Liberty Global B 2025 Q1 Earnings Misses Targets with Net Income Decline of 351.1%

Liberty Global B (LBTYB) reported its fiscal 2025 Q1 earnings on May 02nd, 2025. The company faced a challenging first quarter, with results falling short of expectations. Despite a revenue increase of 7.3% year-over-year, the net income suffered a significant decline. Liberty Global's guidance remains in line with previous forecasts, with no adjustments made. The company continues to prioritize strategic investments and network infrastructure improvements. In terms of outlook, Liberty Global anticipates growth excluding handset revenue and construction impacts, maintaining its forecast for Adjusted EBITDA growth alongside projected property and equipment additions ranging from £2.0 to £2.2 billion. Shareholder cash distributions are expected to remain within the £350 to £400 million range.

Revenue

The total revenue of Liberty Global B increased by 7.3% to $1.17 billion in 2025 Q1, up from $1.09 billion in 2024 Q1.

Earnings/Net Income

Liberty Global B swung to a loss of $3.84 per share in 2025 Q1 from a profit of $1.35 per share in 2024 Q1 (384.4% negative change). Meanwhile, the company reported a net loss of $-1.32 billion in 2025 Q1, reflecting a 351.1% deterioration from the net income of $527 million achieved in 2024 Q1. The EPS performance was considerably below expectations.

Price Action

The stock price of Liberty Global B has edged down 2.10% during the latest trading day, has dropped 6.98% during the most recent full trading week, and has plummeted 15.81% month-to-date.

Post-Earnings Price Action Review

The backtest results for Liberty Global B's earnings report impact on stock price indicate a modest effect. The 3-day post-earnings win rate stands at 52.38%, with a maximum return of just 0.16% over 30 days. Short-term volatility is evident, as the 10-day win rate increases to 57.14%. However, negative returns are more probable in the medium term, reflected in the lower 30-day win rate of 38.10%. Overall, earnings report metrics have a limited influence on LBTYB's stock price, with returns following releases remaining relatively muted.

CEO Commentary

Mike Fries, CEO of Liberty Global, emphasized the resilience of their Liberty Telecom operations amid competitive challenges, highlighting a revenue and Adjusted EBITDA growth from Virgin Media O2. He noted the strategic focus on financing network infrastructure, with Virgin Media Ireland targeting 80% fiber coverage by year-end. Fries mentioned the decision to pause the potential NetCo stake sale at VMO2 to align with their joint venture partner, while prioritizing capital discipline. He expressed optimism about the growth potential within their Liberty Growth portfolio, particularly with the successful launch of Formula E's Season 11.

Guidance

Liberty Global maintains its guidance for 2025, expecting growth in revenue excluding handsets and nexfibre construction impacts. The company anticipates Adjusted EBITDA growth, with property and equipment additions projected between £2.0 to £2.2 billion. Additionally, the expected Adjusted Free Cash Flow and cash distributions to shareholders are estimated to range from £350 to £400 million.

Additional News

In recent developments, Liberty Global has completed the spin-off of its Swiss business, Sunrise, allowing the company to focus on core operations. This transaction marks a significant strategic move, with Sunrise now operating independently. Liberty Global continues to prioritize its investment strategy, having resumed share buybacks targeting up to 10% of shares for 2025. Additionally, the company is actively exploring potential acquisition opportunities within the telecommunications sector to enhance its market position. These measures are part of Liberty Global's long-term plan to create and deliver shareholder value through strategic asset rotations and operational improvements.