Dec 31, 2020

Liberty Global Q4 2020 Earnings Report

Liberty Global's Q4 2020 results reflected growth in customer relationships and solid financial performance despite COVID-19 impacts, with strategic transactions and convergence initiatives driving future value creation.

Key Takeaways

Liberty Global reported a 14.9% increase in revenue and a 5.8% increase in Adjusted EBITDA. The company added 56,000 new customer relationships during the quarter. FMC penetration increased to 28%.

Q4 revenue increased 14.9% on a reported basis and decreased 0.5% on a rebased basis to $3,426.9 million.

Q4 loss from continuing operations decreased 25.4% YoY to $1,007.0 million.

Q4 Adjusted EBITDA increased 5.8% on a reported basis and decreased 6.2% on a rebased basis to $1,347.6 million.

FMC penetration increased to 28% from 23% in Q4 2019.

Total Revenue
$3.43B
Previous year: $2.98B
+14.9%
EPS
-$1.72
Previous year: -$2.19
-21.5%
Gross Profit
$2.38B
Previous year: $2.13B
+11.6%
Cash and Equivalents
$1.33B
Previous year: $8.14B
-83.7%
Free Cash Flow
$528M
Total Assets
$59.1B
Previous year: $49B
+20.5%

Liberty Global

Liberty Global

Liberty Global Revenue by Segment

Forward Guidance

Liberty Global anticipates modest rebased revenue increases in its four largest markets (UK, CH, NL, BE) as customer growth, price increases and B2B services continue the momentum experienced in 2020. The company is forecasting a 25% increase in consolidated Adjusted Free Cash Flow to $1.35 billion for full year 2021

Positive Outlook

  • Customer growth in key markets
  • Price increases in core markets
  • Continued B2B service momentum
  • Synergies from the UK transaction
  • Acceleration of Sunrise UPC integration in Switzerland

Challenges Ahead

  • Substantial costs to capture anticipated synergies
  • Impact on rebased Adjusted EBITDA
  • Impact on rebased OFCF performance
  • Investments in future growth
  • Potential challenges in achieving forecasted financial targets

Revenue & Expenses

Visualization of income flow from segment revenue to net income