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Liberty Global plc - Class A (LBTYA)
NASDAQ:LBTYA

Liberty Global A (LBTYA) AI Stock Analysis

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Liberty Global A

(NASDAQ:LBTYA)

50Neutral
Liberty Global A's stock score reflects financial volatility and high leverage risks, compounded by a bearish technical outlook and unattractive valuation metrics. Despite strategic achievements and shareholder returns highlighted in the earnings call, the company’s fundamental challenges limit its stock appeal.
Positive Factors
Infrastructure Growth
Advancing FTTH programs in the UK, Belgium, and Ireland with 6.4M UK premises now passed with fiber and VMO2 continuing to advance its 5G network with outdoor coverage now at 75% indicate strong infrastructure growth.
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.
Free Cash Flow
Telenet is a significant miss on FCF with capex the main driver.
Revenue Decline
VodafoneZiggo is expected to show a low single digit revenue decline in 2025, reflecting challenges in maintaining revenue growth.

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

Liberty Global A Business Overview & Revenue Model

Company DescriptionLiberty Global A (LBTYA) is a leading international telecommunications and television company, operating across several European countries and parts of South America. The company provides a wide array of services, including broadband internet, cable television, fixed-line telephony, and mobile services. Liberty Global is known for its strong presence in cable and broadband sectors, offering cutting-edge connectivity solutions and entertainment content to millions of customers.
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 statements highlight significant revenue and profit volatility. The company exhibits strengths in cash flow generation but faces challenges with high leverage and inconsistent profitability, posing potential 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
1.12B779.90M1.53B2.14B2.84B
Operating Cash Flow
2.03B2.17B2.84B3.55B4.19B
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 Price9.64
Price Trends
50DMA
11.15
Negative
100DMA
11.59
Negative
200DMA
11.17
Negative
Market Momentum
MACD
-0.16
Positive
RSI
29.76
Positive
STOCH
54.34
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 9.64 is below the 20-day moving average (MA) of 10.56, below the 50-day MA of 11.15, and below the 200-day MA of 11.17, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 29.76 is Positive, neither overbought nor oversold. The STOCH value of 54.34 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 (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PHPHI
78
Outperform
$5.06B9.0629.05%5.28%-0.15%17.96%
63
Neutral
$3.23B7.7842.31%8.27%
59
Neutral
$13.76B7.65-2.18%3.85%2.32%-36.56%
TDTDS
58
Neutral
$3.68B-0.54%0.47%-3.80%83.27%
50
Neutral
$3.40B-20.95%3.53%3.23%
48
Neutral
$3.88B-78.94%-9.95%99.47%
45
Neutral
$2.78B102.75-49.03%7.01%10.12%-115.93%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LBTYA
Liberty Global A
9.64
0.79
8.93%
LUMN
Lumen Technologies
3.78
2.46
186.36%
CCOI
Cogent Comms
56.46
-3.70
-6.15%
PHI
PLDT
23.61
0.76
3.33%
TDS
Telephone & Data Systems
34.31
18.70
119.80%
VEON
VEON
45.71
21.36
87.72%

Liberty Global A Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: -12.52%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
While Liberty Global has made significant strides in strategic planning, portfolio growth, and maintaining a strong financial position, challenges persist in specific market segments such as VodafoneZiggo and UK broadband, leading to revised guidance and competitive pressures.
Q1-2025 Updates
Positive Updates
Strategic Plan Success
The tax-free spin-off of Sunrise resulted in the company trading at over 8 times EBITDA, highlighting successful strategic initiatives.
Liberty Growth Portfolio Value
The fair market value of the Liberty Growth portfolio increased by approximately $200 million, reaching $3.3 billion.
Strong Financial Position
Liberty Global maintains $2.1 billion in corporate cash, with 60% in euros, supporting strategic plans including opportunistic share buybacks.
Formula E Success
Formula E reported record viewership, particularly in the US, and launched new initiatives that generated 300 million views on social media.
Refinancing Achievements
Successful refinancing activities, including an eight-year €500 million term loan facility for Telenet, maintain a strong balance sheet.
Negative Updates
VodafoneZiggo Revenue Decline
VodafoneZiggo reported a 2.6% revenue decline due to fixed revenue decreases and lower handset sales.
Broadband Net Additions Decline in the UK
Virgin Media O2 experienced higher churn and market competition, leading to a decline in broadband net additions.
Weak Postpaid Mobile Performance
Postpaid mobile experienced weakness across all markets except the Netherlands, with competition impacting results.
VodafoneZiggo EBITDA Decline
VodafoneZiggo's adjusted EBITDA decreased by 8% due to fixed business decline, increased programming costs, and higher labor expenses.
Revised Guidance for VodafoneZiggo
VodafoneZiggo's revenue guidance was lowered to a low single-digit decline, and adjusted EBITDA is expected to be down mid to high single digits in 2025.
Company Guidance
During Liberty Global's First Quarter 2025 Investor Call, the company provided several key metrics and strategic guidance. Liberty Global highlighted its $2.1 billion of cash on hand and plans for $500 million to $750 million in asset sales this year, focusing on capital allocation and value creation across its core platforms: Liberty Telecom, Liberty Growth, and Liberty Services. The company reported $22 billion in aggregate revenue and $8 billion in EBITDA from its operations, which comprise four markets with 80 million connections. Specifically, Liberty Global discussed its strategy for Liberty Telecom, targeting transactions that deliver shareholder value, exemplified by the tax-free spin-off of Sunrise, now trading at over 8 times EBITDA. The call also emphasized optimizing corporate structures, with an ongoing focus on network upgrades and commercial momentum, particularly in competitive telecom markets.

Liberty Global A Corporate Events

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Liberty Global Reports Q1 2025 Financial Results
Positive
May 2, 2025

On May 2, 2025, Liberty Global Ltd. announced its Q1 2025 financial results, highlighting progress in shareholder value creation following the spin-off of its Swiss subsidiary, Sunrise. The company reported resilience in its telecom operations, with Virgin Media O2 showing revenue growth and VodafoneZiggo launching initiatives to regain momentum. Liberty Global emphasized its commitment to financing network infrastructure, with significant fiber coverage expected in Ireland and ongoing discussions in Flanders. The company also highlighted its asset disposal strategy and successful investments, including Formula E, while maintaining strong balance sheets and resuming share buybacks.

Spark’s Take on LBTYA Stock

According to Spark, TipRanks’ AI Analyst, LBTYA is a Neutral.

Liberty Global A’s stock score reflects its financial volatility and high leverage risks, compounded by a bearish technical outlook and unattractive valuation metrics. Despite strategic achievements and shareholder returns highlighted in the earnings call, the company’s fundamental challenges limit its stock appeal.

To see Spark’s full report on LBTYA stock, click here.

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.