Liberty Global's LBTYA second-quarter 2020 net loss was $524.2 million against the year-ago quarter's earnings of $53 million.
Revenues declined 4.5% year over year to $2.72 billion. On a rebased basis, revenues dipped 4.3% from the year-ago quarter.
Liberty Global gained 7,700 customer relationships in the reported quarter against a loss of 28,600 in the year-ago quarter.
Fixed-mobile convergence (“FMC”) continued to drive mobile growth with more than 100,000 post-paid additions. Markedly, FMC penetrations reached 23%, 46% and 22% at VirginMedia, Telenet and UPC Switzerland, respectively.
Average revenue per unit (“ARPU”) per cable customer relationships decreased 3.6% to $57.35. On a rebased basis, the figure declined 1.3%.
Liberty Global PLC Price, Consensus and EPS Surprise
Liberty Global PLC price-consensus-eps-surprise-chart | Liberty Global PLC Quote
Mobile ARPU, (including interconnect revenues) on a reported basis, declined 5.1% to $15.65. On a rebased basis, the figure decreased 8.4%.
Further, mobile ARPU (excluding interconnect revenues) on a reported basis, slid 7% to $13.16. On a rebased basis, the figure was down 4.8%.
In United Kingdom/Ireland, Virgin Media gained 23,900 customer relationships against a loss of 5,600 in the year-ago quarter.
The U.K./Ireland revenues, on a reported basis, slipped 6.8% year over year to $1.53 billion. On a rebased basis, U.K./Ireland revenues were down 3.6% year over year.
In Belgium, Telenet lost 2,900 customer relationships compared with loss of 8,000 in the year-ago quarter.
Belgium revenues, on a reported basis, decreased 4.3% year over year to $682.5 million. On a rebased basis, revenues fell 5.2%.
In Switzerland, Liberty Global lost 16,400 customer relationships compared with loss of 18,100 in the year-ago quarter.
Switzerland revenues, on a reported basis, decreased 5% year over year to $299.1 million. On a rebased basis, revenues decreased 8.6%.
Continuing CEE (Poland and Slovakia) gained 3,100 customer relationships compared with 3,300K in the year-ago quarter.
Continuing CEE revenues, on a reported basis, declined 2.4% to $93.7 million. On a rebased basis, the top line increased 4.2%.
Revenues from the Dutch joint venture decreased 4.2% year over year on a rebased basis.
Liberty Global built 126,000 new premises in the reported quarter including 93,000 in the U.K. & Ireland.
Adjusted EBITDA declined 0.2% year over year to $1.19 billion in the second quarter.
U.K./Ireland EBITDA, on a rebased basis, decreased 1.5% year over year. Switzerland EBITDA also, on a rebased basis, was down 9.9% from the year-ago quarter.
However, Belgium EBITDA, on a rebased basis, increased 3.7% year over year. Continuing CEE EBITDA also, on a rebased basis, increased 4.2% year over year.
Loss from continuing operations was $503.8 million in the reported quarter compared with loss of $339.6 million in the year-ago quarter.
Segmental operating cash flow (operating income after adjusted for non-cash items) increased 14.2% year over year to $600.5 million, on a rebased basis.
Balance Sheet & Cash Flow
As of Jun 30, 2020, Liberty Global had $9.8 billion of cash, investments under SMAs and unused borrowing capacity.
Total principal amount of debt and finance leases were $27.7 billion for continuing operations. Moreover, the average debt tenor is seven years, with approximately 77% not due until 2026 or thereafter.
As of Jun 30, 2020, Liberty Global’s adjusted gross and net leverage ratios were 5.3X and 3.X, respectively.
Cash provided by operating activities was $1.14 billion, down 13.6% year over year.
Moreover, adjusted free cash outflow was $455.7 million in the second quarter compared with $591.8 million in the year-ago quarter and $317 million in the previous quarter.
The company bought back roughly $750 million shares under its repurchase program in the reported quarter.
Key Q2 Development
On May 7, 2020, Liberty Global entered into an agreement with Telefonica SA to form a 50:50 joint venture that will combine Virgin Media’s operations in the United Kingdom with Telefonica’s mobile business (O2).
Zacks Rank & Stocks to Consider
Libert Global currently carries a Zacks Rank #3 (Hold).
Vista Outdoor VSTO, LiveXLive Media LIVX and TEGNA TGNA are some better-ranked stocks in the broader consumer & discretionary sector. All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While both Vista Outdoor and LiveXLive Media are set to report quarterly results on Aug 6, TEGNA is scheduled to report on Aug 10.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Liberty Global PLC (LBTYA) : Free Stock Analysis Report
Vista Outdoor Inc. (VSTO) : Free Stock Analysis Report
TEGNA Inc. (TGNA) : Free Stock Analysis Report
LiveXLive Media, Inc. (LIVX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research