Liberty Global’s LBTYA shares dipped 3%, at close, after the third quarter of 2024 earnings release on Oct. 30. 

LBTYA has gained 12.6% year to date (YTD), underperforming the Zacks Computer and Technology sector, the Zacks Wireless National industry and the S&P 500 index’s return of 27.6%, 26.1% and 22.5%, respectively. 

LBTYA's loss from continuing operations in the third quarter of 2024 amounted to $1.4 billion against a profit of $822 million in the year-ago quarter.

Revenues increased 1.4% year over year to $1.935 billion. On a rebased basis, revenues rose 2.6% year over year.

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Top-Line Details

Total average revenue per unit (ARPU) per fixed customer relationship increased 0.5% year over year to $67.89. On a rebased basis, the figure declined 0.9%.

Mobile ARPU (including interconnect revenues), on a reported basis, increased 3% to $27.62. On a rebased basis, the figure dropped 3.9%. Mobile ARPU (excluding interconnect revenues), on a reported basis, increased 2.9% to $25.75.

As of Sept. 30, 2024, the total mobile subscriber count included approximately 2.9 million subscribers in Switzerland, 2.89 million in Belgium, 35 million from the VMO2 Joint Venture (JV) and 5.5 million from the VodafoneZiggo JV.

In total, Liberty Global lost 12,200 customer relationships in the second quarter compared with a loss of 39,100 in the year-ago quarter.

On a reported basis, Belgium's revenues increased 1.3% year over year to $785.2 million.

In Belgium, Liberty Global lost 8,300 customer relationships compared with a loss of 21,100 in the year-ago quarter.

Switzerland’s revenues, on a reported basis, increased 0.7% year-over-year to $865.7 million.

In Switzerland, LBTYA lost 600 customer relationships against a loss of 11,100 in the year-ago quarter.

On a reported basis, Ireland's revenues declined 4.5% to $119.8 million.

The company lost 2,200 customer relationships in Ireland compared with a loss of 5,100 in the year-ago quarter.

Central and other revenues, on a reported basis, climbed 39.6% to $229.3 million.

In Slovakia, Liberty Global lost 1,100 customer relationships compared with a loss of 1,800 in the year-ago quarter.

Joint Venture Details

Sunrise revenues of $865.7 million in the third quarter of 2024 increased 0.7% year over year on a reported basis and decreased 1.3% on a rebased basis. The rebased decrease was mainly due to continuous right pricing efforts and a reduction in mobile roaming revenues, partially balanced by B2B momentum and growth in flanker brands.

Telenet revenues of $785.2 million increased 1.3% year over year on a reported basis and 0.3% on a rebased basis. The rebased increase was primarily due to the recognition of previously deferred revenues amounting to $18 million, partially offset by a fall in B2B wholesale revenues following the expected loss of the VOO MVNO contract and a decline in mobile revenues because of lower interconnect revenues and handset sales.

Liberty Global’s non-consolidated joint venture, Virgin Media O2, reported revenues of $3.512 billion, which increased 0.3% year over year on a reported basis and decreased 2.4% on a rebased basis. The rebased decrease was primarily due to a fall in mobile revenues because of lower handset sales and a change in third-party supplier contracts.

The fixed customer base increased by 15,000 in the reported quarter, primarily due to an increase in gross adds and an expansion in customer activity in nexfibre areas. 

VodafoneZiggo revenues rose 0.5% on a reported basis and decreased 0.5% on a rebased basis to $1.131 billion. The rebased decrease was primarily driven by a decline in the business-to-consumer fixed customer base partially offset by continued growth in mobile and B2B fixed revenues.

FMC penetration remained stable at 49% year over year. 

Mobile postpaid net adds increased by 2,300, alongside mobile and fixed ARPU growth in the quarter, supported by the price indexation implemented in October. The broadband base contracted by 20,400 in the quarter, as a decline of 25,500 in consumers was partially offset by an increase of 5,100 in B2B.