Liberty Global Ltd
For the period ended Sep 30, 2024. Filed Oct 29, 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.
Sep 30, 2024 · Filed Oct 29, 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 2024-06-30; filed 2024-07-25.
0001570585-24-000237
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-29.
0001570585-24-000304
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 231 previous paragraphs and 243 current paragraphs.
150 unchanged; 72 reworded; 20 added; 8 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 31 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 (20)
Current report
(a)The decreases in residential fixed non-subscription revenue are primarily due to lower revenue from equipment sales.
Current report
(a)The decreases in residential mobile non-subscription revenue are primarily attributable to lower interconnect revenue.
Current report
(c)The increases in other revenue include the one-off impact of the recognition of previously deferred revenue of approximately $18 million during the third quarter of 2024.
Current report
Total revenue. Our consolidated revenue increased $80.7 million or 4.4% and $183.1 million or 3.3% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023. On an organic basis, our consolidated revenue increased $46.9 million or 2.5% and $122.0 million or 2.2%, respectively.
Current report
On an organic basis, our consolidated residential mobile subscription revenue decreased $12.2 million or 3.1% and $4.5 million or 0.4% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily attributable to decreases at Sunrise.
Current report
On an organic basis, our consolidated residential mobile non-subscription revenue increased $2.2 million or 1.8% and $1.7 million or 0.4% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily due to the net effect of (i) increases at Sunrise and (ii) decreases at Telenet.
Current report
On an organic basis, our consolidated B2B non-subscription revenue increased $7.0 million or 3.0% and $4.7 million or 0.7% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily due to the net effect of (i) increases at Sunrise and (ii) decreases at Telenet.
Current report
Other revenue. On an organic basis, our consolidated other revenue increased $82.3 million or 45.2% and $171.4 million or 24.6% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily due to (i) increases at Central and Other related to revenue earned from (a) the sale of CPE to the VMO2 JV beginning in 2024 and (b) the U.K. JV Services and NL JV Services and (ii) the one-off impact of the recognition of previously deferred revenue at Telenet during the third quarter of 2024.
Current report
Our programming and other direct costs of services increased $5.3 million or 0.9% and $112.5 million or 6.5% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023. On an organic basis, our programming and other direct costs of services increased (decreased) ($3.9 million) or (0.7%) and $91.9 million or 5.3%, respectively. These changes include the following factors:
Current report
•Decreases in mobile handset and other device costs of $4.1 million or 5.2% and $7.9 million or 2.4%, respectively, primarily due to (i) lower average costs per handset sold at Telenet and (ii) for the nine-month comparison, lower sales volumes, as a decrease at Sunrise was only partially offset by an increase at Telenet.
Current report
•An increase (decrease) in core network and information technology-related costs of $6.9 million or 9.9% and ($8.5 million) or (4.4%), respectively, primarily due to the net effect of (i) increases in information technology-related costs at Central and Other, (ii) lower leased bandwidth and outsourced data center costs, primarily at Telenet, and (iii) for the nine-month comparison, lower network maintenance expense and outsourced data center costs, primarily at Central and Other; and
Current report
•Increases in service delivery platform costs of $4.2 million or 12.2% and $4.2 million or 8.6%, respectively, primarily related to higher CPE software costs at Central and Other.
Current report
•For the nine-month comparison, an increase in personnel costs of $13.9 million or 2.7%, primarily due to (i) an increase in temporary personnel costs at Telenet and (ii) higher costs due to lower capitalizable activities, primarily at Sunrise;
Current report
•Increases in external sales and marketing costs of $6.8 million or 9.0% and $12.5 million or 5.3%, respectively, primarily due to higher costs associated with advertising campaigns at Telenet;
Current report
•Decreases in business service costs of $4.0 million or 8.1% and $7.8 million or 5.1%, respectively, primarily due to lower consulting costs at Sunrise.
Current report
(b)In April 2023, the compensation committee of our board of directors approved the extension of the expiration dates of outstanding SARs and director options granted in 2016 through 2018 from a seven-year term to a ten-year term. Accordingly, the Black-Scholes fair values of the outstanding awards increased, resulting in the recognition of an aggregate incremental share-based compensation expense of $27.1 million during the second quarter of 2023.
Current report
(a)We completed the sale of our investment in Lacework during the third quarter of 2024.
Current report
Gain associated with the Telenet Wyre Transaction
Current report
In connection with the Telenet Wyre Transaction, we recognized a net gain of $377.8 million during the nine months ended September 30, 2023. For additional information, see note 4 to our condensed consolidated financial statements.
Current report
Income tax benefit (expense)
Removed paragraphs (8)
Previous report
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 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.
Previous report
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 report
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 report
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 report
•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 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.
Previous report
Income tax expense
Reworded paragraphs (72)
Previous wording
The following discussion and analysis, which should be read in conjunction with our consolidated financial statements and the discussion and analysis included in our 10-K, is intended to assist in providing an understanding of changes in our results of operations and financial condition and is organized as follows:
Current wording
The following discussion and analysis, which should be read in conjunction with our consolidated financial statements and the discussion and analysis included in our 2023 10-K, is intended to assist in providing an understanding of changes in our results of operations and financial condition and is organized as follows:
Previous 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.
Current wording
•Material Changes in Results of Operations. This section provides an analysis of our results of operations for the three and nine months ended September 30, 2024 and 2023.
Previous wording
Certain statements in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. To the extent that statements in this Quarterly Report are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. In particular, statements under Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Part I, Item 3. Quantitative and Qualitative Disclosures About Market Riskand Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds may contain forward-looking statements, including statements regarding our business, product, foreign currency, hedging and finance strategies, our property and equipment additions, subscriber growth and retention rates, competitive, regulatory and economic factors, the timing and impacts of proposed transactions, the maturity of our markets, the potential impact of large-scale health crises on our company, the anticipated impacts of new legislation (or changes to existing rules and regulations), anticipated changes in our revenue, costs or growth rates, our liquidity, credit risks, foreign currency risks, interest rate risks, target leverage levels, debt covenants, our future projected contractual commitments and cash flows, our share repurchase programs and other information and statements that are not historical fact. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. In evaluating these statements, you should consider the risks and uncertainties discussed in Part I, Item 1A. Risk Factors of our 10-K, as well as the following list of some, but not all, of the factors that could cause actual results or events (including with respect to affiliates) to differ materially from anticipated results or events:
Current wording
Certain statements in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. To the extent that statements in this Quarterly Report are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. In particular, statements under Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Part I, Item 3. Quantitative and Qualitative Disclosures About Market Riskand Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds may contain forward-looking statements, including statements regarding our business, product, foreign currency, hedging and finance strategies, our property and equipment additions, subscriber growth and retention rates, competitive, regulatory and economic factors, the timing and impacts of proposed transactions, the maturity of our markets, the potential impact of large-scale health crises on our company, the anticipated impacts of new legislation (or changes to existing rules and regulations), anticipated changes in our revenue, costs or growth rates, our liquidity, credit risks, foreign currency risks, interest rate risks, target leverage levels, debt covenants, our future projected contractual commitments and cash flows, our share repurchase programs and other information and statements that are not historical fact. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. In evaluating these statements, you should consider the risks and uncertainties discussed in Part I, Item 1A. Risk Factors of our 2023 10-K, as well as the following list of some, but not all, of the factors that could cause actual results or events (including with respect to affiliates) to differ materially from anticipated results or events:
Previous wording
We have announced our intention to spin-off the Sunrise Entities, which is expected to close during the fourth quarter of 2024.
Current wording
We have announced our intention to spin-off the Sunrise Entities in November 2024. The Spin-off was approved at a special meeting of Liberty Global shareholders held on October 25, 2024.
Previous 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.
Current wording
At September 30, 2024, we owned and operated networks that passed 8,546,000 homes and served 4,008,800 fixed-line customers and 5,932,500 mobile subscribers.
Previous wording
We are subject to inflationary pressures, which remain elevated, with respect to labor, programming and other costs. While we attempt to increase our revenue to offset increases in costs, there is no assurance that we will be able to do so. Therefore, costs could rise faster than associated revenue, thereby resulting in a negative impact on our operating results, cash flows and liquidity. The economic environment in the respective countries in which we operate is a function of government, economic, fiscal and monetary policies and various other factors beyond our control that could lead to inflation. We are unable to predict the extent that price levels might be impacted in future periods by the current state of the economies in the countries in which we operate.
Current wording
We are subject to inflationary pressures with respect to labor, programming and other costs. While we attempt to increase our revenue to offset increases in costs, there is no assurance that we will be able to do so. Therefore, costs could rise faster than associated revenue, thereby resulting in a negative impact on our operating results, cash flows and liquidity. The economic environment in the respective countries in which we operate is a function of government, economic, fiscal and monetary policies and various other factors beyond our control that could lead to inflation. We are unable to predict the extent that price levels might be impacted in future periods by the current state of the economies in the countries in which we operate.
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 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.
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 September 30, 2024 was to the euro and Swiss franc, as 56.5% and 45.2% 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 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.
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 nine months ended September 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 nine months ended September 30, 2024 and 2023 at the end of this section.
Previous 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:
Current wording
Sunrise. The details of the increases in Sunrise’s revenue during the three and nine months ended September 30, 2024, as compared to the corresponding periods in 2023, are set forth below:
Previous wording
(a)The increases in residential mobile subscription revenue are primarily attributable to increases in the average number of mobile subscribers.
Current wording
(b)The decreases in residential mobile subscription revenue are primarily attributable to lower ARPU, partially offset by increases in the average number of mobile subscribers. The increases in residential mobile non-subscription revenue are primarily due to (i) increases in cancellation revenue, (ii) higher revenue associated with build-to-suit construction services and (iii) for the three-month comparison, higher revenue from handset sales.
Previous wording
(b)The increases in B2B non-subscription revenue are primarily due to higher interconnect revenue.
Current wording
(c)The increases in B2B non-subscription revenue are primarily attributable to higher interconnect revenue.
Previous 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:
Current wording
Telenet. The details of the increases in Telenet’s revenue during the three and nine months ended September 30, 2024, as compared to the corresponding periods in 2023, are set forth below:
Previous 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.
Current wording
(b)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 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:
Current wording
VM Ireland. The details of the decreases in VM Ireland’s revenue during the three and nine months ended September 30, 2024, as compared to the corresponding periods in 2023, are set forth below:
Previous 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.
Current wording
Central and Other. On an organic basis, our Central and Other revenue increased $58.3 million or 35.5% and $154.7 million or 25.2% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily due to increases related to revenue earned from (i) the sale of CPE to the VMO2 JV beginning in 2024 and (ii) the U.K. JV Services and NL JV Services.
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 $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.
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 $28.3 million and $28.0 million during the three months ended September 30, 2024 and 2023, respectively, and $88.2 million and $88.5 million during the nine months ended September 30, 2024 and 2023, respectively.
Previous 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:
Current wording
Residential revenue. The details of the decreases in our consolidated residential revenue during the three and nine months ended September 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 $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.
Current wording
On an organic basis, our consolidated residential fixed subscription revenue decreased $27.6 million or 3.7% and $51.9 million or 2.4% during the three and nine months ended September 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 $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.
Current wording
On an organic basis, our consolidated residential fixed non-subscription revenue decreased $6.5 million or 35.5% and $12.2 million or 24.0% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily due to decreases at Sunrise.
Previous 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.
Current wording
B2B revenue. On an organic basis, our consolidated B2B subscription revenue increased $1.7 million or 1.2% and $12.8 million or 3.1% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023, primarily attributable to increases at Telenet.
Previous 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;
Current wording
•Increases in costs of $25.3 million and $97.6 million, respectively, at Central and Other related to the sale of CPE to the VMO2 JV beginning in 2024;
Previous 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
Current wording
•For the nine-month comparison, an increase in costs of $48.1 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 16 to our condensed consolidated financial statements;
Previous 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.
Current wording
•Decreases in programming and copyright costs of $9.3 million or 5.8% and $17.9 million or 3.5%, respectively, primarily attributable to lower costs for certain content at Telenet and VM Ireland; and
Previous 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:
Current wording
Our other operating expenses (exclusive of share-based compensation expense) increased $5.4 million or 1.8% and $2.1 million or 0.2% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023. On an organic basis, our other operating expenses increased (decreased) $1.1 million or 0.4% and ($8.9 million) or (1.0%), respectively. These changes include the following factors:
Previous 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;
Current wording
•Decreases in customer service costs of $8.9 million or 22.4% and $16.8 million or 14.7%, respectively, primarily related to lower call center costs at Sunrise and Telenet;
Previous wording
•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 wording
•For the nine-month comparison, 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;
Previous 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.
Current wording
•Decreases in business service costs of $4.9 million or 10.6% and $10.4 million or 7.0%, respectively, primarily due to (i) lower consulting costs at Central and Other and (ii) lower energy costs, as decreases at Telenet were only partially offset by increases at Sunrise;
Previous 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;
Current wording
•Decreases in personnel costs of $4.5 million or 4.8% and $9.5 million or 3.4%, respectively, primarily due to the net effect of (i) lower staffing levels, primarily at Central and Other and Sunrise, and (ii) higher average costs per employee, primarily at Telenet and Central and Other;
Previous wording
•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 wording
•Increases in outsourced labor costs of $2.4 million or 8.5% and $8.7 million or 10.1%, respectively, primarily associated with customer-facing activities at Telenet;
Previous 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:
Current wording
Our SG&A expenses (exclusive of share-based compensation expense) increased (decreased) ($0.6 million) or (0.2%) and $37.7 million or 3.4% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023. On an organic basis, our SG&A expenses increased (decreased) ($5.9 million) and (1.6%) or $22.5 million or 2.0%, respectively. These changes include the following factors:
Previous 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;
Current wording
•Increases in core network and information technology-related costs of $1.6 million or 5.7% and $9.7 million or 11.4%, respectively, primarily at Sunrise; and
Previous wording
(b)The 2024 amounts include share-based compensation expense related to the 2024 PSUs.
Current wording
(c)The 2024 amounts include share-based compensation expense related to the 2024 PSUs.
Previous 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.
Current wording
(d)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 $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.
Current wording
Our depreciation and amortization expense was $500.6 million and $1,512.7 million for the three and nine months ended September 30, 2024, respectively, and $584.0 million and $1,681.8 million for the three and nine months ended September 30, 2023, respectively. Excluding the effects of FX, depreciation and amortization expense decreased $89.5 million or 15.3% and $182.7 million or 10.9% during the three and nine months ended September 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, Telenet and Sunrise, (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 $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.
Current wording
We recognized impairment, restructuring and other operating items, net, of $13.5 million and $51.7 million during the three and nine months ended September 30, 2024, respectively, and ($13.7 million) and $6.6 million during the three and nine months ended September 30, 2023, respectively.
Previous 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.
Current wording
The amounts for the 2024 periods include (i) restructuring costs of $5.4 million and $24.6 million, respectively, primarily at Central and Other and Telenet, and (ii) a provision for legal contingencies of $17.5 million at Central and Other during the first quarter of 2024.
Previous wording
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 wording
The amounts for the 2023 periods include (i) direct acquisition and disposition costs of $4.2 million and $25.7 million, respectively, primarily at Telenet and Central and Other, (ii) restructuring costs of $3.3 million and $24.4 million, respectively, primarily at Sunrise and Telenet, (iii) a $21.3 million credit to abandoned lease expense at Sunrise during the second quarter of 2023 and (iv) a $19.2 million credit related to a settlement at Sunrise during the third quarter of 2023.
Previous 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.
Current wording
We recognized interest expense of $251.2 million and $756.2 million during the three and nine months ended September 30, 2024, respectively, and $241.4 million and $656.0 million during the three and nine months ended September 30, 2023, respectively. Excluding the effects of FX, interest expense increased $7.1 million or 2.9% and $97.0 million or 14.8% during the three and nine months ended September 30, 2024, respectively, as compared to the corresponding periods in 2023. These increases are primarily attributable to (i) higher average outstanding debt balances and (ii) for the nine-month period, a higher weighted average interest rate. For additional information regarding our outstanding indebtedness, see note 9 to our condensed consolidated financial statements.
Previous wording
Realized and unrealized gains on derivative instruments, net
Current wording
Realized and unrealized gains (losses) 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 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 (losses) on derivative instruments, net, are as follows:
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The income tax expense during the three months ended September 30, 2024 differs from the expected income tax benefit of $352.6 million (based on the U.K. statutory income tax rate of 25.0%), primarily due to the net negative impact of (i) non-deductible or non-taxable foreign currency exchange results and (ii) certain permanent differences between the financial and tax accounting treatment of items associated with investments in subsidiaries and affiliates.
Rearranged previous paragraphs (1)
Previous report — wording carried 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.