Net adds slow but Liberty Global Q2 shows profit, revs rises | Major Businesses | Business | News | Rapid TV News
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With the closing of the Virgin Media O2 joint venture during the three-month period, Liberty Global is reporting a solid second quarter of the 2021 with a return to rebased revenue growth in its four core markets, driven in large part by Covid recovery in sports and advertising but also underlying organic growth.
Liberty 4KminiTV 24Aug2020
For the quarter ended 30 June 2021, Liberty reported revenue of $3106 billion and increase of 14.1% year-on-year on a reported basis and 3.4% on a rebased basis. Q2 Adjusted EBITDA was $1.253 billion, increasing 5.4% annually on a reported basis but slipping back 0.3% on a rebased basis. Q2 net earnings increased 2,318.0% YoY on a reported basis to $11.175 billion.

However, despite the rises in revenues and profits, overall Liberty’s subscriber growth slowed in Q2 2021 compared with the previous year, recording 2,400 overall in the quarter compared with 7,700 at the end of Q2 2020.

Commenting on the company’s performance during the quarter, Liberty Global CEO Mike Fries said; “With the closing of the Virgin Media O2 joint venture during the second quarter, the converged national champions in our four key markets are collectively positioned to deliver unparalleled scale, competitive strength and strategic optionality across the footprint.”

Looking at the four key markets, the merger of Virgin Media and O2 in the UK and Ireland was one of the standouts in the quarter. The division added 13,000 customer relationships through the two months and since it came into operation on 1 June, the new company added 65,000 post-paid mobile subscribers and 36,000 broadband subscribers on a pro forma basis in Q2. Reported revenue for the division was $1.101 billion, reflecting said the company the consolidated results of the UK for April and May prior to formation of the Virgin Media O2 joint venture. On a rebased basis, revenue grew 4.4% through April and May as compared to the same period of the prior year.

Virgin also increased its fixed-line customer base to 5.7 million and added almost a million mobile connections in the quarter, with more than 40% of Virgin Media O2’s broadband customers also taking a mobile contract. The business’ fixed network has now been expanded by 2.5 million premises through Project Lightning with 5G services reaching almost 200 locations and 4G capacity upgraded in 45,000 postcodes since the start of 2021. As the results were released, Virgin Media O2 announced that it was to upgrade its fixed network to full fibre to the premises (FTTP) with completion in 2028.