Strong demand for connectivity but Liberty Global takes revs hit in Q3 | Major Businesses | Business | News | Rapid TV News
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In what marked the company’s first full quarter of operations for all four of its converged national businesses, worldwide media firm Liberty Global has reported a challenging third quarter of 2021 with revenues and net income down on a yearly basis.
Liberty 23Sep2021
For the quarter ended 30 September 2021, the group reported Q3 revenue of $1.901 billion, tumbling 33.2% year-on-year on a reported basis and up 0.7% on a rebased basis. Losses from continuing operations increased 132.0% YoY on a reported basis to $315.6 million while Q3 adjusted EBITDA decreased 34.8% YoY on a reported basis but increased 1.0% on a rebased basis to $758.5 million.

Having seen a strong third quarter of 2020 where it put on 27,300 organic customer additions, Liberty Global reported net losses of 5,400 for the third quarter of this year. However, for the year to date, the firm said that it has 24,600 organic customer additions, a 339.3% yearly rise.

Among the highlights for the company in the quarter was the performance of Virgin Media O2 in the UK which launched its first joint bundles since merging, expanding its gigabit footprint and driving revenue growth with its first converged product, VOLT, going live in the market. just four months after company formed. Contract mobile net adds were 108,000 in Q3 and Q3 broadband net adds totalled 42,000. This reflected, said Liberty Global, the continued demand for faster broadband speeds, with a sixth consecutive quarter of growth in both areas for the Project Lightning gigabit cable offer and the existing footprint. The company’s gigabit footprint reached 12.8 million premises at the end of the quarter and the company said it was on track to provide network-wide coverage of its 1.1Gbps speeds by the end of 2021.

Virgin Media O2 revenue increased 0.8% YoY on an FX neutral pro forma basis10 to $3,614.0 million in Q3, primarily driven by an increase in handset revenue fuelled by increased upgrade activity following new hardware launches from Samsung and Apple, offset by lower service revenue due to the continued impact of a change in the distribution channel mix.

Commenting on the Q3 results, Liberty Global CEO Mike Fries said: “Q3 marked the first full quarter of operations for all four of our converged national champions, as we continue demonstrating strong commercial momentum across the group. Operationally, we added 266,0001 aggregate broadband and post-paid mobile subscribers during the quarter driven by continued execution of our convergence strategies… During the quarter we continued advancing our network development strategies in all of our operations…We also continued making solid progress in terms of our Ventures investments and running our levered equity strategy for value creation.”