Operating cash flow fell 1.5 percent to USD 2.04 billion, but increased 7.5 percent on an organic basis and excluding the Netherlands. Net profit improved to USD 2.2 billion from USD 2.0 billion a year ago, helped by a USD 1.1 billion tax benefit on the deal to spin off the Dutch operation into a joint venture with Vodafone.
In 2017, Liberty Global said it expects growth in rebased operating cash flow in Europe to improve to 6-7 percent from 4 percent last year and accelerate to 7-8 percent in 2018 and the years after. Adjusted free cash flow is forecast at USD 1.5 billion in Europe this year, down drom USD 1.99 billion last year.
Liberty Global said it plans to continue with its share buyback programme, after spending USD 2 billion last year. It added another USD 1 billion to the programme for this year.
The cash flow outlook includes its target to connect 1.4 million new homes in 2017. Last year capital expenditure rose to USD 4.64 billion from USD 3.91 billion after the company added 1.4 million new homes passed, of which around a third at Virgin Media in the UK/Ireland. The cable operator also said that it plans to start field trials of Docsis 3.1 late in 2017.
Liberty Global's customer growth improved in Europe in Q4 to 46,000 new customer relationships and 323,000 revenue-generating units added an organic basis. Over the full year, RGU net additions improved to 946,100 from 760,100 in 2015, thanks to stronger growth in broadband and fewer losses in TV, offset by weakness in mobile. In Q4, growth slowed considerably at Virgin Media compared to a year earlier, but Ziggo in the Netherlands returned to positive RGU additions, as did Switzerland and Austria.
