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Dec 31, 2022
Liberty Global Q4 2022 Earnings Report
Liberty Global's Q4 2022 financial results demonstrated resilience with all guidance metrics achieved despite challenging macro conditions.
Key Takeaways
Liberty Global reported stable rebased revenue growth in the U.K., Belgium, and the Netherlands in Q4 2022. The company delivered aggregate broadband and postpaid mobile growth of 197,000 net new subscribers. FY22 Distributable Cash Flow exceeded guidance at $1.6 billion, representing a 17% YoY growth.
Achieved all 2022 guidance targets across FMC Champions and exceeded Distributable Cash Flow guidance.
Full Year revenue growth driven by B2B, mobile and broadband.
Repurchased 14% of shares outstanding in 2022 and reiterating 10% buyback floor for 2023.
Guiding to stable Distributable Cash Flow at Liberty Global in 2023.
Liberty Global
Liberty Global
Forward Guidance
Liberty Global expects 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. Expects Distributable Cash Flow to remain broadly stable at $1.6 billion in 2023.
Positive Outlook
- Continued customer growth in both fixed and mobile driven by demand for connectivity.
- Average speed across the broadband base increased 41% YoY to 301 Mbps.
- VMO2's flagship converged Volt bundles have continued to perform well with 1.3 million customers now taking a Volt bundle.
- VodafoneZiggo continues to improve its commercial momentum despite continued promotional intensity in the Dutch market.
- FMC households grew 22,800 in Q4, bringing the total to over 1.5 million converged households.
Challenges Ahead
- The rebased decrease in VodafoneZiggo's revenue was primarily driven by a lower B2C fixed customer base.
- The rebased decrease in VodafoneZiggo's Adjusted EBITDA was primarily driven by inflation-related increases in energy and wage costs.
- Revenue of $803.6 million in Q4 2022 decreased 2.5% YoY on a reported basis and 2.2% YoY on a rebased basis for Sunrise.
- Adjusted EBITDA decreased 13.5% on a reported basis and 8.1% on a rebased basis to $257.6 million in Q4 2022 for Sunrise.
- Adjusted EBITDA for the VMO2 JV and Telenet decreased 7.0% and 9.3%, respectively, on a reported basis.