Liberty Global C 2025 Q1 Earnings Misses Targets with Net Income Plummeting 351%

Liberty Global C (LBTYK) reported its fiscal 2025 Q1 earnings on May 02nd, 2025. Liberty Global C's earnings report revealed a notable decline in net income, resulting in a net loss of $1.32 billion compared to a profit of $527 million in Q1 2024. Despite revenue growth, the company's earnings fell short of expectations, leading to revised guidance particularly affecting VodafoneZiggo. The company maintains a cautious outlook amid competitive market dynamics.

Revenue

Liberty Global C reported total revenue of $1.17 billion in Q1 2025, marking a 7.3% increase from $1.09 billion in Q1 2024. This growth was driven by improved performance across various segments.

Earnings/Net Income

Liberty Global C recorded a significant decline in earnings per share, swinging to a loss of $3.84 per share in Q1 2025 from a profit of $1.35 per share in Q1 2024. The company's net loss of $1.32 billion highlights a substantial decrease in profitability. The EPS reflects challenging market conditions and competitive pressures.

Price Action

The stock price of Liberty Global C has risen 7.82% in the latest trading day, despite plummeting 16.62% month-to-date. This volatility reflects market reactions to the recent earnings report.

Post-Earnings Price Action Review

Following the earnings release, Liberty Global C (LBTYK) stock exhibited positive returns, albeit with modest gains. Backtest data indicates a 66.67% 3-Day win rate for revenue and a 61.90% win rate for net income. EPS showed lower win rates at 57.14% over 3 days, 49.52% over 10 days, and 42.86% over 30 days. Despite fluctuating metrics, the maximum return observed was 3.76% over 30 days, with the highest return day occurring on day 78. This analysis underscores the stock's resilience in the face of financial challenges, although gains remain relatively limited.

CEO Commentary

Mike Fries, CEO of Liberty Global, discussed the resilience of their telecom operations, emphasizing Virgin Media O2's revenue and Adjusted EBITDA growth amid competitive pressures. Fries stressed the importance of financing and monetizing network infrastructure, highlighting Virgin Media Ireland's goal to achieve 80% fiber coverage by year-end. He mentioned a strategic pause on VMO2's NetCo stake sale, aligning with joint venture partners, and reaffirmed the commitment to asset disposals and ongoing share buybacks.

Guidance

Liberty Global maintains its corporate-level guidance, projecting continued revenue and Adjusted EBITDA growth across most operations. Revised expectations for VodafoneZiggo reflect a new long-term growth strategy. The company targets capital expenditures between £2.0 and £2.2 billion and anticipates adjusted free cash flow between £350 and £400 million, amid competitive dynamics and transformation efforts.

Additional News

Liberty Global Ltd. has been actively engaging in strategic initiatives and partnerships. Recently, the company completed the successful spin-off of its Swiss business, Sunrise, into a separate publicly traded entity, resulting in a $9 per share tax-free dividend to Liberty Global shareholders. Additionally, Liberty Global has announced a new share buyback program aiming to repurchase up to 10% of outstanding shares in 2025, reflecting its commitment to shareholder value. Furthermore, the company has been focusing on expanding its network infrastructure, particularly in the UK, Belgium, and Ireland, to enhance its competitive position and service offerings.