Stable to growing revenue across our FMC markets and
continued Adjusted EBITDA growth at VMO21
Price adjustments, merger synergies and continued innovation
expected to support robust operational trends
Executing on long-term fixed network strategies with Telenet
announcing NetCo partnership in Belgium, and fiber plans
progressing in the U.K. and Ireland
Stock buyback accelerating with announcement to increase 2022
program by $400 million to ~$1.7 billion
Confirming all full-year 2022 guidance targets
Liberty Global plc today announced its Q2 2022 financial
results.
CEO Mike Fries stated, “Despite an increasingly difficult
macroeconomic environment developing throughout the second quarter,
demand for connectivity remains high and we are well positioned to
execute on our strategic and financial goals. In each of our core
operating markets, we remain focused on product innovation and
offering the best value for our customers, especially as they
manage through the effects of increased living costs. At the same
time, we are proactively addressing the impacts on our costs while
supporting our network investments across fixed and mobile.
In Q2, we delivered aggregate2 broadband and postpaid mobile net
add growth underpinned mostly by positive postpaid mobile trends
and a return to broadband growth in the U.K. Financially, with
price adjustments beginning to support top-line trends, we reported
stable revenue across our FMC markets. Synergies supported Adjusted
EBITDA trends in Switzerland and the U.K., where the continued
growth of VMO21 was the highlight of the quarter. Looking ahead to
H2, the realization of synergies is expected to continue driving
cash flow growth in the U.K., while recent price adjustments in the
Netherlands and Belgium should support improved financial results
in both markets.
Our continued focus on innovation is driving unique FMC product
and bundling strategies that not only differentiate us from the
competition, but also generate higher NPS, lower churn, and support
ARPUs. In Switzerland, our new Sunrise UP converged bundles offer
market-leading benefits such as multiple mobile sims with
best-in-class speeds, underpinned by gigabit coverage for over 90%
of Swiss households and the highest customer service and loyalty
program in the country. In the U.K., we recently launched a new IP
TV product called Stream that brings together linear, VOD and
streaming services into one place and gives customers the
flexibility to manage their monthly spend by easily adding and
removing content. Initial customer reaction to both initiatives has
been very encouraging with full marketing campaigns already
underway at VMO2 and Sunrise.
We continue making progress with our network development
strategies. Nearly 100% of our networks already offer gigabit
speeds to customers today, and by utilizing a combination of the
best upgrade technologies available, we will be able to offer up to
10 gig broadband speeds in all our markets. In Belgium, Telenet
recently entered into an attractive agreement with Fluvius to
create the data network of the future in Flanders. Both companies
will combine their fixed network assets and create a new,
independent and self-funding infrastructure company called “NetCo,”
which will invest in the gradual evolution of its current HFC
network to FTTH targeting 78% of the footprint by 2038.
We are reiterating all of our original, full-year guidance
metrics, including $1.7 billion(i) of Full Company3 Distributable
Cash Flow4. This will be supported through significant adjusted
free cash flow creation at Vodafone Ziggo and VMO2 and arranged
financings. Liberty Global’s balance sheet remains strong with ~$4
billion(ii) of cash and ~$6 billion of total liquidity5. As of
today, we have substantially completed our annual buyback
commitment of 10% of our shares outstanding. Given our strong cash
flow generation and the compelling value in our stock at current
prices, we are announcing today an increase to our 2022 buyback
program of $400 million, bringing the total for the year to ~$1.7
billion.”
(i)
Quantitative reconciliations to cash flow
from operating activities for our Distributable Cash Flow guidance
cannot be provided without unreasonable efforts as we do not
forecast specific changes in working capital that impact cash flows
from operating activities. The items we do not forecast may vary
significantly form period to period. Distributable Cash Flow
guidance reflects FX rates of EUR/USD 1.14, GBP/USD 1.35 and
CHF/USD 1.06.
(ii)
Including amounts held under separately managed accounts (SMAs).
Q2 Operating Company Highlights
Sunrise (Consolidated)
Sunrise achieves key integration milestone; "Sunrise" becomes
main brand. Sunrise UP portfolios launched, with integrated
packages delivering greater value across customer segments. Sunrise
expands fiber-access partnership with Swiss Fibre Net AG.
Reiterates 2022 guidance
Operating highlights: Our Swiss
operations continue to develop benefits from the acquisition of the
Sunrise mobile business and its combination with our strong fixed
network business. As a key integration milestone, we have
introduced the 'Sunrise UP' portfolio, as Sunrise continues to
generate value for its customer base through cross-sell
opportunities and strong fixed mobile convergence (FMC)
penetration. Sunrise also expanded the existing partnership with
Swiss Fibre Net AG for the provision of FTTH access through
wholesale access across Swiss households and businesses. Broadband
performance was relatively stable with 2,000 broadband losses in Q2
being primarily driven by the phasing out of the UPC brand,
impacting inflow volume ahead of the Sunrise rebranding. We
maintained momentum in mobile postpaid, delivering 47,000 net adds
in the quarter. With a strong mobile offering together with our
powerful fixed line network, our FMC penetration remains high at
57% of the broadband base. We continue to be enthusiastic about our
competitive position in Switzerland with the combination of the two
companies, despite the competitive environment.
Financial highlights: Revenue of
$766.1 million in Q2 2022 decreased 7.2% YoY on a reported basis
and decreased 0.3% YoY on a rebased6 basis. The rebased decrease
was largely driven by (i) a decrease in fixed subscription revenue
due to ARPU pressures, partially offset by (i) strong trading
momentum in Yallo and (ii) higher mobile revenue driven by an
increase in subscribers and B2B volumes. Adjusted EBITDA decreased
7.4% on a reported basis and increased 0.5% on a rebased basis to
$276.5 million in Q2 2022, including $20 million of opex costs to
capture7. Adjusted EBITDA less P&E Additions of $164.9 million
in Q2 decreased 5.5% YoY on a reported basis. On a rebased basis,
Adjusted EBITDA less P&E Additions increased 4.3%, including
$46 million of opex and capex costs to capture. While we are
integrating the two businesses, costs to capture have short term
impacts but are incurred to promote future synergies, more
efficient operations and enhanced operations and profitability.
Telenet (Consolidated)
Completed the sale of the mobile tower business. Confirming
2022 Guidance
Operating highlights: Continued
growth of the FMC customer base in Q2 2022 was driven by continued
uptake of Telenet's "ONE(Up)" bundles, while lower market flux
impacted net new subscriber growth of 8,000 postpaid mobile net
additions, with annualized churn remaining at historically low
levels. During Q2, Telenet completed the sale of its mobile tower
business to DigitalBridge Group, Inc. Telenet also recently entered
into a binding agreement with Fluvius to develop “the data network
of the future” in Flanders. Both companies will contribute their
fixed network assets to incorporate a new infrastructure company
"NetCo" that will invest in the evolution of the current HFC
network into a FTTH network.
Financial highlights: Reported and
rebased revenue decreased 11.1% and increased 0.7%, respectively,
to $689.1 million in Q2. The increase in rebased revenue was
primarily driven by (i) higher mobile subscription revenue and (ii)
an increase in business wholesale revenue, partially offset by
lower fixed subscription revenue. Reported and rebased Adjusted
EBITDA decreased 15.2% and 3.9%, respectively, to $330.3 million in
Q2, reflecting the impact of higher inflation on energy costs and
staff-related expenses as well as higher network operating costs.
Reported and rebased Adjusted EBITDA less P&E Additions
decreased 24.5% and 15.1%, respectively, to $190.1 million in
Q2.
VMO2 (Non-consolidated Joint Venture)
The VMO2 JV delivers improved customer growth and accelerated
investments
Operating highlights: The VMO2 JV
has grown its fixed and mobile customer base once again as fast,
reliable connectivity remains a top priority for consumers and
businesses. The broadband base returned to growth with 16,000 net
additions in Q2 driven by (i) growth in our Project Lightning new
build program, (ii) strong trading following the Q1 price rise and
(iii) continued demand for high-quality connectivity. Mobile
postpaid continued to show growth with net adds of 13,000 during
the quarter. Average speed across the company's broadband base
increased 27% YoY and now reaches 247Mbps, almost 5x the national
average. The company also launched 1Gbps speeds for small
businesses - the fastest widely available business broadband in the
U.K. - and continued to build momentum in the public sector.
Investment in the U.K.'s digital infrastructure continues through
Project Lightning, the completion of FTTP upgrade pilots during Q1
and the extension of 5G services expected to hit 50% coverage of
the population by 2023.
Financial highlights (in U.S.
GAAP): Revenue of $3,202.6 million was broadly flat YoY on
an FX neutral pro forma basis1, supported by the benefit of the
fixed and mobile price rises. The YoY result was primarily driven
by the net effect of (i) an increase in mobile revenue driven by
improvements in both handset and service revenue and other revenue,
(ii) a decrease in fixed revenue primarily driven by B2B where
there was a high level of installation revenue within Wholesale in
Q2 2021 and (iii) an increase in other revenue. Adjusted EBITDA
increased 1.7% YoY on an FX neutral pro forma basis to $1,059.4
million, including $19 million of opex costs to capture, as a
result of the flow through of price rises and the realization of
synergies and cost efficiencies, partially offset by increased
energy costs. Adjusted EBITDA less P&E Additions decreased
19.3%8 YoY on an FX neutral pro forma basis to $370.1 million,
including $102 million of opex and capex costs to capture. P&E
Additions increased 9.1% YoY to $689.3 million.
For more information regarding the VMO2 JV, including full IFRS
disclosures, please visit their investor relations page to access
the Q2 earnings release.
VodafoneZiggo (Non-consolidated Joint Venture)
Commercial Momentum Improved. Reconfirming 2022
guidance
Operating highlights: VodafoneZiggo
continues to successfully execute its commercial strategy despite
increased promotional intensity in the Dutch market, passing 2.5
million converged SIMs and 1.5 million converged households9 and
continuing to drive improvement in Net Promoter Scores and reduce
churn. VodafoneZiggo delivered 49,000 mobile postpaid additions in
Q2, while stabilizing mobile postpaid ARPU. Broadband RGUs declined
by 2,000 in Q2, an improvement of 15,000 compared to Q1. More than
6 million customer homes connected to Gigabit speeds. Successfully
implemented an average 3.5% price increase as of July 2022 without
a significant increase in churn.
Financial highlights: Revenue
declined 12.3% on a reported basis and 0.7% on a rebased basis to
$1,065.6 million in Q2. The relatively flat rebased result was
primarily driven by a decline in the B2C fixed customer base,
partially offset by mobile postpaid and B2B fixed customer base
growth. Reported and rebased Adjusted EBITDA decreased 13.9% and
2.4%, respectively, to $490.9 million in Q2. The rebased decrease
was primarily driven by the aforementioned revenue decline, higher
energy and fuel costs related to inflation, partially offset by
incremental cost efficiency measures. Reported and rebased Adjusted
EBITDA less P&E Additions decreased 18.8% and 7.5%,
respectively, to $238.8 million in Q2. The rebased decrease was
primarily driven by lower Adjusted EBITDA and higher P&E
additions.
Q2 ESG Highlights
In the area of Environmental, Social and Corporate Governance
(ESG), the focus in the second quarter was on reporting and
disclosure, which resulted in the recent publication of our latest
CR Report. The report highlights our achievements and initiatives
for 2021 including awards won by our business, people reached with
our initiatives, employee engagement, avoided carbon emissions, and
many others. We also continued our initiatives to engage with our
employees and communities across our Operating Companies. In
Switzerland, "The Big Ride 2022" was a success, with over $1.5
million raised, and where more than 500 employee and partners
participated in the challenge. The VMO2 JV released its new
sustainability strategy, the “Better Connections Plan”, which sets
out the company’s ambitious commitment to achieve net zero carbon
across its operations, products and supply chain by the end of
2040. It is one of the first companies to work towards the Carbon
Trust’s Route to Net Zero Standard and it joined the Climate
Group’s EV100 initiative and The Climate Pledge – a collective of
more than 300 organizations committed to climate action. The VMO2
JV also announced its ‘Response to cost-of-living crisis’, offering
customers free roaming, monthly payment plans, data free access to
websites that offer financial, health and well-being guidance.
Virgin Media Ireland launched its "Connecting 4 Good"
sustainability strategy, setting out plans for reducing its carbon
footprint by 50% by 2030, and achieve net zero carbon emissions by
2050. In The Netherlands, Liberty Global and VodafoneZiggo started
offering Ukrainian Refugees fast-track employment opportunities.
Vodafone Ziggo also launched the Next Mini box in the market, our
most energy efficient set top box to date, weighing less than 100
grams and the winner of the Red Dot award in 2021.
Diversity, Equity and Inclusion (DE&I) continues to be a
focus for us, reinforcing an inclusive work environment, where our
people know their voices are heard, valued, respected and everyone
feels they belong. Our dedicated DE&I Council continues to work
with colleagues across the Liberty Global footprint to ensure
DE&I is embedded into everything we do, including the products
we design, the decisions we make, the communities in which we
operate and the relationships we have with our customers, suppliers
and shareholders. We are accelerating across our priorities of
inclusivity and representation in the workplace. Underpinning our
strategic pillars of Gender, LGBTQIA+, Ability, Race and Ethnicity,
and Multigenerational. We strongly believe in driving an inclusive
culture through education, improving our practices, and measuring
our progress. We have developed conscious inclusion training and
have started to roll this out across our employees as well as
embedded our anti-bullying, discrimination and harassment policy in
mandatory training. We have refreshed our recruitment practices,
taking potential bias out of the process, and widening our talent
pool for diversity through new partnerships. We have more than 800
people engaged in our Employee Resource Groups (ERG) providing us
with live feedback and holding us to account.
Liberty Global Consolidated Q2 Highlights
- Q2 revenue decreased 41.3% YoY on a reported basis and
increased 1.0% on a rebased basis to $1,754.2 million
- Q2 earnings from continuing operations decreased 79.5% YoY on a
reported basis to $2,282.2 million
- Q2 Adjusted EBITDA decreased 45.8% YoY on a reported basis and
decreased 3.6% on a rebased basis to $649.8 million
- Q2 property & equipment additions were 19.2% of revenue, as
compared to 19.7% in Q2 2021
- Balance sheet with $5.6 billion of total liquidity
- Comprised of $2.4 billion of cash, $1.8 billion of investments
held under SMAs and $1.4 billion of unused borrowing
capacity10
- Fully-swapped borrowing cost of 3.2% on a debt balance of $13.3
billion
Liberty Global
Q2 2022
Q2 2021
YoY Change (reported)
YoY Change (rebased)
YTD 2022
YoY Change (reported)
YoY Change (rebased)
Customers
Organic customer net losses
(19,900
)
(2,400
)
(729.2
%)
(23,800
)
(179.3
%)
Financial (in
millions, except percentages)
Revenue
$
1,754.2
$
2,989.2
(41.3
%)
1.0
%
$
3,607.5
(44.4
%)
1.3
%
Earnings from continuing operations
$
2,282.2
$
11,150.9
(79.5
%)
$
3,357.9
(73.3
%)
Adjusted EBITDA
$
649.8
$
1,199.1
(45.8
%)
(3.6
%)
$
1,334.1
(47.0
%)
(0.5
%)
P&E additions
$
336.0
$
590.1
(43.1
%)
$
717.9
(45.7
%)
Adjusted EBITDA less P&E Additions
$
313.8
$
609.0
(48.5
%)
(9.4
%)
$
616.2
(48.4
%)
(2.9
%)
Cash provided by operating activities
$
757.4
$
1,079.5
(29.8
%)
$
1,363.0
(26.4
%)
Cash provided (used) by investing
activities
$
2,620.7
$
(4,911.0
)
153.4
%
$
2,581.3
147.7
%
Cash provided (used) by financing
activities
$
(1,776.3
)
$
344.2
(616.1
%)
$
(2,432.0
)
(600.3
%)
Full Company Adjusted FCF
$
427.0
$
586.9
(27.2
%)
$
564.2
(14.9
%)
Full Company Distributable Cash Flow
$
427.0
$
586.9
(27.2
%)
$
564.2
(14.9
%)
Customer Growth
Three months ended
Six months ended
June 30,
June 30,
2022
2021
2022
2021
Organic customer net additions (losses)
by market
Switzerland
(9,000
)
(3,900
)
(3,600
)
500
Belgium
(4,400
)
(6,300
)
(9,900
)
(10,800
)
U.K.(i)
—
13,300
—
41,700
Ireland
(4,500
)
(3,300
)
(5,900
)
(700
)
Slovakia
(2,000
)
(2,200
)
(4,400
)
(700
)
Total
(19,900
)
(2,400
)
(23,800
)
30,000
______________________
(i)
The 2021 amounts represent organic net additions of the U.K. JV
Entities through the June 1, 2021 closing of the U.K. JV
Transaction.
Earnings from Continuing Operations
- Earnings from continuing operations was $2,282.2 million and
$11,150.9 million for the three months ended June 30, 2022 and
2021, respectively, and $3,357.9 million and $12,573.6 million for
the six months ended June 30, 2022 and 2021, respectively
Financial Highlights
The following tables present (i) revenue, Adjusted EBITDA and
Adjusted EBITDA less P&E Additions for each of our reportable
segments, including the non-consolidated VMO2 JV and VodafoneZiggo
JV, for the comparative periods and (ii) the percentage change from
period to period on both a reported and rebased basis. Consolidated
Adjusted EBITDA and Consolidated Adjusted EBITDA less P&E
Additions are non-GAAP measures. For additional information on how
these measures are defined and why we believe they are meaningful,
see the Glossary.
Three months ended
Increase/(decrease)
Six months ended
Increase/(decrease)
June 30,
June 30,
Revenue
2022
2021
Reported %
Rebased %
2022
2021
Reported %
Rebased %
in millions, except %
amounts
Switzerland
$
766.1
$
825.4
(7.2
)
(0.3
)
$
1,587.5
$
1,667.2
(4.8
)
0.3
Belgium
689.1
774.8
(11.1
)
0.7
1,413.5
1,547.5
(8.7
)
0.7
Ireland
121.5
134.1
(9.4
)
2.5
249.3
270.2
(7.7
)
1.7
U.K.(i)
—
1,101.4
(100.0
)
—
—
2,736.4
(100.0
)
—
Central and Other
180.6
157.0
15.0
8.8
362.0
277.3
30.5
8.8
Intersegment eliminations
(3.1
)
(3.5
)
N.M.
N.M.
(4.8
)
(9.5
)
N.M.
N.M.
Total
$
1,754.2
$
2,989.2
(41.3
)
1.0
$
3,607.5
$
6,489.1
(44.4
)
1.3
VMO2 JV(ii)(iii)
$
3,202.6
$
1,208.5
165.0
N.M.
$
6,600.6
$
1,208.5
446.2
N.M.
VodafoneZiggo JV(iii)
$
1,065.6
$
1,215.3
(12.3
)
(0.7
)
$
2,195.6
$
2,432.3
(9.7
)
(0.5
)
______________________
N.M. - Not Meaningful
(i)
The 2021 amounts represent the revenue of the U.K. JV Entities
through the June 1, 2021 closing of the U.K. JV Transaction.
(ii)
The 2021 amounts represent the revenue of the VMO2 JV for the
period from June 1, 2021 through June 30, 2021.
(iii)
Amounts reflect 100% of the 50:50
non-consolidated VMO2 JV and VodafoneZiggo JV's revenue.
Three months ended
Increase/(decrease)
Six months ended
Increase/(decrease)
June 30,
June 30,
Adjusted EBITDA
2022
2021
Reported %
Rebased %
2022
2021
Reported %
Rebased %
in millions, except %
amounts
Switzerland
$
276.5
$
298.5
(7.4
)
0.5
$
577.7
$
580.1
(0.4
)
5.0
Belgium
330.3
389.6
(15.2
)
(3.9
)
670.7
761.4
(11.9
)
(2.8
)
Ireland
52.0
54.0
(3.7
)
8.9
102.9
101.6
1.3
11.7
U.K.(i)
—
444.9
(100.0
)
—
—
1,085.3
(100.0
)
—
Central and Other
(9.4
)
9.6
(197.9
)
N.M.
(16.8
)
(16.7
)
(0.6
)
N.M.
Intersegment eliminations
0.4
2.5
N.M.
N.M.
(0.4
)
3.6
N.M.
N.M.
Total
$
649.8
$
1,199.1
(45.8
)
(3.6
)
$
1,334.1
$
2,515.3
(47.0
)
(0.5
)
VMO2 JV(ii)(iii)
$
1,059.4
$
411.0
157.8
N.M.
$
2,454.7
$
411.0
497.3
N.M.
VodafoneZiggo JV(iii)
$
490.9
$
570.1
(13.9
)
(2.4
)
$
1,028.7
$
1,135.3
(9.4
)
(0.1
)
______________________
N.M. - Not Meaningful
(i) The 2021 amounts represent the Adjusted EBITDA of the
U.K. JV Entities through the June 1, 2021 closing of the U.K. JV
Transaction. (ii) The 2021 amounts represent the Adjusted EBITDA of
the VMO2 JV for the period from June 1, 2021 through June 30, 2021.
(iii)
Amounts reflect 100% of the 50:50
non-consolidated VMO2 JV and VodafoneZiggo JV's Adjusted
EBITDA.
Three months ended
Increase/(decrease)
Six months ended
Increase/(decrease)
Adjusted EBITDA less P&E
Additions
June 30,
June 30,
2022
2021
Reported %
Rebased %
2022
2021
Reported %
Rebased %
in millions, except %
amounts
Switzerland
$
164.9
$
174.5
(5.5
)
4.3
$
322.6
$
301.9
6.9
14.0
Belgium
190.1
251.8
(24.5
)
(15.1
)
379.2
470.2
(19.4
)
(11.4
)
Ireland
28.3
29.8
(5.0
)
6.9
52.7
58.3
(9.6
)
(0.4
)
U.K.(i)
—
219.7
(100.0
)
—
—
527.9
(100.0
)
—
Central and Other
(69.9
)
(69.3
)
(0.9
)
(10.5
)
(137.9
)
(167.7
)
17.8
(7.7
)
Intersegment eliminations
0.4
2.5
N.M.
N.M.
(0.4
)
3.6
N.M.
N.M.
Total
$
313.8
$
609.0
(48.5
)
(9.4
)
$
616.2
$
1,194.2
(48.4
)
(2.9
)
VMO2 JV (ii)(iii)
$
370.1
$
184.7
100.4
N.M.
$
1,106.1
$
184.7
498.9
N.M.
VodafoneZiggo JV(iii)
$
238.8
$
294.2
(18.8
)
(7.5
)
$
556.2
$
624.9
(11.0
)
(2.0
)
______________________
N.M. - Not Meaningful
(i)
The 2021 amounts represent the Adjusted
EBITDA less P&E Additions of the U.K. JV Entities through the
June 1, 2021 closing of the U.K. JV Transaction.
(ii)
The 2021 amounts represent the Adjusted EBITDA less P&E
Additions of the VMO2 JV for the period from June 1, 2021 through
June 30, 2021.
(iii)
Amounts reflect 100% of the 50:50
non-consolidated VMO2 JV and VodafoneZiggo JV's Adjusted EBITDA
less P&E Additions.
Leverage and Liquidity
- Total principal amount of debt and
finance leases: $13.3 billion
- Average debt tenor11:
Approximately 7 years, with ~94% not due until 2028 or
thereafter
- Borrowing costs: Blended,
fully-swapped cost of debt was 3.2%
- Liquidity: $5.6 billion, including
(i) $2.4 billion of cash at June 30, 2022, (ii) $1.8 billion of
investments held under SMAs and (iii) $1.4 billion of aggregate
unused borrowing capacity under our credit facilities
Forward-Looking Statements and Disclaimer
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements with respect to our strategies, future
growth prospects and opportunities; expectations regarding our and
our businesses' financial performance, including Rebased Revenue,
Adjusted Free Cash Flow and Distributable Cash Flow at the
consolidated level, as well as the 2022 financial guidance provided
by our operating companies and joint ventures; expectations of any
economy-wide dynamics that may be beneficial to the company;
expectations of price increases and cost mitigation for our
products or services and their associated inputs; anticipated
shareholder distributions from our joint ventures; expectations
with respect to the integration and synergy plans at Virgin Media
O2 and at Sunrise, including the timing, costs and anticipated
benefits thereof; expectations regarding network and product plans,
including the expectation of being able to provide 10 gigabit
broadband speed in each of our markets; the expected progress of
Project Lightning in the U.K., the full fiber overlays in the U.K.
and Ireland; expected 5G coverage in the U.K. and making 1Gbps
internet available across our global footprint; the benefits to be
derived from the NetCo creation between Telenet and Fluvius in
Belgium; our investments in infrastructure through capital
expenditures, as well as the expected timing, cost and anticipated
benefits of each such endeavor; our commitments and aspirations
with respect to ESG, including Net Zero and DE&I matters, such
as the Better Connections Plan, VMO2's response to cost of living
crisis, Virgin Media Ireland's Connecting for Good strategy and any
fast-track employment projects proposed by our operating companies;
our share buyback program, including our commitment to repurchase
10% of our outstanding shares in each of 2022 and 2023 and the $400
million additional share buybacks anticipated to be completed in
2022; the strength of our and our affiliates' respective balance
sheets (including cash and liquidity position), tenor of our
third-party debt, anticipated borrowing capacity; and other
information and statements that are not historical fact. These
forward-looking statements involve certain risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied by these statements. These risks and
uncertainties include events that are outside of our control, such
as the continued use by subscribers and potential subscribers of
our and our affiliates’ services and their willingness to upgrade
to our more advanced offerings; our and our affiliates’ ability to
meet challenges from competition, to manage rapid technological
change or to maintain or increase rates to subscribers or to pass
through increased costs to subscribers; the potential continued
impact of the COVID-19 pandemic on us and our businesses; the
effects of changes in laws or regulation; the effects of the U.K.'s
exit from the E.U.; general economic factors; our and our
affiliates’ ability to obtain regulatory approval and satisfy
regulatory conditions associated with acquisitions and
dispositions; our and affiliates’ ability to successfully acquire
and integrate new businesses and realize anticipated efficiencies
from acquired businesses; the availability of attractive
programming for our and our affiliates’ video services and the
costs associated with such programming; our and our affiliates’
ability to achieve forecasted financial and operating targets; the
outcome of any pending or threatened litigation; the ability of our
operating companies and affiliates to access the cash of their
respective subsidiaries; the impact of our operating companies' and
affiliates’ future financial performance, or market conditions
generally, on the availability, terms and deployment of capital;
fluctuations in currency exchange and interest rates; the ability
of suppliers, vendors and contractors to timely deliver quality
products, equipment, software, services and access; our and our
affiliates’ ability to adequately forecast and plan future network
requirements including the costs and benefits associated with
network expansions; and other factors detailed from time to time in
our filings with the Securities and Exchange Commission (the
"SEC"), including our most recently filed Form 10-K, Form 10-K/A
and Forms 10-Q. These forward-looking statements speak only as of
the date of this release. We expressly disclaim any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in
our expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
Share Repurchase Program
As previously announced, our Board of Directors authorized a
share repurchase program whereby we have committed to repurchasing
10 percent of our outstanding shares in each of 2022 and 2023. In
addition, as announced today, our Board of Directors has authorized
an additional $400 million for 2022 share repurchases. Under the
program, Liberty Global may acquire from time to time its Class A
ordinary shares, Class C ordinary shares, or any combination of
Class A and Class C ordinary shares. The program may be effected
through open market transactions and/or privately negotiated
transactions, which may include derivative transactions. The timing
of the repurchase of shares pursuant to the program will depend on
a variety of factors, including market conditions and applicable
law. The program may be implemented in conjunction with brokers for
the Company and other financial institutions with whom the Company
has relationships within certain pre-set parameters, and purchases
may continue during closed periods in accordance with applicable
restrictions. The program may be suspended or discontinued at any
time.
About Liberty Global
Liberty Global (NASDAQ: LBTYA, LBTYB and LBTYK) is a world
leader in converged broadband, video and mobile communications
services. We deliver next-generation products through advanced
fiber and 5G networks, and currently provide over 85 million
connections* across Europe and the United Kingdom. Our businesses
operate under some of the best-known consumer brands, including
Virgin Media-O2 in the U.K., VodafoneZiggo in The Netherlands,
Telenet in Belgium, Sunrise in Switzerland, Virgin Media in Ireland
and UPC in Slovakia. Through our substantial scale and commitment
to innovation, we are building Tomorrow’s Connections Today,
investing in the infrastructure and platforms that empower our
customers to make the most of the digital revolution, while
deploying the advanced technologies that nations and economies need
to thrive.
Our consolidated businesses generate annual revenue of more than
$7.5 billion, while the VodafoneZiggo JV and the VMO2 JV generate
combined annual revenue of more than $19 billion.**
Liberty Global Ventures, our global investment arm, has a
portfolio of more than 75 companies and funds across content,
technology and infrastructure, including strategic stakes in
companies like ITV, Televisa Univision, Plume, Lionsgate and the
Formula E racing series.
* Represents aggregate consolidated and 50% owned
non-consolidated fixed and mobile subscribers. Includes wholesale
mobile subscribers of the VMO2 JV and B2B fixed subscribers of the
VodafoneZiggo JV.
** Revenue figures above are provided based on full year 2021
Liberty Global consolidated results (excluding revenue from the
U.K. JV Entities) and the combined as reported full year 2021
results for the VodafoneZiggo JV and estimated U.S. GAAP full year
2021 results for the VMO2 JV. For more information, please visit
www.libertyglobal.com.
Balance Sheets, Statements of Operations and Statements of
Cash Flows
The condensed consolidated balance sheets, statements of
operations and statements of cash flows of Liberty Global are in
our 10-Q.
Rebase Information
Rebase growth percentages, which are non-GAAP measures, are
presented as a basis for assessing growth rates on a comparable
basis. For purposes of calculating rebased growth rates on a
comparable basis for all businesses that we owned during 2022, we
have adjusted our historical revenue, Adjusted EBITDA and Adjusted
EBITDA less P&E Additions for the three and six months ended
June 30, 2021 to (i) include the pre-acquisition revenue, Adjusted
EBITDA and P&E additions of entities acquired during 2021 in
our rebased amounts for the three and six months ended June 30,
2021 to the same extent that the revenue, Adjusted EBITDA and
P&E additions of these entities are included in our results for
the three and six months ended June 30, 2022, (ii) exclude from our
rebased amounts the revenue, Adjusted EBITDA and P&E additions
of entities disposed of during 2022 and 2021 to the same extent
that the revenue, Adjusted EBITDA and P&E additions of these
entities are excluded in our results for the three and six months
ended June 30, 2022, (iii) include in our rebased results the
revenue and costs for the temporary elements of transitional and
other services provided to the VMO2 JV, the VodafoneZiggo JV,
iliad, Vodafone, Deutsche Telekom, Liberty Latin America and M7
Group, to reflect amounts related to these services equal to those
included in our results for the three and six months ended June 30,
2022 and (iv) reflect the translation of our rebased amounts at the
applicable average foreign currency exchange rates that were used
to translate our results for the three and six months ended June
30, 2022. We have reflected the revenue, Adjusted EBITDA and
P&E additions of these acquired entities in our 2021 rebased
amounts based on what we believe to be the most reliable
information that is currently available to us (generally
pre-acquisition financial statements), as adjusted for the
estimated effects of (a) any significant differences between U.S.
GAAP and local generally accepted accounting principles, (b) any
significant effects of acquisition accounting adjustments, (c) any
significant differences between our accounting policies and those
of the acquired entities and (d) other items we deem appropriate.
We do not adjust pre-acquisition periods to eliminate nonrecurring
items or to give retroactive effect to any changes in estimates
that might be implemented during post-acquisition periods. As we
did not own or operate the acquired businesses during the
pre-acquisition periods, no assurance can be given that we have
identified all adjustments necessary to present the revenue,
Adjusted EBITDA and Adjusted EBITDA less P&E Additions of these
entities on a basis that is comparable to the corresponding
post-acquisition amounts that are included in our historical
results or that the pre-acquisition financial statements we have
relied upon do not contain undetected errors. In addition, the
rebased growth percentages are not necessarily indicative of the
revenue, Adjusted EBITDA and Adjusted EBITDA less P&E Additions
that would have occurred if these transactions had occurred on the
dates assumed for purposes of calculating our rebased amounts or
the revenue, Adjusted EBITDA and Adjusted EBITDA less P&E
Additions that will occur in the future. Investors should view
rebased growth as a supplement to, and not a substitute for, U.S.
GAAP measures of performance included in our condensed consolidated
statements of operations.
The following table provides adjustments made to the 2021
amounts (i) in aggregate for our consolidated reportable segments
and (ii) for the non-consolidated VodafoneZiggo JV to derive our
rebased growth rates:
Three months ended June 30,
2021
Six months ended June 30,
2021
Revenue
Adjusted EBITDA
Adjusted EBITDA less P&E
Additions
Revenue
Adjusted EBITDA
Adjusted EBITDA less P&E
Additions
in millions
Consolidated Liberty Global:
Acquisitions and Dispositions(i)
$
(984.7
)
$
(409.7
)
$
(203.8
)
$
(2,532.0
)
$
(1,004.6
)
$
(475.6
)
Foreign Currency
(268.5
)
(115.0
)
(58.7
)
(397.6
)
(169.3
)
(83.7
)
Total
$
(1,253.2
)
$
(524.7
)
$
(262.5
)
$
(2,929.6
)
$
(1,173.9
)
$
(559.3
)
VodafoneZiggo JV(ii):
Foreign Currency
$
(141.7
)
$
(66.9
)
$
(35.9
)
$
(224.6
)
$
(105.1
)
$
(57.1
)
______________________
(i)
In addition to our acquisitions and
dispositions, these rebase adjustments also include amounts related
to agreements to provide transitional and other services to the
VMO2 JV, the VodafoneZiggo JV, iliad, Vodafone, Liberty Latin
America, Deutsche Telekom and M7 Group. These adjustments result in
an equal amount of fees in both the 2022 and 2021 periods for those
services that are deemed to be temporary in nature.
(ii)
Amounts reflect 100% of the adjustments made related to the
VodafoneZiggo JV's revenue, Adjusted EBITDA and Adjusted EBITDA
less P&E Additions, respectively, which we do not consolidate,
as we hold a 50% noncontrolling interest.
Liquidity
The following table(i) details the U.S. dollar equivalents of
our liquidity position at June 30, 2022, which includes our (i)
cash and cash equivalents, (ii) investments held under SMAs and
(iii) unused borrowing capacity:
Cash
Unused
and Cash
Borrowing
Total
Equivalents
SMAs(ii)
Capacity(iii)
Liquidity
in millions
Liberty Global and unrestricted
subsidiaries
$
1,510.3
$
1,824.2
$
—
$
3,334.5
Telenet
869.6
—
581.8
1,451.4
UPC Holding
10.7
—
748.0
758.7
VM Ireland
0.5
—
104.8
105.3
Total
$
2,391.1
$
1,824.2
$
1,434.6
$
5,649.9
______________________
(i)
Except as otherwise indicated, the amounts
reported in the table include the named entity and its
subsidiaries.
(ii)
Represents investments held under SMAs
which are maintained by investment managers acting as agents on our
behalf.
(iii)
Our aggregate unused borrowing capacity of
$1.4 billion represents maximum undrawn commitments under the
applicable facilities without regard to covenant compliance
calculations or other conditions precedent to borrowing.
Summary of Debt & Finance Lease Obligations
The following table(i) details the June 30, 2022 U.S. dollar
equivalents of the (i) outstanding principal amount of our debt and
finance lease obligations, (ii) expected principal related
derivative cash payments or receipts and (iii) swapped principal
amount of our debt and finance lease obligations:
Finance
Debt & Finance
Principal Related
Swapped Debt
Lease
Lease
Derivative
& Finance Lease
Debt(ii)
Obligations
Obligations
Cash Payments
Obligations
in millions
UPC Holding
$
6,301.8
$
19.4
$
6,321.2
$
117.6
$
6,438.8
Telenet
5,512.9
385.6
5,898.5
—
5,898.5
VM Ireland
943.4
—
943.4
—
943.4
Other
94.4
35.8
130.2
(229.6
)
(99.4
)
Total
$
12,852.5
$
440.8
$
13,293.3
$
(112.0
)
$
13,181.3
______________________
(i)
Except as otherwise indicated, the amounts reported in the table
include the named entity and its subsidiaries.
(ii)
Debt amounts for UPC Holding include notes issued by special
purpose entities that are consolidated by UPC Holding.
Property and Equipment Additions and Capital
Expenditures
The table below highlights the categories of property and
equipment additions of our continuing operations for the indicated
periods and reconciles those additions to the capital expenditures
of our continuing operations that are presented in the condensed
consolidated statements of cash flows in our 10-Q.
Three months ended
Six months ended
June 30,
June 30,
2022
2021
2022
2021
in millions, except %
amounts
Customer premises equipment
$
64.7
$
124.4
$
135.9
$
271.7
New build & upgrade
27.6
99.3
50.4
236.8
Capacity
46.9
88.6
90.7
143.3
Baseline
91.8
140.1
226.6
361.7
Product & enablers
105.0
137.7
214.3
307.6
Total P&E additions
336.0
590.1
717.9
1,321.1
Reconciliation of P&E additions to
capital expenditures:
Assets acquired under capital-related
vendor financing arrangements(i)
(35.5
)
(226.9
)
(102.2
)
(546.9
)
Assets acquired under finance leases
(9.3
)
(9.9
)
(18.0
)
(19.5
)
Changes in current liabilities related to
capital expenditures
(29.8
)
26.6
36.5
87.7
Total capital expenditures, net(ii)
$
261.4
$
379.9
$
634.2
$
842.4
P&E additions as % of revenue
19.2
%
19.7
%
19.9
%
20.4
%
______________________
(i)
Amounts exclude related VAT of $3.2 million and $32.7 million for
the three months ended June 30, 2022 and 2021, respectively, and
$9.8 million and $74.0 million for the six months ended June 30,
2022 and 2021, respectively, that were also financed under these
arrangements.
(ii)
The capital expenditures that we report in our condensed
consolidated statements of cash flows do not include amounts that
are financed under vendor financing or finance lease arrangements.
Instead, these expenditures are reflected as non-cash additions to
our property and equipment when the underlying assets are
delivered, and as repayments of debt when the related principal is
repaid.
ARPU per Fixed Customer Relationship
The following table provides ARPU per fixed customer
relationship and percentage change from period to period on both a
reported and rebased basis for the indicated periods:
ARPU per Fixed Customer
Relationship
Three months ended June
30,
Increase/(decrease)
2022
2021
Reported %
Rebased %
Liberty Global
$
62.80
$
70.24
(10.6
%)
(1.4
%)
Ireland
€
60.62
€
59.33
2.2
%
2.2
%
Belgium (Telenet)
€
58.40
€
58.78
(0.6
%)
(0.7
%)
UPC Holding
€
59.28
€
57.36
3.3
%
(3.1
%)
Mobile ARPU
The following tables provide ARPU per mobile subscriber and
percentage change from period to period on both a reported and
rebased basis for the indicated periods:
ARPU per Mobile
Subscriber
Three months ended June
30,
Increase/(decrease)
2022
2021
Reported %
Rebased %
Liberty Global:
Including interconnect revenue
$
25.77
$
24.76
4.1
%
(3.2
%)
Excluding interconnect revenue
$
23.41
$
20.78
12.7
%
(1.1
%)
Operating Data — June 30,
2022
Homes Passed
Fixed-Line Customer
Relationships
Internet
Subscribers(i)
Video Subscribers
(ii)
Telephony
Subscribers(iii)
Total
RGUs
Total Mobile
Subscribers(iv)
Continuing operations:
Belgium
3,419,400
2,022,400
1,728,900
1,731,800
1,057,200
4,517,900
2,939,000
Switzerland(v)
2,495,900
1,473,300
1,175,900
1,234,500
1,024,600
3,435,000
2,715,500
Ireland
958,700
425,900
385,100
281,000
265,700
931,800
134,300
Slovakia
638,100
184,300
146,700
166,100
89,600
402,400
—
Total continuing operations
7,512,100
4,105,900
3,436,600
3,413,400
2,437,100
9,287,100
5,788,800
VMO2 JV(vi)
15,863,000
5,767,700
5,612,000
13,099,200
33,095,400
VodafoneZiggo JV(vi)
7,353,200
3,701,000
3,309,800
3,690,600
1,933,300
8,933,700
5,449,400
Subscriber Variance Table —
June 30, 2022 vs. March 31, 2022
Homes Passed
Fixed-Line Customer
Relationships
Internet
Subscribers(ii)
Video
Subscribers(i)
Telephony
Subscribers(iii)
Total RGUs
Total Mobile
Subscribers(iv)
Organic Change
Summary:
Continuing operations:
Belgium
6,500
(4,400)
300
(15,500)
(21,200)
(36,400)
(1,900)
Switzerland(v)
6,200
(9,000)
(1,700)
(8,900)
(3,600)
(14,200)
68,400
Ireland
2,400
(4,500)
(3,200)
(12,200)
(6,800)
(22,200)
2,700
Slovakia
3,800
(2,000)
—
(1,400)
(100)
(1,500)
—
Total continuing operations
18,900
(19,900)
(4,600)
(38,000)
(31,700)
(74,300)
69,200
Q2 2022 Liberty
Global Adjustments:
Belgium.
—
—
—
—
—
—
(5,800)
Poland
(3,713,600)
(1,582,200)
(1,367,600)
(1,411,500)
(588,200)
(3,367,300)
(133,500)
Total adjustments
(3,713,600)
(1,582,200)
(1,367,600)
(1,411,500)
(588,200)
(3,367,300)
(139,300)
VMO2 JV(vi)
113,300
7,500
16,200
(128,800)
500,400
VodafoneZiggo JV(vi)
16,600
(13,900)
(1,900)
(14,700)
(60,600)
(77,200)
60,000
Footnotes for Operating Data and Subscriber Variance
Tables
___________________________________________________________________________________________________
(i)
In Switzerland, we offer a 10 Mbps
internet service to our Video Subscribers without an incremental
recurring fee. Our Internet Subscribers in Switzerland include
46,000 subscribers who have requested and received this
service.
(ii)
We have approximately 29,900 “lifeline” customers that are counted
on a per connection basis, representing the least expensive
regulated tier of video service, with only a few channels.
(iii)
In Switzerland, we offer a basic phone service to our Video
Subscribers without an incremental recurring fee. Our Telephony
Subscribers in Switzerland include 213,200 subscribers who have
requested and received this service.
(iv)
In a number of countries, our mobile
subscribers receive mobile services pursuant to prepaid contracts.
As of June 30, 2022, our mobile subscriber count included 470,600
and 298,100 prepaid mobile subscribers in Switzerland and Belgium,
respectively.
(v)
Pursuant to service agreements,
Switzerland offers broadband internet, video and telephony services
over networks owned by third-party operators (“partner networks”).
A partner network RGU is only recognized if there is a direct
billing relationship with the customer. At June 30, 2022,
Switzerland’s partner networks accounted for 110,000 Fixed-Line
Customer Relationships, 284,700 RGUs, which include 104,400
Internet Subscribers, 99,800 Video Subscribers and 80,500 Telephony
Subscribers. Subscribers to our video services provided over
partner networks largely receive basic video services from the
partner networks as opposed to our operations. Due to the fact that
we do not own these partner networks, we do not include the 462,200
homes passed by Switzerland’s partner networks at June 30, 2022. In
addition, with the completion of the acquisition of Sunrise, we now
service homes through Sunrise's existing agreements with Swisscom,
Swiss Fibre Net and local utilities, which are not included in
Switzerland's homes passed count. Including these arrangements, our
operations in Switzerland have the ability to offer fixed services
to a national footprint.
(vi)
Prepaid mobile customers are excluded from
the VMO2 JV's and the VodafoneZiggo JV's mobile subscriber counts
after a period of inactivity of nine months and three months,
respectively. The mobile subscriber count for the VMO2 JV includes
IoT connections, which are Machine-to-Machine contract mobile
connections including Smart Metering contract connections. Fixed
subscriber counts for the VodafoneZiggo JV include B2B
subscribers.
Additional General Notes to
Tables:
Most of our broadband communications subsidiaries provide
telephony, broadband internet, data, video or other B2B services.
Certain of our B2B revenue is derived from SOHO subscribers that
pay a premium price to receive enhanced service levels along with
video, internet or telephony services that are the same or similar
to the mass marketed products offered to our residential
subscribers. All mass marketed products provided to SOHOs, whether
or not accompanied by enhanced service levels and/or premium
prices, are included in the respective RGU and customer counts of
our broadband communications operations, with only those services
provided at premium prices considered to be “SOHO RGUs” or “SOHO
customers.” To the extent our existing customers upgrade from a
residential product offering to a SOHO product offering, the number
of SOHO RGUs or SOHO customers will increase, but there is no
impact to our total RGU or customer counts. With the exception of
our B2B SOHO subscribers and mobile subscribers at medium and large
enterprises, we generally do not count customers of B2B services as
customers or RGUs for external reporting purposes.
In Belgium, Telenet leases a portion of its network under a
long-term finance lease arrangement. These tables include operating
statistics for Telenet's owned and leased networks.
While we take appropriate steps to ensure that subscriber
statistics are presented on a consistent and accurate basis at any
given balance sheet date, the variability from country to country
in (i) the nature and pricing of products and services, (ii) the
distribution platform, (iii) billing systems, (iv) bad debt
collection experience and (v) other factors add complexity to the
subscriber counting process. We periodically review our subscriber
counting policies and underlying systems to improve the accuracy
and consistency of the data reported on a prospective basis.
Accordingly, we may from time to time make appropriate adjustments
to our subscriber statistics based on those reviews.
Subscriber information for acquired entities is preliminary and
subject to adjustment until we have completed our review of such
information and determined that it is presented in accordance with
our policies.
Footnotes
1
This release includes the actual U.S. GAAP
results for the VMO2 JV for the three and six months ended June 30,
2022. The commentary and YoY growth rates presented in this release
are shown on an FX neutral basis comparing the actual U.S. GAAP
results for Q2 2022 to the pro forma U.S. GAAP results for Q2 2021
as if the VMO2 JV was created on January 1, 2020. For more
information regarding the VMO2 JV, including full IFRS disclosures,
please visit their investor relations page to access the VMO2 JV's
Q2 earnings release.
2
Represents aggregate consolidated and 50% owned non-consolidated JV
broadband and mobile subscribers. Includes B2B fixed subscribers of
the VodafoneZiggo JV.
3
The term "Full Company" includes certain
amounts that were classified as discontinued operations prior to
disposal. We also present Full Company Adjusted Free Cash Flow and
Full Company Distributable Cash Flow, consistent with the basis for
our full year 2022 Distributable Cash Flow guidance.
4
Distributable Cash Flow is defined as
Adjusted Free Cash Flow, as re-defined during the fourth quarter of
2021, plus any dividends received from our equity affiliates that
are funded by activities outside of their normal course of
operations, including, for example, those funded by
recapitalizations (referred to as “Other Affiliate Dividends”).
Distributable Cash Flow guidance reflects FX rates of EUR/USD 1.14,
GBP/USD 1.35, CHF/USD 1.06 and includes ~$100 million of litigation
settlement proceeds in Switzerland received during Q1 2022.
5
Liquidity refers to cash and cash equivalents and investments held
under separately managed accounts plus the maximum undrawn
commitments under subsidiary borrowing facilities, without regard
to covenant compliance calculations or other conditions precedent
to borrowing.
6
The indicated growth rates are rebased for acquisitions,
dispositions, FX and other items that impact the comparability of
our year-over-year results. Please see Rebase Information for
information on rebased growth.
7
Costs to capture generally include
incremental, third-party operating and capital related costs that
are directly associated with integration activities, restructuring
activities, and certain other costs associated with aligning an
acquiree to our business processes to derive synergies. These costs
are necessary to combine the operations of a business being
acquired (or joint venture being formed) with ours or are
incidental to the acquisition. As a result, costs to capture may
include certain (i) operating costs that are included in Adjusted
EBITDA, (ii) capital related costs that are included in property
and equipment additions and Adjusted EBITDA less P&E Additions
and (iii) certain integration related restructuring expenses that
are not included within Adjusted EBITDA or Adjusted EBITDA less
P&E Additions. Given the achievement of synergies occurs over
time, certain of our costs to capture are recurring by nature, and
generally incurred within a few years of completing the
transaction.
8
The U.S. GAAP YoY Adjusted EBITDA less
P&E Additions growth rate is significantly impacted by a £290
million lease agreement entered into by the VMO2 JV during Q2 2021.
Under IFRS, this lease is accounted for as a finance lease with a
corresponding impact to property and equipment additions. Under
U.S. GAAP however, this lease is accounted for as an operating
lease with no impact to property and equipment additions. This
one-off transaction impacted the U.S. GAAP YoY Adjusted EBITDA less
P&E growth rate by approximately 153%. The remaining difference
in the U.S. GAAP to IFRS Adjusted EBITDA less P&E Additions
growth rate is attributable to other recurring U.S. GAAP to IFRS
accounting differences related to the accounting for the VMO2 JV’s
investment in CTIL and other miscellaneous adjustments, as
reconciled below.
Three months ended
June 30, 2022
June 30, 2021
in millions
Adjusted EBITDA:
U.S. GAAP Adjusted EBITDA
$
1,059.4
$
1,210.3
IFRS/U.S. GAAP adjustments (i)
152.3
98.4
IFRS Adjusted EBITDA
1,211.7
1,308.7
Transaction adjustments (ii)
(10.5
)
(17.8
)
IFRS transaction adjusted Adj EBITDA
(including costs to capture)
$
1,201.2
$
1,290.9
Property & equipment
additions:
U.S. GAAP property & equipment
additions
$
689.3
$
631.8
IFRS/U.S. GAAP adjustments (iii)
46.0
438.3
IFRS property & equipment additions
(including costs to capture)
$
735.3
$
1,070.1
Adjusted EBITDA less property &
equipment additions:
U.S. GAAP Adjusted EBITDA
$
1,059.4
$
1,210.3
U.S. GAAP property & equipment
additions
(689.3
)
(631.8
)
U.S. GAAP Adjusted EBITDA less property
& equipment additions
370.1
578.5
Transaction adjustments (ii)
(10.5
)
(17.8
)
IFRS/U.S. GAAP adjustments (i)(iii)
106.3
(339.9
)
IFRS transaction adjusted Adj EBITDA less
property & equipment additions (including costs to capture)
$
465.9
$
220.8
______________________
(i)
Adjusted EBITDA IFRS/U.S. GAAP differences primarily relate to (i)
the VMO2 JV's investment in CTIL and (ii) lease accounting.
(ii)
In connection with the completion of the formation of the VMO2 JV,
the opening balance sheet of the combined business was reported at
its estimated fair value. As such, certain amounts were adjusted to
reflect the new basis of accounting. These transaction adjustments
therefore reverse the effect of the (i) deferred commissions and
install costs write-off and (ii) deferred revenue write-off.
(iii)
Property & equipment additions
IFRS/U.S. GAAP differences primarily relate to (i) the VMO2 JV's
investment in CTIL and (ii) lease accounting.
9
Converged households or converged SIMs
represent customers in either our Consumer or SOHO segment that
subscribe to both a fixed-line digital TV and an internet service
and Vodafone and/or hollandsnieuwe postpaid mobile telephony
service.
10
Our aggregate unused borrowing capacity of $1.4 billion represents
the maximum undrawn commitments under the applicable facilities
without regard to covenant compliance calculations or other
conditions precedent to borrowing. Upon completion of the relevant
June 30, 2022 compliance reporting requirements for our credit
facilities, and assuming no further changes from quarter-end
borrowing levels, we anticipate that €713.6 million ($748.0
million) of borrowing capacity will be available under the UPC
Holding Bank Facility, with €207.8 million ($217.8 million)
available to upstream, the full €555.0 million ($581.8 million) of
borrowing capacity will be available under the Telenet Credit
Facility and the full €100.0 million ($104.8 million) of borrowing
capacity will be available under the VM Ireland Credit Facility,
with €98.2 million ($102.9 million) available to upstream. Our
above expectations do not consider any actual or potential changes
to our borrowing levels or any amounts loaned or distributed
subsequent to June 30, 2022.
11
For purposes of calculating our average tenor, total third-party
debt excludes vendor financing.
12
Our debt and net debt ratios, which are non-GAAP metrics, are
defined as total debt and net debt, respectively, divided by
reported net earnings for the last twelve months (reported LTM net
earnings) and Adjusted EBITDA for the last twelve months (LTM
Adjusted EBITDA). Net debt is defined as total debt less cash and
cash equivalents and investments under SMAs. Consistent with how we
calculate our leverage ratios under our debt agreements, these
ratios are presented on an adjusted basis, as described below. For
purposes of these calculations, debt is measured using swapped
foreign currency rates, consistent with the covenant calculation
requirements of our subsidiary debt agreements. The following table
details the calculation of our debt and net debt to reported LTM
net earnings and LTM Adjusted EBITDA ratios as of and for the
twelve months ended June 30, 2022 (in millions, except ratios):
Reconciliation of reported LTM net
earnings to adjusted LTM earnings:
Reported LTM net earnings
$
4,311.8
Transaction related adjustments(i)
(9.3
)
Adjusted LTM earnings
$
4,302.5
Reconciliation of adjusted LTM earnings
to LTM Adjusted EBITDA:
Adjusted LTM earnings
$
4,302.5
Income tax expense
185.9
Other income, net
(66.0
)
Gain on Atlas Edge JV Transactions
(227.5
)
Gain on U.K. JV Transaction
264.2
Gain on Telenet Tower Sale
(693.3
)
Share of results of affiliates, net
(142.6
)
Gain on debt extinguishment, net
(2.8
)
Realized and unrealized gain due to
changes in fair values of certain investments and debt, net
(46.7
)
Foreign currency transaction gain, net
(2,613.0
)
Realized and unrealized gain on derivative
instruments, net
(1,236.9
)
Interest expense
541.3
Operating income
265.1
Impairment, restructuring and other
operating items, net
(2.6
)
Depreciation and amortization
2,273.6
Share-based compensation expense
246.2
LTM Adjusted EBITDA
$
2,782.3
Debt to reported LTM net earnings and
LTM Adjusted EBITDA:
Debt and finance lease obligations before
deferred financing costs, discounts and premiums
$
13,293.3
Principal related projected derivative
cash payments
(112.0
)
Adjusted debt and finance lease
obligations before deferred financing costs, discounts and
premiums
$
13,181.3
Reported LTM net earnings
$
4,311.8
Debt to reported LTM net earnings
ratio
3.1
LTM Adjusted EBITDA
$
2,782.3
Debt to LTM Adjusted EBITDA ratio
4.7
Net Debt to reported LTM net earnings
and LTM Adjusted EBITDA:
Adjusted debt and finance lease
obligations before deferred financing costs, discounts and
premiums
$
13,181.3
Cash and cash equivalents and investments
held under separately managed accounts
(4,215.3
)
Adjusted net debt and finance lease
obligations before deferred financing costs, discounts and
premiums
$
8,966.0
Reported LTM net earnings
$
4,311.8
Net debt to reported LTM net earnings
ratio
2.1
LTM Adjusted EBITDA
$
2,782.3
Net debt to LTM Adjusted EBITDA ratio
3.2
______________________
(i)
Consistent with how we calculate our
leverage ratios under our debt agreements, we have adjusted our
debt and net debt to LTM Adjusted EBITDA ratios to exclude the
Adjusted EBITDA of certain entities as a result of the formation of
the Atlas Edge JV.
Glossary
10-Q or 10-K: As used herein, the
terms 10-Q and 10-K refer to our most recent quarterly or annual
report as filed with the Securities and Exchange Commission on Form
10-Q or Form 10-K, as applicable.
Adjusted EBITDA, Adjusted EBITDA less
P&E Additions and Property and Equipment Additions (P&E
Additions):
- Adjusted EBITDA: Adjusted EBITDA
is the primary measure used by our chief operating decision maker
to evaluate segment operating performance and is also a key factor
that is used by our internal decision makers to (i) determine how
to allocate resources to segments and (ii) evaluate the
effectiveness of our management for purposes of annual and other
incentive compensation plans. As we use the term, Adjusted EBITDA
is defined as earnings (loss) from continuing operations before net
income tax benefit (expense), other non-operating income or
expenses, net share of results of affiliates, net gains (losses) on
debt extinguishment, net realized and unrealized gains (losses) due
to changes in fair values of certain investments and debt, net
foreign currency transaction gains (losses), net gains (losses) on
derivative instruments, net interest expense, depreciation and
amortization, share-based compensation, provisions and provision
releases related to significant litigation and impairment,
restructuring and other operating items. Other operating items
include (a) gains and losses on the disposition of long-lived
assets, (b) third-party costs directly associated with successful
and unsuccessful acquisitions and dispositions, including legal,
advisory and due diligence fees, as applicable, and (c) other
acquisition-related items, such as gains and losses on the
settlement of contingent consideration. Our internal decision
makers believe Adjusted EBITDA is a meaningful measure because it
represents a transparent view of our recurring operating
performance that is unaffected by our capital structure and allows
management to (1) readily view operating trends, (2) perform
analytical comparisons and benchmarking between segments and (3)
identify strategies to improve operating performance in the
different countries in which we operate. We believe our
consolidated Adjusted EBITDA measure, which is a non-GAAP measure,
is useful to investors because it is one of the bases for comparing
our performance with the performance of other companies in the same
or similar industries, although our measure may not be directly
comparable to similar measures used by other public companies.
Consolidated Adjusted EBITDA should be viewed as a measure of
operating performance that is a supplement to, and not a substitute
for, U.S. GAAP measures of income included in our condensed
consolidated statements of operations.
- Adjusted EBITDA less P&E
Additions: We define Adjusted EBITDA less P&E Additions,
which is a non-GAAP measure, as Adjusted EBITDA less property and
equipment additions on an accrual basis. Adjusted EBITDA less
P&E Additions is a meaningful measure because it provides (i) a
transparent view of Adjusted EBITDA that remains after our capital
spend, which we believe is important to take into account when
evaluating our overall performance and (ii) a comparable view of
our performance relative to other telecommunications companies. Our
Adjusted EBITDA less P&E Additions measure may differ from how
other companies define and apply their definition of similar
measures. Adjusted EBITDA less P&E Additions should be viewed
as a measure of operating performance that is a supplement to, and
not a substitute for, U.S. GAAP measures of income included in our
condensed consolidated statements of operations.
- P&E Additions: Includes
capital expenditures on an accrual basis, amounts financed under
vendor financing or finance lease arrangements and other non-cash
additions. A reconciliation of earnings from continuing operations
to Adjusted EBITDA and Adjusted EBITDA less P&E Additions is
presented in the following table:
Three months ended
Six months ended
June 30,
June 30,
2022
2021
2022
2021
in millions
Earnings from continuing operations
$
2,282.2
$
11,150.9
$
3,357.9
$
12,573.6
Income tax expense
63.6
276.8
144.8
442.0
Other income, net
(26.6
)
(7.3
)
(38.5
)
(17.4
)
Gain on U.K. JV Transaction
—
(11,138.0
)
—
(11,138.0
)
Gain on Telenet Tower Sale
(693.3
)
—
(693.3
)
—
Share of results of affiliates, net
(81.1
)
8.1
(311.6
)
6.4
Losses (gains) on debt extinguishment,
net
(2.8
)
90.6
(2.8
)
90.6
Realized and unrealized losses (gains) due
to changes in fair values of certain investments, net
112.0
(288.1
)
205.6
(482.7
)
Foreign currency transaction gains,
net
(1,148.7
)
(131.4
)
(1,723.7
)
(435.2
)
Realized and unrealized losses (gains) on
derivative instruments, net
(613.7
)
303.1
(1,122.2
)
(508.1
)
Interest expense
132.9
272.5
267.1
607.2
Operating income
24.5
537.2
83.3
1,138.4
Impairment, restructuring and other
operating items, net
58.3
6.8
67.7
51.2
Depreciation and amortization
517.7
555.3
1,082.4
1,162.5
Share-based compensation expense
49.3
99.8
100.7
163.2
Adjusted EBITDA
649.8
1,199.1
1,334.1
2,515.3
Property and equipment additions
(336.0
)
(590.1
)
(717.9
)
(1,321.1
)
Adjusted EBITDA less P&E Additions
$
313.8
$
609.0
$
616.2
$
1,194.2
Adjusted EBITDA after leases (Adjusted
EBITDAaL): We define Adjusted EBITDAaL as Adjusted EBITDA as
further adjusted to include finance lease related depreciation and
interest expense. Our internal decision makers believe Adjusted
EBITDAaL is a meaningful measure because it represents a
transparent view of our recurring operating performance that
includes recurring lease expenses necessary to operate our
business. We believe Adjusted EBITDAaL, which is a non-GAAP
measure, is useful to investors because it is one of the bases for
comparing our performance with the performance of other companies
in the same or similar industries, although our measure may not be
directly comparable to similar measures used by other public
companies. Adjusted EBITDAaL should be viewed as a measure of
operating performance that is a supplement to, and not a substitute
for, U.S. GAAP measures of income included in our condensed
consolidated statements of operations.
Adjusted Free Cash Flow (Adjusted FCF)
& Distributable Cash Flow:
- Adjusted FCF: We define Adjusted
FCF as net cash provided by the operating activities of our
continuing operations, plus operating-related vendor financed
expenses (which represents an increase in the period to our actual
cash available as a result of extending vendor payment terms beyond
normal payment terms, which are typically 90 days or less, through
non-cash financing activities), less (i) cash payments in the
period for capital expenditures, (ii) principal payments on
operating- and capital-related amounts financed by vendors and
intermediaries (which represents a decrease in the period to our
actual cash available as a result of paying amounts to vendors and
intermediaries where we previously had extended vendor payments
beyond the normal payment terms), and (iii) principal payments on
finance leases (which represents a decrease in the period to our
actual cash available), each as reported in our condensed
consolidated statements of cash flows with each item excluding any
cash provided or used by our discontinued operations. Prior to the
fourth quarter of 2021, our definition of Adjusted FCF excluded
cash payments for third-party costs directly associated with
successful and unsuccessful acquisitions and dispositions. During
the fourth quarter of 2021, we changed our definition of Adjusted
FCF to include these cash payments. Cash paid for third-party costs
directly associated with successful and unsuccessful acquisition
and dispositions was $8.8 million and $33.3 million during the
three months ended June 30, 2022 and 2021, respectively, and $22.2
million and $46.5 million during the six months ended June 30, 2022
and 2021, respectively.
- Distributable Cash Flow: We define
Distributable Cash Flow as Adjusted FCF, as re-defined during the
fourth quarter of 2021, plus any dividends received from our equity
affiliates that are funded by activities outside of their normal
course of operations, including, for example, those funded by
recapitalizations (referred to as “Other Affiliate Dividends”). We
believe our presentation of Adjusted FCF and Distributable Cash
Flow, each of which is a non-GAAP measure, provides useful
information to our investors because these measures can be used to
gauge our ability to (a) service debt and (b) fund new investment
opportunities after consideration of all actual cash payments
related to our working capital activities and expenses that are
capital in nature, whether paid inside normal vendor payment terms
or paid later outside normal vendor payment terms (in which case we
typically pay in less than 365 days). Adjusted FCF and
Distributable Cash Flow should not be understood to represent our
ability to fund discretionary amounts, as we have various mandatory
and contractual obligations, including debt repayments, that are
not deducted to arrive at these amounts. Investors should view
Adjusted FCF and Distributable Cash Flow as supplements to, and not
substitutes for, U.S. GAAP measures of liquidity included in our
condensed consolidated statements of cash flows. Further, our
Adjusted FCF and Distributable Cash Flow may differ from how other
companies define and apply their definition of Adjusted FCF or
other similar measures. Consistent with the basis for our full year
2022 Distributable Cash Flow guidance, the following table provides
a reconciliation of our Full Company net cash provided by operating
activities to Full Company Adjusted FCF and Full Company
Distributable Cash Flow for the indicated periods.
Three months ended
Six months ended
June 30,
June 30,
2022
2021
2022
2021
in millions
Net cash provided by operating
activities
$
757.4
$
1,123.9
$
1,414.1
$
1,945.1
Operating-related vendor financing
additions(i)
97.6
631.1
237.8
1,483.4
Cash capital expenditures, net
(261.4
)
(393.1
)
(650.0
)
(868.9
)
Principal payments on operating-related
vendor financing
(110.7
)
(491.8
)
(322.4
)
(1,151.3
)
Principal payments on capital-related
vendor financing
(42.6
)
(263.1
)
(84.0
)
(705.5
)
Principal payments on finance leases
(13.3
)
(20.1
)
(31.3
)
(39.8
)
Full Company Adjusted FCF
427.0
586.9
564.2
663.0
Other affiliate dividends
—
—
—
—
Full Company Distributable Cash Flow
$
427.0
$
586.9
$
564.2
$
663.0
_______________
(i)
For purposes of our condensed consolidated
statements of cash flows, operating-related vendor financing
additions represent operating-related expenses financed by an
intermediary that are treated as constructive operating cash
outflows and constructive financing cash inflows when the
intermediary settles the liability with the vendor. When we pay the
financing intermediary, we record financing cash outflows in our
condensed consolidated statements of cash flows. For purposes of
our Adjusted FCF definition, we (i) add in the constructive
financing cash inflow when the intermediary settles the liability
with the vendor as our actual net cash available at that time is
not affected and (ii) subsequently deduct the related financing
cash outflow when we actually pay the financing intermediary,
reflecting the actual reduction to our cash available to service
debt or fund new investment opportunities.
ARPU: Average Revenue Per Unit is
the average monthly subscription revenue per average fixed customer
relationship or mobile subscriber, as applicable. ARPU per average
fixed-line customer relationship is calculated by dividing the
average monthly subscription revenue from residential fixed and
SOHO services by the average number of fixed-line customer
relationships for the period. ARPU per average mobile subscriber is
calculated by dividing mobile subscription revenue for the
indicated period by the average number of mobile subscribers for
the period. Unless otherwise indicated, ARPU per fixed customer
relationship or mobile subscriber is not adjusted for currency
impacts. ARPU per RGU refers to average monthly revenue per average
RGU, which is calculated by dividing the average monthly
subscription revenue from residential and SOHO services for the
indicated period, by the average number of the applicable RGUs for
the period. Unless otherwise noted, ARPU in this release is
considered to be ARPU per average fixed customer relationship or
mobile subscriber, as applicable. Fixed-line customer
relationships, mobile subscribers and RGUs of entities acquired
during the period are normalized. In addition, for purposes of
calculating the percentage change in ARPU on a rebased basis, which
is a non-GAAP measure, we adjust the prior-year subscription
revenue, fixed-line customer relationships, mobile subscribers and
RGUs, as applicable, to reflect acquisitions, dispositions and FX
on a comparable basis with the current year, consistent with how we
calculate our rebased growth for revenue and Adjusted EBITDA, as
further described in the body of this release.
ARPU per Mobile Subscriber: Our
ARPU per mobile subscriber calculation that excludes interconnect
revenue refers to the average monthly mobile subscription revenue
per average mobile subscriber and is calculated by dividing the
average monthly mobile subscription revenue (excluding handset
sales and late fees) for the indicated period, by the average of
the opening and closing balances of mobile subscribers in service
for the period. Our ARPU per mobile subscriber calculation that
includes interconnect revenue increases the numerator in the
above-described calculation by the amount of mobile interconnect
revenue during the period.
Blended fully-swapped debt borrowing
cost: The weighted average interest rate on our aggregate
variable- and fixed-rate indebtedness (excluding finance leases and
including vendor financing obligations), including the effects of
derivative instruments, original issue premiums or discounts and
commitment fees, but excluding the impact of financing costs.
B2B: Business-to-Business.
Customer Churn: The rate at which
customers relinquish their subscriptions. The annual rolling
average basis is calculated by dividing the number of disconnects
during the preceding 12 months by the average number of customer
relationships. For the purpose of computing churn, a disconnect is
deemed to have occurred if the customer no longer receives any
level of service from us and is required to return our equipment. A
partial product downgrade, typically used to encourage customers to
pay an outstanding bill and avoid complete service disconnection,
is not considered to be disconnected for purposes of our churn
calculations. Customers who move within our footprint and upgrades
and downgrades between services are also excluded from the
disconnect figures used in the churn calculation.
Fixed-Line Customer Relationships:
The number of customers who receive at least one of our internet,
video or telephony services that we count as RGUs, without regard
to which or to how many services they subscribe. Fixed-Line
Customer Relationships generally are counted on a unique premises
basis. Accordingly, if an individual receives our services in two
premises (e.g., a primary home and a vacation home), that
individual generally will count as two Fixed-Line Customer
Relationships. We exclude mobile-only customers from Fixed-Line
Customer Relationships.
Fixed-Mobile Convergence (FMC):
Fixed-mobile convergence penetration represents the number of
customers who subscribe to both a fixed broadband internet service
and postpaid mobile telephony service, divided by the total number
of customers who subscribe to our fixed broadband internet
service.
Homes Passed: Homes, residential
multiple dwelling units or commercial units that can be connected
to our networks without materially extending the distribution
plant. Certain of our Homes Passed counts are based on census data
that can change based on either revisions to the data or from new
census results.
Internet Subscriber: A home,
residential multiple dwelling unit or commercial unit that receives
internet services over our networks, or that we service through a
partner network.
Lightning Premises: Includes homes,
residential multiple dwelling units and commercial premises that
potentially could subscribe to our residential or SOHO services,
which have been connected to the VMO2 JV networks in the U.K. as a
part of the Project Lightning network extension program. Project
Lightning infill build relates to construction in areas adjacent to
our existing network.
Mobile Subscriber Count: For
residential and business subscribers, the number of active SIM
cards in service rather than services provided. For example, if a
mobile subscriber has both a data and voice plan on a smartphone
this would equate to one mobile subscriber. Alternatively, a
subscriber who has a voice and data plan for a mobile handset and a
data plan for a laptop would be counted as two mobile subscribers.
Customers who do not pay a recurring monthly fee are excluded from
our mobile telephony subscriber counts after periods of inactivity
ranging from 30 to 90 days, based on industry standards within the
respective country. In a number of countries, our mobile
subscribers receive mobile services pursuant to prepaid
contracts.
MVNO: Mobile Virtual Network
Operator.
RGU: A Revenue Generating Unit is
separately a Video Subscriber, Internet Subscriber or Telephony
Subscriber. A home, residential multiple dwelling unit, or
commercial unit may contain one or more RGUs. For example, if a
residential customer subscribed to our video service, fixed-line
telephony service and broadband internet service, the customer
would constitute three RGUs. Total RGUs is the sum of Video,
Internet and Telephony Subscribers. RGUs generally are counted on a
unique premises basis such that a given premise does not count as
more than one RGU for any given service. On the other hand, if an
individual receives one of our services in two premises (e.g., a
primary home and a vacation home), that individual will count as
two RGUs for that service. Each bundled video, internet or
telephony service is counted as a separate RGU regardless of the
nature of any bundling discount or promotion. Non-paying
subscribers are counted as subscribers during their free
promotional service period. Some of these subscribers may choose to
disconnect after their free service period. Services offered
without charge on a long-term basis (e.g., VIP subscribers or free
service to employees) generally are not counted as RGUs. We do not
include subscriptions to mobile services in our externally reported
RGU counts. In this regard, our RGU counts exclude our separately
reported postpaid and prepaid mobile subscribers.
SIM: Subscriber Identification
Module.
SOHO: Small or Home Office
Subscribers.
Telephony Subscriber: A home,
residential multiple dwelling unit or commercial unit that receives
voice services over our networks, or that we service through a
partner network. Telephony Subscribers exclude mobile telephony
subscribers.
U.S. GAAP: Accounting principles
generally accepted in the United States.
Video Subscriber: A home,
residential multiple dwelling unit or commercial unit that receives
our video service over our broadband network or through a partner
network.
YoY: Year-over-year.
Appendix - Supplemental Adjusted EBITDAaL information
The following table presents (i) Adjusted EBITDA, (ii) finance
lease-related depreciation and interest expense adjustments, (iii)
Adjusted EBITDAaL and (iv) percentage change from period to period
for Adjusted EBITDA and Adjusted EBITDAaL on a rebased basis for
each of our reportable segments:
Three months ended
Increase/(decrease)
Six months ended
Increase/(decrease)
June 30,
June 30,
2022
2021
Reported %
Rebased %
2022
2021
Reported %
Rebased %
in millions, except %
amounts
Adjusted EBITDA:
Switzerland
$
276.5
$
298.5
(7.4
)
0.5
$
577.7
$
580.1
(0.4
)
5.0
Belgium
330.3
389.6
(15.2
)
(3.9
)
670.7
761.4
(11.9
)
(2.8
)
Ireland.
52.0
54.0
(3.7
)
8.9
102.9
101.6
1.3
11.7
U.K.(i)
—
444.9
(100.0
)
—
—
1,085.3
(100.0
)
—
Central and Other
(9.4
)
9.6
(197.9
)
N.M.
(16.8
)
(16.7
)
(0.6
)
N.M.
Intersegment eliminations
0.4
2.5
N.M.
N.M.
(0.4
)
3.6
N.M.
N.M.
Total Adjusted EBITDA
$
649.8
$
1,199.1
(45.8
)
(3.6
)
$
1,334.1
$
2,515.3
(47.0
)
(0.5
)
VMO2 JV(ii)
$
1,059.4
$
411.0
157.8
N.M.
$
2,454.7
$
411.0
497.3
N.M.
VodafoneZiggo JV(ii)
$
490.9
$
570.1
(13.9
)
(2.4
)
$
1,028.7
$
1,135.3
(9.4
)
(0.1
)
Finance lease adjustments:
Switzerland
$
(3.4
)
$
(0.9
)
$
(4.2
)
$
(1.8
)
Belgium
(20.3
)
(22.4
)
(40.5
)
(44.3
)
U.K.(i)
—
(1.8
)
—
(4.9
)
Central and Other
(2.0
)
(2.0
)
(4.0
)
(4.3
)
Total finance lease adjustments
$
(25.7
)
$
(27.1
)
$
(48.7
)
$
(55.3
)
VMO2 JV(ii)...
$
(2.3
)
$
(0.8
)
$
(4.7
)
$
(0.8
)
VodafoneZiggo JV(ii)
$
(2.3
)
$
(3.0
)
$
(4.8
)
$
(5.9
)
Adjusted EBITDAaL:
Switzerland
$
273.1
$
297.6
(8.2
)
(0.4
)
$
573.5
$
578.3
(0.8
)
4.5
Belgium
310.0
367.2
(15.6
)
(4.3
)
630.2
717.1
(12.1
)
(3.2
)
Ireland
52.0
54.0
(3.7
)
8.9
102.9
101.6
1.3
11.7
U.K.(i)
—
443.1
(100.0
)
—
—
1,080.4
(100.0
)
—
Central and Other
(11.4
)
7.6
(250.0
)
N.M.
(20.8
)
(21.0
)
1.0
N.M.
Intersegment eliminations
0.4
2.5
N.M.
N.M.
(0.4
)
3.6
N.M.
N.M.
Total Adjusted EBITDAaL
$
624.1
$
1,172.0
(46.7
)
(4.2
)
$
1,285.4
$
2,460.0
(47.7
)
(0.8
)
VMO2 JV(ii)
$
1,057.1
$
410.2
157.7
N.M.
$
2,450.0
$
410.2
497.3
N.M.
VodafoneZiggo JV(ii)
$
488.6
$
567.1
(13.8
)
(2.3
)
$
1,023.9
$
1,129.4
(9.3
)
(0.1
)
______________________
N.M. - Not Meaningful
(i) The 2021 amounts represent amounts related to the U.K.
JV Entities, which were contributed to the VMO2 JV on June 1, 2021.
(ii)
Amounts reflect 100% of the 50:50
non-consolidated VMO2 JV and VodafoneZiggo JVs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220728005877/en/
Investor Relations Michael Bishop +44 20 8483 6246 Amy
Ocen +1 303 784 4528 Michael Khehra +44 78 9005 0979
Corporate Communications Molly Bruce +1 303 220 4202 Matt
Beake +44 20 8483 6428
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