Liberty Global Ltd
For the period ended Jun 30, 2024. Filed Jul 25, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 25, 2024
LBTYB$11.45+1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-01.
0001570585-24-000136
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-25.
0001570585-24-000237
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 221 previous paragraphs and 231 current paragraphs.
152 unchanged; 66 reworded; 10 added; 3 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 24 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
(a)The increases in residential mobile subscription revenue are primarily attributable to increases in the average number of mobile subscribers.
Current report
On an organic basis, our consolidated residential mobile subscription revenue increased $2.6 million or 0.7% and $7.4 million or 1.0% during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily attributable to increases at Sunrise.
Current report
•A $11.2 million increase in costs at Telenet associated with the one-time benefit from expected settlements of certain operational contingencies during the second quarter of 2023;
Current report
•Increases in outsourced labor costs of $3.7 million or 12.8% and $6.2 million or 10.9%, respectively, primarily associated with customer facing activities at Telenet; and
Current report
•Increases in external sales and marketing costs of $6.6 million or 8.5% and $5.9 million or 3.6%, respectively, primarily due to (i) increases in third-party sales commissions at Telenet, VM Ireland and, for the six-month comparison, Sunrise and (ii) higher costs associated with advertising campaigns, as increases at Telenet and VM Ireland were only partially offset by decreases at Sunrise.
Current report
The amounts for the 2023 periods include (i) a $21.7 million credit to abandoned lease expense at Sunrise during the second quarter of 2023, (ii) restructuring costs of $18.4 million during the second quarter of 2023, primarily at Sunrise, and (iii) direct acquisition and disposition costs of $7.6 million and $21.5 million, respectively, primarily at Telenet and Central and Other.
Current report
Gain on sale of All3Media
Current report
In connection with the sale of All3Media, we recognized a gain of $242.9 million during the six months ended June 30, 2024. For additional information, see note 4 to our condensed consolidated financial statements.
Current report
The income tax expense during the three months ended June 30, 2024 differs from the expected income tax expense of $84.0 million (based on the U.K. statutory income tax rate of 25.0%), primarily due to the net positive impact of (i) certain permanent differences between the financial and tax accounting treatment of items associated with investments in subsidiaries and affiliates, including the non-taxable gain on sale of All3Media, and (ii) non-deductible or non-taxable foreign currency exchange results. The positive impact of these items was partially offset by the net negative impact of certain permanent differences between the financial and tax accounting treatment of interest and other expenses.
Current report
During the six months ended June 30, 2024 and 2023, we reported net earnings (loss) of $802.2 million and ($1,224.8 million), respectively, consisting of (i) operating income (loss) of $41.7 million and ($11.8 million), respectively, (ii) net non-operating income (expense) of $848.1 million and ($1,041.3 million), respectively, and (iii) income tax expense of $87.6 million and $171.7 million, respectively.
Removed paragraphs (3)
Previous report
(a)The increase in residential mobile subscription revenue is primarily attributable to an increase in the average number of mobile subscribers. The decrease in residential mobile non-subscription revenue is primarily due to lower revenue from handset sales.
Previous report
(a)The increase in residential mobile non-subscription revenue is primarily attributable to an increase in revenue from handset sales.
Previous report
On an organic basis, our consolidated residential mobile subscription revenue increased $4.8 million or 1.3% during the three months ended March 31, 2024, as compared to the corresponding period in 2023, primarily attributable to an increase at Sunrise.
Reworded paragraphs (66)
Previous wording
•Material Changes in Results of Operations. This section provides an analysis of our results of operations for the three months ended March 31, 2024 and 2023.
Current wording
•Material Changes in Results of Operations. This section provides an analysis of our results of operations for the three and six months ended June 30, 2024 and 2023.
Previous wording
We are an international provider of broadband internet, video, fixed-line telephony and mobile communications services to residential customers and businesses in Europe. Our operations comprise businesses that provide residential and B2B communications services in (i) Switzerland and Slovakia through Sunrise Holding, (ii) Belgium and Luxembourg through Telenet and (iii) Ireland through VM Ireland. In addition, we own 50% noncontrolling interests in (a) the VMO2 JV, which provides residential and B2B communications services in the U.K., and (b) the VodafoneZiggo JV, which provides residential and B2B communications services in the Netherlands. We also own (1) a 50% noncontrolling voting interest in the AtlasEdge JV, which is a leading European Edge data center platform, and (2) a 25% noncontrolling interest in the nexfibre JV, which is constructing a new fiber network in the U.K. outside of the existing footprint of the VMO2 JV.
Current wording
We are an international provider of broadband internet, video, fixed-line telephony and mobile communications services to residential customers and businesses in Europe. Our businesses provide residential and B2B communications services in (i) Switzerland, which we refer to as Sunrise, and Slovakia through Sunrise Holding, (ii) Belgium and Luxembourg through Telenet and (iii) Ireland through VM Ireland. In addition, we own 50% noncontrolling interests in (a) the VMO2 JV, which provides residential and B2B communications services in the U.K., and (b) the VodafoneZiggo JV, which provides residential and B2B communications services in the Netherlands. We also own (1) a 50% noncontrolling voting interest in the AtlasEdge JV, which is a leading European Edge data center platform, and (2) a 25% noncontrolling interest in the nexfibre JV, which is constructing a new fiber network in the U.K. outside of the existing footprint of the VMO2 JV.
Previous wording
At March 31, 2024, we owned and operated networks that passed 8,552,900 homes and served 4,036,700 fixed-line customers and 5,887,500 mobile subscribers.
Current wording
At June 30, 2024, we owned and operated networks that passed 8,573,400 homes and served 4,017,500 fixed-line customers and 5,906,000 mobile subscribers.
Previous wording
Changes in foreign currency exchange rates have a significant impact on our reported operating results as all of our operating segments have functional currencies other than the U.S. dollar. Our primary exposure to foreign exchange (FX) risk during the three months ended March 31, 2024 was to the euro and Swiss franc, as 57.8% and 43.9% of our reported revenue during the period was derived from subsidiaries whose functional currencies are the euro and Swiss franc, respectively. In addition, our reported operating results are impacted by changes in the exchange rates for certain other local currencies in Europe. The portions of the changes in the various components of our results of operations that are attributable to changes in FX are highlighted under Discussion and Analysis of our Reportable Segmentsand Discussion and Analysis of our Consolidated Operating Results below. For information regarding our foreign currency risks and the applicable foreign currency exchange rates in effect for the periods covered by this Quarterly Report, see Part I, Item 3. Quantitative and Qualitative Disclosures about Market Risk — Foreign Currency Risk below.
Current wording
Changes in foreign currency exchange rates have a significant impact on our reported operating results as all of our operating segments have functional currencies other than the U.S. dollar. Our primary exposure to foreign exchange (FX) risk during the three months ended June 30, 2024 was to the euro and Swiss franc, as 58.7% and 43.5% of our reported revenue during the period was derived from subsidiaries whose functional currencies are the euro and Swiss franc, respectively. In addition, our reported operating results are impacted by changes in the exchange rates for certain other local currencies in Europe. The portions of the changes in the various components of our results of operations that are attributable to changes in FX are highlighted under Discussion and Analysis of our Reportable Segmentsand Discussion and Analysis of our Consolidated Operating Results below. For information regarding our foreign currency risks and the applicable foreign currency exchange rates in effect for the periods covered by this Quarterly Report, see Part I, Item 3. Quantitative and Qualitative Disclosures about Market Risk — Foreign Currency Risk below.
Previous wording
The amounts presented and discussed below represent 100% of each of our consolidated reportable segment’s results of operations. The noncontrolling owners’ interests at Telenet and other less significant majority-owned subsidiaries are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations. Furthermore, despite only holding a 50% noncontrolling interest in both the VMO2 JV and the VodafoneZiggo JV, we present 100% of the revenue and Adjusted EBITDA of those entities in the tables below.
Current wording
The amounts presented and discussed below represent 100% of each of our consolidated and nonconsolidated reportable segment’s results of operations, despite only holding a 50% noncontrolling interest in both the VMO2 JV and the VodafoneZiggo JV. We account for our 50% interest in both the VMO2 JV and the VodafoneZiggo JV as an equity method investment and as such, our share of the operating results of the VMO2 JV and the VodafoneZiggo JV is included in share of results of affiliates, net, in our condensed consolidated statements of operations. The noncontrolling owners’ interests at Telenet and other less significant majority-owned subsidiaries are reflected in net earnings or loss attributable to noncontrolling interests in our condensed consolidated statements of operations.
Previous wording
All of our reportable segments derive their revenue primarily from residential and B2B communications services. For detailed information regarding the composition of our reportable segments and how we define and categorize our revenue components, see note 15 to our condensed consolidated financial statements. For information regarding the results of operations of the VMO2 JV and the VodafoneZiggo JV, refer to Discussion and Analysis of our Consolidated Operating Results — Share of results of affiliates, netbelow.
Current wording
Our Sunrise, Telenet and VM Ireland reportable segments derive their revenue primarily from residential and B2B communications services. Our Central and Other reportable segment primarily includes (i) revenue associated with services provided to the VMO2 JV, the VodafoneZiggo JV and various third parties related to service agreements, (ii) sales of CPE to the VMO2 JV and the VodafoneZiggo JV, (iii) certain centralized functions, including billing systems, network operations, technology, marketing, facilities, finance and other administrative functions, and (iv) our operations in Slovakia. For detailed information regarding the composition of our reportable segments and how we define and categorize our revenue components, see note 15 to our condensed consolidated financial statements. For information regarding the results of operations of the VMO2 JV and the VodafoneZiggo JV, refer to Discussion and Analysis of our Consolidated Operating Results — Share of results of affiliates, netbelow.
Previous wording
The tables presented below in this section provide the details of the revenue and Adjusted EBITDA of our reportable segments for the three months ended March 31, 2024, as compared to the corresponding period in 2023. These tables present (i) the amounts reported for the current and comparative periods, (ii) the reported U.S. dollar change and percentage change from period to period and (iii) with respect to our consolidated reportable segments, the organic U.S. dollar change and percentage change from period to period. For our organic comparisons, which exclude the impact of FX, we assume that exchange rates remained constant at the prior-period rate during all periods presented. We also provide a table showing the Adjusted EBITDA margins of our reportable segments for the three months ended March 31, 2024 and 2023 at the end of this section.
Current wording
The tables presented below in this section provide the details of the revenue and Adjusted EBITDA of our reportable segments for the three and six months ended June 30, 2024, as compared to the corresponding periods in 2023. These tables present (i) the amounts reported for the current and comparative periods, (ii) the reported U.S. dollar change and percentage change from period to period and (iii) with respect to our consolidated reportable segments, the organic U.S. dollar change and percentage change from period to period. For our organic comparisons, which exclude the impact of FX, we assume that exchange rates remained constant at the prior-period rate during all periods presented. We also provide a table showing the Adjusted EBITDA margins of our reportable segments for the three and six months ended June 30, 2024 and 2023 at the end of this section.
Previous wording
Sunrise. The details of the increase in Sunrise’s revenue during the three months ended March 31, 2024, as compared to the corresponding period in 2023, are set forth below:
Current wording
Sunrise. The details of the changes in Sunrise’s revenue during the three and six months ended June 30, 2024, as compared to the corresponding periods in 2023, are set forth below:
Previous wording
(b)The increase in B2B non-subscription revenue is primarily attributable to higher interconnect revenue.
Current wording
(b)The increases in B2B non-subscription revenue are primarily due to higher interconnect revenue.
Previous wording
Telenet. The details of the increase in Telenet’s revenue during the three months ended March 31, 2024, as compared to the corresponding period in 2023, are set forth below:
Current wording
Telenet. The details of the decreases in Telenet’s revenue during the three and six months ended June 30, 2024, as compared to the corresponding periods in 2023, are set forth below:
Previous wording
(b)The increase in B2B subscription revenue is primarily due to an increase in the average number of customers. The decrease in B2B non-subscription revenue is primarily attributable to (i) lower interconnect revenue and (ii) a decrease in revenue from wholesale services.
Current wording
(a)The increases in B2B subscription revenue are primarily due to increases in the average number of customers. The decreases in B2B non-subscription revenue are primarily attributable to (i) decreases in revenue from wholesale services and (ii) lower interconnect revenue.
Previous wording
VM Ireland. The details of the change in VM Ireland’s revenue during the three months ended March 31, 2024, as compared to the corresponding period in 2023, are set forth below:
Current wording
VM Ireland. The details of the decreases in VM Ireland’s revenue during the three and six months ended June 30, 2024, as compared to the corresponding periods in 2023, are set forth below:
Previous wording
(c)Residential mobile subscription revenue includes amounts received from subscribers for ongoing services. Residential mobile non-subscription revenue includes, among other items, interconnect revenue and revenue from sales of mobile handsets and other devices. Residential mobile interconnect revenue was $30.6 million and $33.3 million during the three months ended March 31, 2024 and 2023, respectively.
Current wording
(c)Residential mobile subscription revenue includes amounts received from subscribers for ongoing services. Residential mobile non-subscription revenue includes, among other items, interconnect revenue and revenue from sales of mobile handsets and other devices. Residential mobile interconnect revenue was $29.3 million and $27.2 million during the three months ended June 30, 2024 and 2023, respectively, and $59.9 million and $60.5 million during the six months ended June 30, 2024 and 2023, respectively.
Previous wording
Total revenue. Our consolidated revenue increased $76.7 million or 4.1% during the three months ended March 31, 2024, as compared to the corresponding period in 2023. On an organic basis, our consolidated revenue increased $35.5 million or 1.9%.
Current wording
Total revenue. Our consolidated revenue increased $25.7 million or 1.4% and $102.4 million or 2.8% during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023. On an organic basis, our consolidated revenue increased $39.6 million or 2.1% and $75.0 million or 2.0%, respectively.
Previous wording
Residential revenue. The details of the increase in our consolidated residential revenue during the three months ended March 31, 2024, as compared to the corresponding period in 2023, are as follows (in millions):
Current wording
Residential revenue. The details of the changes in our consolidated residential revenue during the three and six months ended June 30, 2024, as compared to the corresponding periods in 2023, are as follows:
Previous wording
On an organic basis, our consolidated residential fixed subscription revenue decreased $15.9 million or 2.2% during the three months ended March 31, 2024, as compared to the corresponding period in 2023, primarily attributable to a decrease at Sunrise.
Current wording
On an organic basis, our consolidated residential fixed subscription revenue decreased $8.6 million or 1.2% and $24.5 million or 1.7% during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily attributable to decreases at Sunrise.
Previous wording
On an organic basis, our consolidated residential fixed non-subscription revenue decreased $1.2 million or 8.4% during the three months ended March 31, 2024, as compared to the corresponding period in 2023, primarily due to a decrease at Telenet.
Current wording
On an organic basis, our consolidated residential fixed non-subscription revenue decreased $4.6 million or 25.3% and $5.8 million or 17.8% during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily due to decreases at Telenet.
Previous wording
On an organic basis, our consolidated residential mobile non-subscription revenue decreased $2.1 million or 1.6% during the three months ended March 31, 2024, as compared to the corresponding period in 2023, primarily due to the net effect of (i) a decrease at Sunrise and (ii) an increase at Telenet.
Current wording
On an organic basis, our consolidated residential mobile non-subscription revenue increased (decreased) $2.0 million or 1.6% and ($0.2 million) or (0.1%) during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily due to changes at Sunrise and Telenet.
Previous wording
B2B revenue. On an organic basis, our consolidated B2B subscription revenue increased $8.3 million or 6.2% during the three months ended March 31, 2024, as compared to the corresponding period in 2023, primarily attributable to an increase at Telenet.
Current wording
B2B revenue. On an organic basis, our consolidated B2B subscription revenue increased $2.7 million or 1.9% and $11.0 million or 4.0% during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily attributable to increases at Telenet.
Previous wording
On an organic basis, our consolidated B2B non-subscription revenue decreased $5.0 million or 2.2% during the three months ended March 31, 2024, as compared to the corresponding period in 2023, primarily due to the net effect of (i) a decrease at Telenet and (ii) an increase at Sunrise.
Current wording
On an organic basis, our consolidated B2B non-subscription revenue increased (decreased) $2.9 million or 1.2% and ($2.2 million) or (0.5%) during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily due to the net effect of (i) decreases at Telenet and (ii) increases at Sunrise.
Previous wording
Other revenue. On an organic basis, our consolidated other revenue increased $46.6 million or 16.5% during the three months ended March 31, 2024, as compared to the corresponding period in 2023, primarily due to an increase at Central and Other related to revenue earned from the sale of CPE to the VMO2 JV.
Current wording
Other revenue. On an organic basis, our consolidated other revenue increased $42.6 million or 18.2% and $89.3 million or 17.3% during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily due to increases at Central and Other related to revenue earned from the sale of CPE to the VMO2 JV beginning in 2024.
Previous wording
Our programming and other direct costs of services increased $101.4 million or 17.8% during the three months ended March 31, 2024, as compared to the corresponding period in 2023. On an organic basis, our programming and other direct costs of services increased $80.7 million or 14.1%. This increase includes the following factors:
Current wording
Our programming and other direct costs of services increased $5.8 million or 1.0% and $107.2 million or 9.3% during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023. On an organic basis, our programming and other direct costs of services increased $13.8 million or 2.4% and $95.3 million or 8.2%, respectively. These increases include the following factors:
Previous wording
•An increase in costs of $45.2 million at Central and Other related to the sale of CPE to the VMO2 JV; and
Current wording
•Increases in costs of $27.1 million and $72.3 million, respectively, at Central and Other related to the sale of CPE to the VMO2 JV beginning in 2024;
Previous wording
•An increase in costs of $45.3 million at Central and Other due to lower capitalization as a result of our decision during the second quarter of 2023 to market and sell certain of our internally-developed software to third parties;
Current wording
•For the six-month comparison, an increase in costs of $42.5 million at Central and Other due to lower capitalization as a result of our decision in May 2023 to market and sell certain of our internally-developed software to third parties, as further described in note 15 to our condensed consolidated financial statements; and
Previous wording
•A decrease in programming and copyright costs of $6.0 million or 3.1%, primarily attributable to lower costs for certain content at Telenet.
Current wording
•Decreases in programming and copyright costs of $3.1 million or 1.9% and $8.9 million or 2.5%, respectively, primarily attributable to lower costs for certain content at Telenet and VM Ireland.
Previous wording
Our other operating expenses (exclusive of share-based compensation expense) increased $3.9 million or 1.3% during the three months ended March 31, 2024, as compared to the corresponding period in 2023. On an organic basis, our other operating expenses decreased $5.8 million or 1.9%. This decrease includes the following factors:
Current wording
Our other operating expenses (exclusive of share-based compensation expense) decreased $7.2 million or 2.4% and $3.3 million or 0.6% during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023. On an organic basis, our other operating expenses decreased $4.5 million or 1.5% and $11.3 million or 1.9%, respectively. These decreases include the following factors:
Previous wording
•A decrease in core network and information technology-related costs of $7.9 million or 10.0%, primarily at Central and Other; and
Current wording
•Decreases in core network and information technology-related costs of $7.9 million or 11.2% and $15.3 million or 13.0%, respectively, primarily at Central and Other;
Previous wording
•A decrease in customer service costs of $4.8 million or 12.8%, primarily related to lower call center costs at Sunrise and Telenet.
Current wording
•Decreases in customer service costs of $3.2 million or 8.7% and $7.8 million or 10.4%, respectively, primarily related to lower call center costs at Sunrise and Telenet;
Previous wording
•A decrease in business service costs of $5.4 million or 11.0%, primarily due to lower consulting costs, as decreases at Sunrise and Telenet were only partially offset by an increase at Central and Other; and
Current wording
•Decreases in business service costs of $5.9 million or 9.4% and $5.9 million or 5.7%, respectively, primarily due to (i) lower consulting costs at Telenet and Sunrise and (ii) lower energy costs, as decreases at Telenet were only partially offset by increases at Sunrise.
Previous wording
Our SG&A expenses (exclusive of share-based compensation expense) increased $14.5 million or 3.9% during the three months ended March 31, 2024, as compared to the corresponding period in 2023. On an organic basis, our SG&A expenses increased $1.3 million or 0.3%. This increase includes the following factors:
Current wording
Our SG&A expenses (exclusive of share-based compensation expense) increased $23.8 million or 6.5% and $38.3 million or 5.2% during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023. On an organic basis, our SG&A expenses increased $27.1 million and 7.3% or $28.3 million or 3.8%, respectively. These increases include the following factors:
Previous wording
•An increase in personnel costs of $4.4 million or 2.6%, primarily due to the net effect of (i) an increase in temporary personnel costs at Telenet, (ii) lower staffing levels, primarily at Central and Other and Sunrise, and (iii) higher average costs per employee, primarily at Central and Other.
Current wording
•Increases in personnel costs of $12.6 million or 7.0% and $17.0 million or 4.9%, respectively, primarily due to the net effect of (i) increases in temporary personnel costs at Telenet, (ii) higher average costs per employee, primarily at Central and Other, and (iii) lower staffing levels, primarily at Central and Other;
Previous wording
•An increase in core network and information technology-related costs of $5.5 million or 19.2%, primarily due to higher information technology-related expenses at Sunrise;
Current wording
•Increases in core network and information technology-related costs of $2.7 million or 9.4% and $7.9 million or 13.7%, respectively, primarily due to higher information technology-related expenses at Sunrise and Telenet; and
Previous wording
(b)Represents annual incentive compensation and defined contribution plan liabilities that have been or are expected to be settled with Liberty Global common shares. In the case of annual incentive compensation, shares have been or will be issued to senior management and key employees pursuant to a shareholding incentive program. The shareholding incentive program allows these employees to elect to receive up to 100% of their annual incentive compensation in common shares of Liberty Global in lieu of cash.
Current wording
(c)Represents annual incentive compensation and defined contribution plan liabilities that have been or are expected to be settled with Liberty Global common shares. In the case of annual incentive compensation, shares have been or will be issued to senior management and key employees pursuant to a shareholding incentive program. The shareholding incentive program allows these employees to elect to receive up to 100% of their annual incentive compensation in common shares of Liberty Global in lieu of cash.
Previous wording
Our depreciation and amortization expense was $480.7 million and $526.9 million during the three months ended March 31, 2024 and 2023, respectively. Excluding the effects of FX, depreciation and amortization expense decreased $60.3 million or 11.4% during the three months ended March 31, 2024, as compared to the corresponding period in 2023. This decrease is primarily due to the net effect of (i) a decrease associated with certain assets becoming fully depreciated, primarily at Central and Other, Sunrise and Telenet and (ii) an increase associated with property and equipment additions related to the installation of CPE, the expansion and upgrade of our networks and other capital initiatives, primarily at Sunrise, Telenet and VM Ireland.
Current wording
Our depreciation and amortization expense was $531.4 million and $1,012.1 million for the three and six months ended June 30, 2024, respectively, and $570.9 million and $1,097.8 million for the three and six months ended June 30, 2023, respectively. Excluding the effects of FX, depreciation and amortization expense decreased $32.6 million or 5.7% and $93.0 million or 8.5% during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023. These decreases are primarily due to the net effect of (i) decreases associated with certain assets becoming fully depreciated, primarily at Central and Other, Sunrise and Telenet, (ii) increases associated with property and equipment additions related to the installation of CPE, the expansion and upgrade of our networks and other capital initiatives, primarily at Telenet, Sunrise and VM Ireland, and (iii) increases associated with acquisitions, primarily related to the Telenet Wyre Transaction.
Previous wording
We recognized impairment, restructuring and other operating items, net, of $33.5 million and $16.4 million during the three months ended March 31, 2024 and 2023, respectively.
Current wording
We recognized impairment, restructuring and other operating items, net, of $4.7 million and $38.2 million during the three and six months ended June 30, 2024, respectively, and $3.9 million and $20.3 million during the three and six months ended June 30, 2023, respectively.
Previous wording
The amount for the 2024 period includes (i) a provision for legal contingencies of $17.5 million at Central and Other and (ii) restructuring costs of $15.2 million, primarily at Central and Other. The amount for the 2023 period includes direct acquisition and disposition costs of $13.9 million, primarily at Telenet and Central and Other.
Current wording
The amounts for the 2024 periods include (i) restructuring costs of $4.0 million and $19.2 million, respectively, primarily at Central and Other, and (ii) a provision for legal contingencies of $17.5 million at Central and Other during the first quarter of 2024.
Previous wording
We recognized interest expense of $253.5 million and $200.9 million during the three months ended March 31, 2024 and 2023, respectively. Excluding the effects of FX, interest expense increased $49.0 million or 24.4% during the three months ended March 31, 2024, as compared to the corresponding period in 2023. This increase is primarily attributable to a higher weighted average interest rate, partially offset by a lower average outstanding debt balance. For additional information regarding our outstanding indebtedness, see note 8 to our condensed consolidated financial statements.
Current wording
We recognized interest expense of $251.5 million and $505.0 million during the three and six months ended June 30, 2024, respectively, and $213.7 million and $414.6 million during the three and six months ended June 30, 2023, respectively. Excluding the effects of FX, interest expense increased $40.9 million or 19.1% and $89.9 million or 21.7% during the three and six months ended June 30, 2024, respectively, as compared to the corresponding periods in 2023. These increases are primarily attributable to higher weighted average interest rates. For additional information regarding our outstanding indebtedness, see note 8 to our condensed consolidated financial statements.
Previous wording
It is possible that the interest rates on (i) any new borrowings could be higher than the current interest rates on our existing indebtedness and (ii) our variable-rate indebtedness could increase in future periods. As further discussed in note 5 to our condensed consolidated financial statements and under Quantitative and Qualitative Disclosures about Market Risk below, we use derivative instruments to manage our interest rate risks.
Current wording
It is possible that the interest rates on (i) any new borrowings could be higher than the current interest rates on our existing indebtedness and (ii) our variable-rate indebtedness could increase in future periods. As further discussed in note 5 to our condensed consolidated financial statements and under Part I, Item 3. Quantitative and Qualitative Disclosures about Market Risk below, we use derivative instruments to manage our interest rate risks.
Previous wording
Realized and unrealized gains (losses) on derivative instruments, net
Current wording
Realized and unrealized gains on derivative instruments, net
Previous wording
Our realized and unrealized gains or losses on derivative instruments include (i) unrealized changes in the fair values of our derivative instruments that are non-cash in nature until such time as the derivative contracts are fully or partially settled and (ii) realized gains or losses upon the full or partial settlement of the derivative contracts. The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows:
Current wording
Our realized and unrealized gains or losses on derivative instruments include (i) unrealized changes in the fair values of our derivative instruments that are non-cash in nature until such time as the derivative contracts are fully or partially settled and (ii) realized gains or losses upon the full or partial settlement of the derivative contracts. The details of our realized and unrealized gains on derivative instruments, net, are as follows:
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report — wording carried from elsewhere
(b)The 2024 amounts include share-based compensation expense related to the 2024 PSUs.
Current report — wording carried from elsewhere
The income tax expense during the three months ended June 30, 2023 differs from the expected income tax benefit of $82.8 million (based on the U.K. blended income tax rate of 23.5%), primarily due to the net negative impact of a net increase in valuation allowances.