Liberty Global Reports Full Year 2020 Results
Acquisition of Sunrise closed mid-November1
U.K. joint venture with Telefonica’s O2 on track to close mid-20212
All 2020 guidance targets met or exceeded
FMC penetration reaches 28% as convergence strategy continues to deliver
Repurchased 9% of shares outstanding in 2020 at ~$19 per share
DENVER, Colorado–(BUSINESS WIRE)–Liberty Global (NASDAQ: LBTYA, LBTYB and LBTYK):
| Liberty Global (continuing operations) | |||
| YTD | |||
| 2020 | YoY | ||
| Operations | |||
| Organic Customer additions | 81,200 | +155,100 | |
| Organic Broadband net adds | 241,500 | +163,000 | |
| Organic Mobile Postpaid net adds | 512,900 | +16,900 | |
| Fixed Mobile Convergence(a) | 28.3% | 2.7% | |
| Financial (in millions, except percentages) | |||
| Revenue as reported | $11,980.1 | 3.8% | |
| Rebased revenue3 | $11,980.1 | (1.5%) | |
| COVID impact on revenue4 | ~ $200.0 | (1.8%) | |
| Loss from continuing operations | ($1,466.7) | (4.1%) | |
| Rebased Adjusted EBITDA3 | $4,895.6 | (3.9%) | |
| P&E additions | $2,695.3 | (6.4%) | |
| Rebased OFCF3 | $2,200.3 | 4.9% | |
| Cash provided by operating activities(b) | $4,185.8 | 12.7% | |
| Adjusted FCF(c) | $1,069.8 | 38.9% | |
| NASDAQ: LBTYA | LBTYB | LBTYK | |||
| (a) YoY FMC growth shown on a rebased basis. | |||
| (b) As reported cash flows from investing and financing activities for the year ended December 31, 2020 were ($8,874.0 million) and $1,083.6 million, respectively. | |||
| (c) YoY Adjusted FCF growth rate is based on 2019 pro forma FCF, which assumed the sale of our discontinued operations in Germany, Hungary, Romania, the Czech Republic and our DTH business had been completed on January 1, 2019. | |||
Liberty Global plc today announced Full Year financial results. Our former operations in Germany, Hungary, Romania and the Czech Republic, along with our DTH business (collectively, the “Discontinued Operations”) are presented as discontinued operations for the year ended December 31, 2019. Unless otherwise indicated, the information in this release relates only to our continuing operations. Effective with our Q2 2020 financial results we stopped using the term Operating Cash Flow (“OCF”) and replaced it with “Adjusted EBITDA”. As we define the term, Adjusted EBITDA has the same meaning as OCF had previously, and therefore does not impact any previously reported amounts.
CEO Mike Fries stated, “2020 was a transformational year in which we announced highly accretive transactions in Switzerland and the U.K., creating fixed-mobile champions in two of our core markets and unlocking nearly $11 billion of synergies on an NPV basis. In Switzerland, we have validated the Sunrise UPC synergy plan, announced the executive team and the integration of the business is well underway.
Meanwhile, we are making very positive progress with the U.K. regulator on the joint venture between Virgin Media and Telefonica’s O2, and continue to anticipate a mid-21 closing.
As we continue to navigate the pandemic, our fiber-rich networks have more than stood up to the challenge, delivering high-speed connectivity which has proven increasingly essential in the lives of our customers and communities. Demand for our broadband and converged products remains strong, and we added 56,000 new customer relationships during Q4 and a total of 81,000 in 2020. We saw substantial churn reduction across all of our markets and achieved a record low at Virgin Media. Moreover, we continued to extend and upgrade our network reach with the construction of 561,000 new homes last year, and are now marketing 1GB broadband services to over 20 million premises across our pan-European footprint.
Our convergence strategy continues to gain traction across all of our core markets. During 2020, we added 242,000 broadband subscribers, and the fourth quarter saw both Virgin Media and UPC Switzerland achieve their best broadband adds since 2017. In addition to our robust fixed-line trends, we added 513,000 postpaid mobile subscribers in 2020, with Virgin Media seeing record additions for the full year. FMC penetration rates continue to improve across all operations, a win-win for us and our customers as we share in the benefits of convergence.
Despite the impact of the COVID-19 virus, we were able to meet or exceed all guidance metrics in 2020. Rebased3 revenue declined 1.5%, including adverse COVID impacts of around 2%, primarily driven by lower B2B revenue and the loss of premium sports content. As expected, rebased Adjusted EBITDA declined 4% in the year, including the impact of costs to capture5 of $17 million in Switzerland and the U.K., while rebased OFCF increased 5%, reflecting underlying growth in most markets. Our continued efforts to reduce our capital intensity, which remains below 20% excluding Project Lighting, helped us deliver $1.1 billion of Adjusted Free Cash Flow in 2020, modestly ahead of guidance.
Throughout the year we were active buyers of our stock, retiring 9% of our outstanding equity at an average price of approximately $19 per share. We will continue our buyback program via the current $1 billion authorization, simultaneously shrinking our share count while delivering substantially higher Adjusted Free Cash Flow in 2021. Our balance sheet remains in outstanding shape with $3.3 billion(i) of cash and $6.2 billion of liquidity5 at year end to drive future value creation.
Looking ahead to 2021(ii), we anticipate modest rebased revenue increases in our four largest markets (UK, CH, NL, BE) as customer growth, price increases and B2B services continue the momentum experienced in 2020. As we close the U.K. transaction and accelerate integration of Sunrise UPC in Switzerland, we will incur substantial costs to capture anticipated synergies which will weigh on our rebased Adjusted EBITDA and rebased OFCF performance. Despite these investments in future growth, we are still forecasting a 25% increase in consolidated Adjusted Free Cash Flow to $1.35 billion for full year 2021 and an even larger increase in Adjusted Free Cash Flow per share as we implement our $1 billion buyback program.”
| (i) |
| Including amounts held under separately managed accounts (SMAs). |
| (ii) |
| Rebased revenue and Adjusted Free Cash Flow are non-GAAP measures, see the Glossary for definitions. Quantitative reconciliations to cash flow from operating activities for our Adjusted FCF 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. Absolute full-year U.S. dollar guidance figures are based on FX rates of EUR/USD 1.23, GBP/USD 1.36 and CHF/USD 1.12. |
Full Year and Q4 Highlights
- FY revenue increased 3.8% on a reported basis and decreased 1.5% on a rebased3 basis to $11,980.1 million
- Q4 revenue increased 14.9% on a reported basis and decreased 0.5% on a rebased basis to $3,426.9 million
- FY loss from continuing operations increased 4.1% YoY to $1,466.7 million
- Q4 loss from continuing operations decreased 25.4% YoY to $1,007.0 million
- FY Adjusted EBITDA increased 0.7% on a reported basis and decreased 3.9% on a rebased basis to $4,895.6 million
- Q4 Adjusted EBITDA increased 5.8% on a reported basis and decreased 6.2% on a rebased basis to $1,347.6 million
- Q4 property & equipment additions were 23.2% of revenue, as compared to 28.2% in Q4 2019
- FMC penetration increased to 28% from 23% in Q4 2019, as postpaid and broadband sales both saw record levels during Q4 2020
- Built 154,000 new premises during Q4, including 115,000 in the U.K. & Ireland
- Solid balance sheet with $6.2 billion of liquidity6 for the Full Company7
- Comprises $1.3 billion of cash, $2.0 billion of investments held under SMAs and $2.9 billion of unused borrowing capacity8
- Gross and net leverage8 of 5.8x and 5.1x, respectively, on a Full Company basis
- Fully-swapped borrowing cost of 4.2% on debt balance of $31.3 billion for the Full Company
- Repurchased $1.1 billion of stock during 2020
| Liberty Global (continuing operations) |
| Q4 2020 |
| YoY Change (reported) |
| YoY Change (rebased) |
| YTD 2020 |
| YoY Change (reported) |
| YoY Change (rebased) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Customers |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Organic Customer additions |
| 55,900 |
|
| 319.2 | % |
|
|
| 81,200 |
|
| 209.9 | % |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Financial (in millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Revenue |
| $ | 3,426.9 |
|
| 14.9 | % |
| (0.5 | %) |
| $ | 11,980.1 |
|
| 3.8 | % |
| (1.5 | %) |
| Loss from continuing operations |
| $ | (1,007.0) |
|
| 25.4 | % |
|
|
| $ | (1,466.7) |
|
| (4.1 | %) |
|
| ||
| Adjusted EBITDA |
| $ | 1,347.6 |
|
| 5.8 | % |
| (6.2 | %) |
| $ | 4,895.6 |
|
| 0.7 | % |
| (3.9 | %) |
| P&E additions |
| $ | 795.2 |
|
| (5.4 | %) |
| (16.3 | %) |
| $ | 2,695.3 |
|
| (6.4 | %) |
| (9.7 | %) |
| OFCF |
| $ | 552.4 |
|
| 27.5 | % |
| 14.6 | % |
| $ | 2,200.3 |
|
| 11.2 | % |
| 4.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Cash provided by operating activities |
| $ | 1,493.5 |
|
| — | % |
|
|
| $ | 4,185.8 |
|
| 12.7 | % |
|
| ||
| Cash used by investing activities |
| $ | (4,701.5) |
|
| (1,652.3 | %) |
|
|
| $ | (8,874.0) |
|
| (193.0 | %) |
|
| ||
| Cash provided by financing activities |
| $ | 735.4 |
|
| 250.9 | % |
|
|
| $ | 1,083.6 |
|
| 115.7 | % |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Adjusted FCF |
| $ | 528.1 |
|
| (31.8 | %) |
|
|
| $ | 1,069.8 |
|
| 38.9 | %(a) |
|
| ||
| (a) YoY Adjusted FCF growth rate is based on 2019 pro forma FCF, which assumed the sale of our discontinued operations in Germany, Hungary, Romania, the Czech Republic and our DTH business had been completed on January 1, 2019. | ||||||||||||||||||||
Customer Growth
|
|
| Three months ended |
| Year ended | ||||||||||||
|
|
| December 31, |
| December 31, | ||||||||||||
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||||||
| Organic customer net additions (losses) by market |
|
|
|
|
|
|
|
| ||||||||
| U.K./Ireland |
| 41,700 |
|
|
| (9,400 | ) |
|
| 101,800 |
|
|
| 7,100 |
|
|
| Belgium |
| (1,000 | ) |
|
| (6,900 | ) |
|
| (14,500 | ) |
|
| (42,900 | ) |
|
| Switzerland |
| (5,800 | ) |
|
| (22,700 | ) |
|
| (44,900 | ) |
|
| (73,600 | ) |
|
| CEE (Poland and Slovakia). |
| 21,000 |
|
|
| 13,500 |
|
|
| 38,800 |
|
|
| 35,500 |
|
|
| Total |
| 55,900 |
|
|
| (25,500 | ) |
|
| 81,200 |
|
|
| (73,900 | ) |
|
- Customer Relationships: During Q4, we gained 56,000 customer relationships, as compared to a loss of 26,000 in the prior-year period, representing our best quarter over quarter performance for our consolidated operations in the past 5 years, primarily driven by our convergence strategy
- U.K./Ireland: Virgin Media gained 42,000 customer relationships in Q4, as compared to a loss of 9,000 in Q4 2019, as demand for our superior broadband bundles increased, on both our legacy and new build footprint, and our suite of initiatives to help customers through the pandemic led to an improvement in NPS and record low churn in 2020
- Belgium: Telenet lost 1,000 customer relationships in Q4, which was an improvement compared to a loss of 7,000 in Q4 2019, primarily driven by robust FMC subscriber base growth
- Switzerland: Customer attrition of 6,000 in Q4, as UPC Switzerland lost 12,000 customers compared to a loss of 23,000 in Q4 2019, whereas Sunrise added 6,000 customers in the period post acquisition
- CEE (Poland and Slovakia): CEE added 21,000 customer relationships in Q4 2020 and 14,000 in Q4 2019, driven by strong sales in Poland
Revenue Highlights
The following table presents (i) revenue of each of our consolidated reportable segments for the comparative periods and (ii) the percentage change from period to period on both a reported and rebased basis:
|
|
| Three months ended |
| Increase/(decrease) |
| Year ended |
| Increase/(decrease) | ||||||||||||||||||||||||||
|
|
| December 31, |
|
| December 31, |
| ||||||||||||||||||||||||||||
| Revenue |
| 2020 |
|
| 2019 |
| Reported % |
| Rebased % |
| 2020 |
|
| 2019 |
|
| Reported % |
| Rebased % | |||||||||||||||
|
|
| in millions, except % amounts | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
| U.K./Ireland |
| $ | 1,766.5 |
|
|
| $ | 1,715.1 |
|
| 3.0 |
|
| — |
|
|
| $ | 6,588.4 |
|
|
| $ | 6,600.3 |
|
|
| (0.2 | ) |
|
| (0.9 | ) |
|
| Belgium |
| 793.7 |
|
|
| 746.0 |
|
| 6.4 |
|
| (0.9 | ) |
|
| 2,940.9 |
|
|
| 2,893.0 |
|
|
| 1.7 |
|
|
| (2.0 | ) |
| ||||
| Switzerland |
| 642.9 |
|
|
| 316.1 |
|
| 103.4 |
|
| (2.6 | ) |
|
| 1,573.8 |
|
|
| 1,258.8 |
|
|
| 25.0 |
|
|
| (4.5 | ) |
| ||||
| CEE |
| 127.4 |
|
|
| 120.0 |
|
| 6.2 |
|
| 3.0 |
|
|
| 486.9 |
|
|
| 475.4 |
|
|
| 2.4 |
|
|
| 3.5 |
|
| ||||
| Central and Corporate |
| 97.6 |
|
|
| 85.0 |
|
| 14.8 |
|
| 4.7 |
|
|
| 394.4 |
|
|
| 316.4 |
|
|
| 24.7 |
|
|
| (3.0 | ) |
| ||||
| Intersegment eliminations |
| (1.2 | ) |
|
| — |
|
| N.M. |
|
| N.M. |
|
|
| (4.3 | ) |
|
| (2.4 | ) |
|
| N.M. |
|
|
| N.M. |
|
| ||||
| Total |
| $ | 3,426.9 |
|
|
| $ | 2,982.2 |
|
| 14.9 |
|
| (0.5 | ) |
|
| $ | 11,980.1 |
|
|
| $ | 11,541.5 |
|
|
| 3.8 |
|
|
| (1.5 | ) |
|
| ______________________ N.M. – Not Meaningful | ||||||||||||||||||||||||||||||||||
- Reported revenue for the three months and year ended December 31, 2020 increased 14.9% and 3.8% YoY, respectively
- The increases were primarily driven by the impact of (i) the acquisition of Sunrise, (ii) positive foreign exchange (“FX”) movements, mainly related to the strengthening of the British Pound, Euro and Swiss Franc against the U.S. dollar and (iii) organic revenue contraction
- Rebased revenue declined 0.5% in Q4 and 1.5% YTD, including:
- For the YTD period, an unfavorable decrease of over $200 million4 related to COVID-19 impacts, primarily driven by (i) lower B2B revenue, (ii) the loss of premium sports content, (iii) lower broadcasting revenue and (iv) lower interconnect and mobile roaming revenue, including:
- For the YTD period, an unfavorable decrease of approximately $28 million in U.K./Ireland associated with the loss of exclusive programming content due to the COVID-19 pandemic, primarily in the second and third quarters of 2020, comprising (i) credits that were given to certain customers and (ii) the estimated impact of certain customers canceling their premium sports subscriptions
- For the YTD period, an unfavorable decrease of over $200 million4 related to COVID-19 impacts, primarily driven by (i) lower B2B revenue, (ii) the loss of premium sports content, (iii) lower broadcasting revenue and (iv) lower interconnect and mobile roaming revenue, including:
- For the YTD period, the favorable impact of $20.3 million in U.K./Ireland related to the release of deferred handset revenue related to the sale of handset receivables. Corresponding expenses were incurred resulting in a neutral impact on Adjusted EBITDA
- Lower revenue related to regulated contract notifications
- Unfavorable impacts of $2.2 million and $7.5 million for Q4 and YTD, respectively, related to revenue recognized by Virgin Media during 2019 in connection with the sale of rights to future commission payments on customer handset insurance arrangements
Q4 2020 Rebased Revenue Growth – Segment Highlights
- U.K./Ireland: Rebased revenue was flat YoY in Q4 due to higher B2B revenue offset by a decline in residential cable revenue, comprising the net effect of (i) an increase in fixed-line customers offset by a decrease in fixed-line customer ARPU, (ii) higher wholesale revenue and (iii) continued growth in SOHO customers
- Belgium: Rebased revenue declined 0.9% YoY in Q4 driven by the net effect of (i) lower interconnect and roaming revenue, (ii) lower handset related revenue, (iii) higher B2B subscription revenue due to an increase in SOHO customers and (iv) a decrease in video revenue primarily driven by fewer customers
- Switzerland: Rebased revenue declined 2.6% YoY in Q4, primarily due to the net effect of (i) lower consumer subscription revenue as a result of customer losses and ARPU pressure and (ii) an increase in mobile revenue driven by an increase in subscribers
- CEE (Poland and Slovakia): Rebased revenue grew 3.0% YoY in Q4, primarily due to an increase in residential cable subscription revenue driven by higher customer volume
- Central and Corporate: Rebased revenue increased 4.7% YoY in Q4, primarily due to higher CPE sales to the VodafoneZiggo JV
Loss from Continuing Operations
- Loss from continuing operations was $1,007.0 million and $1,349.7 million for the three months ended December 31, 2020 and 2019, respectively, and $1,466.7 million and $1,409.0 million for the year ended December 31, 2020 and 2019, respectively
- The changes in our loss from continuing operations are primarily due to the net effect of (i) decreases in depreciation and amortization, (ii) increases in foreign currency transaction losses, net, (iii) increases in realized and unrealized losses on derivative instruments, net, (iv) changes in income tax benefit (expense), (v) decreases in interest expense, (vi) increases in share of results of affiliates, net, (vii) changes in realized and unrealized gains (losses) due to changes in fair values of certain investments and debt, net, and (viii) increases in Adjusted EBITDA, as further described below
Adjusted EBITDA Highlights
The following table presents (i) Adjusted EBITDA(*) of each of our consolidated reportable segments for the comparative periods and (ii) the percentage change from period to period on both a reported and rebased basis:
|
|
| Three months ended |
| Increase/(decrease) |
| Year ended |
| Increase/(decrease) | ||||||||||||||||||||||||||||
|
|
| December 31, |
|
| December 31, |
| ||||||||||||||||||||||||||||||
| Adjusted EBITDA |
| 2020 |
|
| 2019 |
|
| Reported % |
| Rebased % |
| 2020 |
|
| 2019 |
|
| Reported % |
| Rebased % | ||||||||||||||||
|
|
| in millions, except % amounts | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
| U.K./Ireland |
| $ | 697.1 |
|
|
| $ | 763.0 |
|
|
| (8.6 | ) |
|
| (11.1 | ) |
|
| $ | 2,672.4 |
|
|
| $ | 2,800.5 |
|
|
| (4.6 | ) |
|
| (5.0 | ) |
|
| Belgium |
| 360.3 |
|
|
| 339.1 |
|
|
| 6.3 |
|
|
| (1.1 | ) |
|
| 1,413.4 |
|
|
| 1,386.1 |
|
|
| 2.0 |
|
|
| 0.2 |
|
| ||||
| Switzerland |
| 254.4 |
|
|
| 151.6 |
|
|
| 67.8 |
|
|
| (7.9 | ) |
|
| 693.8 |
|
|
| 627.9 |
|
|
| 10.5 |
|
|
| (10.5 | ) |
| ||||
| CEE |
| 54.6 |
|
|
| 52.5 |
|
|
| 4.0 |
|
|
| 1.2 |
|
|
| 215.6 |
|
|
| 215.0 |
|
|
| 0.3 |
|
|
| 1.5 |
|
| ||||
| Central and Corporate |
| (18.8 | ) |
|
| (32.4 | ) |
|
| 42.0 |
|
|
| 50.2 |
|
|
| (99.6 | ) |
|
| (171.1 | ) |
|
| 41.8 |
|
|
| 10.3 |
|
| ||||
| Intersegment eliminations |
| — |
|
|
| — |
|
|
| N.M. |
|
|
| N.M. |
|
|
| — |
|
|
| 1.1 |
|
|
| N.M. |
|
|
| N.M. |
|
| ||||
| Total |
| $ | 1,347.6 |
|
|
| $ | 1,273.8 |
|
|
| 5.8 |
|
|
| (6.2 | ) |
|
| $ | 4,895.6 |
|
|
| $ | 4,859.5 |
|
|
| 0.7 |
|
|
| (3.9 | ) |
|
| ______________________ N.M. – Not Meaningful | ||||||||||||||||||||||||||||||||||||
| (*) Consolidated Adjusted EBITDA is a non-GAAP measure, which we believe 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 readily view operating trends from a consolidated view. Investors should view consolidated Adjusted EBITDA as a supplement to, and not a substitute for, earnings or loss from continuing operations and other U.S. GAAP measures of performance. For additional information on our Adjusted EBITDA measure, including a reconciliation to earnings (loss) from continuing operations, see the Glossary. | ||||||||||||||||||||||||||||||||||||
- Reported Adjusted EBITDA for the three months and year ended December 31, 2020 increased 5.8% and 0.7% YoY, respectively
- Rebased Adjusted EBITDA declined 6.2% and 3.9% for the three months and year ended December 31, 2020, respectively, including:
- The aforementioned impacts of certain revenue items, as discussed in the “Revenue Highlights” section above
- The following current year impacts:
- For the YTD period, an unfavorable impact associated with costs to capture5 of $17 million in Switzerland and the U.K.
- Lower costs of $5.9 million and $52.0 million for Q4 and YTD, respectively, in U.K./Ireland related to aggregate credits or rebates received during 2020 in connection with the loss of exclusive programming content due to the COVID-19 pandemic, which generally offset adverse revenue impacts in U.K./Ireland resulting from the COVID-19 pandemic
- Unfavorable network tax increases of $3.5 million and $20.1 million for Q4 and YTD, respectively, following an increase in the rateable value of our U.K. networks, which is being phased in over a six-year period ending in 2022
- For the YTD period, unfavorable higher costs in U.K./Ireland associated with a $15.9 million charge recorded in Q3 in connection with the reassessment of certain items related to prior years
- Lower call center costs in U.K./Ireland primarily due to lockdowns during the second and third quarters of 2020 associated with the COVID-19 pandemic, which prevented certain outsourced contract services from being performed
- The following 2019 impacts:
- For the YTD period, lower severance costs in U.K./Ireland of $6.3 million associated with revisions to our operating model and a decrease in FTEs during 2019
- For the YTD period, a favorable decrease in personnel costs in Central and Corporate related to a $5.0 million cash bonus in Q2 2019 associated with the renewal of an existing executive employment contract on similar terms
Q4 2020 Rebased Adjusted EBITDA – Segment Highlights
- U.K./Ireland: Rebased Adjusted EBITDA declined 11.1% YoY in Q4 due to a very strong prior-year comparison, the aforementioned revenue impacts from regulated contract notifications, our investments in digital transformation and pre-merger opex costs to capture of $6.7 million along with the following cost increases (i) a short-term increase in expenditure related to insourcing and on-shoring more customer care, (ii) the phasing of marketing costs through the year, (iii) increased programming costs, (iv) higher network taxes and (v) higher costs associated with the aforementioned contract notification regulations
- Belgium: Rebased Adjusted EBITDA decreased 1.1% YoY in Q4, primarily due to (i) the aforementioned revenue decline, (ii) lower interconnect and roaming expenses and (iii) lower costs related to outsourced labor and professional services
- Switzerland: Rebased Adjusted EBITDA declined 7.9% YoY in Q4, mainly due to (i) the aforementioned loss of consumer subscription revenue and (ii) pre-merger costs to capture of $10.4 million, partially offset by lower programming costs
- CEE (Poland and Slovakia): Rebased Adjusted EBITDA increased 1.2% YoY in Q4, largely driven by an increase in programming and commercial spend
OFCF Highlights
The following table presents (i) OFCF of each of our consolidated reportable segments for the comparative periods and (ii) the percentage change from period to period on both a reported and rebased basis:
|
|
| Three months ended |
| Increase/(decrease) |
| Year ended |
| Increase/(decrease) | |||||||||||||||||||||||||||
|
|
| December 31, |
|
| December 31, |
| |||||||||||||||||||||||||||||
| OFCF |
| 2020 |
|
| 2019 |
|
| Reported % |
| Rebased % |
| 2020 |
|
| 2019 |
|
| Reported % |
| Rebased % | |||||||||||||||
|
|
| in millions, except % amounts | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
| U.K./Ireland |
| $ | 294.1 |
|
|
| $ | 313.5 |
|
|
| (6.2 | ) |
|
| (8.5 | ) |
|
| $ | 1,239.7 |
|
|
| $ | 1,222.5 |
|
|
| 1.4 |
|
| 1.1 |
|
|
| Belgium |
| 221.8 |
|
|
| 193.5 |
|
|
| 14.6 |
|
|
| 7.0 |
|
|
| 899.8 |
|
|
| 848.9 |
|
|
| 6.0 |
|
| 4.3 |
|
| ||||
| Switzerland |
| 133.4 |
|
|
| 80.9 |
|
|
| 64.9 |
|
|
| 7.1 |
|
|
| 391.0 |
|
|
| 350.0 |
|
|
| 11.7 |
|
| (4.0 | ) |
| ||||
| CEE |
| 18.4 |
|
|
| 11.7 |
|
|
| 57.3 |
|
|
| 53.8 |
|
|
| 110.1 |
|
|
| 108.0 |
|
|
| 1.9 |
|
| 4.3 |
|
| ||||
| Central and Corporate |
| (115.3 | ) |
|
| (166.2 | ) |
|
| 30.6 |
|
|
| 35.9 |
|
|
| (440.3 | ) |
|
| (551.5 | ) |
|
| 20.2 |
|
| 10.8 |
|
| ||||
| Intersegment eliminations |
| — |
|
|
| — |
|
|
| N.M. |
|
|
| N.M. |
|
|
| — |
|
|
| 1.1 |
|
|
| N.M. |
|
| N.M. |
|
| ||||
| Total |
| $ | 552.4 |
|
|
| $ | 433.4 |
|
|
| 27.5 |
|
|
| 14.6 |
|
|
| $ | 2,200.3 |
|
|
| $ | 1,979.0 |
|
|
| 11.2 |
|
| 4.9 |
|
|
| ______________________ N.M. – Not Meaningful | |||||||||||||||||||||||||||||||||||
Net Earnings (Loss) Attributable to Liberty Global Shareholders
- Net earnings (loss) attributable to Liberty Global shareholders was ($1,030.5 million) and ($1,386.5 million) for the three months ended December 31, 2020 and 2019, respectively, and ($1,628.0 million) and $11,521.4 million for the year ended December 31, 2020 and 2019, respectively
Leverage and Liquidity
- Total principal amount of debt and finance leases: $31.3 billion for the Full Company
- Leverage ratios9: At December 31, 2020, our adjusted gross and net leverage ratios were 5.8x and 5.1x, respectively, on a Full Company basis
- Average debt tenor10: Over 7 years, with ~84% not due until 2026 or thereafter on a Full Company basis
- Borrowing costs: Blended, fully-swapped cost of debt was 4.2% for the Full Company
- Liquidity6: $6.2 billion on a Full Company basis, including (i) $1.3 billion of cash at December 31, 2020, (ii) $2.0 billion of investments held under SMAs and (iii) $2.9 billion of aggregate unused borrowing capacity6 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 with respect to the announced transaction in the U.K., including related regulatory matters and anticipated timing of completion, as well as anticipated benefits thereof including synergies; expectations with respect to the acquisition of Sunrise in Switzerland and the anticipated benefits thereof including synergies; expectations regarding costs to capture; expectations regarding our financial performance, including Rebased Revenue, Rebased Adjusted EBITDA, Rebased OFCF and Adjusted FCF; expectations regarding our share repurchase program and impacts thereof; the strength of our balance sheet (including cash and liquidity position), tenor of our third-party debt, anticipated borrowing capacity; and other information and statements that are not historical fact.
Contacts
Investor Relations
Max Adkins +44 78 1795 9705
Steve Carroll +1 303 784 4505
Stefan Halters +44 20 8483 6211
Corporate Communications
Molly Bruce +1 303 220 4202
Matt Beake +44 20 8483 6428
