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Liberty Global plc - Class A (LBTYA)
:LBTYA

Liberty Global A (LBTYA) AI Stock Analysis

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Liberty Global A

(NASDAQ:LBTYA)

58Neutral
Liberty Global A's overall score reflects financial volatility and high leverage, offset by strategic initiatives and moderate technical momentum. Despite challenges, strong shareholder returns and growth initiatives contribute positively.
Positive Factors
Asset Proceeds
Liberty Global anticipates realizing approximately $900 million in total asset proceeds from transactions announced over the last year.
Infrastructure Growth
VMO2 is continuing to advance its 5G network with outdoor coverage now at 75%, which indicates progress and future growth potential.
Share Buyback
Liberty Global announced a further buyback program for up to 10% of shares outstanding, which is expected to be highly accretive to share value given current market undervaluation.
Negative Factors
Financial Guidance
2025 guidance below expectations.
Revenue Decline
VodafoneZiggo is expected to show a low single digit revenue decline in 2025, reflecting challenges in maintaining revenue growth.
Valuation Concerns
Valuation is not attractive at 3.0% 2025e unFCF yield vs European incumbents at 5.9%.

Liberty Global A (LBTYA) vs. S&P 500 (SPY)

Liberty Global A Business Overview & Revenue Model

Company DescriptionLiberty Global plc, together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as intelligent WiFi features; security; smart home, online storage solutions, and Web spaces; Connect Box, a set-top or Horizon box that delivers in-home Wi-Fi service; community Wi-Fi via routers in home, which provides access to the internet; and public Wi-Fi access points in train stations, hotels, bars, restaurants, and other public places. The company also provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home office, small business, and medium and large enterprises, as well as on a wholesale basis to other operators. It operates in the United Kingdom, Belgium, Switzerland, Ireland, Poland, Slovakia, and internationally. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.
How the Company Makes MoneyLiberty Global makes money primarily through subscription services for its broadband internet, cable television, and telephony products. The company generates significant revenue from customer fees for these services, often bundled into packages that offer a combination of services at a discounted rate. Additionally, Liberty Global earns revenue from mobile services, business-to-business offerings, and the licensing of content and technology. The company's strategic partnerships with content providers, technology firms, and local operators further enhance its revenue streams by expanding its service offerings and customer reach. Advertising sales on its media platforms also contribute to its income. Key factors contributing to its earnings include its large and diverse customer base, ongoing investments in network infrastructure, and a focus on innovation in digital and connectivity services.

Liberty Global A Financial Statement Overview

Summary
Liberty Global A's financial performance shows volatility in revenue and profitability, with strong cash flow generation but high leverage and inconsistent profitability posing risks.
Income Statement
45
Neutral
Liberty Global A has experienced significant fluctuations in revenue and profitability. The Gross Profit Margin is strong, but the Net Profit Margin has shown volatility due to large swings in net income, from a significant profit to a loss in different years. The company also faced challenges with negative EBIT and EBITDA in recent years, indicating operational inefficiencies.
Balance Sheet
55
Neutral
The company's balance sheet presents a mixed picture. The Debt-to-Equity Ratio is relatively high, indicating substantial leverage, which could pose risks in a rising interest rate environment. However, the company maintains a reasonable level of Stockholders' Equity. Return on Equity has been inconsistent, reflecting variable profitability. The Equity Ratio suggests a moderate reliance on debt.
Cash Flow
60
Neutral
Cash flow analysis shows a moderate position with consistent Free Cash Flow, although growth has been sporadic. The Operating Cash Flow to Net Income Ratio is positive, suggesting cash generation from operations. However, the Free Cash Flow to Net Income Ratio is quite volatile, reflecting the fluctuations in net income.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.34B7.49B7.20B10.31B11.98B
Gross Profit
2.89B5.11B5.11B7.29B8.54B
EBIT
-60.10M-244.50M-901.50M12.27B2.12B
EBITDA
3.42B-420.50M4.20B3.65B1.73B
Net Income Common Stockholders
1.59B-4.05B1.11B13.43B-1.47B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.15B3.41B4.35B3.18B2.93B
Total Assets
25.44B42.09B42.90B46.92B59.09B
Total Debt
9.78B17.42B15.41B16.05B15.00B
Net Debt
7.96B16.00B13.68B15.14B13.67B
Total Liabilities
12.90B23.08B20.32B21.32B45.79B
Stockholders Equity
12.54B19.06B22.44B25.93B13.66B
Cash FlowFree Cash Flow
1.33B779.90M1.53B2.14B2.84B
Operating Cash Flow
1.33B2.17B2.84B3.55B4.19B
Investing Cash Flow
0.00-1.84B1.28B-5.80B-8.87B
Financing Cash Flow
-2.25B-692.40M-3.28B-1.55B1.08B

Liberty Global A Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.18
Price Trends
50DMA
11.42
Negative
100DMA
12.02
Negative
200DMA
11.04
Negative
Market Momentum
MACD
0.02
Positive
RSI
47.66
Neutral
STOCH
24.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBTYA, the sentiment is Negative. The current price of 10.18 is below the 20-day moving average (MA) of 11.45, below the 50-day MA of 11.42, and below the 200-day MA of 11.04, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 24.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LBTYA.

Liberty Global A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PHPHI
76
Outperform
$4.66B8.1629.05%5.83%-0.15%17.96%
TDTDS
64
Neutral
$3.82B-0.54%0.45%-3.80%83.27%
58
Neutral
$24.96B3.11-10.53%4.28%2.32%-43.03%
58
Neutral
$3.67B-20.95%3.53%3.23%
58
Neutral
$2.75B6.6839.15%7.44%-360.33%
47
Neutral
$2.81B102.75-49.03%6.96%10.12%-115.93%
47
Neutral
$3.35B-12.49%-9.95%99.47%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LBTYA
Liberty Global A
10.18
1.39
15.81%
LUMN
Lumen Technologies
3.43
2.06
150.36%
CCOI
Cogent Comms
53.30
-7.52
-12.36%
PHI
PLDT
20.74
-2.47
-10.64%
TDS
Telephone & Data Systems
35.26
19.91
129.71%
VEON
VEON
38.00
15.25
67.03%

Liberty Global A Earnings Call Summary

Earnings Call Date: Feb 18, 2025 | % Change Since: -8.21% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The call highlighted significant strategic achievements, such as the successful Sunrise spin-off, infrastructure investments, and growth in Formula E. However, there were notable financial challenges, including revenue and EBITDA declines in key markets and intense competition in mobile segments.
Highlights
Shareholder Value Delivered
Liberty Global delivered over $4 billion in shareholder remuneration in 2024, focusing on strategic management and shareholder value.
Sunrise Spin-Off Success
Successfully spun off Sunrise, delivering a $9 per share tax-free dividend, with Sunrise stock trading well post-transaction.
Infrastructure Investments
Significant infrastructure investments underway, with proposals from top infrastructure investors for UK Netco, and €500 million facility for Wire's fiber rollout in Belgium.
Formula E Growth
Increased stake in Formula E to 66%, with 400 million global fans and a growth rate of 23%.
Asset Sales and Buybacks
Executed $900 million in asset sales and $700 million in share buybacks in 2024, demonstrating capital allocation discipline.
Lowlights
Revenue and EBITDA Declines
Telenet, Virgin Media O2, and VodafoneZiggo reported revenue declines of 0.4%, 2.8%, and 2.5% respectively, and corresponding EBITDA declines.
Flat Revenue at VodafoneZiggo
VodafoneZiggo did not meet revenue growth guidance, ending flat due to slower mobile net adds and lower handset sales.
Challenges in Mobile Revenue
Declines in mobile revenue due to lower handset sales and intense competition, impacting financial performance.
Company Guidance
During Liberty Global's fourth quarter 2024 investor call, several key metrics and strategic initiatives were discussed. The company delivered over $4 billion in shareholder remuneration, representing a significant return on a market valued at $7 billion just twelve months prior. Liberty Global's core operations, including its four European telcos in the UK, Ireland, Belgium, and the Netherlands, generated $22 billion in aggregate revenue and around $8 billion in EBITDA, serving 80 million fixed-to-mobile connections. The company's Liberty Growth portfolio, valued at $3.1 billion, has experienced substantial growth over five years. Additionally, Liberty Services reported nearly $600 million in annual revenue. The company completed the spin-off of its Swiss subsidiary, Sunrise, achieving a $9 per share tax-free dividend for shareholders. Liberty Global also announced a series of strategic objectives for 2025, including up to 10% share buybacks, asset sales of $500 million to $750 million, and plans to expand its infrastructure financing. The company's cash balance stood at $2.2 billion, supporting its strategic priorities and shareholder returns.

Liberty Global A Corporate Events

Business Operations and Strategy
Liberty Global A Announces 2025 Incentive Program
Neutral
Mar 27, 2025

Liberty Global Ltd. announced its 2025 Annual Performance Award and Long-Term Incentive Program on March 21, 2025. The performance awards for executive officers are based on achieving budgeted revenue, adjusted EBITDA, strategic goals, and individual objectives, with potential payouts ranging from 0% to 210% of the target bonus amount. The Long-Term Incentive Program includes equity-based awards for approximately 550 participants, focusing on share price performance and aligning employee and shareholder interests.

Financial Disclosures
Liberty Global A to Announce Q1 2025 Results
Neutral
Mar 20, 2025

Liberty Global announced it will release its first quarter 2025 results on May 2, 2025, followed by an investor call to discuss the outcomes and potentially provide forward-looking information. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, which could impact its market positioning and investor confidence.

Business Operations and Strategy
Liberty Global A to Present at Connectivity Conference
Positive
Mar 10, 2025

Liberty Global announced its participation in the NewStreet Research and BCG Future of Connectivity Leaders Conference on March 27, 2025, where it will discuss its historical performance and future outlook. This presentation underscores Liberty Global’s commitment to innovation and strategic growth, potentially impacting its market positioning and offering insights into its operational strategies for stakeholders.

Financial DisclosuresRegulatory Filings and Compliance
Liberty Global A Releases VodafoneZiggo Financials for 2024
Neutral
Feb 18, 2025

On February 18, 2025, Liberty Global released the preliminary unaudited financial and operating information for VodafoneZiggo for the quarter and year ended December 31, 2024, on its website. This information was furnished as part of a Current Report on Form 8-K and is not subject to liabilities under Section 18 of the Securities Exchange Act of 1934.

Business Operations and StrategyFinancial Disclosures
Liberty Global A Reports Strong Q4 2024 Earnings Growth
Positive
Feb 18, 2025

On February 18, 2025, Liberty Global reported its preliminary financial results for Virgin Media Ireland for Q4 and FY 2024. The company made significant progress in its fiber upgrade program, covering half of its premises with full fiber by the end of Q4. Despite a 2.9% revenue decline in 2024 due to competitive pressures, Virgin Media Ireland saw a sequential and year-over-year improvement in fixed net adds. The Q4 net earnings rose by 134.6% year-over-year, primarily due to gains on derivative instruments, highlighting a strategic focus on maintaining market share amid competition.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Liberty Global A Plans Major 5G Investments in 2025
Neutral
Feb 18, 2025

Telenet, a telecom company, reported its preliminary Q4 2024 financial results, noting improvements in broadband net additions and FMC growth despite a slight contraction in its mobile postpaid subscriber base. The company plans significant investments in 5G, video platforms, and digital capabilities in 2025, alongside a major investment in their partnership with Wyre, aiming to enhance its fiber network and achieve substantial FTTH penetration by 2030. Financially, Telenet’s revenue and adjusted EBITDAaL for FY 2024 remained stable, with a minor contraction due to market challenges, while its net loss in Q4 2024 was significantly reduced compared to the previous year. The company secured a €500 million capex facility for Wyre to support its ambitious infrastructure roll-out plans.

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Liberty Global A Completes Sunrise Spin-off and Reports Q4 2024 Results
Positive
Feb 18, 2025

Liberty Global A reported its Q4 2024 results, achieving full-year guidance targets at Telenet and VMO2, while VodafoneZiggo maintained stable revenue. The company completed the Sunrise spin-off in November, which represented a CHF 3.0 billion tax-free dividend to its shareholders. Liberty Global also executed a share buyback program, repurchasing about 10% of its shares. The company is investing in its fiber-rich networks, with significant expansions in the U.K. and Belgium. VMO2 continues to advance its 5G network and achieved record footprint expansion in 2024. Liberty Global’s balance sheet remains strong, supported by non-core asset disposals and a robust cash balance, with future plans to unlock further shareholder value through strategic transactions and additional share buybacks in 2025.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.