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Liberty Global (LBTYA) Incurs Loss in Q2, Revenues Lag Y/Y

Zacks

Liberty Global Plc. LBTYA, a leading European quad-play cable MSO (multi service operator), reported disappointing financial results in the second quarter of 2017.

GAAP net loss in the second quarter was $637 million or a loss of 75 cents per share compared with net income of $101 million or 23 cents per share in the prior-year quarter.

Quarterly total revenue of $3,663.7 million too declined 18.1 % year over year.

Operating cash flow in the reported quarter was $1,733.3 million, down 16.5% year over year. Quarterly operating cash flow margin was 47.3% compared with 46.4% in the year-ago quarter.


In the second quarter of 2017, Liberty Global generated $1,508.7 million of cash from operations compared with $1,543.2 million in the year-ago quarter. Adjusted free cash flow, in the reported quarter was $325.1 million compared with $516.4 million in the prior-year quarter.

At the end of second-quarter 2017, Liberty Global had $1,100 million of cash and cash equivalents and $40,700 million of outstanding debt on its balance sheet compared with $3,400 million and $37,800 million, respectively, at the end of 2016.

Segment-Wise Results

Within the European operations, revenues from Western Europe totaled $3,343 million, down 20.3% year over year. Revenues from Central and Eastern Europe came in at $288.6 million, increasing 5.3% year over year. Central and other revenues were $31.6 million. Corporate and other revenues totaled $0.5 million.

Subscriber Statistics

In the reported quarter, Liberty Global added a total of 161,900 RGUs, (revenue generating units) including net gains of 100,100 and 77,900 subscribers for broadband internet and telephony services, respectively. However, the company lost 16,100 video customers. Nonetheless, it added 5,800 mobile customers including a net gain of 98,700 postpaid subscribers and a net loss of 92,900 prepaid subscribers. In the reported quarter, Liberty Global added a net of 302,000 customers for its flagship Horizon TV-platform, Yelo TV platform and TiVo Inc. TIVO developed TV-platform.

Liberty Global PLC Price, Consensus and EPS Surprise

Liberty Global PLC Price, Consensus and EPS Surprise | Liberty Global PLC Quote

Latest Development

Liberty Global and Vodafone Group plc. VOD have merged their Dutch operations, which will likely boost the company’s business in the second half of 2017. Apart from this, the launch of DOCSIS 3.1 network services, the long-term agreement with Netfix Inc. NFLX and the takeover of Cable & Wireless are expected to drive growth in the future. Liberty Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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