Following the Sunrise spinoff last year, the company still believes it is undervalued when viewed as a “conglomerate”
Liberty Global CEO Mike Fries told analysts that the company is currently working very hard on how and when it might be able to separate out the remaining operating assets from Liberty Global. The chief executive was speaking at the companies Q2 results where it posted revenue of $1.27 billion, up 20% year-on-year on a reported basis, driven primarily by growth at Telenet and its Liberty Growth portfolio. Consolidated adjusted EBITDA rose 12.7% to $335 million.
Fries highlighted ongoing efforts to unlock value through operational improvements and potential asset separations, as well as continued network investment across key markets. “We believe that over time, each one of these [operator] businesses can be tracked, spun off or listed, by the way, in multiple combinations,” he said. “And this is where I need to be careful and not to be too vague, but we believe we can complete one or more of these transactions in the next 12 to 24 months.”
He highlighted the value created by the Sunrise spin-off, noting that the Swiss operator has re-rated significantly since leaving Liberty Global. He pointed out that Sunrise, which once accounted for roughly 20% of Liberty’s proportionate EBITDA, is now trading at 8x EBITDA with an 8% dividend yield – up from 5.5x as part of Liberty. Its market capitalisation now surpasses that of Liberty Global, even though the parent retains the other 80% of the EBITDA alongside more than $15 per share in cash and growth investments.
Clearly, there is a big disconnect here, and we intend to bridge that gap,” he said. “How do we continue to unlock value? Well, the simple answer is to continue separating out the parts.”
He added: “It’s also important to say that these transactions are not dependent on any M&A, and that includes our joint venture markets…We don’t need to consolidate to get these things done.”
Mixed bag
Liberty’s Q2 results saw contrasting trends across its European operating companies impacting its overall numbers. Virgin Media O2 (VMO2) delivered adjusted EBITDA growth in the quarter, supported by stable core revenues and ongoing cost efficiencies, despite the UK’s intensely competitive market. Broadband and postpaid mobile both recorded net losses – 51,400 and 73,600 respectively – reflecting churn and pressure from MVNOs.
Operationally, the JV pressed ahead with its fibre rollout via nexfibre, surpassing seven million full-fibre premises, and prepared for a spectrum transfer that will lift its UK share to around 30%. Customer service improvements and enhanced propositions, including multi-SIM support for Volt and data rollover on O2 premium plans, aim to strengthen retention.
VodafoneZiggo and Telenet
VodafoneZiggo showed early signs of commercial improvement under its new strategic plan. Broadband losses slowed to 27,500 in Q2, aided by churn reduction following front book repricing and proactive migrations. Postpaid losses were limited to 8,400, largely in low-margin B2B. The quarter featured the launch of a WiFi Guarantee marketing push and the signing of a fibre wholesale deal with Delta Fiber to reach 600,000 additional homes. Adjusted EBITDA declined 9.1% year-on-year on a rebased basis as higher programming and marketing costs offset efficiency gains.
Belgium’s Telenet returned to broadband and postpaid growth, adding 900 broadband and 1,300 postpaid subscribers in Q2. The April price adjustment (~3%) lifted fixed ARPU and supported revenue growth. BASE continued to underpin mobile performance in a competitive market, while fibre deployment progressed, with an agreement in principle for a major FTTH sharing initiative with Proximus and Wyre. Adjusted EBITDA rose 2.8% on a rebased basis, and the operator raised its full-year outlook to a low single-digit EBITDAaL decline.
Ireland under pressure
Virgin Media Ireland remained under pressure from intense market competition, posting broadband net losses of 3,900 in Q2 and a 14.1% rebased decline in adjusted EBITDA. Postpaid mobile additions of 2,200 reflected traction from new mobile offers. Fibre expansion remained the strategic priority, with 550,000 premises upgraded and 80% coverage targeted by end-2025. A new wholesale deal with Digiweb will help with network monetisation.
