainment (SIX - Free Report) , BJ's Wholesale Club (BJ - Free Report) and Sportradar Group (SRAD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Six Flags Entertainment, BJ's Wholesale Club and Sportradar Group are scheduled to report quarterly results on Mar 2, Mar 9 and Mar 1, respectively.
The Zacks Consensus Estimate for SIX’s fourth-quarter 2022 earnings is pegged at 23 cents per share, unchanged over the past 30 days.
The Zacks Consensus Estimate for BJ's Wholesale Club’s fourth-quarter 2022 earnings is pegged at 88 cents per share, unchanged over the past 30 days.
The Zacks Consensus Estimate for Sportradar Group’s fourth-quarter 2022 earnings is pegged at 3 cents per share, unchanged over the past 30 days.