Liberty Global Reports Q2 2025 Results

Executing on mission to create and unlock value for Liberty shareholders

DENVER, Colorado--(BUSINESS WIRE)--Liberty Global Ltd. announces its Q2 2025 financial results.

CEO Mike Fries stated, “In the second quarter, we continued to execute across our strategic pillars – Liberty Growth, Liberty Telecom and Liberty Services & Corporate, with an unwavering focus on creating and delivering value to shareholders. We are encouraged to see our strategy to unlock value succeeding, with Sunrise continuing to trade higher post-spin, particularly when factoring in its inaugural dividend payment which was paid in May.

• Our Liberty Telecom operations remain focused on improving commercial momentum against the continued backdrop of intense competition. At VodafoneZiggo, we saw early signs of improving fixed-line performance under its new strategic plan. Telenet delivered another solid quarter, with positive broadband growth and a return to mobile postpaid additions. VMO2 is nearing the completion of its acquisition of the B2B business Daisy, bolstering our growth ambitions in this segment, whilst continuing to deliver Adj. EBITDA³ growth in Q2.

• Strategically we continue to invest in our network positions with VMO2 set to benefit significantly over time through the acquisition of spectrum from Vodafone/3, which will take our total spectrum share to ~30% in the UK. Ireland remains on track with its accelerated FTTH upgrade program, including the addition of a new wholesale customer during the quarter. Wyre and Proximus have strongly progressed to reach an agreement in principle regarding the fixed network sharing initiative and anticipate the start of a market test in September.

• Our Liberty Growth portfolio FMV increased to $3.4 billion¹ during the quarter, with the top six investments² now comprising over 80% of the overall portfolio's value. Formula E hosted its flagship race quarter, including stops in Monaco, Miami and Tokyo, with cumulative viewership for season 11 now expected to surpass 500 million. Lastly, we exited our Vodafone collar position and continue to target $500-750m of non-core asset disposals this year.

• Our Liberty Services platforms in Finance and Tech continue making progress, with new client wins at Liberty Blume, our financial services business, during the second quarter.

• Finally, following the successful spin-off of Sunrise in November 2024, we are currently working on opportunities to separate our remaining core operating units and/or assets to unlock the conglomerate discount in our stock. The unique structure of our balance sheet and holdings provides us with the flexibility to pursue additional spin-offs, tracking stocks, IPOs and other transactions, in multiple combinations. The specific timing of these transactions is to be determined, but we are targeting completion of one or more in the next 12 to 24 months. It’s also important to note that none of these potential transactions are dependent on M&A in any of our existing markets.

We are reconfirming all guidance metrics for our Liberty Telecom operations while raising Telenet's Adj. EBITDAaL outlook⁴. In addition, we now expect an improved outlook for Liberty Services & Corporate Adj. EBITDA of negative ~$175m for 2025⁴, driven by cost optimization initiatives."

Virgin Media O2

Virgin Media O2 continues growth in Adjusted EBITDA³ and executing on network upgrade plans

VMO2 maintained Adj. EBITDA growth during the second quarter supported by a stable core revenue performance and cost efficiencies. Commercially, the UK market remains very competitive, impacting volumes across both broadband and mobile postpaid. Nonetheless, we executed on price adjustments during the quarter and remain focused on improving commercial momentum and retention through a range of initiatives. VMO2 remains on track to deliver 2025 guidance for growth across core revenues and Adj. EBITDA.

Highlights for Q2

• Advancing commercial initiatives: Customer service transformation has more than halved Virgin Media complaints year-over-year; proposition enhancements include data rollover on O2 premium plans and multi-SIM capability for the converged Volt proposition
• Combined full fiber footprint: Over 7 million⁷ fiber premises, executing fixed network upgrade and rollout on behalf of nexfibre
• Spectrum Acquisition: VMO2 to acquire 78.8 MHz of spectrum for an investment of £343 million, bringing total mobile spectrum share to approximately 30%. Spectrum transfer is expected to begin in H2 2025, with 2025 investment funded by the minority stake sale of Cornerstone in 2024

Q2 Financial Highlights (in U.S. GAAP, as reported by Liberty Global)⁸

• Revenue of $3,373.5 million, -0.1% YoY on a reported basis and -5.5% YoY on a rebased⁹ basis
  • Primarily driven by the net effect of (i) lower B2B fixed revenue as a result of lower rental revenues and (ii) lower construction revenue from nexfibre, with each revenue category as defined and reported by the VMO2 JV
• Adjusted EBITDA¹⁰ of $1,172.3 million, +3.5% YoY on a reported basis and -2.1% on a rebased basis
  • Primarily driven by a decrease in the nexfibre construction impact to Adjusted EBITDA, partially offset by cost efficiencies
• Property and equipment additions of $672.9 million, 14.8% YoY on a reported basis and 8.7% on a rebased basis
• Adjusted EBITDA less P&E additions¹⁰ of $499.4 million, -8.6% YoY on a reported basis and -13.6% on a rebased basis
• Cash flows from operating activities of $972.4 million, cash flows from investing activities of -$289.0 million and cash flows from financing activities of -$473.9 million

Q2 Financial Highlights (in IFRS, as guided to and aligned with bondholder covenants)¹¹

• Revenue of £2,526.8 million, -5.5% YoY on a reported and rebased basis
• Revenue excluding handsets and the impact of nexfibre construction of £2,175.0 million, -0.4% YoY on a reported and rebased basis
• Adjusted EBITDA of £984.2 million, -0.4% YoY on a reported and rebased basis
  • Q2 2025 included the benefit of £105.8 million of U.S. GAAP/IFRS differences, primarily related to (i) the VMO2 JV's investment in CTIL and (ii) leases
• Adjusted EBITDA excluding the impact of nexfibre construction of £985.9 million, +1.1% YoY on a reported and rebased basis
• The drivers of these IFRS changes are largely consistent with those under U.S. GAAP as detailed above

Q2 Operating Highlights

• Broadband net losses of 51,400, driven by continued intense market competition and elevated churn
• Postpaid net losses of 73,600, primarily driven by competitive pressure from MVNOs and a weak handset market
• Fixed ARPU was stable in Q2, supported by price adjustments

2025 VMO2 guidance (in IFRS)⁽ⁱ⁾

• We are confirming¹²:
  • Growth in revenue excluding handsets and the impact of nexfibre construction
  • Growth in Adjusted EBITDA excluding the impact of nexfibre construction
  • P&E additions of £2.0 to £2.2 billion
  • Adjusted FCF and cash distributions to shareholders both in the range of £350 to £400 million

VodafoneZiggo

VodafoneZiggo executing on new strategic plan with signs of commercial improvement

VodafoneZiggo's second quarter results saw the anticipated impact of the new strategic plan including new front book tariffs implemented during the first quarter. Encouragingly, as the second quarter progressed, we saw growing commercial momentum in fixed broadband as churn improved. For the remainder of the year, we are committed to further commercial initiatives and the implementation of a new agile operating model. We remain on track to deliver guidance for 2025 as revised at Q1.

Highlights for Q2

• Improving commercial performance: Improved broadband trend through the second quarter following the implementation of new front book pricing and proactive customer migrations to those tariffs from March; successful start to Ziggo brand repositioning with new marketing campaigns, including WiFi Guarantee
• Fixed network expansion: Announced fiber wholesale deal with Delta Fiber, expanding reach to 600k homes in off-net areas; commercial launch expected in 2026
• Operating efficiency: New operating model implemented July 1, creating a leaner and more agile operating structure

Q2 Financial Highlights (in U.S. GAAP)

• Revenue of $1,123.3 million, +2.9% YoY on a reported basis and -2.4% on a rebased basis
  • Primarily driven by (i) a decline in the consumer fixed base, (ii) front book repricing impact and (iii) lower B2B mobile revenue, partially offset by (a) growth in B2B fixed and (b) growth in Ziggo Sport Totaal revenue
• Adjusted EBITDA of $496.7 million, -4.2% YoY on a reported basis and -9.1% on a rebased basis
  • Primarily driven by (i) the aforementioned decrease in revenue, (ii) higher programming costs related to the UEFA broadcast, and (iii) higher marketing costs, partially offset by cost control measures
• Cash flows from operating activities of $251.7 million, cash flows from investing activities of -$118.8 million and cash flows from financing activities of -$134.5 million

Q2 Financial Highlights (in U.S. GAAP) in local currency

• Revenue of €989.9 million, -2.4% YoY on both a reported and rebased basis
• Adjusted EBITDA of €438.0 million, -9.1% YoY on both a reported and rebased basis

Q2 Operating Highlights

• Broadband net losses of 27,500 improved sequentially and as the quarter progressed, reflecting improvements in churn following the new front book and proactive customer migrations
• Postpaid net losses of 8,400, driven by low-margin B2B port outs, as Consumer remained positive
• Fixed ARPU increased 0.9% YoY, as the benefit of the prior year's price adjustment was impacted by the proactive right-pricing of the new front book
• Successful WiFi Guarantee campaign launched in May and ongoing CPE swaps

2025 VodafoneZiggo guidance (in U.S. GAAP)

• We are confirming:
  • Low-single digit decline in revenue growth
  • Mid- to high-single digit decline in Adjusted EBITDA growth
  • P&E additions to sales: 20-22%
  • Adjusted FCF of €200-€250 million¹³
  • Cash distributions to shareholders of €200-€250 million

Telenet

Telenet delivered growth in broadband and postpaid during the second quarter resulting in an improved outlook for the year

Telenet continued to deliver strong results during the second quarter, supported by the earlier annual price adjustment and improved commercial momentum in broadband and postpaid. Strategically, expansion in the South of Belgium continues to gain momentum, with BASE also compensating for the heightened competitive environment in mobile. Following the strong overall first half performance, Telenet now expects a 'low-single digit decline' in Adj. EBITDAaL⁴, at the top-end of the previous outlook range, notwithstanding the upcoming tough Q3 comparator as previously highlighted.

Highlights for Q2

• Broadband and postpaid growth: Despite the competitive environment, Telenet delivered growth in the subscriber base, with BASE continuing its solid growth since launch last year
• Price adjustment: Implemented price adjustment from April of ~3% across the Telenet brand, benefiting the quarter from earlier implementation as compared to the prior year
• FTTH sharing: Proximus, Fiberklaar, Telenet and Wyre have strongly progressed to reach an agreement in principle on the terms of a future collaboration to accelerate the deployment of fiber networks across Flanders. Parties are working closely with the BCA and BIPT and anticipate the start of a market test in September

Q2 Financial Highlights (in U.S. GAAP, as consolidated by Liberty Global)

• Revenue of $801.0 million, +6.1% YoY on a reported basis and +0.6% on a rebased basis
  • Primarily driven by (i) higher fixed revenue supported by the April price rise and (ii) higher programming revenue, partially offset by (a) lower interconnect revenue and (b) lower handset sales
• Adjusted EBITDA of $337.9 million, +8.3% YoY on a reported basis and +2.8% on a rebased basis
• Adjusted EBITDAaL of $337.7 million, +8.3% YoY on a reported basis and +2.8% on a rebased basis
  • Primarily driven by (i) the increase in revenue, (ii) lower labor costs and (iii) lower sales and marketing costs, partially offset by (a) higher IT costs and (b) higher costs related to professional services and outsourced labor
• Property and equipment additions of $269.3 million, +33.8% YoY on a reported basis and +27.2% on a rebased basis
• Adjusted EBITDA less P&E Additions of $68.6 million, -38.0% YoY on a reported basis and -41.3% on a rebased basis
• Cash flows from operating activities of $290.0 million, cash flows from investing activities of -$262.4 million and cash flows from financing activities of -$40.9 million

Q2 Financial Highlights (in IFRS, as guided to and aligned with bondholder covenants)¹¹

• Revenue of €705.9 million, +0.6% YoY on both a reported and rebased basis
• Adjusted EBITDA of €341.5 million, +3.6% YoY on both a reported and rebased basis
  • Q2 2025 included the benefit of €43.7 million of U.S. GAAP/IFRS differences, primarily related to (i) sports and film broadcasting rights and (ii) leases
• Adjusted EBITDAaL of €322.1 million, +4.0% YoY on both a reported and rebased basis
• The drivers of these IFRS changes are largely consistent with those under U.S. GAAP as detailed above

Q2 Operating Highlights

• Broadband returned to modest growth, with net adds of 900, supported by reduced churn and continued expansion of BASE FMC in the South
• Postpaid mobile also returned to growth, with net adds of 1,300 as BASE mitigated the impact of heightened competition in the Belgian market
• Fixed ARPU grew by 3.1% YoY, supported by the price adjustment of ~3% from April on the Telenet brand, which took effect earlier than in the prior year

2025 Telenet guidance (in IFRS)⁴

• We are confirming:
  • Broadly stable revenue (FY 2024: €2,851.4 million)
  • P&E Additions as a percentage of revenue of around 38%
  • Adjusted FCF between -€180.0 and -€150.0 million
• We are updating:
  • Low-single digit decline in Adjusted EBITDAaL (updated from low- to mid-single digit decline) (FY 2024: €1,279.9 million)

Virgin Media Ireland

Virgin Media Ireland continues to expand full fiber network and wholesale customer base

Virgin Media Ireland's second quarter results were impacted by intense competition in the market which drove a decline in revenue and Adj. EBITDA. While the competitive landscape remains challenging, Virgin Media Ireland continues to make progress against its strategic targets, which include rolling out FTTH, increasing wholesale penetration and driving commercial momentum in mobile.

Highlights for Q2

• Network upgrade: Fiber rollout continuing at pace, with over 550,000 premises upgraded to full fiber at the end of Q2; 80% targeted by end of 2025 and remain on track to complete program in 2026
• Speed leadership: Launched Ireland's first 5 gigabit fiber broadband service
• Wholesale: Announced a wholesale access deal with Digiweb in June and continued to grow the wholesale customer base

Q2 Financial Highlights (in U.S. GAAP)

• Revenue of $122.8 million, +2.3% YoY on a reported basis and -3.0% on a rebased basis
  • Primarily driven by lower fixed and mobile revenue resulting from the intense competitive environment, partially offset by continued strong growth in B2B wholesale revenue
• Adjusted EBITDA of $41.4 million, -9.4% YoY on a reported basis and -14.1% on a rebased basis
  • Primarily due to the aforementioned revenue decline and the impact of lower wholebuy and content costs in Q2 2024
• Cash flows from operating activities of $46.3 million, cash flows from investing activities of -$61.3 million, and cash flows from financing activities of $14.8 million

Q2 Financial Highlights (in U.S. GAAP) in local currency

• Revenue of €108.2 million, -3.0% YoY on both a reported and rebased basis
• Adjusted EBITDA of €36.5 million, -14.1% YoY on both a reported and rebased basis

Q2 Operating Highlights

• Broadband net losses of 3,900 were impacted by continued competitive intensity in the market
• Postpaid net adds of 2,200 continued to improve both sequentially and YoY, primarily due to launch of new mobile offer during the quarter
• Over 1.5 million addressable homes, including off-net footprint
• Over 13% of the broadband base now on fiber

Consolidated Leverage & Liquidity

• Total principal amount of debt and finance leases: $9.9 billion
• Average debt tenor¹⁴: 3.3 years, with ~34% not due until 2029 or thereafter
• Borrowing costs: Blended, fully-swapped cost of debt was 3.7%

The following table⁽ⁱ⁾ details the U.S. dollar equivalents of our liquidity¹⁵ position at June 30, 2025, which includes our (i) cash and cash equivalents, (ii) investments held under SMAs and (iii) unused borrowing capacity:

The following table⁽ⁱ⁾ details the June 30, 2025 U.S. dollar equivalents of the (i) outstanding principal amounts of our debt and finance lease obligations, (ii) expected principal-related derivative cash payments or receipts and (iii) swapped principal amounts of our debt and finance lease obligations:

Liberty Global Consolidated Q2 Cash Flows

Financial Highlights (in U.S. GAAP)^5,6

The following tables present (i) selected financial information for the comparative periods and (ii) the percentage change from period to period on both a reported and rebased basis. Adjusted EBITDA and Adjusted EBITDA less P&E Additions for Consolidated Continuing Operations, Liberty Growth and Liberty Services & Corporate are non-GAAP measures. For reconciliations, additional information on how these measures are defined and why we believe they are meaningful, see the Glossary and Reconciliations sections of the Appendix.

Investor Relations
Michael Bishop, +44 20 8483 6246
Lewis Chong, +44 7927 583187

Corporate Communications
Bill Myers, +1 303 220 6686
Matt Beake, +44 20 8483 6428