Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q3 2022 Earnings Presentation
17 slides from Liberty Global's earnings presentation, Nov 2, 2022
Slide 1: Liberty Global plc Investor Call Q3 2022
Updated Cover on new template LIBERTY GLOBAL PLC INVESTOR CALL Q3 2022 November 2, 2022
Slide 2: Q3 2022 Key Highlights
Q3 2022 KEY HIGHLIGHTS Resilient, subscription-based business performing well despite 1 challenging macro conditions Acceleration in EBITDA growth at VMO2, VZ and TNET through 2 synergies, strong cost control and price adjustments Investment in fixed network upgrades and 5G underpins leading 3 FMC p
Slide 3: Q3'22 Connectivity Trends: Steady Mobile Growth While Fixed Largely Stable
Q3’22 CONNECTIVITY TRENDS: STEADY MOBILE GROWTH WHILE FIXED LARGELY STABLE Postpaid Mobile Net Adds Broadband Net Adds VMO2 VMO2 (1) (2) BROADBAND SUNRISE BROADBAND AND POSTPAID MOBILE AND POSTPAID MOBILE Broadband: Continued broadband growth (+19k) despite competitive market. NET ADDS NET ADDS VOLT
Slide 4: Revenue Mix: FMC Champions Benefitting from Resilient Broadband, Mobile and B2B Growth
REVENUE MIX(1): FMC CHAMPIONS BENEFITTING FROM RESILIENT BROADBAND, MOBILE AND B2B GROWTH (2) (2) Growth (%) Q3 YTD Q3 YTD Q3 YTD Q3 YTD Total Revenue (0.6%) (0.2%) +1.5% +0.7% +3.1% +1.5% +1.0% 0.0% Consumer Fixed (2.4%) (3) (1.7%) (3) (4.5%) (4.0%) +0.8% (1.3%) (2.5%) (2.9%) - Broadband +6.3% +7.7
Slide 5: Network Strategy: Market-by-Market Approach to Fixed and Mobile Development
NETWORK STRATEGY: MARKET-BY-MARKET APPROACH TO FIXED AND MOBILE DEVELOPMENT UNIQUE ROADMAPS TO 10 GIG RAPIDLY ACCELERATING 5G COVERAGE FTTH DOCSIS 4 Hybrid 18% 93% 36% IRELAND ALREADY 1 GIG EVERYWHERE (YE’22) 97% Q3’22 FIXED UPDATES Q3’22 MOBILE UPDATES UK Greenfield: On track for 500k+ new homes bu
Slide 6: Capital Allocation: Commitment to Shareholder Remuneration and Sound Balance Sheet
CAPITAL ALLOCATION: COMMITMENT TO SHAREHOLDER REMUNERATION AND SOUND BALANCE SHEET AVERAGE ANNUAL SHARE BUYBACK YIELD(1) SOUND BALANCE SHEET • Substantial corporate liquidity. Buyback $1.7bn Consolidated cash balance of Spend ~$11bn $4.0B(2), of which $3.0B at corporate level (mainly USD) and no top
Slide 7: Financial Results
INVESTOR CALL Q3 2022 FINANCIAL RESULTS
Slide 8: Q3'22 Revenue: Stable to Growing Topline
Q3’22 REVENUE: STABLE TO GROWING TOPLINE(1) VMO2(2) TRANSACTION ADJ. SUNRISE VMO2(2) REVENUE GROWTH (%) REVENUE GROWTH (%) Modest decline in Q3, with weakness in consumer fixed (ARPU pressure) and tough B2B fixed trends not fully offset by mobile growth 1.5% Mobile revenue (ex handsets) continued to
Slide 9: VMO2 Revenue Deep Dive: Consumer Revenue Supported by Mobile Growth
VMO2 REVENUE DEEP DIVE: CONSUMER REVENUE SUPPORTED BY MOBILE GROWTH(1) Total Revenue (ex Handsets, B2B fixed Total Revenue (ex Handsets, B2B fixed and other) (£m) and other) +1.4% YOY VMO2 revenue growing +1.4% excluding handsets (low margin), B2B fixed and other (SMIP) revenues which both remain lu
Slide 10: Q3'22 EBITDA: Resilient Trends Including UK
Q3’22 EBITDA: RESILIENT TRENDS INCLUDING UK SYNERGY EXECUTION(1) VMO2(2) TRANSACTION ADJ. SUNRISE VMO2(2) EBITDA GROWTH (%) EBITDA GROWTH (%) Continued acceleration in EBITDA growth driven by synergy execution and 8.2% price rises; MVNO migration set to support Q4 Incl $35M 9.6% Q3 includes $35m one
Slide 11: Capital Allocation: Capital Intensity on Track and Ventures Update
CAPITAL ALLOCATION: CAPITAL INTENSITY ON TRACK AND VENTURES UPDATE 9M’22 CAPITAL INTENSITY IN LINE WITH GUIDANCE (1) VENTURES PORTFOLIO DECLINED SLIGHTLY IN Q3, 25.0% Includes ROU Additions Overall FMV fell to $3B (from $3.2B at Q2’22). Key drivers: 20.0% • CONTENT –Impacted by fall in ITV share pri
Slide 12: Full Company Distributable CF: Reiterating FY Guidance of $1.7B
FULL COMPANY DISTRIBUTABLE CF(1): REITERATING FY GUIDANCE OF $1.7B (AT GUIDANCE FX) $M FY 2021 9M 2022 ADJ EBITDA LESS P&E ADDITIONS $1,921 $934 NET INTEREST (821) (431) CASH TAX (190) (167) DIVIDENDS & INTEREST FROM JV’s (2) 583 429 WORKING CAPITAL (3) (7) (11) DIRECT ACQUISITION COSTS & DEFINITION
Slide 13: Conclusions and 2022 Outlook
2022 OUTLOOK CONCLUSIONS 2022 OUTLOOK Operating Companies(2) Liberty Global GUIDANCE (IFRS basis)(3) GUIDANCE(1) • Improved revenue growth • Confirming $1.7B Full Company Distributable Cash • Mid-single-digit Transaction Adjusted EBITDA growth Flow(1) (on guidance FX basis) (before CTC) (5) • Opex a
Slide 14: Appendix
INVESTOR CALL Q3 2022 APPENDIX
Slide 15: YTD Adj Attributed FCF & Distributable CF
YTD ADJ ATTRIBUTED FCF & DISTRIBUTABLE CF LIBERTY 50-50 50-50 TOTAL VMO2 JV GLOBAL VODAFONEZIGGO $millions IRELAND BELGIUM SWITZERLAND CENTRAL (1) POLAND LIBERTY JV CONTINUING IFRS BASIS GLOBAL OPERATIONS (2,3) (2,3,4) ADJUSTED EBITDA $153 $989 $880 $(24) $1,998 $46 $2,044 $1,530 $3,591 PRE-LIGHTNIN
Slide 16: Q3 2022 YTD Adj EBITDA & Adj EBITDAaL
Q3 2022 YTD ADJ EBITDA & ADJ EBITDAAL(1) LIBERTY 50-50 50-50 GLOBAL VODAFONEZIGGO VMO2 JV $m IRELAND BELGIUM SWITZERLAND CENTRAL (2) CONTINUING JV IFRS BASIS OPERATIONS (3,4) (3,4,5) ADJUSTED EBITDA $153 $989 $880 $(24) $1,998 $1,530 $3,591 DEPRECIATION & AMORTIZATION - (40) (4) (6) (50) (7) (188) O
Slide 17: Ventures Portfolio FMV $3.0B
VENTURES PORTFOLIO FMV $3.0B(1) VENTURES FAIR MARKET VALUE ($M) VENTURES PORTFOLIO DECLINED SLIGHTLY IN Q3’22, $3.2B $3.0B ending with $3.0B FMV (-c.$0.5B vs Dec-2021)1 • CONTENT – Impacted by fall in ITV share price during the quarter • TECH / INFRASTRUCTURE - Current estimated valuations broadly s