Liberty Global reports Q2 2021 resultsThursday, July 29th, 2021
- U.K. JV with Telefónica’s O2 closed in June, integration underway
- Announcing full fiber upgrade plan for existing U.K. footprint to extend speed leadership position
- Received non-binding offer to acquire 100% of UPC Poland at 9.3x 2021E Adjusted EBITDA
DENVER, Colorado — Liberty Global plc today announced its Q2 2021 financial results.
CEO Mike Fries stated, “With the closing of the Virgin Media O2 joint venture during the second quarter, the converged national champions in our four key markets are collectively positioned to deliver unparalleled scale, competitive strength and strategic optionality across the footprint.”
Non-binding offer for UPC Poland
We recently received a non-binding offer from Iliad S.A. to acquire 100% of our UPC Poland business at 9.3x its 2021E Adjusted EBITDA, reflecting an enterprise value of PLN 7.3 billion ($1.9 billion). Discussions are in process and there can be no certainty that a transaction will ultimately be consummated. If any agreement were to be reached, customary terms and conditions would apply to any proposed transaction, including regulatory approvals. We will update the market in due course on the outcome of these discussions.
Operating Data – June 30, 2021
Basic Video Enhanced Video Total Subscribers Subscribers Video ----------- -------------- ----------- Belgium 90,300 1,695,600 1,785,900 Switzerland* 326,600 913,700 1,240,300 Ireland - 318,700 318,700 Poland 273,200 1,081,800 1,355,000 Slovakia 32,200 137,000 169,200 Total Liberty Global 722,300 4,146,800 4,869,100 VodafoneZiggo JV 511,000 3,276,600 3,787,600
Subscriber Variance Table — June 30, 2021 vs. March 31, 2021
Basic Video Enhanced Video Total Subscribers Subscribers Video ----------- -------------- ----------- Organic Change Summary: U.K. - (33,400) (33,400) Belgium (20,200) 7,100 (13,100) Switzerland* (9,600) 7,200 (2,400) Ireland - - - Poland 7,600 800 8,400 Slovakia 500 (1,900) (1,400) Total organic change (21,700) (20,200) (41,900) Q2 2021 Liberty Global Adjustments: U.K. - (3,413,200) (3,413,200) Total adjustments - (3,413,200) (3,413,200) VodafoneZiggo JV (300) (23,200) (23,500)
* Pursuant to service agreements, Switzerland offers broadband internet, video and telephony services over networks owned by third-party cable operators (“partner networks”). A partner network RGU is only recognized if there is a direct billing relationship with the customer. At June 30, 2021, Switzerland’s partner networks accounted for 114,300 Fixed-Line Customer Relationships, 293,700 RGUs, which include 107,300 Internet Subscribers, 103,100 Video Subscribers and 83,300 Telephony Subscribers. Subscribers to our enhanced video services provided over partner networks largely receive basic video services from the partner networks as opposed to our operations. Due to the fact that we do not own these partner networks, we do not include the 475,000 homes passed by Switzerland’s partner networks at June 30, 2021. In addition, with the completion of the acquisition of Sunrise, we now service homes through Sunrise’s existing agreements with Swisscom, Swiss Fibre Net and local utilities, which are not included in Switzerland’s homes passed count. Including these arrangements, our operations in Switzerland have the ability to offer fixed services to a national footprint.
Basic Video Subscriber: A home, residential multiple dwelling unit or commercial unit that receives our video service over our broadband network or through a partner network either via an analog video signal or via a digital video signal without subscribing to any recurring monthly service that requires the use of encryption-enabling technology. Encryption-enabling technology includes smart cards, or other integrated or virtual technologies that we use to provide our enhanced service offerings. We count RGUs on a unique premises basis. In other words, a subscriber with multiple outlets in one premises is counted as one RGU and a subscriber with two homes and a subscription to our video service at each home is counted as two RGUs.
Enhanced Video Subscriber: A home, residential multiple dwelling unit or commercial unit that receives our video service over our broadband network or through a partner network via a digital video signal while subscribing to any recurring monthly service that requires the use of encryption-enabling technology. Enhanced Video Subscribers are counted on a unique premises basis. For example, a subscriber with one or more set-top boxes that receives our video service in one premises is generally counted as just one subscriber. An Enhanced Video Subscriber is not counted as a Basic Video Subscriber. As we migrate customers from basic to enhanced video services, we report a decrease in our Basic Video Subscribers equal to the increase in our Enhanced Video Subscribers.
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