Achieved all 2022 guidance targets across our FMC Champions
and exceeded our Full Company1 Distributable Cash Flow guidance at
Liberty Global2
Full Year revenue growth driven by B2B, mobile and broadband
including a strong Q4 commercial performance with broadband and
postpaid adds across all of our FMC Champions
Repurchased 14% of shares outstanding in 2022 and reiterating
our 10% buyback floor for 2023
Guiding to stable Distributable Cash Flow at Liberty Global
in 20233
Liberty Global plc today announced its Q4 2022 financial
results.
CEO Mike Fries stated, “Our fourth quarter and full year results
demonstrate the continued resilience of our business model as we
delivered on all guidance metrics, despite challenging macro
conditions. There remains ever-increasing demand across our
footprint for reliable access to high-quality fixed and mobile
connectivity and we continue driving product innovation to ensure
superior customer experiences. Financially, while we're not immune
from the impacts of high energy and labor costs across our core FMC
businesses, we continue to take actions to maintain strong
operating margins while further investing in our market-leading
fixed and mobile networks. This leaves us well positioned to
deliver for shareholders in 2023, underpinned by our 10% minimum
buyback commitment and $6 billion of liquidity4, including $3.4
billion of corporate cash(i).
In Q4, we delivered aggregate5 broadband and postpaid mobile
growth of 197,000 net new subscribers, supported by a return to
broadband additions across all of our FMC markets as well as
continuing positive postpaid trends. On the financial front, we
reported stable rebased6 revenue growth in the U.K.7, Belgium, and
the Netherlands in Q4 while our rebased revenues across the
footprint were broadly stable for the full year. Synergy
realization and price adjustments helped support 10%(ii) rebased
Adjusted EBITDA growth in the U.K. and 5%(ii) in Belgium in the
fourth quarter, along with stable to growing rebased Adjusted
EBITDA across all FMC markets for the full year.
We made big strides on our fixed network strategies in 2022,
including the formation of our new joint venture in the U.K.
(nexfibre), our FTTH agreement with Fluvius in Belgium and the
strong start to our FTTH overlay in Ireland. Furthermore, at VMO2
we accelerated our U.K. Lightning build in 2022 as planned while
kicking off the FTTH upgrade of our existing HFC network. And it's
worth noting that we already offer gigabit speeds to over 31
million aggregate5 homes passed by our fixed networks, which is
currently the largest fixed 1Gig footprint in Europe, with a clear
roadmap to 10 gigabit broadband speeds for all our FMC
Champions.
Financially, we delivered on all of the 2022 guidance targets
for our FMC Champions and we exceeded our Full Company
Distributable Cash Flow guidance, at guided FX rates. Our FY22 as
reported Full Company Distributable Cash Flow of $1.6 billion
represented a 17% YoY growth despite FX headwinds during the year.
We expect our Distributable Cash Flow to remain broadly stable at
$1.6 billion(iii) in 2023, supported by shareholder distributions
from our joint ventures in the U.K. and the Netherlands and free
cash flow from our consolidated operating companies in Switzerland
and Belgium.
Our balance sheet remains strong with ~$4.6 billion(i) of total
consolidated cash and over $6 billion of total liquidity at year
end, providing future optionality. We remain committed to a
disciplined capital allocation in our ventures portfolio while
driving opportunistic financial investments, such as our recently
acquired 5% interest in Vodafone, an undervalued asset with
numerous near and mid-term catalysts. Simultaneously, we continue
to believe our own shares offer compelling value at current price
levels. Supported by our strong cash flow generation, we
repurchased 14% of our shares outstanding in 2022, for $1.7
billion, and have retired 50% of our total shares outstanding since
2017. We remain committed to our 10% repurchase floor of shares
outstanding in 2023."
(i)
Including amounts held under
separately managed accounts (SMAs).
(ii)
Q4 Adjusted EBITDA for the VMO2
JV and Telenet decreased 7.0% and 9.3%, respectively, on a reported
basis. See page 8 for additional detail.
(iii)
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 from period to period. 2023 Distributable Cash
Flow guidance reflects FX rates of EUR/USD 1.07, GBP/USD 1.21 and
CHF/USD 1.08.
Q4 Operating Company Highlights
Sunrise (Consolidated)
Executed on key integration milestones in 2022; Commercial
momentum with strong postpaid mobile intake and return to positive
broadband net adds in Q4; Achieved 2022 financial guidance
Operating highlights: Sunrise
continues to drive strong commercial momentum despite continued
headwinds in fixed as a result of the competitive landscape and UPC
migration. In Q4, 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. Sunrise also delivered key integration milestones in
line with the roadmap, achieving nearly 50% of run-rate synergies
in 2022 and remains on track to deliver run-rate synergies of
approximately CHF 325 million by 2025. Supported by a strong mobile
offering together with the powerful fixed line network, FMC
penetration remains high at 57% of Sunrise’s broadband base.
Financial highlights: Revenue of
$803.6 million in Q4 2022 decreased 2.5% YoY on a reported basis
and 2.2% YoY on a rebased basis. The rebased decrease was largely
driven by (i) a decrease in fixed subscription revenue due to ARPU
pressure on main brand offerings that was only partially offset by
strong trading momentum in yallo and (ii) a decrease in low margin
business wholesale revenue. Adjusted EBITDA decreased 13.5% on a
reported basis and 8.1% on a rebased basis to $257.6 million in Q4
2022, including $7 million of opex costs to capture8. The rebased
decline was largely driven by (a) the impact of fixed ARPU decline,
(b) an increase in MySports programming costs due to phasing and
distribution model changes and (c) weaker B2B wholesale
performance. Adjusted EBITDA less P&E Additions of $77.7
million in Q4 decreased 23.1% YoY on a reported basis and 15.1% on
a rebased basis, including $37 million of opex and capex costs to
capture and integration-related capital spend.
Telenet (Consolidated)
FY 2022 outlook achieved on all metrics despite inflationary
headwinds; Continued FMC customer expansion
Operating highlights: Continued
growth in Telenet's FMC customer base in Q4 2022 driven by
successful end-of-year campaigns and growth in the mobile customer
base of 10,500 postpaid mobile net additions. During 2022, Telenet
entered into a binding agreement with Fluvius to develop “the data
network of the future” in Flanders, which is expected to close in
summer 2023, where 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. Telenet has also recently signed two commercial fixed
wholesale agreements with Orange, providing access to each other's
HFC and FTTH networks for a 15-year period.
Financial highlights: Revenue of
$728.7 million in Q4 2022 decreased 4.5% YoY on a reported basis
and increased 1.7% on a rebased basis. The increase in rebased
revenue was primarily due to (i) higher mobile and fixed
subscription revenue driven by the June 2022 price rise and (ii) an
increase in business wholesale revenue. Adjusted EBITDA decreased
9.3% on a reported basis and increased 4.7% on a rebased basis to
$318.7 million in Q4. The increase in rebased Adjusted EBITDA
reflects the aforementioned revenue performance as well as
continued focus on tight cost control, partially offset by an
increase in energy costs and the impact of higher inflation on
staff-related expenses. Reported and rebased Adjusted EBITDA less
P&E Additions decreased 32.5% and 21.0%, respectively, to
$136.6 million in Q4.
VMO2 (Non-consolidated Joint Venture)
VMO2 delivers full year 2022 guidance following strong
performance in mobile and synergy development
Operating highlights: Continued
customer growth in both fixed and mobile driven by demand for
connectivity, resulting in 71,100 postpaid mobile net adds and
22,700 broadband net adds in Q4. Average speed across the broadband
base increased 41% YoY to 301 Mbps, approximately 5x higher than
the national average. In just over a year since the original
launch, VMO2's flagship converged Volt bundles have continued to
perform well with 1.3 million customers now taking a Volt bundle.
Meanwhile, Project Lightning passed 519,000 new premises in 2022,
meeting the stated full year build target. The 2022 premises passed
include 24,000 premises that were subsequently transferred to the
nexfibre JV formed by Telefónica, Liberty Global and InfraVia in
December. VMO2 is the anchor tenant of this joint venture and will
provide build services to nexfibre.
Financial highlights (in U.S.
GAAP)7: Revenue9 of $3,214.5 million in Q4 2022 decreased
13.1% YoY on a reported basis and 0.7% YoY on a rebased basis,
primarily due to the net effect of (i) a decline in B2B fixed
revenue, (ii) a decline in consumer fixed revenue due to a change
in customer mix and (iii) an increase in mobile revenue driven by
higher service revenue as a result of price rises and an increased
customer base, with each revenue category as defined and reported
by the VMO2 JV. Adjusted EBITDA9 decreased 7.0% YoY on a reported
basis and increased 9.7% YoY on a rebased basis to $1,047.0
million, including $41 million of opex costs to capture. The YoY
increase in Adjusted EBITDA was supported by the realization of
synergies and cost efficiencies, partially offset by increased
energy costs. Adjusted EBITDA less P&E Additions9 decreased
0.6% YoY on a reported basis and increased 27.5% YoY on a rebased
basis to $315.7 million, including $133 million of opex and capex
costs to capture.
2023 Guidance (in IFRS as guided by the
VMO2 JV)(iv): Expect to deliver growth in Revenue and
mid-single-digit Adjusted EBITDA growth (each as defined and
reported by the VMO2 JV), with the first quarter impacted by
phasing. Expect opex and capex costs to capture of approximately
£150 million and P&E additions of around £2.0 billion. Cash
distribution to shareholders is anticipated to be £1.8 to £2.0
billion, including cash from recapitalizations to maintain leverage
at the upper-end of the 4-5x range.
For more information regarding the VMO2 JV, including full IFRS
disclosures, please visit their investor relations page to access
the Q4 earnings release.
(iv)
U.S. GAAP guidance for the VMO2
JV cannot be provided without unreasonable efforts, as the VMO2 JV
reports under IFRS and does not have US GAAP forecasts for all
components of their IFRS guidance. Quantitative reconciliations to
net earnings/loss (including net earnings/loss growth rates) for
VMO2 JV's Adjusted EBITDA guidance cannot be provided without
unreasonable efforts as they do not forecast (i) certain non-cash
charges including; the components of non-operating income/expense,
depreciation and amortization, and impairment, restructuring and
other operating items included in net earnings/loss. The items they
do not forecast may vary significantly from period to period.
VodafoneZiggo (Non-consolidated Joint Venture)
2022 Guidance Achieved; Broadband Customer Growth in
Q4
Operating highlights: VodafoneZiggo
continues to improve its commercial momentum despite continued
promotional intensity in the Dutch market. FMC households10 grew
22,800 in Q4, bringing the total to over 1.5 million converged
households, and FMC SIMs increased by 31,400 in Q4 to a total of
nearly 2.6 million, delivering significant Net Promoter Scores and
customer loyalty benefits. VodafoneZiggo delivered 26,200 mobile
postpaid additions in Q4 and grew mobile postpaid ARPU. Total
broadband RGUs returned to growth, increasing by 6,500 in Q4.
Gigabit speeds are now available nationwide across 100% of
VodafoneZiggo's fixed network footprint.
Financial highlights: Revenue
decreased 11.7% on a reported basis and 1.1% on a rebased basis to
$1,047.3 million in Q4. The decrease in rebased revenue was
primarily driven by a lower B2C fixed customer base, partially
offset by a 6.3% increase in mobile service revenue driven by
customer and ARPU growth. Adjusted EBITDA decreased 11.6% on a
reported basis and 1.1% on a rebased basis to $487.9 million in Q4.
The rebased decrease was primarily driven by inflation-related
increases in energy and wage costs. Reported and rebased Adjusted
EBITDA less P&E Additions decreased 35.4% and 26.9%,
respectively, to $172.3 million in Q4.
Q4 ESG Highlights
Over the past year, our Environmental, Social and Governance
(ESG) agenda continued to gain momentum across our business. Our
ambition to create impact for our people, customers and communities
without creating impact for our planet remained central to our
sustainability commitments and initiatives. With a focus on energy
efficiency, we are not only working to improve the energy
consumption of our networks and products, we aim to improve upon
the 92% of electricity we purchase from renewable energy sources.
Over the next few years, our goal is to procure 100% of our
electricity from sustainable sources. Across our operations, we
also continue to transition our fleet to electric vehicles, which
include e-scooters and e-bikes, in efforts to reduce our carbon
emissions. With e-waste considered to be the fastest-growing waste
stream in the world today, we are also focused on product
responsibility. This means we are working to eliminate single-use
plastic in our packaging, design fully recyclable products and
packaging, and improve circularity to create best end-of-life
practices. Our Connect box, for example, is made with 100% recycled
plastic and can be fully recycled at its end of life. We continue
to invest in our communities, and leverage our networks and
products to bring access and the skills needed to help accelerate
an inclusive digital world. We recently celebrated the 20-year
anniversary of Safer Internet Day, promoting the safe and
responsible use of online and mobile technologies across 180
countries. Since our partnership began in 2007, we have reached
over 3.4 million young people and their educators in the area of
digital safety. As we look to the coming year, we expect only to
enhance our ESG agenda and impact. We have established our ESG
Committee, including four directors of the Liberty Global board,
and are currently refining our new sustainability and social impact
strategy and goals.
At Liberty Global we are creating a culture where everyone is
valued and respected. Where we have a positive impact on each other
and our communities. Creating inclusive connections every day so
that we all belong. We have evolved the way in which we talk about
DE&I, focusing on the outcome and impact on a culture of
belonging. We believe this makes our purpose and strategy all
encompassing, by removing complex terminology, ensuring we are
speaking to everyone so that no one is left behind on our journey.
We have worked even closer with our Employee Resource Groups
(ERGs), that focus on gender, race and ethnicity,
multigenerational, disability, neurodiversity and LGBTQIA+, now
with an additional ERG joining our ERG collective - focusing on a
positive impact on society. By working closely with our ERGs, we
are ensuring that we are actively listening and co-creating. We
have worked collaboratively across the LG group to ensure that we
are ideating on big topics and sharing best practice in areas where
we are leading the way. This year we have seen an increase in
participation in our dedicated DE&I survey and significant
improvement across questions on our DE&I strategy and culture
compared to 2021. We have used this data to inform our strategic
priorities for 2023. We will continue to measure against our
ambitions of increasing diverse representation and removing any
potential for bias from our recruitment practices, with business
area specific actions and reporting.
Liberty Global Consolidated Q4 Highlights
- Q4 revenue decreased 4.1% YoY on a reported basis and increased
0.8% on a rebased basis to $1,841.9 million
- Q4 earnings (loss) from continuing operations decreased 833.9%
YoY on a reported basis to ($4,684.3 million)
- Q4 Adjusted EBITDA decreased 13.4% YoY on a reported basis and
4.4% on a rebased basis to $597.3 million
- Q4 property & equipment additions were 27.1% of revenue, as
compared to 25.3% in Q4 2021
- Balance sheet with over $6 billion of total liquidity
- Comprised of $1.7 billion of cash, $2.9 billion of investments
held under SMAs and $1.5 billion of unused borrowing
capacity11
- Fully-swapped borrowing cost of 3.2% on a debt balance of $13.8
billion
Liberty Global
Q4 2022
Q4 2021
YoY Change (reported)
YoY Change (rebased)
YTD 2022
YoY Change (reported)
YoY Change (rebased)
Customers
Organic customer net losses
(6,700
)
(5,200
)
(28.8
%)
(44,500
)
(329.4
%)
Financial
(in millions, except percentages)
Revenue
$
1,841.9
$
1,920.8
(4.1
%)
0.8
%
$
7,195.7
(30.2
%)
1.7
%
Earnings (loss) from continuing
operations
$
(4,684.3
)
$
638.3
(833.9
%)
$
1,105.3
(91.8
%)
Adjusted EBITDA
$
597.3
$
689.9
(13.4
%)
(4.4
%)
$
2,595.4
(34.5
%)
(0.9
%)
P&E additions
$
499.3
$
485.7
2.8
%
$
1,588.9
(26.8
%)
Adjusted EBITDA less P&E Additions
$
98.0
$
204.2
(52.0
%)
(44.5
%)
$
1,006.5
(43.9
%)
(12.0
%)
Cash provided by operating activities
$
883.2
$
950.0
(7.0
%)
$
2,786.7
(17.2
%)
Cash provided (used) by investing
activities
$
(651.2
)
$
(41.2
)
(1,480.6
%)
$
1,296.6
122.6
%
Cash used by financing activities
$
(213.4
)
$
(778.3
)
72.6
%
$
(3,273.4
)
(116.4
%)
Full Company Adjusted FCF
$
439.1
$
434.0
1.2
%
$
1,150.8
(17.2
%)
Full Company Distributable Cash Flow
$
650.1
$
434.0
49.8
%
$
1,628.7
17.2
%
Customer Growth
Three months ended
Year ended
December 31,
December 31,
2022
2021
2022
2021
Organic customer net additions (losses)
by market
Switzerland
2,800
(100
)
(4,000
)
(1,200
)
Belgium
(5,900
)
(2,700
)
(23,500
)
(15,800
)
U.K.(i)
—
—
—
41,700
Ireland
(2,900
)
(1,600
)
(10,700
)
(3,400
)
Slovakia
(700
)
(800
)
(6,300
)
(1,900
)
Total
(6,700
)
(5,200
)
(44,500
)
19,400
______________________
(i)
The 2021 amount represents
organic net additions of the U.K. JV Entities through the June 1,
2021 closing of the U.K. JV Transaction.
Earnings (Loss) from Continuing Operations
Earnings (loss) from continuing operations was ($4,684.3
million) and $638.3 million for the three months ended December 31,
2022 and 2021, respectively, and $1,105.3 million and $13,527.5
million for the year ended December 31, 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)
Year ended
Increase/(decrease)
December 31,
December 31,
Revenue
2022
2021
Reported %
Rebased %
2022
2021
Reported %
Rebased %
in millions, except %
amounts
Switzerland
$
803.6
$
824.5
(2.5
)
(2.2
)
$
3,180.9
$
3,321.9
(4.2
)
—
Belgium
728.7
763.0
(4.5
)
1.7
2,807.3
3,065.9
(8.4
)
1.5
Ireland
129.3
143.8
(10.1
)
0.7
494.7
550.0
(10.1
)
1.0
U.K.(i)
—
—
—
—
—
2,736.4
(100.0
)
—
Central and Other
183.0
190.0
(3.7
)
13.9
722.4
648.7
11.4
13.2
Intersegment eliminations
(2.7
)
(0.5
)
N.M.
N.M.
(9.6
)
(11.6
)
N.M.
N.M.
Total
$
1,841.9
$
1,920.8
(4.1
)
0.8
$
7,195.7
$
10,311.3
(30.2
)
1.7
VMO2 JV(ii)(iii)
$
3,214.5
$
3,700.4
(13.1
)
(0.7
)
$
12,857.2
$
8,522.9
50.9
N.M.
VodafoneZiggo JV(iii)
$
1,047.3
$
1,185.8
(11.7
)
(1.1
)
$
4,284.6
$
4,824.2
(11.2
)
(0.3
)
______________________
N.M. - Not Meaningful
(i)
The YTD 2021 amount represents
the revenue of the U.K. JV Entities through the June 1, 2021
closing of the U.K. JV Transaction.
(ii)
The YTD 2021 amount represents
the revenue of the VMO2 JV for the period from June 1, 2021 through
December 31, 2021.
(iii)
Amounts reflect 100% of the 50:50
non-consolidated VMO2 JV and VodafoneZiggo JV's revenue.
Three months ended
Increase/(decrease)
Year ended
Increase/(decrease)
December 31,
December 31,
Adjusted EBITDA
2022
2021
Reported %
Rebased %
2022
2021
Reported %
Rebased %
in millions, except %
amounts
Switzerland
$
257.6
$
297.8
(13.5
)
(8.1
)
$
1,137.8
$
1,208.7
(5.9
)
(0.3
)
Belgium
318.7
351.3
(9.3
)
4.7
1,308.1
1,481.8
(11.7
)
0.9
Ireland
45.0
57.9
(22.3
)
(12.3
)
197.5
218.6
(9.7
)
1.5
U.K.(i)
—
—
—
—
—
1,085.3
(100.0
)
—
Central and Other
(23.4
)
(17.3
)
(35.3
)
N.M.
(47.0
)
(33.1
)
(42.0
)
N.M.
Intersegment eliminations
(0.6
)
0.2
N.M.
N.M.
(1.0
)
1.8
N.M.
N.M.
Total
$
597.3
$
689.9
(13.4
)
(4.4
)
$
2,595.4
$
3,963.1
(34.5
)
(0.9
)
VMO2 JV(ii)(iii)
$
1,047.0
$
1,125.3
(7.0
)
9.7
$
4,562.2
$
2,716.6
67.9
N.M.
VodafoneZiggo JV(iii)
$
487.9
$
552.2
(11.6
)
(1.1
)
$
2,018.0
$
2,265.6
(10.9
)
—
______________________
N.M. - Not Meaningful
(i)
The YTD 2021 amount represents
the Adjusted EBITDA of the U.K. JV Entities through the June 1,
2021 closing of the U.K. JV Transaction.
(ii)
The YTD 2021 amount represents
the Adjusted EBITDA of the VMO2 JV for the period from June 1, 2021
through December 31, 2021.
(iii)
Amounts reflect 100% of the 50:50
non-consolidated VMO2 JV and VodafoneZiggo JV's Adjusted
EBITDA.
Three months ended
Increase/(decrease)
Year ended
Increase/(decrease)
Adjusted EBITDA less P&E
Additions
December 31,
December 31,
2022
2021
Reported %
Rebased %
2022
2021
Reported %
Rebased %
in millions, except %
amounts
Switzerland
$
77.7
$
101.0
(23.1
)
(15.1
)
$
562.1
$
598.8
(6.1
)
1.0
Belgium
136.6
202.3
(32.5
)
(21.0
)
692.1
908.3
(23.8
)
(12.7
)
Ireland
(8.9
)
25.4
(135.0
)
(136.8
)
60.2
124.2
(51.5
)
(46.4
)
U.K.(i)
—
—
—
—
—
527.9
(100.0
)
—
Central and Other
(106.8
)
(124.7
)
14.4
0.2
(306.9
)
(367.4
)
16.5
1.0
Intersegment eliminations
(0.6
)
0.2
N.M.
N.M.
(1.0
)
1.8
N.M.
N.M.
Total
$
98.0
$
204.2
(52.0
)
(44.5
)
$
1,006.5
$
1,793.6
(43.9
)
(12.0
)
VMO2 JV (ii)(iii)
$
315.7
$
317.7
(0.6
)
27.5
$
1,777.2
$
1,010.2
75.9
N.M.
VodafoneZiggo JV(iii)
$
172.3
$
266.7
(35.4
)
(26.9
)
$
1,018.7
$
1,275.1
(20.1
)
(10.3
)
______________________
N.M. - Not Meaningful
(i)
The YTD 2021 amount represents
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 YTD 2021 amount represents
the Adjusted EBITDA less P&E Additions of the VMO2 JV for the
period from June 1, 2021 through December 31, 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: $13.8 billion
- Average debt tenor: Over 6 years,
with ~93% not due until 2028 or thereafter12
- Borrowing costs: Blended,
fully-swapped cost of debt was 3.2%
- Liquidity: Over $6 billion,
including (i) $1.7 billion of cash at December 31, 2022, (ii) $2.9
billion of investments held under SMAs and (iii) $1.5 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 Revenue and
Distributable Cash Flow, as well as the 2023 financial guidance
provided by us and our operating companies and joint ventures;
expectations of any macroeconomic dynamics that may be beneficial
or detrimental to the company; expectations with respect to the
integration and synergy plans at the VMO2 JV and at Sunrise,
including the timing, costs and anticipated benefits thereof;
expectations regarding network and product plans and initiatives;
the expected progress of both Project Lightning and the nexfibre
joint venture with Telefónica and Infravia in the U.K. as well as
the implementation of their operational agreements, the full fiber
overlay in the U.K. and Ireland; expected network and 5G
investments and future product offerings, including 10 gigabit
broadband speeds; the anticipated completion of the NetCo creation
between Telenet and Fluvius in Belgium, its anticipated fiber
upgrade, and any anticipated benefits to be derived therefrom; our
commitments and aspirations with respect to ESG, including our
efforts to purchase renewable energy, reduce e-waste, promote
digital safety and execute on our DE&I agenda; our share
buyback program, including our commitment to repurchase at least
10% of our outstanding shares in 2023; the strength of our and our
affiliates' respective balance sheets (including cash and liquidity
position); the tenor and cost of our third-party debt and
anticipated borrowing capacity; our ventures strategy and
anticipated opportunities; anticipated amounts to be received from
our subsidiaries and joint ventures 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’
and joint ventures' 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 impact of
pandemics and epidemics on us and our businesses as well as our
customers; the effects of changes in laws or regulations; the
effects of the U.K.'s exit from the E.U.; general economic factors;
our, our affiliates’ and our joint ventures' ability to obtain
regulatory approval and satisfy regulatory conditions associated
with acquisitions and dispositions; our, our affiliates’ and our
joint ventures' ability to successfully acquire and integrate new
businesses and realize anticipated efficiencies from acquired
businesses; the availability of attractive programming for our, our
affiliates’ and our joint ventures' video services and the costs
associated with such programming; our, our affiliates’ and our
joint ventures' ability to achieve forecasted financial and
operating targets; the outcome of any pending or threatened
litigation; the ability of our operating companies and affiliates
and joint ventures to access the cash of their respective
subsidiaries; the impact of our operating companies', affiliates’
and joint ventures' 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,
our affiliates’ and our joint ventures' 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% of our outstanding shares in 2023. 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 and will
terminate upon repurchasing the authorized limits unless further
repurchase authorization is provided for.
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 86 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 billion, while the VMO2 JV and VodafoneZiggo JV generate
combined annual revenue of more than $17 billion.**
Liberty Global Ventures, our global investment arm, has a
portfolio of more than 75 companies across content, technology and
infrastructure, including strategic stakes in companies like ITV,
Televisa Univision, Plume, AtlasEdge 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 2022 Liberty Global consolidated
results (excluding revenue from Poland) and the combined as
reported full year 2022 results for the VodafoneZiggo JV and full
year 2022 U.S. GAAP results for the VMO2 JV. For more information,
please visit www.libertyglobal.com.
Balance Sheets, Statements of Operations and Statements of
Cash Flows
The consolidated balance sheets, statements of operations and
statements of cash flows of Liberty Global are in our 10-K.
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 months and year ended
December 31, 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 months and year ended
December 31, 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 months and year ended December 31, 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 months and year ended December 31, 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 months and
year ended December 31, 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 months and year ended December 31, 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 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 VMO2 JV and VodafoneZiggo JV to
derive our rebased growth rates:
Three months ended December
31, 2021
Year ended December 31,
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)
$
59.2
$
(8.2
)
$
(6.8
)
$
(2,493.4
)
$
(1,036.8
)
$
(505.1
)
Foreign Currency
(153.4
)
(56.9
)
(20.7
)
(745.9
)
(352.8
)
(144.1
)
Total
$
(94.2
)
$
(65.1
)
$
(27.5
)
$
(3,239.3
)
$
(1,389.6
)
$
(649.2
)
VMO2 JV(ii):
Acquisitions and Dispositions(i)
$
11.7
$
(27.5
)
$
(27.5
)
Foreign Currency
(476.5
)
(143.0
)
(42.5
)
Total
$
(464.8
)
$
(170.5
)
$
(70.0
)
VodafoneZiggo JV(iii):
Foreign Currency
$
(126.4
)
$
(58.8
)
$
(31.0
)
$
(524.6
)
$
(246.7
)
$
(139.0
)
______________________
(i)
In addition to our acquisitions
and dispositions, these rebase adjustments 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 VMO2 JV's revenue, Adjusted EBITDA
and Adjusted EBITDA less P&E Additions, which we do not
consolidate, as we hold a 50% noncontrolling interest in the VMO2
JV. Amounts for the YTD period are not presented as the VMO2 JV
does not have a full year of comparative results.
(iii)
Amounts reflect 100% of the
adjustments made related to the VodafoneZiggo JV's revenue,
Adjusted EBITDA and Adjusted EBITDA less P&E Additions, which
we do not consolidate, as we hold a 50% noncontrolling interest in
the VodafoneZiggo JV.
Liquidity
The following table(i) details the U.S. dollar equivalents of
our liquidity position at December 31, 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
$
582.3
$
2,854.6
$
—
$
3,436.9
Telenet
1,140.0
—
594.4
1,734.4
UPC Holding
3.0
—
764.1
767.1
VM Ireland
0.9
—
107.1
108.0
Total
$
1,726.2
$
2,854.6
$
1,465.6
$
6,046.4
______________________
(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 $1.5 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 December 31, 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
$
6,338.1
$
19.0
$
6,357.1
$
287.3
$
6,644.4
Telenet
6,018.6
382.8
6,401.4
(162.8
)
6,238.6
VM Ireland
963.9
—
963.9
—
963.9
Other
49.6
34.3
83.9
—
83.9
Total
$
13,370.2
$
436.1
$
13,806.3
$
124.5
$
13,930.8
______________________
(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 consolidated
statements of cash flows in our 10-K.
Three months ended
Year ended
December 31,
December 31,
2022
2021
2022
2021
in millions, except %
amounts
Customer premises equipment
$
62.2
$
52.2
$
262.0
$
372.5
New build & upgrade
46.1
43.2
128.5
312.7
Capacity
95.2
62.7
242.2
255.6
Baseline
152.7
179.0
486.3
648.9
Product & enablers
143.1
148.6
469.9
579.8
Total P&E additions
499.3
485.7
1,588.9
2,169.5
Reconciliation of P&E additions to
capital expenditures:
Assets acquired under capital-related
vendor financing arrangements(i)
(39.9
)
(61.5
)
(182.8
)
(661.1
)
Assets acquired under finance leases
(8.4
)
(14.8
)
(34.2
)
(42.6
)
Changes in current liabilities related to
capital expenditures
(77.1
)
(115.8
)
(68.7
)
(57.8
)
Total capital expenditures, net(ii)
$
373.9
$
293.6
$
1,303.2
$
1,408.0
P&E additions as % of revenue
27.1
%
25.3
%
22.1
%
21.0
%
______________________
(i)
Amounts exclude related VAT of
$4.2 million and $8.8 million for the three months ended December
31, 2022 and 2021, respectively, and $21.2 million and $84.7
million for the year ended December 31, 2022 and 2021,
respectively, that were also financed under these arrangements.
(ii)
The capital expenditures that we
report in our 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 December
31,
Increase/(decrease)
2022
2021
Reported %
Rebased %
Liberty Global
$
61.96
$
67.75
(8.5
%)
(0.4
%)
Ireland
€
62.20
€
61.47
1.2
%
1.2
%
Belgium (Telenet)
€
60.22
€
59.18
1.8
%
1.8
%
UPC Holding
€
60.84
€
58.74
3.6
%
(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 December
31,
Decrease
2022
2021
Reported %
Rebased %
Liberty Global:
Including interconnect revenue
$
25.25
$
28.12
(10.2
%)
(1.8
%)
Excluding interconnect revenue
$
23.02
$
24.69
(6.8
%)
(0.4
%)
Operating Data — December 31,
2022
Homes
Passed
Fixed-Line Customer
Relationships
Internet
Subscribers(i)
Video
Subscribers (ii)
Telephony
Subscribers(iii)
Total
RGUs
Postpaid Mobile
Subscribers
Total Mobile
Subscribers(iv)
Consolidated Liberty Global:
Belgium
3,436,700
2,008,800
1,730,700
1,694,700
1,012,400
4,437,800
2,669,300
2,940,300
Switzerland(v)
2,513,800
1,470,900
1,183,400
1,216,500
1,003,300
3,403,200
2,326,200
2,766,200
Ireland
965,000
421,100
382,600
260,700
252,200
895,500
143,800
143,800
Slovakia
637,900
182,400
146,400
164,900
89,400
400,700
—
—
Total Liberty Global
7,553,400
4,083,200
3,443,100
3,336,800
2,357,300
9,137,200
5,139,300
5,850,300
VMO2 JV
16,144,600
5,795,500
5,653,800
13,043,500
16,087,600
33,831,400
VodafoneZiggo JV(vi)
7,373,300
3,676,200
3,307,000
3,664,700
1,786,600
8,758,300
5,156,900
5,527,600
Subscriber Variance Table —
December 31, 2022 vs. September 30, 2022
Homes
Passed
Fixed-Line Customer
Relationships
Internet
Subscribers(ii)
Video
Subscribers(i)
Telephony
Subscribers(iii)
Total
RGUs
Postpaid Mobile
Subscribers
Total Mobile
Subscribers(iv)
Organic Change
Summary
Consolidated Liberty Global:
Belgium
9,700
(5,900
)
1,700
(18,500
)
(21,500
)
(38,300
)
10,500
(700
)
Switzerland(v)
12,400
2,800
9,200
(6,800
)
(8,500
)
(6,100
)
44,000
14,400
Ireland
3,100
(2,900
)
(1,600
)
(8,900
)
(6,200
)
(16,700
)
6,400
6,400
Slovakia
1,200
(700
)
100
(500
)
—
(400
)
—
—
Total Liberty Global
26,400
(6,700
)
9,400
(34,700
)
(36,200
)
(61,500
)
60,900
20,100
VMO2 JV
164,500
15,500
22,700
(1,800
)
71,100
323,500
VodafoneZiggo JV(vi)
12,000
(5,300
)
6,500
(5,700
)
(75,600
)
(74,800
)
26,200
16,300
Q4 2022 Joint
Ventures Adjustments:
VMO2 JV
—
—
—
—
—
—
8,100
—
Total adjustments
—
—
—
—
—
—
8,100
—
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 approximately 45,100 subscribers who have requested and
received this service.
(ii)
We have approximately 30,100
“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
approximately 188,500 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 December 31, 2022, our mobile subscriber count
included approximately 440,000, 271,000 7,968,300 and 370,700
prepaid mobile subscribers in Switzerland, Belgium, the VMO2 JV and
the VodafoneZiggo JV, respectively. Prepaid mobile customers are
excluded from the VMO2 JV's and the VodafoneZiggo JV's mobile
subscriber counts after a period of inactivity of three months and
nine 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.
The mobile subscriber count presented above for the VMO2 JV
excludes wholesale mobile connections of approximately 10,818,600
that are included in the total mobile subscriber count as defined
and presented by the VMO2 JV.
(v)
Pursuant to service agreements,
Switzerland offers broadband internet, video and telephony services
over networks owned by third-party operators (“partner networks”),
and following the acquisition of Sunrise, also services homes
through Sunrise's existing agreements with Swisscom, Swiss Fibre
Net and local utilities. Under these agreements, RGUs are only
recognized if there is a direct billing relationship with the
customer. Homes passed or serviceable through the above service
agreements are not included in Switzerland's homes passed count as
we do not own these networks. Including these arrangements, our
operations in Switzerland have the ability to offer fixed services
to the national footprint.
(vi)
Fixed subscriber counts for the
VodafoneZiggo JV include B2B subscribers.
Additional General Notes to
Tables:
Most of our broadband communications subsidiaries provide
broadband internet, telephony, 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
internet, video 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
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.
2
Full year guidance achieved for
Liberty Global consolidated subsidiaries and the non-consolidated
VMO2 JV and VodafoneZiggo JV. We achieved our full year Full
Company Distributable Cash Flow guidance of $1.7 billion based on
guided FX rates of EUR/USD 1.14, GBP/USD 1.35 and CHF/USD 1.06.
Distributable Cash Flow is a non-GAAP measure, see the Glossary for
definitions.
3
2023 Distributable Cash Flow
guidance reflects FX rates of EUR/USD 1.07, GBP/USD 1.21, CHF/USD
1.08.
4
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.
5
Represents aggregate consolidated
and 50% owned non-consolidated VMO2 JV and VodafoneZiggo JV homes
passed, broadband subscribers and postpaid mobile subscribers, as
applicable. Aggregate subscribers also Includes certain B2B fixed
subscribers of the VodafoneZiggo JV.
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
This release includes the actual
U.S. GAAP results for the VMO2 JV for the three months and year
ended December 31, 2022 and 2021. The commentary and QTD YoY growth
rates presented in this release are shown on a rebased basis. For
more information regarding the VMO2 JV, including full IFRS
disclosures, please visit their investor relations page to access
the VMO2 JV's Q4 earnings release.
8
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.
9
The U.S. GAAP YoY growth rates
for the VMO2 JV are impacted by recurring U.S. GAAP to IFRS
accounting differences related to the VMO2 JV’s investment in CTIL,
accounting for leases, certain handset securitization transactions
and other miscellaneous adjustments, as reconciled below.
Three months ended December
31,
2022
2021
in millions
Revenue:
U.S. GAAP Revenue
$
3,214.5
$
3,700.4
Transaction adjustments(i)
3.9
11.7
U.S. GAAP Transaction adjusted revenue
3,218.4
3,712.1
IFRS/U.S. GAAP adjustments(ii)
—
(41.0
)
IFRS transaction adjusted revenue
$
3,218.4
$
3,671.1
Adjusted EBITDA:
U.S. GAAP Adjusted EBITDA
$
1,047.0
$
1,125.3
Transaction adjustments(i)
0.1
(27.5
)
U.S. GAAP Transaction adjusted Adj
EBITDA
1,047.1
1,097.8
IFRS/U.S. GAAP adjustments(ii)
102.4
97.9
IFRS transaction adjusted Adj EBITDA
(including costs to capture)
$
1,149.5
$
1,195.7
Property & equipment
additions:
U.S. GAAP P&E additions
$
731.3
$
807.6
IFRS/U.S. GAAP adjustments(iii)
40.3
71.5
IFRS P&E additions (including costs to
capture)
$
771.6
$
879.1
Adjusted EBITDA less P&E
additions:
U.S. GAAP Adjusted EBITDA
$
1,047.0
$
1,125.3
U.S. GAAP P&E additions
(731.3
)
(807.6
)
U.S. GAAP Adjusted EBITDA less P&E
additions
315.7
317.7
Transaction adjustments(i)
0.1
(27.5
)
IFRS/U.S. GAAP adjustments(ii)(iii)
62.1
26.4
IFRS transaction adjusted Adj EBITDA less
P&E additions (including costs to capture)
$
377.9
$
316.6
______________________
(i)
In connection with 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 (i) the
write-off of deferred commissions and install costs and (ii) the
deferred revenue write-off.
(ii)
Revenue IFRS/U.S. GAAP
differences relate to certain handset securitization transactions.
Adjusted EBITDA IFRS/U.S. GAAP differences primarily relate to (i)
the VMO2 JV's investment in CTIL, (ii) lease accounting and (iii)
certain handset securitization transactions.
(iii)
Property & equipment
additions IFRS/U.S. GAAP differences primarily relate to (i) the
VMO2 JV's investment in CTIL and (ii) lease accounting.
10
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.
11
Our aggregate unused borrowing
capacity of $1.5 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 December 31, 2022 compliance
reporting requirements for our credit facilities, and assuming no
further changes from quarter-end borrowing levels, we anticipate
that (i) the full €713.4 million ($764.1 million) of borrowing
capacity will be available under the UPC Holding Bank Facility,
with €351.5 million ($376.5 million) available to upstream, (ii)
the full €555.0 million ($594.4 million) of borrowing capacity will
be available under the Telenet Credit Facility and (iii) the full
€100.0 million ($107.1 million) of borrowing capacity will be
available under the VM Ireland Credit Facility, with €60.0 million
($64.3 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 December
31, 2022.
12
For purposes of calculating our
average tenor, total third-party debt excludes vendor financing,
certain debt obligations that we assumed in connection with various
acquisitions, and liabilities related to Telenet's acquisition of
mobile spectrum licenses. The percentage of debt not due until 2028
or thereafter includes all of these amounts.
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, 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 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
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 (loss) from continuing
operations to Adjusted EBITDA and Adjusted EBITDA less P&E
Additions is presented in the following table:
Three months ended
Year ended
December 31,
December 31,
2022
2021
2022
2021
in millions
Earnings (loss) from continuing
operations
$
(4,684.3
)
$
638.3
$
1,105.3
$
13,527.5
Income tax expense
109.3
29.1
318.9
473.3
Other income, net
(74.2
)
(19.3
)
(134.4
)
(44.9
)
Gain on AtlasEdge JV Transactions
—
(13.8
)
—
(227.5
)
Gain on U.K. JV Transaction
—
(83.1
)
—
(10,873.8
)
Gain on Telenet Tower Sale
(0.1
)
—
(700.5
)
—
Share of results of affiliates, net
2,080.4
139.8
1,267.8
175.4
Losses (gains) on debt extinguishment,
net
—
—
(2.8
)
90.6
Realized and unrealized losses (gains) due
to changes in fair values of certain investments, net
94.4
(361.7
)
302.1
(735.0
)
Foreign currency transaction losses
(gains), net
1,779.2
(466.9
)
(1,407.2
)
(1,324.5
)
Realized and unrealized losses (gains) on
derivative instruments, net
477.4
84.5
(1,191.7
)
(622.9
)
Interest expense
172.5
134.0
589.3
882.1
Operating income (loss)
(45.4
)
80.9
146.8
1,320.3
Impairment, restructuring and other
operating items, net
11.0
(87.4
)
85.1
(19.0
)
Depreciation and amortization
583.0
608.9
2,171.4
2,353.7
Share-based compensation expense
48.7
87.5
192.1
308.1
Adjusted EBITDA
597.3
689.9
2,595.4
3,963.1
Property and equipment additions
(499.3
)
(485.7
)
(1,588.9
)
(2,169.5
)
Adjusted EBITDA less P&E Additions
$
98.0
$
204.2
$
1,006.5
$
1,793.6
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 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 consolidated
statements of cash flows with each item excluding any cash provided
or used by our discontinued operations. Net cash provided by
operating activities includes cash paid for third-party costs
directly associated with successful and unsuccessful acquisition
and dispositions of $4.2 million and $25.9 million during the three
months ended December 31, 2022 and 2021, respectively, and $36.2
million and $80.5 million during the year ended December 31, 2022
and 2021, respectively.
- Distributable Cash Flow: We define
Distributable Cash Flow as Adjusted FCF 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 (i) service debt and (ii) 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 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
Year ended
December 31,
December 31,
2022
2021
2022
2021
in millions
Net cash provided by operating
activities
$
883.2
$
991.3
$
2,837.8
$
3,549.0
Operating-related vendor financing
additions(i)
125.6
129.0
529.2
1,799.6
Cash capital expenditures, net
(373.9
)
(306.8
)
(1,319.0
)
(1,459.8
)
Principal payments on operating-related
vendor financing
(90.2
)
(132.1
)
(619.4
)
(1,424.0
)
Principal payments on capital-related
vendor financing
(90.1
)
(230.4
)
(215.6
)
(998.8
)
Principal payments on finance leases
(15.5
)
(17.0
)
(62.2
)
(76.6
)
Full Company Adjusted FCF
439.1
434.0
1,150.8
1,389.4
Other affiliate dividends
211.0
—
477.9
—
Full Company Distributable Cash Flow
$
650.1
$
434.0
$
1,628.7
$
1,389.4
_______________
(i)
For purposes of our 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
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.
Debt and Net Debt Ratios: 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 held under SMAs. 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 December 31, 2022 (in millions, except ratios):
Reconciliation of reported LTM net
earnings to LTM Adjusted EBITDA:
Reported LTM net earnings
$
1,105.3
Income tax expense
318.9
Other income, net
(134.4
)
Gain on Telenet Tower Sale
(700.5
)
Share of results of affiliates, net
1,267.8
Gain on debt extinguishment, net
(2.8
)
Realized and unrealized loss due to
changes in fair values of certain investments, net
302.1
Foreign currency transaction gain, net
(1,407.2
)
Realized and unrealized gain on derivative
instruments, net
(1,191.7
)
Interest expense
589.3
Operating income
146.8
Impairment, restructuring and other
operating items, net
85.1
Depreciation and amortization
2,171.4
Share-based compensation expense
192.1
LTM Adjusted EBITDA
$
2,595.4
Debt to reported LTM net earnings and
LTM Adjusted EBITDA:
Debt and finance lease obligations before
deferred financing costs, discounts and premiums
$
13,806.3
Principal related projected derivative
cash receipts
124.5
Adjusted debt and finance lease
obligations before deferred financing costs, discounts and
premiums
$
13,930.8
Reported LTM net earnings
$
1,105.3
Debt to reported LTM net earnings
ratio
12.6
LTM Adjusted EBITDA
$
2,595.4
Debt to LTM Adjusted EBITDA ratio
5.4
Net Debt to reported LTM net earnings
and LTM Adjusted EBITDA:
Adjusted debt and finance lease
obligations before deferred financing costs, discounts and
premiums
$
13,930.8
Cash and cash equivalents and investments
held under separately managed accounts
(4,580.8
)
Adjusted net debt and finance lease
obligations before deferred financing costs, discounts and
premiums
$
9,350.0
Reported LTM net earnings
$
1,105.3
Net debt to reported LTM net earnings
ratio
8.5
LTM Adjusted EBITDA
$
2,595.4
Net debt to LTM Adjusted EBITDA ratio
3.6
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's networks in the U.K. and
Ireland 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 an Internet Subscriber, Video 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 broadband internet service,
video service and fixed-line telephony service, the customer would
constitute three RGUs. Total RGUs is the sum of Internet, Video 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 internet, video 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) the percentage change from period to
period for Adjusted EBITDA and Adjusted EBITDAaL on both a reported
and rebased basis for each of our reportable segments.
Three months ended
Increase/(decrease)
Year ended
Increase/(decrease)
December 31,
December 31,
2022
2021
Reported %
Rebased %
2022
2021
Reported %
Rebased %
in millions, except %
amounts
Adjusted EBITDA:
Switzerland
$
257.6
$
297.8
(13.5
)
(8.1
)
$
1,137.8
$
1,208.7
(5.9
)
(0.3
)
Belgium
318.7
351.3
(9.3
)
4.7
1,308.1
1,481.8
(11.7
)
0.9
Ireland
45.0
57.9
(22.3
)
(12.3
)
197.5
218.6
(9.7
)
1.5
U.K.(i)
—
—
—
—
—
1,085.3
(100.0
)
—
Central and Other
(23.4
)
(17.3
)
(35.3
)
N.M.
(47.0
)
(33.1
)
(42.0
)
N.M.
Intersegment eliminations
(0.6
)
0.2
N.M.
N.M.
(1.0
)
1.8
N.M.
N.M.
Total Adjusted EBITDA
$
597.3
$
689.9
(13.4
)
(4.4
)
$
2,595.4
$
3,963.1
(34.5
)
(0.9
)
VMO2 JV(ii)(iii)
$
1,047.0
$
1,125.3
(7.0
)
9.7
$
4,562.2
$
2,716.6
67.9
N.M.
VodafoneZiggo JV(iii)
$
487.9
$
552.2
(11.6
)
(1.1
)
$
2,018.0
$
2,265.6
(10.9
)
—
Finance lease adjustments:
Switzerland
$
(2.9
)
$
(0.8
)
$
(8.3
)
$
(3.4
)
Belgium
(18.1
)
(23.0
)
(76.5
)
(88.9
)
U.K.(i)
—
—
—
(4.9
)
Central and Other
(2.1
)
(2.1
)
(8.1
)
(8.4
)
Total finance lease adjustments
$
(23.1
)
$
(25.9
)
$
(92.9
)
$
(105.6
)
VMO2 JV(ii)(iii)
$
(2.0
)
$
(2.3
)
$
(8.8
)
$
(5.7
)
VodafoneZiggo JV(iii)
$
(2.8
)
$
(2.8
)
$
(9.4
)
$
(11.7
)
Adjusted EBITDAaL:
Switzerland
$
254.7
$
297.0
(14.2
)
(8.9
)
$
1,129.5
$
1,205.3
(6.3
)
(0.7
)
Belgium
300.6
328.3
(8.4
)
5.4
1,231.6
1,392.9
(11.6
)
1.0
Ireland
45.0
57.9
(22.3
)
(12.3
)
197.5
218.6
(9.7
)
1.5
U.K.(i)
—
—
—
—
—
1,080.4
(100.0
)
—
Central and Other
(25.5
)
(19.4
)
(31.4
)
N.M.
(55.1
)
(41.5
)
(32.8
)
N.M.
Intersegment eliminations
(0.6
)
0.2
N.M.
N.M.
(1.0
)
1.8
N.M.
N.M.
Total Adjusted EBITDAaL
$
574.2
$
664.0
(13.5
)
(4.7
)
$
2,502.5
$
3,857.5
(35.1
)
(1.1
)
VMO2 JV(ii)(iii)
$
1,045.0
$
1,123.0
(6.9
)
7.1
$
4,553.4
$
2,710.9
68.0
N.M.
VodafoneZiggo JV(iii)
$
485.1
$
549.4
(11.7
)
(1.1
)
$
2,008.6
$
2,253.9
(10.9
)
—
______________________ N.M. - Not Meaningful
(i)
The YTD 2021 amounts represent
activity of the U.K. JV Entities through the June 1, 2021 closing
of the U.K. JV Transaction.
(ii)
The YTD 2021 amounts represent
activity of the VMO2 JV for the period from June 1, 2021 through
December 31, 2021.
(iii)
Amounts reflect 100% of the 50:50
non-consolidated VMO2 JV and VodafoneZiggo JV.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230222005852/en/
Investor Relations Michael Bishop +44 20 8483 6246 Amy
Ocen +1 303 784 4528 Michael Khehra +44 78 9005 0979
Corporate Communications Bill Myers +1 303 220 6686 Matt
Beake +44 20 8483 6428
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