Liberty Global raised its guidance for adjusted free cash flow in 2021 to USD 1.45 billion, from an earlier estimate of USD 1.35 billion, supported by dividends from its joint ventures in the UK and Netherlands. The company said it was benefiting from synergies from the recent mergers in the UK and Switzerland, as well as solid growth at its converged operators across Europe.
The cash flow rose 88.6 percent in the first nine months already, to USD 1.02 billion. Liberty Global said it now expects to receive an annual dividend of at least EUR 600 million from VodafoneZiggo and a minimum GBP 300 million from Virgin Media O2. It also confirmed plans to continue buying back shares in 2022 and 2023, after spending already USD 1.3 billion this year on the repurchases.
For the third quarter, the company still reported lower results, hurt by the deconsolidation of the UK business. Revenues fell 33.2 percent to USD 1.90 billion, and adjusted EBITDA declined 34.8 percent to USD 758.5 million. Excluding the changes in scope and forex effects, revenues were up 0.7 percent, and EBITDA rose 1.0 percent. Capex declined 42.4 percent to USD 362.6 million.
Fixed customer growth was a negative 5,400, with declines in all countries, for a total base of 4.13 million at the end of September. In the mobile market, the operator gained 55,400 customers to reach 5.67 million, led by growth in Switzerland.
These figures exclude UPC Poland, which is deemed a discontinued business pending its planned sale to Play. Liberty Global said it aims to close the sale in the second half of 2022.
