Liberty Global plc today announced its three months (“Q4”) and full year (“FY”) 2018 financial results. Our operations in Germany, Hungary, Romania and the Czech Republic, along with our DTH operations and our former operations in Austria (collectively, the “Discontinued European Operations”) and the former LiLAC Group have been accounted for as discontinued operations. Unless otherwise indicated, the information in this release relates only to our continuing operations.
As used in this release, the term “Full Company” includes our continuing operations and the Discontinued European Operations. For additional information, including the reasons that we present selected information on a Full Company basis, see note 3. In addition, on January 1, 2018, we adopted new revenue recognition rules on a prospective basis and a new presentation of certain components of our pension expense on a retrospective basis. All information in this release is presented on a comparable basis with respect to both of these accounting changes. For additional information concerning our discontinued operations and these accounting changes, see notes 4 and 5.
CEO Mike Fries stated, “The past fourteen months have been transformational for Liberty Global. After two decades of buying, building and growing world-class cable operations in Europe, we have announced or completed transactions in six of our twelve markets at premium valuations. Together these deals represent an aggregate enterprise value of $31 billion and net cash proceeds to the company, when completed, of $16 billion. It has long been our ambition to create or enable national champions, and we couldn’t be more proud of these fixed-mobile
combinations, which will challenge incumbents, accelerate innovation and benefit customers for years to come.
“After these transactions, in addition to a significant cash balance, a $2 billion
strategic investment portfolio and over $2billion in net tax assets, we will continue to be the largest cable operator in the U.K., Ireland, Belgium, Poland and Slovakia.
Together our operations serve 23 million RGUs and generate $11 billion of annual
revenue. We also serve another 10 million RGUs and generate over $4 billion of
annual revenue in The Netherlands through our 50/50 JV with Vodafone. Each of these businesses is entering a new period of reduced capital intensity and meaningful operating free cash flow (“OFCF”) growth. Also, in connection with the changing scope of our business, we initiated a broader reorganization plan in January, which will result in a leaner operating structure. As we move through the year, we will have further updates on this initiative.”