Liberty Global PLC (LBTYA, Financial) released its Q3 2023 earnings report on October 31, 2023. Despite facing challenges such as the implementation of the June 2023 rate increase and a temporary halt to marketing campaigns, the company maintained a solid financial performance over the first nine months of the year. The company's CEO, John Porter, expressed satisfaction with the results and reaffirmed the company's commitment to its full-year 2023 outlook.
Financial Highlights
Liberty Global PLC (LBTYA, Financial) reported a revenue of €712.0 million in Q3 2023, up 7.8% YoY. This increase reflects a full quarter contribution from the company's acquired Caviar and Eltrona businesses. Excluding these inorganic additions, rebased revenue remained broadly stable YoY. The company's net profit more than doubled YoY on a reported basis to €446.9 million, primarily due to the net effect of a €346.1 million gain on the disposal of assets linked to the Wyre transaction.
Adjusted EBITDA of €346.7 million in Q3 2023 was broadly stable compared to Q3 2022 on a reported basis and decreased 2.0% YoY on a rebased basis. Adjusted EBITDAaL of €328.6 million in Q3 2023 was up 5.1% compared to Q3 2022, reflecting the benefit of the Wyre transaction. Adjusted Free Cash Flow reached €65.6 million in Q3 2023, reflecting 28% higher cash capital expenditures YoY.
Operational and Strategic Highlights
Despite challenges such as the implementation of the June 2023 rate increase and a temporary halt to marketing campaigns, the company saw an improved sales trend in September 2023. This was driven by the relaunch of marketing campaigns, leading to an increased install backlog at the end of the quarter. The company also noted the successful closure of the Wyre transaction with Fluvius in July, which is expected to provide a reliable fixed network infrastructure with a clear roadmap towards speeds of up to 10 Gbps.
Outlook for FY 2023
Liberty Global PLC (LBTYA, Financial) reiterates its full-year 2023 outlook as presented in February this year. The company expects a revenue growth of between 1-2% and an Adjusted EBITDAaL that is broadly stable. P&E additions as a percentage of revenue are expected to be around 26%, and Adjusted Free Cash Flow is anticipated to be around €250.0 million.
Despite the challenges faced in Q3 2023, Liberty Global PLC (LBTYA, Financial) has demonstrated resilience and continues to maintain a solid financial performance. The company's promising outlook for FY 2023 indicates its commitment to delivering value to its shareholders.
Explore the complete 8-K earnings release (here) from Liberty Global PLC for further details.
