Liberty Global said revenues for the fourth quarter slid 0.5 percent to USD 2.982 billion, pulled down by contractions in Switzerland, Belgium and UK/Ireland. Mobile revenue increased 5.2 percent to USD 429.9 million but was not able to offset cable revenue falling 0.9 percent to USD 1.902 billion. The operating cash flow (OCF) declined a bit over 4 percent to USD 1.273 billion with OFCF (OCF after tax) down 18.2 percent to USD 433.4 million. The operating profit meanwhile increased 11.2 percent to USD 282.5 million. For the full year, revenues dipped 0.6 percent lower to USD 11.541 billion, with OCF off 3.1 percent to USD 4.859 billion, OFCF up 34.5 percent to USD 1.979 billion and the operating profit going 11.2 percent lower to USD 745.5 million.
Looking towards the full year, Liberty Global is guiding for a mid-single-digit decline in OCF, mid-single-digit growth for OFCF and adjusted free cash flow up about 30 percent year-on-year to USD 1 billion. The company said it has also approved a new USD 1 billion share buyback programme.Organic RGU losses in Q4 widened to 128,300 from 76,300 in the previous quarter and 32,500 the year earlier, for a total in the year of 208,700. Organic customer losses narrowed to 25,500 from 26,100 the year earlier, for total customer losses in the year of 73,900. Customer losses were particularly high in Switzerland at 22,7000, though less than the loss of 32,000 the year before. Losses in UK/Ireland and Belgium narrowed, to 9,400 from 9,000, and to 6,900 from 20,700 year-on-year, respectively. Poland and Slovakia showed growth of 13,500.
Total mobile subscriber additions went to 88,000 in the quarter, with the 131,000 postpaid additions only partially offset by continued attrition to the low-ARPU prepaid base. The company added a total of 87,500 Sims in the quarter, from 33,300 the year before.
The company sold its operations in Germany, Hungary, Romania and the Czech Republic in July to Vodafone for over USD 21 billion. It is now present in five Western European markets and powered by liquidity of over USD 11 billion. For the UK, the company said it expects some headwinds this year but still believes the medium-term outlook remains attractive. In Switzerland, the company is confident in its turnaround plan, following the failed sale of the unit. The company believes the market is “ripe” for fixed-mobile convergence over the medium term and will also be thinking of other strategic options besides organic growth in due course.
